<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------------------- -------------------------
Commission file number 1-11698
KCS ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 22-2889587
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
379 THORNALL STREET, EDISON, NEW JERSEY 08837
(Address of principal executive offices) (Zip Code)
(908) 632-1770
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if
changed since last report.)
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 twelve 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.
(1) X Yes (2) No
------- --------
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $0.01 par value: 11,575,747 shares outstanding as of July 31,
1996.
<PAGE> 2
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ------------------------
(Thousands of Dollars) Unaudited 1996 1995 1996 1995
- -------------------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue $ 96,487 $ 126,556 $ 243,044 $ 222,595
- -----------------------------------------------------------------------------------------------------------------------
Operating costs and expenses
Cost of gas sales 68,330 103,353 184,721 175,775
Other operating and administrative 6,124 4,549 12,287 8,860
Depreciation, depletion
and amortization 11,282 9,348 22,912 18,470
- -----------------------------------------------------------------------------------------------------------------------
Total operating costs
and expenses 85,736 117,250 219,920 203,105
- -----------------------------------------------------------------------------------------------------------------------
Operating income 10,751 9,306 23,124 19,490
Interest and other income, net 1,641 754 3,232 1,460
Interest expense (4,594) (1,678) (9,340) (3,050)
- -----------------------------------------------------------------------------------------------------------------------
Income before income taxes 7,798 8,382 17,016 17,900
Federal and state income taxes 2,811 3,005 6,174 6,304
- -----------------------------------------------------------------------------------------------------------------------
Net income $ 4,987 $ 5,377 $ 10,842 $ 11,596
=======================================================================================================================
Earnings per share of common
stock and common stock
equivalents $ 0.42 $ 0.46 $ 0.92 $ 0.99
=======================================================================================================================
Average shares of common stock
and common stock equivalents
outstanding 11,894,765 11,784,631 11,841,533 11,767,318
=======================================================================================================================
Cash dividends per share $ 0.03 $ 0.03 $ 0.06 $ 0.06
=======================================================================================================================
</TABLE>
The accompanying notes to condensed consolidated financial statements are an
integral part of these statements.
2
<PAGE> 3
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
(Thousands of Dollars) Unaudited 1996 1995
- -------------------------------- ---- ----
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 2,608 $ 5,846
Trade accounts receivable, net 52,878 58,052
Receivable from Tennessee Gas 69,709 56,437
Other current assets 4,429 4,156
- --------------------------------------------------------------------------------------
Current assets 129,624 124,491
- --------------------------------------------------------------------------------------
Oil and gas properties, full cost
method, net 193,296 204,958
Natural gas transportation systems, net 22,425 22,345
Other property, plant and equipment, net 2,755 2,013
- --------------------------------------------------------------------------------------
Property, plant and equipment, net 218,476 229,316
- --------------------------------------------------------------------------------------
Investments and other assets 11,060 6,802
- --------------------------------------------------------------------------------------
$ 359,160 $ 360,609
======================================================================================
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 34,936 $ 59,475
Accrued liabilities 10,853 4,926
- --------------------------------------------------------------------------------------
Current liabilities 45,789 64,401
- --------------------------------------------------------------------------------------
Deferred credits and other liabilities 31,549 29,103
- --------------------------------------------------------------------------------------
Long-term debt 169,509 165,529
- --------------------------------------------------------------------------------------
Stockholders' equity
Common stock, par value $0.01 per
share - authorized 50,000,000
shares, issued 12,468,215 and
12,379,885, respectively 125 124
Additional paid-in capital 25,612 24,910
Retained earnings 89,964 79,814
Less treasury stock, 900,748 and
892,748 shares, respectively, at cost (3,388) (3,272)
- --------------------------------------------------------------------------------------
Total stockholders' equity 112,313 101,576
- --------------------------------------------------------------------------------------
$ 359,160 $ 360,609
======================================================================================
</TABLE>
The accompanying notes to condensed consolidated financial statements are an
integral part of these statements.
3
<PAGE> 4
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
June 30,
(Thousands of Dollars) Unaudited 1996 1995
- -------------------------------- ---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 10,842 $ 11,596
Non-cash charges:
Depreciation, depletion and amortization 22,912 18,470
Other non-cash charges and credits, net 2,790 7,616
- --------------------------------------------------------------------------------------
36,544 37,682
Net changes in assets and liabilities:
Trade accounts receivable 5,174 (12,756)
Receivable from Tennessee Gas (13,272) (21,527)
Accounts payable and accrued liabilities (18,612) 5,898
Other, net (164) 4,246
- --------------------------------------------------------------------------------------
Net cash provided by operating activities 9,670 13,543
- --------------------------------------------------------------------------------------
Cash flows from investing activities:
Investment in oil and gas properties (26,498) (29,173)
Proceeds from the sale of oil and
gas properties 16,384 2,850
Other capital expenditures (1,676) (3,520)
- --------------------------------------------------------------------------------------
Net cash used in investing activities (11,790) (29,843)
- --------------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from debt 165,145 40,969
Repayments of debt (161,202) (23,029)
Deferred financing costs (4,956) (542)
Dividends paid (692) (688)
Other, net 587 265
- --------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (1,118) 16,975
- --------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (3,238) 675
Cash and cash equivalents at beginning of period 5,846 988
- --------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 2,608 $ 1,663
======================================================================================
</TABLE>
The Company considers all highly liquid debt instruments with a
maturity of three months or less when purchased to be cash equivalents. Interest
payments were $ 2,661,000 and $2,710,000 for the six months ended June 30, 1996
and June 30, 1995, respectively. Income tax payments were $3,855,000 during the
six months ended June 30, 1996. No income tax payments were made during the six
months ended June 30, 1995.
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
4
<PAGE> 5
KCS ENERGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The condensed interim financial statements included herein have been
prepared by KCS Energy, Inc. (KCS or Company), without audit, pursuant
to the rules and regulations of the Securities and Exchange Commission
(SEC) and reflect all adjustments which are of a normal recurring
nature and which, in the opinion of management, are necessary for a
fair statement of the results for interim periods. Certain information
and footnote disclosures have been condensed or omitted pursuant to
such rules and regulations. Although KCS believes that the disclosures
are adequate to make the information presented not misleading, 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 to stockholders. Certain
previously reported amounts have been reclassified to conform with
current year presentations.
2. Tennessee Gas Litigation
On April 18, 1996 the Texas Supreme Court granted the petitioners'
request for a rehearing, withdrew its August 1, 1995 opinion and issued
a new opinion on the previously disclosed litigation of an
above-market-price, take-or-pay gas purchase agreement ("GPA") with
Tennessee Gas Pipeline Company ("TGT"). In its April 18, 1996 opinion,
the Texas Supreme Court affirmed the Company's position on all issues,
stating that the price payable by TGT for the gas escalates monthly in
accordance with Section 102(b)(2) of the Natural Gas Policy Act ($8.45
per MMBtu in July 1996) plus reimbursement of severance taxes; that KCS
has the right to pool the leases; that TGT has no legal or contractual
right to question or determine whether certain leases are no longer
committed to the GPA; and that the GPA is not an output contract
governed by Section 2.306 of the Texas Uniform Commercial Code. TGT
filed a motion requesting another rehearing on June 3, 1996.
This decision opens the way for the Company's recovery of
approximately $69.7 million that TGT has previously withheld under a
series of interim agreements , which is the balance of the purchase
price for production taken by TGT from September 17, 1994 through April
30, 1996, plus interest as provided for in the GPA. The latest interim
agreement terminated on April 30, 1996. Therefore, the terms of the
GPA, in accordance with judicial rulings in the case, now govern
performance by each of the parties. TGT has been paying the full
contract price for gas deliveries subsequent to April 30, 1996.
See Note 7 to Consolidated Financial Statements of the Company's
1995 Annual Report to Stockholders for further information regarding
the TGT litigation.
5
<PAGE> 6
KCS ENERGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In a related matter, in April 1995, TGT filed suit against the
Company and its co-sellers in District Court in Zapata County, Texas,
seeking declaratory judgment that no more than 50% of the actual
production from either of the jointly-owned Guerra "A" or Guerra "B"
units is subject to the TGT gas contract, and claiming that the sellers
are delivering in excess of such amounts. In another related matter,
TGT filed suit in November 1994, claiming that some of the natural gas
taken under the TGT contract had been enriched by the Company, thereby
depriving TGT of its contractual right to reject natural gas that does
not comply with contractual quality specifications. Each of these cases
is still pending, and the 1994 suit may be tried in the last quarter of
1996.
Other Legal Proceedings
As previously reported, the Company is a party to three lawsuits
involving the holders of royalty interests on the acreage covered by
the TGT contract. The Company is a co-plaintiff in the first of these
lawsuits that was filed and is a defendant in the other subsequently
filed suits. The basis of these declaratory judgment actions is the
royalty holders' claim that their royalty payments should be based on
the price paid by TGT for the natural gas purchased by it under the TGT
contract. The Company has been paying royalties for this natural gas
based upon the spot market price. Because the leases have market-value
royalty provisions, the Company believes it is in full compliance under
the leases with its royalty holders. As of June 30, 1996, the amount of
gas taken by TGT attributable to these royalty interests was
approximately 3.5 Bcf, for which royalties have been paid by KCS at the
average price of approximately $1.62 per Mcf, net of severance tax,
compared to the average contract price of approximately $7.52 per Mcf,
net of severance tax. Consequently, the Company faces a maximum
liability in this litigation of approximately $20.7 million. It is
expected that the lawsuit in which the Company is a co-plaintiff will
be tried by the end of 1996.
While the Company believes its defenses are meritorious and that
it should prevail in all of the pending litigation, there can be no
assurance as to the ultimate outcome of these matters.
3. On January 25, 1996, KCS Energy, Inc. completed a Rule 144A
private offering of $150 million 11% senior notes due January 15, 2003
(the "144A Notes"). On May 8, 1996, the Company commenced an offer (the
("Exchange Offer") of up to $150 million senior notes (the "Exchange
Notes") in exchange for the outstanding 144A Notes, pursuant to a
registration statement declared effective by the Securities and
Exchange Commission on May 7. The Exchange Notes are identical in all
material respects to the form and terms of the 144A notes except for
certain transfer restrictions and registration rights applicable to the
144A Notes. The Exchange Notes evidenced the same debt, and were issued
under and entitled to the benefits of the same indenture, as the 144A
Notes.
6
<PAGE> 7
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations - Consolidated
Net income for the three months ended June 30, 1996 was $4,987,000, or
$0.42 per share, compared to $5,377,000 or $0.46 per share, for the same period
a year ago. For the six months ended June 30, 1996, net income was $10,842,000,
or $0.92 per share, compared to $11,596,000 or $0.99 per share, last year.
Significantly higher non-TGT-contract oil and gas production, along with higher
oil and gas prices in the current year periods for non-TGT contract sales were
offset by lower production from properties covered by the TGT contract, higher
non-cash DD&A charges, higher interest costs and a higher effective income tax
rate.
The April 18, 1996 decision by the Texas Supreme Court (see Note 2 to
Condensed Consolidated Financial Statements) does not affect the earnings
reported herein as the earnings already reflect the full contract price. The
decision does however have a significant effect on the Company's liquidity and
capital resources and its ability to implement its strategies for future growth.
(See "Liquidity and Capital Resources".)
Results of Operations -Business Segments
Segment information reflects volumes, revenues and expenses associated
with transactions involving affiliates which are eliminated in consolidation.
Oil and Gas Exploration and Production
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(Thousands of Dollars) Unaudited 1996 1995 1996 1995
-------------------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue $26,292 $21,344 $53,073 $42,512
Production (lifting) costs 2,425 1,259 4,690 2,401
DD&A 10,915 9,069 22,185 17,896
Other operating expenses 1,149 898 2,183 1,916
- ------------------------------------------------------------------------------------------
Operating income $11,803 $10,118 $24,015 $20,299
==========================================================================================
Oil production (Mbbl) 189 35 348 71
Natural gas production (MMcf):
Tennessee Gas contract 1,197 1,646 2,443 3,797
Non-contract 5,105 2,594 10,317 4,812
- ------------------------------------------------------------------------------------------
Total gas production 6,302 4,240 12,760 8,609
==========================================================================================
Average sales price:
Oil (per bbl) $ 19.92 $18.33 $19.00 $17.67
Gas (per Mcf) 3.57 4.88 3.64 4.78
DD&A as a percent of revenue 41.5% 42.5% 41.8% 42.1%
==========================================================================================
</TABLE>
7
<PAGE> 8
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Oil and gas production increased 67% to 7,436 MMcfe and 64% to 14,848
MMcfe for the three and six months ended June 30, 1996, respectively, compared
to the same periods a year ago. The current year increases in production
resulted from newly added non-TGT properties and reflects the Company's overall
growth strategy to increase its percentage of non-TGT production. Non-TGT
production accounted for 84% of total production during the 1996 periods up from
63% and 58%, respectively, during the 1995 three and six-month periods. Sales of
gas production under the TGT contract decreased to 1,197 MMcf in the 1996
quarter, compared to 1,646 MMcf for the same period last year due mainly to
normal production declines of the 49 wells drilled to date. For the six months
ended June 30, 1996 sales to TGT decreased to 2,443 MMcf compared to 3,797 MMcf
when TGT was making up for earlier curtailments.
Average natural gas prices were $3.57 and $3.64 for the three and six
months ended June 30, 1996, respectively, compared to $4.88 and 4.78 for the
same periods a year ago. These year to year decreases reflect the production mix
as the significant increases in non-TGT contract production and increased
average market prices were offset by the lower TGT-contract production. Average
non-TGT contract gas prices were $2.24 and $2.31 during the 1996 three and
six-month periods, respectively, compared to $1.62 and $1.53 during the same
periods last year. Gas sale prices under the TGT contract, excluding severance
tax reimbursements, were $8.37 and $8.30, respectively, during the current year
three and six-month periods compared to $7.83 and $7.78 during the same periods
last year.
The increases in costs and expenses were mainly attributable to the
increase in production volume.
Natural Gas Transportation and Marketing
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(Thousands of Dollars) Unaudited 1996 1995 1996 1995
-------------------------------- ---- ---- ----- ----
<S> <C> <C> <C> <C>
Revenue $ 70,543 $105,807 $190,663 $182,568
Cost of gas sales 68,498 103,753 185,085 177,915
- ------------------------------------------------------------------------------------------------------
Gross margin 2,045 2,054 5,578 4,653
Depreciation 349 263 693 542
Other operating expenses 1,937 1,887 4,176 3,684
- ------------------------------------------------------------------------------------------------------
Operating income $ (241) $ (96) $ 709 $ 427
======================================================================================================
Transportation Volume (Bcf) 6.3 6.2 14.2 12.4
Transportation Gross Margin per
Mcf $ 0.155 $ 0.173 $ 0.175 $ 0.177
======================================================================================================
Marketing Volume (Bcf) 28.0 63.1 71.1 109.0
Marketing Gross Margin per Mcf $ 0.038 $ 0.016 $ 0.044 $ 0.023
======================================================================================================
</TABLE>
8
<PAGE> 9
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The significant decline in revenue during the three months ended June
30, 1996 reflects a strategic move to scale back volumes at the natural gas
marketing operations away from the higher volume, low margin "gas trading"
activities and place its emphasis in its core retail customer base. This,
coupled with stronger natural gas prices in 1996 resulted in the increases in
marketing gross margin per Mcf.
Natural gas transportation volumes were up slightly during the current
year quarter and 15% for the 1996 six- month period due mainly to weather
conditions. The decrease in transportation gross margins per Mcf in 1996
resulted from lower margin sales to certain higher volume transportation
customers.
The increases in costs and expenses resulted mainly from higher natural
gas pipeline operating expenses and maintenance.
Interest and Other Income, net
Interest income accrued on the difference between the full TGT-contract
price and the price paid by TGT under interim agreements (see "Liquidity and
Capital Resources") was $1.6 million and $3.1 million for the three months and
six months ended June 30, 1996, respectively compared to $0.7 million and $1.2
million during the same periods a year ago.
Interest Expense
Interest expense was $4.6 million for the three months ended June 30,
1996 compared to $1.7 million for the three months ended June 30, 1995. For the
six months ended June 30, 1996 interest expense was $9.3 million compared to
$3.1 million. The 1996 increases were due to higher average borrowings, along
with higher average interest rates principally from the sale of 11% Senior Notes
in January 1996. The Company did not collect the full contract price from TGT
throughout 1995 and therefore increased its borrowings to expand its oil and gas
exploration and production operations. This included approximately $64 million
for the Rocky Mountain and Michigan acquisitions, completed during the fourth
quarter of 1995.
Liquidity and Capital Resources
Decision of the Supreme Court of Texas
The April 18, 1996 decision by the Texas Supreme Court (see Note 2 to
Condensed Consolidated Financial Statements) will significantly affect the
Company's liquidity and capital resources. The Company anticipates receipt in
the near future of the full amount due from TGT of approximately $69.7 million
(including interest and net of deferred severance taxes and other payables
related to the TGT contract) at June 30, 1996.
As previously reported, the Company has been accruing an accounts
receivable amount (which includes interest as provided for in the contract) due
from TGT that includes the difference between the price that would have been
paid for natural gas pursuant to the terms of the TGT contract and the
9
<PAGE> 10
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
amount actually paid for gas taken from September 17, 1994 through April 30,
1996 pursuant to interim agreements whereby TGT paid $3.00 per MMBtu for all gas
purchased from that date, without prejudice to the Company's claim for the full
contract price. The latest interim agreement terminated on April 30, 1996.
Therefore, the terms of the TGT contract, in accordance with judicial rulings in
the case, now govern performance by each of the parties. TGT has been paying the
full contract price for gas deliveries subsequent to April 30, 1996.
Prior to the April 18, 1996 decision by the Texas Supreme Court, the
Company had restricted its capital spending budget to $70 million for 1996, an
amount which was expected to be funded largely from cash flow and sale of
nonstrategic assets. With the favorable decision, KCS has increased its capital
expenditure budget to $100 million to accelerate its acquisition and development
drilling programs.
Cash Flow From Operating Activities
Net income adjusted for noncash charges was $36.5 million for the six
months ended June 30, 1996 compared to $37.7 during the same period in 1995. Net
cash provided by operating activities was $9.7 million during the current year
six-month period compared to $13.5 million. This change resulted primarily from
the timing of cash receipts and payments.
Investing Activities
Capital expenditures for the six months ended June 30, 1996 were $28.2
million, of which $26.5 million was invested in oil and gas operations. These
expenditures were financed principally with $16.4 million of proceeds from the
sale of certain non-strategic oil and gas properties and internally generated
cash. The 1996 capital spending program was initially restricted following the
two significant acquisitions, completed in the fourth quarter of 1995, until
completion of the note offering in late January 1996. With the completion of the
note offering and the April 1996 decision of the Supreme Court of Texas, the
Company plans to accelerate its acquisition and development drilling programs in
the second half of 1996.
Debt Financing
On January 25, 1996, the Company completed the private sale of $150
million principal amount of 11% Senior Notes due 2003. The net proceeds of
approximately $145 million (after deducting expenses of the offering which were
deferred and will be amortized over the term of the note) were utilized to
reduce the outstanding indebtedness under bank credit facilities and to repay a
note sold to a third party. See Note 3 to Condensed Consolidated Financial
Statements in this Form 10-Q. At June 30, 1996 the Company had $34.6 million of
availability under its existing credit facilities.
Equity Availability
KCS has 5 million authorized but unissued shares of preferred stock and
over 38.4 million shares of common stock available for future equity financing.
10
<PAGE> 11
KCS ENERGY, INC. - FORM 10-Q
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Incorporated by reference from Note 2 to Notes to Condensed
Consolidated Financial Statements of this Form 10-Q.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 11 - Statement re computation of per share earnings.
Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
On April 18, 1996, the registrant reported the decision of the Texas
Supreme Court regarding its previously disclosed litigation of an
above-market-price, take-or-pay gas purchase agreement with Tennessee
Gas Pipeline Company under Item 5 of Form 8- K.
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.
KCS ENERGY, INC.
August 12, 1996 /S/ HENRY A. JURAND
--------------- --------------------
Henry A. Jurand
Vice President, Chief Financial
Officer and Secretary
11
<PAGE> 12
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
11 STATEMENT RE COMPUTATION OF PER
SHARE EARNINGS
27 FINANCIAL DATA SCHEDULE
<PAGE> 1
Exhibit 11
Statement Re Computation of Per Share Earnings
Primary earnings per share were calculated as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
1996 1995 1996 1995
---- ---- ---- ----
In Thousands
Except per share amounts
<S> <C> <C> <C> <C>
Net income $ 4,987 $ 5,377 $10,842 $11,596
========================================================================================================
Average shares of common stock outstanding 11,555 11,480 11,536 11,473
Add: Net shares assumed to be issued for
dulitive stock options 340 305 306 294
- --------------------------------------------------------------------------------------------------------
Average shares of common stock and common
stock equivalents outstanding 11,895 11,785 11,842 11,767
========================================================================================================
Earnings per share of common stock and
common stock equivalents $ 0.42 $ 0.46 $ 0.92 $ 0.99
========================================================================================================
</TABLE>
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2608
<SECURITIES> 0
<RECEIVABLES> 123,330
<ALLOWANCES> 743
<INVENTORY> 0
<CURRENT-ASSETS> 129624
<PP&E> 334094
<DEPRECIATION> 115618
<TOTAL-ASSETS> 359160
<CURRENT-LIABILITIES> 45789
<BONDS> 169509
0
0
<COMMON> 125
<OTHER-SE> 112188
<TOTAL-LIABILITY-AND-EQUITY> 359160
<SALES> 0
<TOTAL-REVENUES> 243044
<CGS> 184721
<TOTAL-COSTS> 184721
<OTHER-EXPENSES> 35199
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9340
<INCOME-PRETAX> 17016
<INCOME-TAX> 6174
<INCOME-CONTINUING> 10842
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10842
<EPS-PRIMARY> .92
<EPS-DILUTED> .92
</TABLE>
