FORCENERGY INC
INDEX
Page
Number
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Part I. FINANCIAL INFORMATION:
Item 1. Financial Statements
a) Balance Sheets - June 30, 1996 and
December 31, 1995 1
b) Statements of Operations - Three Months
and six months ended June 30, 1996
and 1995 2
c) Statement of Cash Flows - Six months ended
June 30, 1996 and 1995 3
d) Notes to Financial Statements 4-5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 6-10
Part II. OTHER INFORMATION
Item 4. Submissions of Matters to a Vote of
Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 11-12
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
FORCENERGY INC
BALANCE SHEETS
(in thousands)
June 30, December 31,
1996 1995
---------- ------------
(Unaudited)
ASSETS
Current Assets:
Cash $ 173 $ 2,996
Accounts receivable, net 18,312 16,338
Other current assets 8,829 5,986
Total current assets 27,314 25,320
Investment in surety bonds, at cost 3,813 6,164
Property, plant and equipment, at cost (full
cost method) net of accumulated depletion,
depreciation and amortization 356,030 298,832
Other assets 4,517 4,774
$391,674 $335,090
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable $13,271 $17,811
Other accrued liabilities 29,140 15,000
Accrued acquisition obligation -- 4,284
Total current liabilities 42,411 37,095
Long-term debt 175,135 130,729
Deferred income taxes 15,418 12,305
Stockholders' Equity:
Preferred stock, $.01 par value;
5,9000,000 shares authorized;
none issued or outstanding -- --
Common stock, $.01 par value; 50,000,000
shares authorized; 18,267,785 and
18,260,447 issued and outstanding at
June 30, 1996 and December 31, 1995,
respectively 183 183
Capital in excess of par value 163,447 163,378
Accumulated deficit (4,920) (8,600)
Total stockholders' equity 158,710 154,961
$391,674 $335,090
The accompanying notes are an integral part of these financial
statements.
FORCENERGY INC
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
------ ------ ------ ------
Revenues:
Oil and gas sales $29,135 $17,215 $57,477 $34,140
Other 150 121 276 235
29,285 17,336 57,753 34,375
Expenses:
Lease operating 8,083 5,367 16,819 11,602
Depletion, depreciation and
amortization 12,606 7,774 24,162 15,560
Production taxes 929 507 1,653 923
General and administrative 1,785 1,547 3,575 2,821
23,403 15,195 46,209 30,906
Income from operations 5,882 2,141 11,544 3,469
Interest and other income 126 164 237 290
Interest expense, net of
amounts capitalized (3,039) (3,450) (5,913) (6,519)
Income (loss) before income
taxes 2,969 (1,145) 5,868 (2,760)
Income tax provision (benefit) 1,107 (428) 2,188 (1,029)
Net income (loss) $1,862 $(717) $3,680 $(1,731)
Net income (loss) per share $ .10 $(.08) $ .20 $ (.19)
Weighted average common shares
outstanding 18,261 9,040 18,261 9,040
The accompanying notes are an integral part of these financial
statements.
FORCENERGY INC
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended June 30,
1996 1995
------ --------
Cash flows from operating activities:
Net income (loss) $3,680 $(1,731)
Adjustments to reconcile net income
(loss) to net cash provided
by operating activities:
Depletion, depreciation and amortization 24,656 16,107
Deferred taxes 2,188 (1,029)
Deferred interest 1,343 1,020
Other (97) (101)
Increase in accounts receivable (1,974) (1,035)
Increase in other current assets (2,843) (4,739)
Increase in other assets (237) (6)
Increase (decrease) in accounts payable (2,406) 509
Increase in other accrued liabilities 2,505 8,646
23,135 19,372
Net cash provided by operating activities 26,815 17,641
Cash flows from investing activities:
Acquisitions of oil and gas properties (16,836) (33,095)
Capital expenditures (59,157) (15,675)
Proceeds from sale of oil and gas properties 1,072 --
Proceeds from sale of common stock 69 --
Purchase of surety bonds -- (680)
Proceeds from sale of surety bonds 2,151 --
Net cash used in investing activities (72,701) (49,450)
Cash flows from financing activities:
Bridge loan proceeds -- 8,000
Net borrowings under senior credit facility 43,063 22,604
Net cash provided by financing activities 43,063 30,604
Net decrease in cash (2,823) (1,205)
Cash at beginning of period 2,996 3,188
Cash at end of period $ 173 $1,983
Supplemental disclosures about cash flow
information:
Cash paid for interest: $5,756 $5,942
Investing activities:
At June 30, 1996 and December 31, 1995, the
Company had accrued additions to oil and
gas properties amounting to approximately
$25.1 million and $15.6 million, respectively.
The accompanying notes are an integral part of these financial
statements.
FORCENERGY INC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 -- BASIS OF PRESENTATION
The unaudited interim financial statements of Forcenergy Inc
(the "Company") for the periods indicated herein have been
prepared by the Company pursuant to the rules and regulations of
the Securities and Exchange Commission and in accordance with
generally accepted accounting principles for interim financial
reporting. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, all adjustments, consisting of normal
recurring accruals, necessary to present fairly the information
in the accompanying financial statements have been included.
Interim period results are not necessarily indicative of the
results of operations or cash flows for a full year period.
Certain minor amounts previously reported in the financial
statements of the prior periods have been reclassified here to
conform to the current year presentation.
NOTE 2 -- EARNINGS PER SHARE
Earnings per share is calculated based on the weighted average
number of shares outstanding during each period for common stock,
and when dilutive, common stock equivalents. The dilution effect
of common stock equivalents is less than 3% for the quarter and
six months ended June 30, 1996 and they are anti-dilutive for the
quarter and six months ended June 30, 1995.
NOTE 3 -- DEBT
Effective April 26, 1996 the Company renegotiated its senior
credit facility to provide for a total commitment of $195
million, with a current borrowing base of $175 million, compared
with a previous total commitment and borrowing base of $120
million. The bank group was also expanded from five to six
members.
The Company's senior credit facility and exchangeable
subordinated notes contain certain covenants which include
maintenance of a minimum tangible net worth, certain financial
ratios, restrictions on asset sales, affiliated transactions and
compensation and certain limitations on dividends and additional
debt or liens. The Company is in compliance with these covenants,
or has received waivers in the event of non-compliance.
At June 30, 1996 the Company had approximately $32.7
million available under the renegotiated senior credit facility.
NOTE 4 -- ACQUISITION
On June 28, 1996, but with an effective date of January 1,
1996, the Company acquired certain producing oil and gas
leasehold interests and related equipment from Amerada Hess
Corporation for a net cash consideration of $6.2 million, subject
to normal post-closing adjustments to be finalized on or before
October 26, 1996. The acquisition has been accounted for using
the purchase method of accounting.
As required by Paragraph 96 of Accounting Principles Board
Opinion No. 16, the following pro forma information has been
prepared to give effect to the transaction as if such transaction
had occurred on January 1, 1995. The historical results of
operations of the Company have been adjusted to reflect (i)
revenues and expenses from the properties, (ii) depletion
associated with production attributable to the properties, (iii)
the increase in interest expense associated with the debt
incurred to acquire the properties, and (iv) the effect on income
tax expense/benefit giving retroactive inclusion of the
transaction. Management does not believe the pro forma amounts
purport to be indicative of the results of operations that would
have been reported had the acquisition occurred on January 1,
1995 or that may be reported in the future.
(in thousands, except per share data)
Pro Forma (unaudited)
Six Months Ended Six Months Ended
June 30, 1996 June 30, 1995
---------------- ----------------
Revenues $ 67,016 $ 41,303
Income from operations $ 14,532 $ 3,974
Net income (loss) $ 5,388 $ (1,551)
Net income (loss) per share $ .30 $ (.17)
NOTE 5 -- FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
As of July 1, 1996 the Company had entered into future
sales and swap contracts which fixed sales prices on approximately
80% and 50% of the Company's estimated net oil and gas production,
respectively, for the remainder of 1996, based on current
production rates, at average prices of $18.03 per barrel and $2.03
per Mcf.
FORCENERGY INC
ITEM 2. Management's Discussion & Analysis Of Financial
Condition And Results Of Operations
Operating Data
The following table sets forth the Company's historical
operating data for the periods indicated:
(in thousands, except per unit data)
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
------ ------ ------ ------
Production:
Liquids (Mbbls)* 924 560 1,778 1,059
Natural Gas (Mmcf) 6,681 5,400 12,772 11,172
Total (Mcfe) 12,225 8,760 23,440 17,526
Average realized sales prices:
Liquids (per Bbl) $16.65 $15.51 $16.75 $15.91
Natural Gas (Mcf) 2.06 1.58 2.17 1.55
Expenses (per Mcfe):
Lease Operating $ .66 $ .61 $ .72 $ .66
Depletion, Depreciation and
amortization 1.03 .89 1.03 .89
Production Taxes .08 .06 .07 .05
General Administrative, net .15 .18 .15 .16
*Includes crude oil, condensate and natural gas liquids.
Results of Operations
Comparison of the three month periods ended June 30, 1996 and
June 30, 1995
Operating and Net Income. Operating income increased by 175%
to $5.9 million in the second quarter of 1996 compared to $2.1
million for the same 1995 period. Net income for the 1996
quarter was $1.9 million compared to a loss of $700,000 reported
for the second quarter of 1995. The improvement in both operating
income and net income/loss was attributable primarily to higher
production levels and higher net realized oil and gas prices.
Production. The Company's net oil and gas production, on an
equivalent Mcf basis, increased to 12,225 Mmcfe in the 1996
quarter, a 40% increase over the 8,760 Mmcfe produced in the
comparable 1995 period. The increase in production was
attributable to new production from 1995 acquisitions of oil and
gas properties and from successful drilling and workover programs
beginning in late 1995 and continuing through 1996 . Net liquids
production rose to 924 Mbbls in the 1996 quarter, a 65% increase
over the 560 Mbbls produced in the same period last year. Net
gas production increased to 6,681 Mmcf in the second quarter of
1996, a 24% increase over the 5,400 Mmcf produced in the second
quarter of 1995.
Revenues. Revenues for the second quarter of 1996 were $29.3
million, a 69% increase over the $17.0 million reported for the
second quarter of 1995, primarily because of higher production
volumes and higher net realized oil and gas prices. Average net
realized liquid prices rose to $16.65 per barrel in the 1996
quarter, a 7% increase over the $15.51 per barrel received for
the second quarter of 1995. Average net realized gas prices
increased by 30% to $2.06 per Mcf in the 1996 quarter, from $1.58
per Mcf in the same period last year.
Average net realized oil prices for the quarter were $16.68
per barrel compared to an average of $19.60 per barrel which
would have been received before the effects of hedging resulting
in a $2.6 million reduction in oil revenues for the three months
ended June 30, 1996. Average net realized gas prices for the
three month period were $2.06 per Mcf compared to an average of
$2.31 per Mcf which would have been received before the effects
of hedging resulting in a $1.7 million reduction in gas revenues
for the quarter ended June 30, 1996. Effects of hedging
activities were not significant in the three months ended June
30, 1995.
Lease Operating Expenses. Lease operating expenses for the
second quarter of 1996 rose to $8.1 million from the $5.4
million reported for the comparable 1995 period. The increase in
costs relates primarily to the addition of new fields acquired
during 1995 and to workover-type repair and maintenance
activities taking place in 1996. On an equivalent unit of
production basis, expenses increased to $.66 per Mcfe in 1996
from $.61 per Mcfe in 1995, an increase that was attributable
primarily to the repair and maintenance activities.
Depletion, Depreciation and Amortization ("DD&A"). DD&A
increased to $12.6 million for the 1996 quarter compared to the
$7.8 million reported for the same period last year. The
increase was attributable to the higher production in 1996, and
to a higher DD&A rate, $1.03 per Mcfe in the second quarter of
1996 compared to a rate of $.89 per Mcfe in the comparable 1995
period.
General and Administrative Costs. General and administrative
costs were $1.8 million in the 1996 quarter compared with $1.5
million reported for the second quarter of 1995, an increase
predominantly due to the overall growth of the Company. On an
equivalent Mcfe produced basis, general and administrative
expenses declined to $.15 per Mcfe in the 1996 quarter from a
rate of $.18 per Mcfe in the comparable 1995 period.
Interest Expense. Interest expense, net of amounts
capitalized, declined to $3.0 million in the 1996 quarter
compared to $3.5 million in the second quarter of 1995, as
benefits derived from lower interest rates on the Company's
senior credit facility were only partially offset by higher debt
levels during 1996.
Income Tax Provision (Benefit). Income tax expense increased
to $1.1 million in the second quarter of 1996, from a benefit of
$400,000 in the second quarter of 1995, due to the improvement in
results of operations compared to the same period last year.
Comparison of the six month periods ended June 30, 1996 and June
30, 1995
Operating and Net Income. The operating income for the first
six months of 1996 improved by 233%, rising to $11.5 million
from $3.5 million reported for the same period in 1995. Net income
for the 1996 period was $3.7 million compared to a loss of $1.7
million for the first six months of 1995. The improvement in both
operating income and net income/loss was attributable primarily
to higher production volumes and higher net realized oil and gas
prices.
Production. The Company's net liquid production rose to 1,778
Mbbls for the six months ended June 30, 1996 from 1,059 Mbbls in
the comparable 1995 period, a 68% improvement. Net gas production
increased to 12,772 Mmcf in the 1996 period, a 14% increase over
the 11,172 Mmcf produced in the same period last year. On an
equivalent unit basis, oil and gas production increased to
23,440 Mmcfe in the 1996 period, a 34% improvement over the
17,526 Mmcfe produced in the first six months of 1995. The
increase in both oil and gas production is attributable to
new production from 1995 acquisitions of oil and gas properties
and from successful drilling and workover programs begun in late
1995 and continuing through 1996.
Revenues. Revenue for the 1996 period increased by $23.4
million, or 68%, to $57.8 million as compared to the $34.4
million reported in the same period last year, primarily because
of higher production volumes and higher net realized oil and
gas prices. Average net realized liquid prices rose to $16.75
per barrel in the 1996 period, a 5% increase over the $15.91 per
barrel received for the comparable 1995 period. Average net
realized gas prices rose to $2.17 per Mcf in the 1996 period, a
40% increase over the $1.55 per Mcf reported in the first six
months of 1995.
Average net realized oil prices for the six month period were
$17.01 per barrel compared to an average of $19.03 per barrel
which would have been received before the effects of hedging
resulting in a $3.4 million reduction in oil revenues for the six
months ended June 30, 1996. Average net realized gas prices for
the six months were $2.17 per Mcf compared to an average of $2.31
per Mcf, which would have been received before the effects of
hedging resulting in a $1.8 million reduction in gas revenues for
the six month period ended June 30, 1996. Effects of hedging
activities were not significant in the six months ended June 30,
1995.
Lease Operating Expenses. Lease operating expenses for the
first six months of 1996 were $16.8 million, compared to the
$11.6 million reported for the same period last year, an increase
primarily due to new fields acquired during 1995 and to workover-
type repair and maintenance activities in 1996. On an equivalent
unit of production basis, expenses increased to $.72 per Mcfe
in 1996 from $.66 in 1995, an increase attributable primarily
to the repair and maintenance activities.
Depletion, Depreciation and Amortization ("DD&A"). DD&A
increased to $24.2 million for the 1996 period from the $15.6
million reported for the comparable 1995 period. The increase
was attributable to higher production levels, and to an increase
in the DD&A rate per unit of production to $1.03 per Mcfe in the
first six months of 1996 compared to $.89 in the same period
last year.
General and Administrative Costs. General and administrative
costs increased to $3.6 million from the $2.8 million reported
for the comparable 1995 period, primarily due to the overall
growth of the Company during the latter half of 1995 and
through 1996. However, on an equivalent Mcfe produced basis,
general and administrative expenses have remained relatively
constant at $.15 per Mcfe in the 1996 period compared to $.16
for the first six months of 1995.
Interest Expense. Interest expense, net of amounts
capitalized, declined 9% to $5.9 million for the first six
months of 1996, compared to $6.5 million for the same period
last year. The decrease in interest expense relates primarily to
the benefit derived from lower interest rates on the Company's
senior credit facility in 1996, partially offset by higher 1996
debt levels.
Income Tax Provision (Benefit). Income tax expense increased
to $2.2 million, from a benefit of $1.0 million in the first six
months of 1995, due to the improvement in results of operations
compared to the same period last year.
Liquidity and Capital Resources
The Company has historically funded its operations,
acquisitions, capital expenditures and working capital
requirements with cash flow from operations, bank borrowings and
private and public placements of debt and equity securities. The
Company's primary sources of funds for the periods indicated
herein were as follows:
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
------ ------ ------ ------
Net cash provided by
operating activities $13,454 $8,360 $26,815 $17,641
Borrowings under senior
credit facility 30,029 164 43,063 22,604
In the first six months of 1996, the Company generated
approximately $26.8 million in cash from operations and borrowed,
net of repayments, approximately $43.1 million under its senior
credit facility. The Company's cash flow from operations has
increased significantly during 1996 because of the additional
production from acquired properties and new production derived
from development drilling and workovers. The Company had negative
working capital of $15.1 million at June 30, 1996 and $11.8
million at December 31, 1995. Both the negative working capital
and increase in borrowings under the senior credit facility
are primarily attributable to an increase in drilling expenditures
under the Company's active 1996 drilling program and to acquisitions
of oil and gas properties.
Total cash capital expenditures were $59.2 million during the
first six months of 1996, which includes $15.6 million in cash
payments on capital costs accrued at December 31, 1995. In
addition, the Company has capital expenditures accrued at
June 30, 1996 amounting to $25.1 million. The Company's
capital expenditure budget for 1996 is approximately $88
million. The Company intends to continue its exploration
and development programs during 1996 and expects that those
expenditures will be funded by cash flow from operations
and periodic borrowings under its senior credit facility. Cash
expenditures for acquisitions totaled $16.8 million for the six
months ended June 30, 1996, $4.3 million of which was for amounts
accrued at December 31, 1995. The Company will continue to pursue
property acquisitions of various sizes, funding for which is
expected to be provided by cash flow from operations, funds
available through the Company's senior credit facility or other
financing sources to be negotiated, as needed. At June 30, 1996
the Company had $32.7 million available under the senior credit
facility.
The Company utilizes forward sales contracts and commodity
swaps for portions of its current net oil and gas production to
achieve more predictable cash flows and to reduce its exposure to
fluctuations in oil and gas prices. The remaining portion of
current net production has not been hedged so as to provide the
Company the opportunity to benefit from increases in prices on
that portion of the production, should price increases
materialize. As of July 1, 1996, the Company had entered
into future sales and swap contracts as a hedge against
possible price declines that effectively fixed sales prices on
approximately 80% of the Company's estimated net oil production
for the remainder of the year and for approximately 50% of the
Company's estimated net natural gas production for the remainder
of 1996, based on current production levels, at $18.03 per barrel
and $2.03 per Mcf, respectively. Average field prices for the
six month period ended June 30, 1996 were $19.03 per barrel and
$2.31 per Mcf compared to average realized prices of $16.65 per
barrel and $2.03 per Mcf for the period.
Management believes that cash flow from operations and
available borrowings under the senior credit facility will be
adequate to meet future liquidity needs, including satisfying the
Company's financial obligations and funding its capital program.
However, should revenues decrease as a result of lower oil or gas
prices or operating difficulties, re-evaluation of a portion of
the 1996 capital budget would be required.
Changes in Financial Condition
The change in financial condition of the Company between
December 31, 1995 and June 30, 1996 reflects an increase in long-
term debt resulting principally from an active 1996 drilling
program and the acquisition of oil and gas properties.
Part II. OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders of the Company was
held on May 23, 1996. Set forth below is a description
of each matter acted upon at the meeting and the voting
results:
(a) Election of Directors
Not
Name For Against Voted
Stig Wennerstrom 16,686,664 292 1,573,491
Bruce L. Burnham 16,686,664 292 1,573,491
Arnold L. Chavkin 16,686,664 292 1,573,491
Eric Forss 16,686,664 292 1,573,491
Robert Issal 16,686,664 292 1,573,491
Kevin S. Penn 16,686,664 292 1,573,491
William F. Wallace 16,686,664 292 1,573,491
(b) Amendment of the Amended and Restated Certificate
of Incorporation to change the name of the Company
to "Forcenergy Inc".
For Against Not Voted
16,686,456 0 1,573,991
(c) Ratification of the Board of Directors appointment
of Coopers & Lybrand L.L.P. as independent
accountants for the year ending December 31, 1996.
For Against Not Voted
16,686,456 0 1,573,991
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 2.1 -- Agreement for Purchase
and Sale dated as of April 19, 1996 by and
between Amerada Hess Corporation, as
Seller, and Forcenergy Gas Exploration,
Inc., predecessor to Forcenergy Inc, as
Buyer. (Filed as Exhibit 2 to Form 8-K
filed on July 15, 1996 and is include
herein by reference).
Exhibit 10.1 -- Third Restatement of
Credit Agreement dated as of April 26, 1996
among Forcenergy Gas Exploration, Inc.,
predecessor to Forcenergy, Inc,
Internationale Nederlanden (U.S.) Capital
Corporation, as Agent and Lender, and
certain Financial Institutions named
therein as Lenders. (Filed as Exhibit 10.37
to the Registration Statement on Form S-1
filed on May 3, 1996, as subsequently
amended, and is included herein by
reference (File No. 333-4600)).
Exhibit 11.1 -- Computation of Earnings per Share
Exhibit 27 -- Financial Data Schedule
(b) Reports on Form 8-K
On July 24 and July 15, 1996, the Company filed
Form 8-K/A Amendment No. 1 and Form 8-K, respectively,
relating to the Company's acquisition from Amerada Hess
Corporation of certain producing oil and gas leasehold
interests and related equipment located offshore United
States in the Gulf of Mexico.
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, in
the City of Miami, State of Florida, on the 14th day of August,
1996.
FORCENERGY INC
By:/s/ STIG WENNERSTROM
Stig Wennerstrom
President/Chief Executive Officer
By:/s/ E. JOSEPH GRADY
E. Joseph Grady
Vice President - Chief Financial Officer
(principal financial and accounting officer)
EXHIBIT 11.1
FORCENERGY INC
COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)
PRIMARY EARNINGS PER SHARE
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net Income (Loss) $ 1,862 $ (717) $ 3,680 $(1,731)
Weighted Average Shares
Outstanding 18,261 9,040 18,261 9,040
Primary Earnings Per Share $ 0.10 $ (0.08) $ 0.20 $ (0.19)
FULLY DILUTED EARNINGS PER SHARE
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net Income (Loss) $ 1,862 $ (717) $3,680 $(1,731)
Effect of retirement of ESN
notes on interest expense 1,167 1,105 2,532 2,210
Tax effect related to interest
expense (435) (412) (944) (824)
Net Income (Loss) as adjusted $ 2,594 $ (24) $5,268 $ (345)
Weighted Average Shares
Outstanding 21,248 11,383 21,226 11,383
Fully Diluted Earnings Per Share $ .12 $ -- $ .25 $ (0.03)
WEIGHTED AVERAGE SHARES OUTSTANDING (PRIMARY EPS)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Weighted Average Shares of
Common Stock 18,261 9,040 18,261 9,040
WEIGHTED AVERAGE SHARES OUTSTANDING (FULLY DILUTED EPS)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Weighted Average Shares of
Common Stock 18,261 9,040 18,261 9,040
Dilutive Common Stock
Equivalents, Less than 3%
Effect on Primary EPS 644 -- 622 --
Conversion of Subordinated Notes 2,343 2,343 2,343 2,343
21,248 11,383 21,226 11,383
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE UNAUDITED INTERIM JUNE 30, 1996
BALANCE SHEET AND STATEMENT OF OPERATIONS OF
FORCENERGY INC FOR THE SIX MONTH PERIOD ENDED JUNE
30,1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
/LEGEND>
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