United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-9378
ENEX RESOURCES CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 93-0747806
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes x No
Transitional Small Business Disclosure Format (Check one):
Yes No x
(APPLICABLE ONLY TO CORPORATE ISSUERS)
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at August 11, 1997
Common Stock, $.05 par value 1,408,552
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1997 1996
------------- -------------
CURRENT ASSETS:
<S> <C> <C>
Cash and certificates of deposit $ 3,553,423 $ 1,862,281
Accounts receivable:
Managed limited partnerships 332,213 522,283
Oil and gas sales 1,447,732 1,242,923
Joint owner 190,691 178,291
Deferred tax asset - current portion 118,198 105,464
Prepaid expenses and other current assets 410,588 806,443
------------- -------------
Total current assets 6,052,845 4,717,685
------------- -------------
PROPERTY:
Oil and gas properties (successful efforts
accounting method) Proved mineral interests
and related equipment and facilities:
Direct ownership 6,502,789 6,940,811
Derived from investment in managed
limited partnerships 9,267,511 9,130,403
Furniture, fixtures and other (at cost) 366,291 350,019
------------- -------------
Total property 16,136,591 16,421,233
Less accumulated depreciation,
depletion and amortization 3,869,882 7,988,452
------------- -------------
Property, net 12,266,709 8,432,781
------------- -------------
OTHER ASSETS:
Receivable from managed limited partnerships - 1,153,267
Deferred tax asset 641,794 635,947
Other accounts receivable - 131,004
Deferred organization expenses and other - 4,694
------------- -------------
Total other assets 641,794 1,924,912
------------- -------------
TOTAL $ 18,961,348 $ 15,075,378
============= =============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------
I-1
<PAGE>
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1996
-------------- -------------
CURRENT LIABILITIES:
<S> <C> <C>
Accounts payable $ 583,343 $ 748,283
-------------- -------------
Total current liabilities 583,343 748,283
-------------- -------------
COMMITMENTS AND
CONTINGENT LIABILITIES - -
-------------- -------------
TOTAL LIABILITIES 583,343 748,283
-------------- -------------
MINORITY INTEREST 5,101,062 1,564,058
-------------- -------------
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
5,000,000 shares authorized;
no shares issued
Common stock, $.05 par value;
10,000,000 shares authorized;
1,684,412 shares issued at June 30, 1997
and at December 31, 1996 83,668 83,668
Additional paid-in capital 10,128,300 10,128,300
Retained earnings 5,346,190 4,374,710
Less cost of treasury stock;
371,340 shares at June 30, 1997 and
326,540 shares at December 31, 1996 (2,281,215) (1,823,641)
-------------- -------------
TOTAL STOCKHOLDERS' EQUITY 13,276,943 12,763,037
-------------- -------------
TOTAL $ 18,961,348 $ 13,511,320
============== =============
</TABLE>
See accompanying notes to consolidated financial statements.
- ------------------------------------------------------------------------------
I-2
<PAGE>
ENEX RESOURCES CORPORATION
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) QUARTER ENDED SIX MONTHS ENDED
-------------------------------- ----------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
--------------- --------------- ----------- -------------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales $ 1,492,704 $ 1,699,384 $3,192,034 $ 3,299,287
Gas plant sales 212,113 225,162 559,899 437,737
Other revenues 25,350 120,236 288,376 189,766
- ----------- -------------
--------------- --------------
Total revenues 1,730,167 2,044,782 4,040,309 3,926,790
--------------- --------------- ----------- -------------
EXPENSES:
General and administrative 273,774 410,844 690,554 888,087
Lease operating and other expenses 597,296 594,427 1,168,778 1,180,428
Gas purchases and plant operating expenses 141,497 188,135 421,437 347,444
Production taxes 79,102 99,172 181,332 190,871
Depreciation, depletion and amortization 193,157 421,808 429,050 685,259
Impairment of assets - - - 3,909,986
Interest expense - 1,639 - 12,242
- ----------- -------------
--------------- --------------
Total expenses 1,284,826 1,716,025 2,891,151 7,214,317
--------------- --------------- ----------- -------------
Income (loss) before minority interest
and income taxes 445,341 328,757 1,149,158 (3,287,527)
--------------- --------------- ----------- -------------
MINORITY INTEREST (12,115) (7,359) (196,259) 11,786
- ----------- -------------
--------------- --------------
Income (loss) before income taxes 433,226 321,398 952,899 (3,275,741)
INCOME TAX EXPENSE (CREDIT):
Deferred (36,602) (22,645) (18,581) (49,247)
--------------- - ----------- -------------
--------------
NET INCOME (LOSS) $ 469,828 $ 344,043 $ 971,480 $(3,226,494)
=============== =============== =========== ==============
PRIMARY EARNINGS PER SHARE $ 0.34 $ 0.24 $ 0.69 $ (2.36)
=============== =============== =========== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
- -----------------------------------------------------------------------------
I-3
<PAGE>
ENEX RESOURCES CORPORATION
STATEMENTS OF CASH FLOWS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) SIX MONTHS ENDED
-----------------------------------
June 30, June 30,
1997 1996
--------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C> <C>
Net income (loss) $ 971,480 $ (3,226,494) $
--------------- -------------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 429,050 685,259
Impairment of assets - 3,909,986
Gain on sale of property (243,246) (148,436)
Noncash expense from stock purchase plan - 177,138
Increase in deferred tax asset (18,581) (49,247)
Minority interest share of net income after distributions (263,829) (187,626)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 970,935 370,503
(Increase) in prepaid expenses & other assets (80,132) (179,595)
(Decrease) in accounts payable (486,409) (386,154)
--------------- -
------------
Net cash provided by operating activities 1,279,268 965,334
--------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 445,940 217,950
Property additions (125,804) (580,993)
Reduction in notes receivable from
managed limited partnerships - 11,149
--------------- -
------------
Net cash provided (used) by investing activities 320,136 (351,894)
--------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt - (850,000)
Purchase of treasury stock (457,575) (7,900)
Proceeds from exercise of stock options - 100,000
--------------- -
------------
Net cash (used) by financing activities (457,575) (757,900)
--------------- -------------
NET INCREASE (DECREASE) IN CASH 1,141,829 (144,461)
CASH AT BEGINNING OF YEAR 1,862,281 981,213
Increase in cash from recognition of minority interest 549,313 -
--------------- -
------------
CASH AT END OF PERIOD $ 3,553,423 $ 836,752
=============== =============
</TABLE>
See accompanying notes to financial statements.
- ----------------------------------------------------------------------------
I-4
<PAGE>
ENEX RESOURCES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General - Enex Resources Corporation (the "Company") acquires interests
in producing oil and gas properties and sponsors and manages investment
limited partnerships. As of June 30, 1997, the Company served as
managing general partner for Enex Consolidated Partners, L.P., Enex Oil
& Gas Income Program IV - Series 3, and four partnerships in Enex 88-89
Income and Retirement Fund. Enex Consolidated Partners, L.P. was
formed, effective June 30, 1997, from the consolidation of 34 other
managed limited partnerships. The Company has a 4.11% revenue interest
as the general partner in addition to its proportional interest as a
limited partner of 52.63%.
Prior to the consolidation of the 34 partnerships into Enex
Consolidated Partners, L.P., the Company recorded its interests in all
of the partnerships except Enex Program I Partners, L.P. using the pro
rata basis of accounting. The Company's interest in Enex Program I
Partners, L.P. has been reflected as fully consolidated in the
accompanying financial statements. The Consolidation of Enex
Consolidated Partners, L.P. was recorded using the purchase accounting
method; as such assets are recorded at their fair market value. The
Company's interest in Enex Consolidated Partners, L.P. is shown as
fully consolidated on the accompanying balance sheet as of June 30,
1997.
The interim financial information included herein is unaudited;
however, such information reflects all adjustments (except for the
impairment of assets, discussed in note 5, all such adjustments were
normal recurring adjustments) which are, in the opinion of management,
necessary for a fair presentation of results for the interim periods.
Income Per Share - Primary and fully diluted earnings per share are
based on the weighted average number of common shares outstanding and
common stock equivalents outstanding during the respective periods.
Common share equivalents include common stock options. Common share
equivalents are not included in the "Six months ended June 30, 1996"
number of shares because they are antidilutive. The weighted average
number of shares used to compute primary earnings per common share was:
Primary
------------------------
Quarter ended June 30, 1997 1,400,551
Quarter ended June 30, 1996 1,457,355
Six months ended June 30, 1997 1,415,871
Six months ended June 30, 1996 1,366,606
I-5
<PAGE>
2. DEBT
The Company had long-term debt at December 31, 1995 totaling $850,000
from a loan from a bank under a $2.8 million revolving line of credit.
The bank loan proceeds were primarily used to purchase producing oil
and gas properties and additional interests in managed limited
partnerships. The loan bore interest at a rate of prime plus
three-quarters of one percent (3/4%) or at an average rate of 9.00%
during the second quarter of 1996 and during the first six months of
1996. Principal payments of $145,000 were made on the debt in the
second quarter of 1996. The debt was completely repaid in May 1996.
3. COMMITMENTS AND CONTINGENT LIABILITIES
As general partner, the Company is contingently liable for all debts
and actions of the managed limited partnerships. However, in
management's opinion, the existing assets of the limited partnerships
are sufficient to satisfy any such partnership indebtedness.
4. IMPAIRMENT OF ASSETS
The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standard ("SFAS") No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of," which requires certain assets to be reviewed for
impairment whenever events or circumstances indicate the carrying
amount may not be recoverable. This standard requires the evaluation of
oil and gas assets on an individual property basis versus a
company-wide basis. Prior to this pronouncement, the Company assessed
properties on an aggregate basis. Upon adoption of SFAS 121, the
Company began assessing properties on an individual basis, wherein
total capitalized costs may not exceed the property's fair market
value. The fair market value of each property was determined by H.J.
Gruy and Associates, Inc. ("Gruy"). To determine the fair market value,
Gruy estimated each property's oil and gas reserves, applied certain
assumptions regarding price and cost escalations, applied a 10%
discount factor for time and certain discount factors for risk,
location, type of ownership interest, category of reserves, operational
characteristics, and other factors. In the first quarter of 1996, the
Company implemented SFAS 121 and recognized a non-cash impairment
provision of $3,909,986 for certain oil and gas properties and other
assets due to changes in the overall market for the sale of oil and gas
and significant decreases in the projected production from certain of
the Company's oil and gas properties.
6. INCOME TAXES
The Company adopted Statement of Financial Standards (SFAS) No. 109,
"Accounting for Income Taxes," effective January 1, 1993. The Company
recognized a deferred tax credit of $36,602 and $22,645 in the second
quarter of 1997 and 1996, respectively, and $18,581 and $49,247 in the
first six months of 1997 and 1996, respectively.
I-6
<PAGE>
Deferred income taxes reflect the net tax of temporary differences
between the carrying amount of assets and liabilities for financial
reporting purposes and the amount used for income tax purposes. The tax
effects of significant items comprising the Company's net deferred tax
asset as of June 30, 1997, are as follows:
Difference between tax and book net property basis $ 309,350
Difference between basis in managed limited
partnerships for financial reporting purposes and income
tax purposes 3,927,861
Intangible drilling costs which remain capitalized for
financial reporting purposes which were deducted for
federal income tax purposes (85,485)
Timing difference from lawsuit contingency (51,471)
Allowance for bad debts not yet recognized 61,997
for income tax purposes
Net operating loss carry forward (expires 2009 - 2011) 902,333
Other, net 5,619
-----------------
Gross deferred tax asset 5,070,204
Valuation allowance (4,310,212)
-----------------
Net deferred tax asset $ 759,992
=================
The valuation allowance reserves the net deferred tax asset at June 30,
1997 due to uncertainties inherent in the oil and gas market. The
Company estimated the amount of future tax benefit to be received from
the deferred tax asset using estimated future net revenues and future
tax expenses. The remaining amount of the gross deferred tax asset is
reserved by a valuation allowance.
I-6
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
Effective June 30, 1997, thirty four of the Company's managed limited
partnerships were consolidated into Enex Consolidated Partners, L.P. This
consolidation should allow the Company to continue to reduce general and
administrative expenses.
Liquidity and Capital Resources
Cash flow provided by operating activities increased to $1,279,268 in the first
half of 1997 as compared with $965,334 in the same period of 1996. This
represents an increase of $313,934. Improved cash flows from oil and gas
properties and an increase in the collection of accounts receivable were the
primary reasons for the increase. To this cash flow from operations, proceeds
from the sale of properties added $445,940 and $217,950 in the first six months
of 1997 and 1996, respectively. The Company purchased 44,800 shares of treasury
stock for $457,575 in the first six months of 1997 as compared to 800 shares for
$7,900 in 1996. Net payments on the Company's bank line-of-credit were $850,000,
in the first six months of 1996, which completely repaid all of the Company's
debt in May, 1996. Proceeds from the exercise of stock options added $100,000 to
the cash flow in 1996.
The Company continued to purchase additional limited partnership interests and
improve oil and gas properties. In the first six months of 1997, the Company
used $125,804 to purchase interests in the Company's managed limited
partnerships and successfully drill three wells in the Dent acquisition. In the
first six months of 1996, the Company used $485,266 to purchase interests in the
Company's managed limited partnerships, and successfully drilled two wells in
the Schlensker acquisition and one well in the Dent acquisition and reworked
wells in the Speary and Binger acquisitions.
Working capital improved to $5,496,502 at June 30, 1997 versus $3,969,402 at
December 31, 1996. At June 30, 1997, the Company's current ratio was 10.38 to
1.00 and the Company had no long-term debt.
Results of Operations
The Company reported net income in the second quarter of 1997 of $469,828, or
$.34 per share, as compared to $344,043, or $.24 per share, in the second
quarter of 1996. In the first half of 1997, the reported net income of $971,480
or $.69 per share. In the first half of 1996 the Company reported a net loss of
$3,226,494 or $2.36 per share. This loss includes a $3,909,986 nonrecurring
charge due to the implementation of SFAS 121. Excluding this charge, the Company
earned $683,492 or $.50 per share. The higher net income in 1997 was
attributable to lower general and administrative costs and depletion expenses.
Oil and gas sales were $1,492,704 in the second quarter of 1997 versus
$1,699,384 in the corresponding period of 1996. This decrease of $206,680 or 12%
was due primarily to natural production declines. Oil revenues decreased by
$164,345 or 19% from $866,328 in the second
I-7
<PAGE>
quarter of 1996 to $701,983 in the second quarter of 1997. A 15% decline in oil
production reduced sales by $131,980. A 4% decrease in the average oil sales
price reduced sales by an additional $32,365. The decrease in oil production was
primarily a result of natural production declines. The decrease in the average
oil sales price corresponds with lower prices in the overall market for the sale
of oil. Gas revenues decreased by 5% or $42,335 in the second quarter from
$833,056 in 1996 to $790,721 in 1997. A 5% decline in gas production reduced
sales by $44,171. This decrease was partially offset by a 1% increase in the
average gas sales price. The decrease in gas production was primarily a result
of natural production declines, partially offset by higher production from the
Dent acquisition on which three successful wells were drilled. The slight
increase in the average gas price corresponds with slightly higher prices in the
overall market for the sale of natural gas. Gas plant sales decreased to
$212,113 in the second quarter of 1997 from $225,162 in the second quarter of
1996. This represents a decrease of $13,049 or 6%. A 7% decline in the
production of gas plant products reduced sales by $16,228. This decrease was
partially offset by a 2% increase in the average price for the sale of plant
products.
In the first half of 1997, oil and gas sales were $3,192,034 versus $3,299,287
in the first half of 1996. This represents a decrease of $107,253 or 3%. During
the first six months of 1997, oil revenues decreased by $268,375 or 16%, from
$1,670,521 in 1996 to $1,402,146 in the first half of 1997. A 19% decrease in
oil production decreased sales by $313,972. This decrease was partially offset
by a 3% increase in the average oil sales price. The decrease in oil production
was primarily due to natural production declines coupled with the sale of the
O'Neil acquisition in the first quarter of 1997. The increase in average oil
prices corresponds with higher prices in the overall market for the sale of oil.
Gas revenues increased by 10% or $161,122 from $1,628,766 in the first six
months of 1996 to $1,789,888 in the first half of 1997. A 12% increase in the
average gas sales price increased gas sales by $197,494. This increase was
partially offset by a 2% decrease in gas production. The increase in the average
gas sales price corresponds with higher prices in the overall market for the
sale of gas. The decrease in gas production was primarily a result of natural
production declines, partially offset by higher production from wells drilled on
the Sibley Field in the Dent acquisition. Gas plant sales increased to $559,899
in the first half of 1997 from $437,737 in the first half of 1996. This
represents an increase of $122,162 or 28%. A 34% increase in the average price
for the sale of plant products increased sales by $142,068. This increase was
partially offset by a 5% decrease in production of gas plant products.
Other revenues were $25,350 and $120,236 in the second quarter of 1997 and 1996,
respectively. The decrease was primarily due to the recognition of a gain from
the sale of property of $138,475 in 1996. For the first six months of 1997,
other revenues were $288,376 versus $189,766 in the first half of 1996. This
increase was primarily due to a gain from the sale of property of $237,306 in
the first quarter of 1997 as a result of the sale of the O'Neil acquisition for
$440,000.
General and administrative expenses were $273,774 in the second quarter of 1997
versus $410,844 in the second quarter of 1996. This represents a decrease of
$137,070 or 33%. General and administrative expenses decreased to $690,554 in
the first six months of 1997 as compared to $888,087 in the first half of 1996.
This represents a decrease of $197,533 or 22%. The decrease is primarily a
result of a concerted effort to reduce general and administrative expenses by
the Company's management in 1997.
I-8
<PAGE>
Lease operating and other expenses remained relatively unchanged at $597,296 in
the second quarter of 1997 as compared to $594,427.in the second quarter of
1996. In the first half of 1997, lease operating expenses were $1,168,778,
relatively unchanged from $1,180,428 in the first half of 1996.
Depletion, depreciation and amortization expense decreased from $421,808 in the
second quarter of 1996 to $193,157 in the second quarter of 1997. This
represents a decrease of $228,651 or 54%. The decreases in production, noted
above, reduced depreciation and depletion expenses by $38,560. A 50% decrease in
the depletion rate reduced depreciation and depletion expense by an additional
$190,091. Depreciation, depletion and amortization decreased from $685,259 in
the first half of 1996 to $429,050 in the first half of 1997, a decrease of
$256,209 or 37%. The decreases in production, noted above, reduced depreciation
and depletion expense by $58,937. A 31% decrease in the depletion rate reduced
depreciation and depletion expense by an additional $197,272. The decreases in
the depletion rate were primarily due to upward revisions of the oil and gas
reserves during December 1996.
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standard ("SFAS") No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," which requires
certain assets to be reviewed for impairment whenever events or circumstances
indicate the carrying amount may not be recoverable. This standard requires the
evaluation of oil and gas assets on an individual property basis versus a
company-wide basis. Prior to this pronouncement, the Company assessed properties
on an aggregate basis. Upon adoption of SFAS 121, the Company began assessing
properties on an individual basis, wherein total capitalized costs may not
exceed the property's fair market value. The fair market value of each property
was determined by H.J. Gruy and Associates, Inc. ("Gruy"). To determine the fair
market value, Gruy estimated each property's oil and gas reserves, applied
certain assumptions regarding price and cost escalations, applied a 10% discount
factor for time and certain discount factors for risk, location, type of
ownership interest, category of reserves, operational characteristics, and other
factors. In the first quarter of 1996, the Company implemented SFAS 121 and
recognized a non-cash impairment provision of $3,909,986 for certain oil and gas
properties and other assets due to changes in the overall market for the sale of
oil and gas and significant decreases in the projected production from certain
of the Company's oil and gas properties.
In the first six months of 1997, the Company recorded an income tax credit of
$18,581 as compared with a credit of $49,247 recognized in 1996. These credits
are primarily a result of the Company's continued utilization of its deferred
tax asset which resulted from the acquisition of properties with a higher tax
basis. At June 30, 1997, the Company had a substantial net deferred tax asset of
$5,070,204. Due to uncertainties inherent in the oil and gas market, a valuation
allowance reserved all but $759,992 of the net deferred tax asset.
Future Outlook
The completion of the consolidation of thirty-four partnerships simplified the
Company's structure and will allow the Company to further reduce overhead
charges. The Company has reinstituted its treasury stock repurchase program and
will continue to purchase stock in the open market. The Company's board of
directors has authorized the purchase of up to 50,000 shares of its common
I-9
<PAGE>
stock. We continue to evaluate potential joint ventures or business combinations
in order to maximize shareholder value.
Higher earnings and cash flow has allowed the Company to continue to strengthen
its financial position. The current ratio improved to 10.38 with virtually no
debt. Cash flow will continue to be used to acquire additional producing
properties. The Company has evaluated several drilling locations for further
development. While the Company has no other material commitments for capital, a
line of credit is maintained which allows the Company to respond to acquisition
and investment opportunities.
In June 1996, the Company declared a $.15 per share dividend, which was paid to
shareholders on July 13, 1997. This payment continues the Company's regular
semi-annual dividend payment.
I-10
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(2) Not Applicable
(4) (a) Articles Fourth, Sixth, Seventh,
Fourteenth, Fifteenth, Seventeenth and
Twentieth of the Company's Certificate of
Incorporation and Article II of the
Company's By-Laws. Incorporated by reference
to the Company's Annual Report on Form
10-KSB for the fiscal year ended December
31, 1992, where the same appeared as part of
Exhibits 3(a) and 3(b).
(b) Form of Rights Agreement dated as of
September 4, 1990 between the Company's
predecessor-in-interest, Enex Resources
Corporation, a Colorado corporation (the
"Predecessor") and American Securities
Transfer, Incorporated as Rights Agent,
which includes as exhibits thereto the Form
of Rights Certificate and the Summary of
Rights to Purchase Common Stock.
Incorporated by reference to the
Predecessor's Current Report on Form 8-K,
dated as of September 4, 1990, where the
same appeared as Exhibit 4.
(11) Not Applicable
II-1
<PAGE>
(15) Not Applicable
(18) Not Applicable
(19) Not Applicable
(20) Not Applicable
(23) Not Applicable
(24) Not Applicable
(25) Not Applicable
(28) Not Applicable
(b) Reports on Form 8-K
The Company filed no reports on Form 8-K during the quarter
ended June 30, 1997.
II-2
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 11
Enex Resources Corporation
Statement re: Computation of Per Share Earnings For the Six Months Ended For the Six Months Ended
June 30, 1997 June 30,1996
--------------------------------- ---------------------------------
Primary Fully-diluted Primary Fully-diluted
Earnings per Earnings per (Loss) per (Loss) per
Share Share Share Share
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
Net Income $971,480 $971,480 ($3,226,494) ($3,226,494)
---------------- --------------- --------------- ----------------
Divided By:
Weighted average shares 1,327,838 1,367,109 1,322,025 1,322,025
Plus: Common Stock Equivalents - - - -
---------------- --------------- --------------- ----------------
(for stock options - treasury stock method)
Adjusted weighted average shares 1,327,838 1,367,109 1,322,025 1,322,025
---------------- --------------- --------------- ----------------
Earnings per Share $0.73 $0.71 ($2.44) ($2.44)
================ =============== =============== ================
Enex Resources Corporation
Statement re: Computation of Per Share Earnings For the Quarter Ended For the Quarter Ended
June 30, 1997 June 30, 1997
--------------------------------- ---------------------------------
Primary Fully-diluted Primary Fully-diluted
Earnings per Earnings per Earnings per Earnings per
Share Share Share Share
---------------- --------------- --------------- ----------------
Net Income $469,828 $469,828 $344,043 $344,043
---------------- --------------- --------------- ----------------
Divided By:
Weighted average shares 1,312,838 1,312,838 1,372,706 1,372,706
Plus: Common Stock Equivalents 87,713 87,713 84,649 84,649
---------------- --------------- --------------- ----------------
(for stock options - treasury stock method)
Adjusted weighted average shares 1,400,551 1,400,551 1,457,355 1,457,355
---------------- --------------- --------------- ----------------
Earnings per Share $0.34 $0.34 $0.24 $0.24
================ =============== =============== ================
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has this report to be signed on its behalf by the undersigned
thereunto duly authorized.
ENEX RESOURCES CORPORATION
(Registrant)
By: /s/ R. E. Densford
--------------
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
August 13, 1997 By: /s/ James A. Klein
--------------
James A. Klein
Controller and Chief
Accounting Officer
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<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000314864
<NAME> Enex Resources Corporation
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> jun-30-1997
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0
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