New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-22
Mexican Pete
1921 Earnings
Reach Record
Surplus Available for Divi-
dcnds Is Equivalent to
S26.59 Share Common;
Improvement This Year
Production Is Increasing
Wells Could Produce a
Million Barrels Daily, Says
Dohcny; Position Strong

Despite predictions made last year
that the Mexican oil fields were show
inC signs Of exhaustion. the Mexican
Petroleum Company, Ltd, Of Delaware,
reported the largest net earnings in
i's history. the surplus available for
the S43. 16b. 700 common stock amount
ing 90 sli $50, 6S4. the equivalent Of
5000 a share. compared with 5000
a share earned in 1920, the best previ-
Gus year.
+. l.. Doheny. president. in making
public the annual report after the
close Of the market yesterday said
that the earnings so far this year were
running at approximately the same
rate Sc IN the last quarter Of 1921,
when net, after all charges. including
preferred dividends was equal 20 about
So a share on the junior stock issue,
or az an annual rate Of S36 a share.
lie said that the company was con-
tnuing its extraordinary production
and that It's takings Of oil Of 100000
barrels day do not nearly represent
the actual capacity Of the wells which
have been completed.
ut is conservative 70 say" MI.
Dohcnv explained. that all our wells
could produce az least 100000 barrels
Of oil day II run 10 capacity. Some
people have. from time 10 time, at
tempted TO fix a date when our pro-
duction would be exhausted, but there
never has been time since our Cerro
Azul. No Z, well came in in February,
1916. when we could not have taken
az least 100000 barrels a day. We
took less. because we did not have the
tank steamer facilities TO move so
much oil.
"An our production at the present
time is coming from our wells on the
northern border Of Cerro Azul. in what
is known rs Toteco-Cerro Azul dis
trict. We are not taking any oil from
our wells No. or No. 3, which are
further in the interior Of the Cerro
Azul tract. Our Cierra Blanca. No.
Q. well. which came in early this month,
is capable Of producing over 100000
barrels daily. and further proves up
our reserves Of OIL"
The annual report showed that the
volume OF business done by the MeXi-
can Petroleum Company last year was
approximately the same as in 1920.
Nevertheless. profits from operations
were. 500 .449.426. compared with Sl5,-
4Cq733 for 1920. The difference in
these amounts was accounted for large
lv hy the fact that in 1920 great
many companies were producing large
quantities Of oil in the Amatlan and
other districts of Mexico. OF which the
company produced considerable quanti-
ties. thus increasing the cost Of oil
handled.
As result Of the intensive cam
nairn Of development carried on in
i92Ol21 and still continuing, when pro-
duction from the Amatlan and other
fields waned, because of partial ex-
+ haustion, the company supplied its re-
ouirements from its own wells, the re-
+ suit being a substantial saving in costs.
In addition. the expiration Of some
low-priced contracts Of former years
made the average prices obtained IN
1921 somewhat higher than those of
1920 Hence the increased profits, not
withstandng the facts that taxes paid
20 the Mexican government were
heavier during 1921 and the earning
power Of the company was handicapped
bv two months shutdown in July
and August.
Taxes paid 20 the Mexican govern
ment last year totaled S6,700,000, OF
tho equivalent CT SIS a share on the
outstanding common stock. The amount
set aside 20 provide for taxes payable
to the United States government was
the equivalent Of 81 q share.
The balance sheet condition at the
end Of 1921 showed current assets Of
26.41O.394, compared with current
Liabilities Of SlO,3G9 1893. Accounts re-
ceivable and cash on hand amounted
to more than Sl7OO0,O00, eontrasted
with accounts payable, plus dividends,
Of s6.s0O,0OO The cash and cash
equivalent, the report pointed out, was
equal TO the sum of the entire bonded