-- Third quarter diluted EPS reported at $0.05 -- Cash and short-term investments increase to $4.6 million; current ratio at 12.9:1 -- Texas JV begins testing Pan Am #1 gas well; plans farmout agreement -- Company targeting new oil well in California's Carneros Creek FieldPyramid Oil Company today announced financial results for its third fiscal quarter ended September 30, 2009. Pyramid reported net income of $221,000, or $0.05 per diluted share, on revenue of $945,000, representing a sequential improvement from a second quarter net loss of $39,000, or $0.01 per diluted share, on revenue of $802,000. Net income in the comparable third quarter last year was $704,000, or $0.15 per diluted share, on revenue of $2,000,000. The quarter-to-quarter revenue improvement was largely due to an increase in average crude oil prices, which rose to $63.96 per barrel of oil equivalent (BOE) from $55.09 per BOE in the second quarter. Average price per BOE in the third quarter last year was $110.13. Third quarter operating expenses were $347,000 versus $325,000 in this year's second quarter and $549,000 in the third quarter a year ago. Income from operations was $191,000 versus a second quarter loss from operations of $208,000, which included a non-recurring, non-cash charge of $210,000 associated with a board-authorized supplemental stock-based severance payment. Operating income in last year's third quarter was $860,000. John Alexander, president and CEO, said, "Higher oil prices fueled another sequential improvement in our financial results, and helped reinforce our already strong balance sheet. At September 30, we had $4,602,000 in cash, cash equivalents and short-term investments, and a working capital position of $4,947,000. Our current ratio is 12.9:1 and we are free of any long-term debt. We believe we are well positioned to pursue a variety of near- and longer-range opportunities that could stimulate future growth." Mr. Alexander said Pyramid and the Company's Texas joint venture partners have re-perforated and acid fraced the Pan Am #1 natural gas well, which is currently being flow tested prior to hooking it into a gas sales line. The JV group also is executing a Farmout Agreement under which the farmee will re-enter the existing Murray Franklin well and drill a 4,500-foot lateral hole through the Eagle Ford formation at a depth of approximately 9,500 feet. The farmee also will drill a new horizontal well into the Eagle Ford Formation and will have the right to drill additional wells subject to a 90-day continuous drilling obligation. The farmee will earn 100% of the working interest prior to payout and 70% after payout. Pyramid will own approximately 2.5% of the working interest after payout, with no out of pocket costs for the drilling and completion of any Eagle Ford wells. Pyramid also announced plans to drill a new oil well in California's Carneros Creek field. The well is planned for Pyramid's Anderson property and will target a depth of approximately 3,400 feet. Management hopes to secure a contract-drilling rig for this well by late December. Nine-month results Through nine months, Pyramid reported revenue of $2,341,000 versus $5,713,000 in the same period a year ago. Operating loss was $235,000 versus operating income of $2,778,000 at the nine-month mark a year ago. Net loss was $7,000, or less than $0.01 per diluted share, versus net income of $2,447,000, or $0.52 per diluted share, in the same period last year. 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 (Unaudited) Three months ended Nine months ended September 30, September 30, ----------------------- ----------------------- 2009 2008 2009 2008 ----------- ----------- ----------- ----------- REVENUES: Oil and gas sales $ 945,413 $ 1,999,119 $ 2,341,359 $ 5,712,201 Gain on sale of fixed assets 0 500 0 500 ----------- ----------- ----------- ----------- 945,413 1,999,619 2,341,359 5,712,701 ----------- ----------- ----------- ----------- COSTS AND EXPENSES: Operating expenses 346,800 548,991 1,023,339 1,433,274 Exploration costs 0 0 0 -28,812 General and administrative 198,703 298,759 653,805 740,359 Severance award agreement 0 0 209,935 0 Taxes, other than income and payroll taxes 33,809 42,481 114,593 99,091 Provision for depletion, depreciation and amortization 150,209 169,185 468,665 523,244 Accretion expense 5,898 54,847 17,696 66,468 Other costs and expenses 18,628 25,643 88,773 101,215 ----------- ----------- ----------- ----------- 754,047 1,139,906 2,576,806 2,934,839 ----------- ----------- ----------- ----------- OPERATING INCOME (LOSS) 191,366 859,713 -235,447 2,777,862 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest income 20,508 22,661 68,378 64,672 Other income 3,600 5,217 10,800 24,031 Interest expense -299 -529 -1,072 -1,763 ----------- ----------- ----------- ----------- 23,809 27,349 78,106 86,940 ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) 215,175 887,062 -157,341 2,864,802 Income tax provision (benefit) Current -43,499 -35,223 -181,082 239,252 Deferred 37,300 218,000 30,500 179,000 ----------- ----------- ----------- ----------- -6,199 182,777 -150,582 418,252 ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ 221,374 $ 704,285 $ -6,759 $ 2,446,550 =========== =========== =========== =========== EARNINGS PER COMMON SHARE Basic and diluted income (loss) per common share $ 0.05 $ 0.15 $ 0.00 $ 0.52 =========== =========== =========== =========== 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 4,719,004 4,677,728 4,677,728 4,677,728 =========== =========== =========== =========== PYRAMID OIL COMPANY BALANCE SHEETS ASSETS September 30, December 31, 2009 2008 (Unaudited) (Audited) ------------- ------------- CURRENT ASSETS: Cash and cash equivalents $ 1,261,651 $ 1,793,563 Short-term investments 3,340,743 2,789,099 Trade accounts receivable 315,865 213,588 Income taxes receivable 132,655 0 Crude oil inventory 56,165 82,025 Deferred income taxes 195,800 108,000 Prepaid expenses and other assets 58,297 186,353 ------------- ------------- TOTAL CURRENT ASSETS 5,361,176 5,172,628 ------------- ------------- PROPERTY AND EQUIPMENT, at cost Oil and gas properties and equipment (successful efforts method) 15,999,336 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 ------------- ------------- 20,717,867 20,475,710 Less: accumulated depletion, depreciation, amortization and valuation allowance -16,596,004 -16,147,157 ------------- ------------- 4,121,863 4,328,553 ------------- ------------- OTHER ASSETS Deposits 250,000 250,000 Deferred income taxes 390,945 509,245 Other Assets 17,013 17,013 ------------- ------------- $ 10,140,997 $ 10,277,439 ============= ============= PYRAMID OIL COMPANY BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY September 30, December 31, 2009 2008 (Unaudited) (Audited) ------------- ------------- CURRENT LIABILITIES: Accounts payable $ 28,997 $ 40,820 Accrued professional fees 120,426 130,261 Accrued taxes, other than income taxes 30,960 76,222 Accrued payroll and related costs 55,335 50,451 Accrued royalties payable 150,692 132,472 Accrued insurance 3,250 59,096 Accrued income taxes 0 239,815 Current maturities of long-term debt 24,610 23,901 ------------- ------------- TOTAL CURRENT LIABILITIES 414,270 753,038 ------------- ------------- LONG-TERM DEBT, net of current maturities 2,094 20,640 ------------- ------------- LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,169,402 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 7,039,286 7,046,045 ------------- ------------- 8,555,231 8,352,055 ------------- ------------- $ 10,140,997 $ 10,277,439 ============= =============
Contact Information: CONTACTS: John H. Alexander President and CEO Pyramid Oil Company 661-325-1000 Geoff High Principal Pfeiffer High Investor Relations, Inc. 303-393-7044