Enron Oil & Gas reported first quarter net income of $27.0million, 17 cents/share, compared to $23.1 million, 15 cents/share,for first quarter of 1997. Discretionary cash flow increased to$124.0 million in the first quarter of 1998 compared to $110.1million for the comparable quarter in 1997. Net operating revenuesincreased to $199.8 million in the first quarter of 1998 comparedto $180.7 million a year ago.
“Despite lagging prices in all product categories – natural gas,crude oil and condensate and natural gas liquids – we increaseddiscretionary cash flow by 13%,” said Forrest E. Hoglund. “Naturalgas deliveries in the first quarter 1998 totaled 901 MMcf/d andcrude oil, condensate and natural gas liquids deliveries totaled26.1 thousand barrels per day, compared to first quarter 1997deliveries of 850 MMcf/d and 23.5 thousand barrels per day,respectively,” he said.
Total North America wellhead gas production averaged 745 MMcf/din the first quarter of 1998 compared to 738 MMcf/d a year ago.North America wellhead crude oil and condensate volumes averaged15.3 thousand barrels per day in the first quarter of 1998, a 17%increase over first quarter 1997 volumes of 13.1 thousand barrelsper day. First quarter 1998 North America wellhead gas pricesaveraged $1.93/Mcf, down 25% from an average of $2.58/Mcf in thefirst quarter of 1997. North America crude oil and condensateprices were $14.55/barrel for the first quarter of 1998, down 32%compared to $21.55/bbl a year ago.
“We are optimistic that, despite lower crude oil prices, NorthAmerica natural gas prices will continue to be strong due to themarket’s recognition of the acceleration of production declinerates from new reserves,” Hoglund said. “During the first quarter,we continued an active capital program with expenditures exceeding$140 million,” he noted. “We are excited about our first-quarterdrilling results, particularly offshore in Eugene Island Block 135and Matagorda Island Block 634, as previously announced.”
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