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 September 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 November 13, 1997
Common Stock, $.05 par value 1,344,452
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1997 1996
--------------- ------------
CURRENT ASSETS:
<S> <C> <C>
Cash and certificates of deposit $ 3,985,784 $ 1,862,281
Accounts receivable:
Managed limited partnerships 298,328 522,283
Oil and gas sales 1,613,159 1,242,923
Joint owner 96,114 178,291
Deferred tax asset - current portion 157,070 105,464
Prepaid expenses and other current assets 355,143 806,443
--------------- ------------
Total current assets 6,505,598 4,717,685
--------------- ------------
PROPERTY:
Oil and gas properties (successful efforts
accounting method) Proved mineral interests
and related equipment and facilities:
Direct ownership 6,509,419 6,940,811
Derived from investment in managed
limited partnerships 9,814,698 9,130,403
Furniture, fixtures and other (at cost) 366,291 350,019
--------------- ------------
Total property 16,690,408 16,421,233
Less accumulated depreciation,
depletion and amortization 4,227,727 7,988,452
--------------- ------------
Property, net 12,462,681 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 $ 19,610,073 $15,075,378
=============== ============
</TABLE>
See accompanying notes to financial statements.
- -------------------------------------------------------------------------------
I-1
<PAGE>
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1996
--------------- ---------------
CURRENT LIABILITIES:
<S> <C> <C>
Accounts payable $ 313,256 $ 748,283
COMMITMENTS AND
CONTINGENT LIABILITIES - -
--------------- ---------------
TOTAL LIABILITIES 313,256 748,283
--------------- ---------------
MINORITY INTEREST 5,497,906 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;
1,794,912 shares issued at September 30, 1997
and 1,684,412 shares at December 31, 1996 89,746 84,221
Additional paid-in capital 10,520,972 10,127,747
Retained earnings 5,655,342 4,374,710
Less cost of treasury stock;
388,120 shares at September 30, 1997 and
326,540 shares at December 31, 1996 (2,467,149) (1,823,641)
--------------- ---------------
TOTAL STOCKHOLDERS' EQUITY 13,798,911 12,763,037
--------------- ---------------
TOTAL $ 19,610,073 $ 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 NINE MONTHS ENDED
---------------------------- -------------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------- ------------- ---------------- --------------
REVENUES:
<S> <C> <C> <C> <C>
Oil and gas sales $ 2,867,931 $ 1,925,387 $ 6,059,965 $ 5,219,477
Gas plant sales 187,731 220,949 747,630 656,836
Other revenues 255,256 55,850 543,632 233,035
------------- ------------- ---------------- --------------
Total revenues 3,310,918 2,202,186 7,351,227 6,109,348
------------- ------------- ---------------- --------------
EXPENSES:
General and administrative 396,853 375,166 1,087,407 1,261,311
Lease operating and other expenses 1,141,603 568,832 2,310,381 1,747,642
Gas purchases and plant operating expenses 172,406 169,576 593,843 515,557
Production taxes 162,087 113,222 343,419 303,779
Depreciation, depletion and amortization 455,383 440,960 884,433 1,124,815
Impairment of assets - - - 3,909,986
Interest expense - 142 - 12,384
------------- ------------- ---------------- --------------
Total expenses 2,328,332 1,667,898 5,219,483 8,875,474
------------- ------------- ---------------- --------------
Income (loss) before minority interest
and income taxes 982,586 534,288 2,131,744 (2,766,126)
------------- ------------- ---------------- --------------
MINORITY INTEREST (515,557) (88,035) (711,816) (76,741)
------------- ------------- ----------------- --------------
Income (loss) before income taxes 467,029 446,253 1,419,928 (2,842,867)
INCOME TAX (CREDIT):
Deferred (38,871) (24,854) (57,452) (74,101)
------------- ------------ ---------------- --------------
NET INCOME (LOSS) $ 505,900 $ 471,107 $ $1,477,380 $ (2,768,766)
============= ============= ================ ==============
PRIMARY EARNINGS PER SHARE $ 0.36 $ 0.32 $ 1.05 $ (2.03)
============= ============= ================ ==============
</TABLE>
See accompanying notes to consolidated financial statements.
- -------------------------------------------------------------------------------
I-3
<PAGE>
ENEX RESOURCES CORPORATION
STATEMENTS OF CASH FLOWS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) NINE MONTHS ENDED
---------------------------------------
September 30, September 30,
1997 1996
--------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 1,477,380 $ (2,497,414)
--------------- -----------------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 884,433 1,124,815
Impairment of assets - 3,638,634
Gain on sale of property (244,333) (157,099)
Noncash expense from stock purchase plan - 177,138
Increase in deferred tax asset (51,606) (74,100)
Minority interest share of net income after distributions (260,580) (207,821)
Changes in assets and liabilities:
Decrease in accounts receivable 666,830 798,909
(Increase) in prepaid expenses & other assets (88,129) (196,850)
(Decrease) in accounts payable (597,928) (454,010)
--------------- -----------------
Net cash provided by operating activities 1,786,067 2,152,202
--------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 447,027 227,913
Property additions (235,846) (911,267)
Reduction in notes receivable from
managed limited partnerships - 6,324
--------------- -----------------
Net cash provided (used) by investing activities 211,181 (677,030)
--------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt - (850,000)
Purchase of treasury stock (643,508) (89,174)
Payment of cash dividend (196,748) (138,283)
Proceeds from exercise of stock options 398,750 100,000
--------------- -----------------
Net cash (used) by financing activities (441,506) (977,457)
--------------- -----------------
NET INCREASE IN CASH 1,555,742 497,715
CASH AT BEGINNING OF YEAR 1,862,281 1,007,144
Increase in cash from recognition of minority interest 567,761 -
--------------- -----------------
CASH AT END OF PERIOD $ 3,985,784 $ 1,504,859
=============== =================
</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 SEPTEMBER 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 September 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 52.71%.
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 September
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 "Nine months ended September 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 September 30, 1997 1,423,319
Quarter ended September 30, 1996 1,457,355
Nine months ended September 30, 1997 1,403,008
Nine months ended September 30, 1996 1,366,606
I-5
<PAGE>
2. 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.
3. 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.
4. 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 $38,871 and $24,854 in the third
quarter of 1997 and 1996, respectively, and $57,452 and $74,101 in the
first nine 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 September 30, 1997, are as follows:
<TABLE>
<S> <C>
Difference between tax and book net property basis $ 294,176
Difference between basis in managed limited
partnerships for financial reporting purposes and income
tax purposes 3,906,361
Intangible drilling costs which remain capitalized for
financial reporting purposes which were deducted for
federal income tax purposes (81,745)
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) 782,819
-----------------
Gross deferred tax asset 4,912,137
Valuation allowance (4,113,273)
-----------------
Net deferred tax asset $ 798,864
=================
</TABLE>
The valuation allowance reserves the net deferred tax asset at
September 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-7
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
In the third quarter of 1997, the Company consolidated thirty-four of its
managed limited partnerships in Enex Consolidated Partners, L.P. ("The
Consolidation"), which allowed the Company to reduce general and administrative
expenses. Further reductions of such expenses should be made in the near future.
The lower general and administrative expenses allowed Enex to produce net income
of $505,900 or $.36 per share in the third quarter of 1997 as compared to
$471,107 or $.32 per share in the third quarter of 1996.
Liquidity and Capital Resources
Cash flow provided by operating activities was $1,786,067 in the first nine
months of 1997 as compared with $2,152,202 in the same period of 1996. This
represents an decrease of $366,135. A larger reduction of accounts payable is
the primary reason for the decrease. To this cash flow from operations, proceeds
from the sale of properties added $447,027 and $227,913 in the first nine months
of 1997 and 1996, respectively. The Company purchased 61,580 shares of treasury
stock for $643,508 in the first nine months of 1997 as compared to 8,888 shares
for $89,174 in 1996. Net payments on the Company's bank line-of-credit were
$850,000 in 1996, which completely repaid all of the Company's debt in May,
1996. Proceeds from the exercise of stock options added $100,000 and $398,750 to
the cash flow in 1996 and 1997 respectively.
The Company continued to purchase additional limited partnership interests and
improve oil and gas properties. In the first nine months of 1997, the Company
used $235,846 to purchase interests in the Company's managed limited
partnerships and successfully drill three wells in the Dent acquisition. In the
first nine months of 1996, the Company used $911,267 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 $6,192,342 at September 30, 1997 versus $3,969,402
at December 31, 1996. At September 30, 1997, the Company's current ratio was
20.77 to 1.00 and the Company had no long-term debt.
Results of Operations
The Company reported net income in the third quarter of 1997 of $505,900, or
$.36 per share, as compared to $471,107, or $.32 per share, in the third quarter
of 1996. In the first nine months of 1997, the Company reported net income of
$1,477,380 or $1.05 per share. In the first nine months of 1996, the Company
reported a net loss of $2,768,766 or $2.03 per share. This loss includes a
$3,909,986 nonrecurring charge due to the implementation of SFAS 121. Excluding
this charge, the Company earned $1,141,220 or $.84 per share. The higher net
income in 1997 was attributable to lower general and administrative costs and
depletion expenses.
I-8
<PAGE>
Oil and gas sales were $2,867,931 in the third quarter of 1997 versus $1,925,387
in the corresponding period of 1996. This increase of $942,544 or 49% was due to
increased oil and gas production due to the recognition of a larger minority
interest as a result of the Consolidation. Oil revenues increased to $1,565,766
or 76% from $888,590 in the third quarter of 1996. A 101% increase in oil
production increased sales by $907,763. This increase was offset by a 13%
decrease in the average oil sales price. The increase in oil production was
primarily a result of the recognition of a larger minority interest as a result
of the Consolidation. The decrease in the average oil sales price corresponds
with lower prices in the overall market for the sale of oil. Gas revenues
increased by 26% or $265,368 in the third quarter from $1,036,797 in 1996 to
$1,302,165 in 1997. A 21% increase in gas production increased sales by
$216,747. A 4% increase in the average gas sales price increased gas sales by an
additional $48,621. The increase in gas production was primarily a result of the
recognition of a larger minority interest as a result of the Consolidation. The
increase in the average gas price corresponds with higher prices in the overall
market for the sale of gas. Gas plant sales decreased to $187,731 in the third
quarter of 1997 from $220,949 in the third quarter of 1996. This represents a
decrease of $33,218 or 15%. An 18% decline in the average sales price for the
sale of plant products reduced sales by $42,254. This decrease was partially
offset by an 8% increase in the production of plant products.
In the first nine months of 1997, oil and gas sales were $6,059,965 versus
$5,219,477 in the first nine months of 1996. This represents a increase of
$840,488 or 16%. During the first nine months of 1997, oil revenues increased by
$400,449 or 16%, from $2,567,463 in 1996 to $2,967,912 in the first nine months
of 1997. A 21% increase in oil production increased sales by $549,504. This
increase was partially offset by a 5% decrease in the average oil sales price.
The increase in oil production was primarily due to the recognition of a larger
minority interest as a result of the Consolidation. The decrease in the average
oil sales price corresponds with lower prices in the overall market for the sale
of oil. Gas revenues increased by $440,039 or 17%, from $2,652.014 in the first
nine months of 1996 to $3,092,053 in the first half of 1997. A 7% increase in
gas production increased sales by $181,046. A 9% increase in the average gas
sales price increased sales by an additional $258,993. The increase in the
average gas sales price corresponds with higher prices in the overall market for
the sale of gas. The increase in gas production was primarily a result of the
recognition of larger minority interest as a result of the Consolidation. Gas
plant sales increased to $747,630 in the first nine months of 1997 from $656,836
in the first half of 1996. This represents an increase of $90,794 or 16%. A 12%
increase in the average price for the sale of plant products increased sales by
$74,857. A 3% increase in gas plant production increased gas plant sales by an
additional $15,937.
Other revenues were $255,256 and $55,850 in the third quarter of 1997 and 1996,
respectively. The increase was primarily due to interest income of $113,567 in
the third quarter of 1997 and from the sale of a drilling rig for a $40,000 gain
in 1997. For the first nine months of 1997, other revenues were $543,632 versus
$233,035 in the first nine months of 1996. This increase was primarily due to a
gain from the sale of the O'Neil acquisition of $237,306 in the first quarter of
1997 coupled with the higher interest income and the sale of the drilling rig,
as noted above.
General and administrative expenses were $396,853 in the third quarter of 1997
versus $375,166 in the third quarter of 1996. This represents an increase of
$21,687 or 6%. This increase was primarily
I-9
<PAGE>
a result of the recognition of a larger minority interest as a result of the
Consolidation. General and administrative expenses decreased to $1,087,407 in
the first nine months of 1997 as compared to $1,261,311 in the first nine months
of 1996. This represents a decrease of $173,904 or 14%. The decrease is
primarily a result of a concerted effort to reduce general and administrative
expenses by the Company's management in 1997.
Lease operating and other expenses were $1,141,603 and $568,832 in the third
quarter of 1997 and 1996 respectively. This represents an increase of $427,229.
In the first nine months of 1997, lease operating expenses were $2,310,381 and
$1,747,642 in the first the nine months of 1996. This represents an increase of
$562,739. The increases were primarily the result of the recognition of a larger
minority interest due to the Consolidation.
Depletion, depreciation and amortization expense increased from $440,960 in the
third quarter of 1996 to $455,383 in the third quarter of 1997. This represents
an increase of $14,423 or 3%. The increases in production, noted above,
increased depreciation and depletion expenses by $198,399. This increase was
partially offset by a 29% decrease in the depletion rate. Depreciation,
depletion and amortization decreased from $1,124,815 in the first nine months of
1996 to $884,433 in the first nine months of 1997, a decrease of $240,382 or
21%. A 29% decrease in the depletion rate reduced depreciation and depletion
expense by $367,837. This decrease was partially offset by the changes in
production, noted above. The decrease in the depletion rate was primarily a
result of the reevaluation of property values of Enex Consolidated L.P. upon
consolidation of the partnerships.
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 third quarter of 1997, the Company recognized an income tax credit of
$38,871 as compared to a credit of $24,854 in the third quarter of 1996. In the
first nine months of 1997, the Company recorded an income tax credit of $57,452
as compared with a credit of $74,101 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 September 30, 1997, the Company had a substantial deferred tax asset of
$4,912,137. Due to uncertainties inherent in the oil and gas market, a valuation
allowance reserved all but $798,864 of the net deferred tax asset.
I-10
<PAGE>
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. 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 20.77 with virtually no
debt. Cash flow will continue to be used to purchase treasury stock and
additional limited partners interest. The Company has evaluated several drilling
locations for further development. Management of the Company continues to
evaluate proposals to purchase the Company or for the Company to purchase
additional reserves. 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.
I-11
<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.
(15) Not Applicable
(18) Not Applicable
II-1
<PAGE>
(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 September 30, 1997.
II-2
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 11
Enex Resources Corporation
Statement re: Computation of Per Share Earnings For the Nine Months Ended For the Nine Months Ended
September 30, 1997 September 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 $1,477,380 $971,480 ($2,768,766) ($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 $1.11 $0.71 ($2.09) ($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 $505,900 $469,828 $471,107 $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 $0.36 $0.34 $0.32 $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/ James A. Klein
--------------------
James A. Klein
Secretary, Treasurer and
Chief Financial Officer
November 13, 1997 By: /s/ Larry W. Morris
--------------------
Larry W. Morris
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000314864
<NAME> Enex Resources Corporation
<S> <C>
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<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> sep-30-1997
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0
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