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SOURCE: Pyramid Oil Company
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April 01, 2010 08:00 ET
Pyramid Oil Company Reports Fourth Quarter and Full-year Financial Results
Strong Year-End Balance Sheet to Support Active 2010 Drilling Program; Horizontal Well Scheduled for April on Kern County, CA Property
BAKERSFIELD, CA--(Marketwire - April 1, 2010) - Pyramid Oil Company (NYSE Amex: PDO) today
announced financial results for its fourth quarter and full year ended
December 31, 2009.
Fourth quarter revenue increased to $971,000 from $898,000 in the fourth
quarter of fiscal 2008. The increase was largely due to higher average
crude oil prices, which rose $18.71 per barrel of oil equivalent (BOE) to
$70.98 from $52.27 per BOE in last year's fourth quarter. The increase was
partially offset by a 21% decline in production volumes.
Pyramid reported a fourth quarter net loss of $183,000, or $0.04 per
diluted share, versus a net loss of $933,000, or $0.20 per share, in the
prior year's fourth quarter. This year's fourth quarter was impacted by a
non-cash reserve-impairment charge of $359,000, which was related primarily
to the Company's Texas natural gas joint venture. The 2008 fourth quarter
included a non-cash reserve-impairment charge of $1.2 million, due
principally to the significant drop in oil prices during the second half of
2008.
Fourth quarter operating expenses declined to $388,000 from $509,000 in
last year's fourth quarter, while total costs and expenses were reduced to
$1.3 million from $2.6 million during the same respective periods. The
Company reported a loss from operations of $302,000 versus an operating
loss of $1.7 million in the comparable 2008 fourth quarter.
For the full fiscal year, revenue was $3.3 million versus $6.6 million in
fiscal 2008. The decrease resulted from a decline of $36.40 per BOE
received by the Company during 2009 compared with the prior year, as well
as by a 12,600-barrel year-over-year decline in production volumes.
Full-year operating expenses declined by $530,000, or 27%, to $1.4 million
compared with operating expenses of $1.9 million during fiscal 2008. Total
2009 costs and expenses declined to $3.8 million from $5.5 million in
fiscal 2008. The Company reported a 2009 operating loss of $537,000 versus
operating income of $1.1 million during 2008.
Pyramid generated $573,000 in 2009 operating cash flow, and closed the year
with $4.8 million in cash and cash equivalents. The Company has $5.1
million in working capital and remains free of long-term debt.
"We closed fiscal 2009 with a strong balance sheet and a focused plan for
capitalizing on our property portfolio and the improved pricing environment
for crude oil," said John Alexander, president and CEO. "We have retained
a talented independent geologist, who in recent months has led an extensive
review of many of our California properties. This process has resulted in
a short list of drilling prospects we intend to pursue during the coming
year, provided the economics remain compelling. The first of these
projects will be a horizontal well we intend to spud on one of our existing
leases in Kern County during the coming month."
Mr. Alexander added, "We recently commenced production from a new well on
our Carneros Creek property, and we are finally seeing encouraging signs of
progress on our Texas natural gas joint venture, where Union Gas Company of
Houston recently commenced field operations. We are optimistic that our
efforts to increase production and enhance shareholder value will be
successful during the coming year and beyond."
Mr. Alexander said management plans to fund the Company's near-term
drilling program with cash on hand and future operating cash flow.
About Pyramid Oil Company
Pyramid Oil Company has been in the oil and gas business continuously since
incorporating in 1909. Pyramid acquires interests in land and producing
properties through acquisition and lease, and then drills and/or operates
crude or natural gas wells in an effort to discover or produce oil and/or
natural gas. More information about the Company can be found at:
http://www.pyramidoil.com.
Safe Harbor Statement
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995, including statements
regarding the completion and testing of wells. Forward-looking statements
involve known and unknown risks and uncertainties, which may cause the
Company's actual results in future periods to differ materially from
forecasted results. Factors that could cause or contribute to such
differences include, but are not limited to the value of crude oil or the
performance of wells.
PYRAMID OIL COMPANY
STATEMENTS OF OPERATIONS
Three months ended Twelve months ended
December 31, December 31,
----------------------- -----------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
REVENUES:
Oil and gas sales $ 970,536 $ 898,427 $ 3,311,895 $ 6,610,628
Gain on sale of fixed
assets 0 0 0 500
----------- ----------- ----------- -----------
970,536 898,427 3,311,895 6,611,128
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Operating expenses 388,382 508,614 1,411,721 1,941,888
Exploration costs 0 0 0 -28,812
General and administrative 270,871 259,832 924,676 1,001,791
Stock based compensation 0 169,000 209,935 167,400
Taxes, other than income
and payroll taxes 33,131 32,124 147,724 131,215
Provision for depletion,
depreciation and
amortization 171,073 420,924 639,738 944,168
Valuation allowances 358,757 1,162,379 358,757 1,162,379
Accretion expense 23,922 2,364 41,618 68,832
Other costs and expenses 26,391 26,875 115,164 128,090
----------- ----------- ----------- -----------
1,272,527 2,582,112 3,849,333 5,516,951
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) -301,991 -1,683,685 -537,438 1,094,177
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income 7,049 24,120 75,427 88,792
Other income 3,600 4,400 14,400 28,431
Interest expense -241 -472 -1,313 -2,235
----------- ----------- ----------- -----------
10,408 28,048 88,514 114,988
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
INCOME TAX PROVISION
(BENEFIT) -291,583 -1,655,637 -448,924 1,209,165
Income tax provision
(benefit)
Current -14,200 73,458 -195,282 312,710
Deferred -94,855 -796,245 -64,355 -617,245
----------- ----------- ----------- -----------
-109,055 -722,787 -259,637 -304,535
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ -182,528 $ -932,850 $ -189,287 $ 1,513,700
=========== =========== =========== ===========
Basic Income Per Common
Share $ -0.04 $ -0.20 $ -0.04 $ 0.32
=========== =========== =========== ===========
Diluted Income Per Common
Share $ -0.04 $ -0.20 $ -0.04 $ 0.32
=========== =========== =========== ===========
Basic weighted average
number of common shares
outstanding 4,677,728 4,677,728 4,677,728 4,677,728
=========== =========== =========== ===========
Diluted weighted average
number of common shares
outstanding 4,686,249 4,713,055 4,686,249 4,713,055
=========== =========== =========== ===========
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
December 31, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,438,825 $ 1,793,563
Short-term investments 3,344,061 2,789,099
Trade accounts receivable 375,954 213,588
Income taxes receivable 124,281 0
Crude oil inventory 62,760 82,025
Deferred income taxes 196,200 108,000
Prepaid expenses and other assets 169,595 186,353
------------ ------------
TOTAL CURRENT ASSETS 5,711,676 5,172,628
------------ ------------
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 16,085,228 15,755,472
Capitalized asset retirement costs 382,550 382,550
Drilling and operating equipment 2,109,993 2,109,993
Land, buildings and improvements 1,065,371 1,065,371
Automotive, office and other
property and equipment 1,160,617 1,162,324
------------ ------------
20,803,759 20,475,710
Less: accumulated depletion, depreciation,
amortization and valuation allowance -17,125,834 -16,147,157
------------ ------------
3,677,925 4,328,553
------------ ------------
OTHER ASSETS
Deposits 250,000 250,000
Deferred income taxes 485,400 509,245
Other Assets 17,013 17,013
------------ ------------
$ 10,142,014 $ 10,277,439
============ ============
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
CURRENT LIABILITIES:
Accounts payable $ 88,170 $ 40,820
Accrued professional fees 138,381 130,261
Accrued taxes, other than income taxes 62,310 76,222
Accrued payroll and related costs 51,606 50,451
Accrued royalties payable 159,933 132,472
Accrued insurance 54,947 59,096
Accrued income taxes 0 239,815
Current maturities of long-term debt 20,640 23,901
------------ ------------
TOTAL CURRENT LIABILITIES 575,987 753,038
------------ ------------
LONG-TERM DEBT, net of current maturities 0 20,640
------------ ------------
LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,193,324 1,151,706
------------ ------------
COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock-no par value; 10,000,000
authorized shares; no shares issued or
outstanding 0 0
Common stock-no par value; 50,000,000
authorized shares; 4,677,728 shares
issued and outstanding 1,515,945 1,306,010
Retained earnings 6,856,758 7,046,045
------------ ------------
8,372,703 8,352,055
------------ ------------
$ 10,142,014 $ 10,277,439
------------ ------------