<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED MARCH 31, 1997 COMMISSION FILE NUMBER 0-5426
THE WISER OIL COMPANY
A DELAWARE CORPORATION
I.R.S. EMPLOYER IDENTIFICATION NO. 55-0522128
8115 PRESTON ROAD, SUITE 400
DALLAS, TEXAS 75225
TELEPHONE (214) 265-0080
Former name, former address and former fiscal year, if changed since last
report. NONE
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.
x
--- ---
Yes No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
Class Outstanding at March 31, 1997
------------- -----------------------------
$3 par value 8,948,840
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<PAGE>
THE WISER OIL COMPANY
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The consolidated condensed financial statements included herein have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. The financial
statements reflect all adjustments which are, in the opinion of management,
necessary to fairly present such information. Although the Company believes
that the disclosures are adequate to make the information presented not
misleading, certain information and footnote disclosures, including
significant accounting policies, normally included in financial statements
prepared in accordance with generally accepted accounting principles have
been condensed or omitted pursuant to such rules and regulations. It is
suggested that these condensed financial statements be read in conjunction
with the financial statements and the notes thereto included in the
Company's latest annual report on Form 10-K.
2
<PAGE>
THE WISER OIL COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
(000's) except share data 1997 1996
---- ----
<S> <C> <C>
Assets
Current Assets:
Cash and cash equivalents $ 2,116 $ 5,870
Accounts receivable 13,460 14,091
Inventories 1,512 1,289
Prepaid expenses 1,455 473
--------- -----------
Total Current Assets 18,543 21,723
--------- -----------
Marketable Securities 5,748 7,176
Property, Plant and Equipment, at cost:
Oil and gas properties (successful 317,472 306,716
efforts method)
Other properties 5,601 4,974
--------- -----------
323,073 311,690
Accumulated depreciation, depletion (137,730) (131,972)
and amortization
--------- -----------
Net Property, Plant and Equipment 185,343 179,718
Other Assets 148 -
--------- -----------
$ 209,782 $ 208,617
========= ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 11,359 $ 14,996
Accrued income taxes 2,220 1,697
Accrued liabilities 1,373 1,537
--------- -----------
Total current liabilities 14,952 18,230
--------- -----------
Long Term Debt 76,908 78,654
Deferred Benefit Cost 1,619 1,496
Deferred Income Taxes 11,879 10,975
Stockholders' Equity:
Common stock - $3 par value
20,000,000 shares authorized;
9,115,572 shares issued;
8,948,840 and 8,939,368 27,375 27,347
shares outstanding
at March 31, 1997 and December
31, 1996, respectively
Paid-in capital 3,194 3,078
Retained earnings 72,258 66,385
Marketable securities valuation 3,462 4,328
adjustment
Foreign currency translation 864 853
Treasury stock; 176,204 shares, at (2,729) (2,729)
cost
--------- -----------
Total stockholders' equity 104,424 99,262
--------- -----------
$ 209,782 $ 208,617
========= ===========
</TABLE>
The notes to financial statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996 are an integral part of these
financial statements.
3
<PAGE>
THE WISER OIL COMPANY
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
(000's except per share data) 1997 1996
---- ----
Revenues:
<S> <C> <C>
Oil and gas sales $ 23,062 $ 16,233
Dividends and interest 121 212
Marketable security sales gains 1,813 2,005
Other 579 117
-------- --------
25,575 18,567
-------- --------
Costs and Expenses:
Production and operating 6,802 5,623
Purchased natural gas 513 353
Depreciation, depletion and 5,767 4,954
amortization
Exploration 621 1,266
General and administrative 2,378 2,795
Interest expense 1,264 1,360
-------- --------
17,345 16,351
-------- --------
Income Before Income Taxes 8,230 2,216
Income Tax Expense 2,089 705
-------- --------
NET INCOME 6,141 1,511
Retained Earnings, beginning of year 66,385 61,030
Dividends Paid (268) (268)
-------- --------
Retained Earnings, end of year $ 72,258 $ 62,273
======== ========
Average Outstanding Shares 8,949 8,939
======== ========
Earnings Per Share $ .69 $ .17
======== ========
Cash Dividends Per Share $ .03 $ .03
======== ========
</TABLE>
The notes to financial statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996 are an integral part of these
financial statements.
4
<PAGE>
THE WISER OIL COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
(000's) 1997 1996
---- ----
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 6,141 $ 1,511
Adjustments to reconcile net income to
operating cash flows:
Depreciation, depletion and 5,767 4,954
amortization
Deferred income taxes 1,350 231
Marketable securities & property sale (2,283) (2,044)
gains
Foreign currency translation 11 (13)
Property abandonments 245 1,022
Other Changes -
Accounts receivable 631 (742)
Inventories (223) 100
Prepaid expenses (982) (104)
Other assets (148) 34
Accounts payable (3,637) 401
Accrued income taxes 523 (279)
Accrued liabilities (164) 176
Deferred benefits cost 123 124
--------- --------
Operating Cash Flows 7,354 5,371
--------- --------
Cash Flows From Investing Activities:
Additions to property, plant and (12,725) (8,926)
equipment
Proceeds from sales of property, 1,558 51
plant and equipment
Proceeds from marketable security 1,929 2,178
sales
--------- --------
Investing Cash Flows (9,238) (6,697)
--------- --------
Cash Flows From Financing Activities:
Long term debt issued 22,163 10,122
Payments on long term debt and other (23,909) (7,165)
liabilities
Common stock issued 144 -
Dividends paid (268) (268)
--------- --------
Financing Cash Flows (1,870) 2,689
--------- --------
Net Increase (Decrease) In Cash (3,754) 1,363
Cash and Cash Equivalents, beginning of 5,870 1,397
year
--------- --------
Cash and Cash Equivalents, end of year $ 2,116 $ 2,760
========= ========
</TABLE>
The notes to financial statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996 are an integral part of these
financial statements
5
<PAGE>
THE WISER OIL COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
COMPARISON OF QUARTER ENDED MARCH 31, 1997 TO QUARTER ENDED MARCH 31, 1996
Revenues for the first quarter of 1997 increased $7.0 million or 38% over the
first quarter of 1996, primarily as a result of higher oil and gas production
and prices. Net production for the first quarter of 1997 increased 115,000 BOE
or 10% over the first quarter of 1996 to 1,299 MBOE. The increase in net
production was attributable primarily to higher oil production from the
Maljamar properties in New Mexico as a result of continued development
drilling. The average price received for oil during the first quarter of 1997
increased $1.97 per Bbl or 11% over the first quarter of 1996; the average
price received for natural gas during the first quarter of 1997 increased $0.96
per Mcf or 57% over the first quarter of 1996; the average price received for
NGLs during the first quarter of 1997 increased $2.55 per Bbl or 20% over the
first quarter of 1996. Adjustments to oil and gas sales from the Company's
hedging activities resulted in a reduction of $1.0 million in oil and gas
revenues during the first quarter of 1997 as compared to a reduction of $0.9
million during the first quarter of 1996. The Company recognized a pretax gain
of $1.8 million from the sale of marketable securities during the first quarter
of 1997 compared to a pretax gain of $2.0 million in the first quarter of 1996.
The Company plans to liquidate its remaining portfolio of marketable securities
during 1997.
Production and operating expense for the first quarter of 1997 increased $1.2
million or 21% over the first quarter of 1996. The increase was due primarily
to additional development wells completed at the Maljamar properties and higher
production taxes associated with higher oil and gas prices received during the
first quarter of 1997. On a BOE basis (excluding 168 MMcf and 134 MMcf of
natural gas purchased for resale during the first quarter of 1997 and 1996,
respectively), production and operating expense increased to $5.35 per BOE or
10% during the first quarter of 1997 from $4.84 per BOE during the first
quarter of 1996. Depreciation, depletion and amortization for the first quarter
of 1997 increased $0.8 million or 16% over the first quarter of 1996, primarily
as a result of higher production volumes. Exploration expense for the first
quarter of 1997 decreased $0.6 million or 51% as compared to the first quarter
of 1996, primarily as a result of lower dry hole expense resulting from reduced
exploratory drilling activity in Canada. General and administrative expense
during the first quarter of 1997 decreased $0.4 million or 15% as compared to
the first quarter of 1996, primarily as a result of higher legal fees incurred
in the first quarter of 1996 in connection with a lawsuit won by the Company.
The effective income tax rate for the first quarter of 1997 was 25% compared to
32% for the first quarter of 1996, due to the inclusion of Canadian tax losses
beginning January 1, 1997 as a result of a corporate restructuring of the
Company's Canadian operating subsidiary.
The Company realized net income of $6.1 million and earnings per share of
$0.69 during the first quarter of 1997, compared to net income of $1.5 million
and earnings per share of $0.17 during the first quarter of 1996. The Company's
Canadian operations incurred a net loss of $0.9 million during the first
quarter of 1997, compared to a net loss of $1.0 million during the first
quarter of 1996.
Additions to property, plant and equipment were $12.7 million in the first
quarter of 1997 (including $1.0 million of costs incurred in connection with
exploratory drilling in progress on the South Lakeside prospect in Louisiana)
compared to $8.9 million for the first quarter of 1996. The increase was due
primarily to the addition of secondary recovery facilities at the Maljamar
properties and the acquisition of unproved leasehold acreage.
On March 10, 1997, the Company borrowed $23.9 million under the Credit
Agreement to pay in full its outstanding indebtedness under the Maljamar Credit
Facility and terminated such facility. The Company reduced its total long-term
debt by $1.7 million during the first quarter of 1997 compared to an increase
in total long-term debt of $3.0 million during the first quarter of 1996.
6
<PAGE>
THE WISER OIL COMPANY
COMPARISON OF QUARTER ENDED MARCH 31, 1997 TO QUARTER ENDED MARCH 31, 1996
(continued)
NOTES TO FINANCIAL STATEMENTS - See notes to financial statements included in
the Company's Annual Report on Form 10-K for the year ended December 31, 1996.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
--------
The information required by this Item 6 (a) is set forth in the Index
to Exhibits accompanying this quarterly report and is incorporated
herein by reference.
(b) Reports on Form 8-K
-------------------
None
7
<PAGE>
THE WISER OIL COMPANY
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE WISER OIL COMPANY
____________________________________
(Registrant)
Date: May 6, 1997 /s/ Andrew J. Shoup, Jr.
------------------------------------
Andrew J. Shoup, Jr.
President and
Chief Executive Officer
Date: May 6, 1997 /s/ Lawrence J. Finn
-------------------------------------
Lawrence J. Finn
Vice President, Finance and
Chief Financial Officer
8
<PAGE>
THE WISER OIL COMPANY
INDEX TO EXHIBITS
Exhibit
Number Exhibit
------ -------
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM QUARTERLY
REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,116
<SECURITIES> 5,748
<RECEIVABLES> 13,460
<ALLOWANCES> 0
<INVENTORY> 1,512
<CURRENT-ASSETS> 18,543
<PP&E> 323,073
<DEPRECIATION> 137,730
<TOTAL-ASSETS> 209,782
<CURRENT-LIABILITIES> 14,952
<BONDS> 0
0
0
<COMMON> 27,375
<OTHER-SE> 77,049
<TOTAL-LIABILITY-AND-EQUITY> 209,782
<SALES> 23,062
<TOTAL-REVENUES> 25,575
<CGS> 7,315
<TOTAL-COSTS> 17,345
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,264
<INCOME-PRETAX> 8,230
<INCOME-TAX> 2,089
<INCOME-CONTINUING> 6,141
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,141
<EPS-PRIMARY> .69
<EPS-DILUTED> .69
</TABLE>
