SOURCE: Pyramid Oil Company

Pyramid Oil Company

August 14, 2012 09:00 ET

Pyramid Oil Company Reports Second Quarter and Six-Month Financial Results

Strong Operating Cash Flow Further Strengthens Financial Position

BAKERSFIELD, CA--(Marketwire - Aug 14, 2012) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its second quarter and six-month period ended June 30, 2012.

Second quarter revenue was $1.3 million versus $1.5 million in the same quarter a year ago. The decline was principally attributable to lower crude production volumes. The Company realized second quarter crude prices per average barrel of oil equivalent (BOE) of $108.06 versus $108.79 per average BOE in the same quarter last year.

Operating income was $368,000 versus $512,000 in the second quarter last year. Net income was $289,000, or $0.06 per share, versus net income of $427,000, or $0.09 per share in comparable prior-year quarter. 

For the six-month period, revenue was $2.7 million versus $2.9 million during the same period of 2011. Operating income was $824,000 versus $888,000 in the comparable prior-year period, while net income was $661,000, or $0.14 per share, compared with net income of $747,000, or $0.16 per share, in the same period a year ago. Operating cash flow at the mid-year mark increased to $1.3 million from $1.2 million during the first six months of last year. 

Pyramid's financial position continued to strengthen, with cash, cash equivalents and short-term investments increasing to $5.3 million from $4.9 million at December 31, 2011. Working capital improved to $5.7 million from $5.4 million, while total current assets increased to $6.2 million from $6.1 million. At June 30, 2012, the Company also held long-term assets of $1.1 million in the form of certificates of deposit, which, when combined with cash, cash equivalents and short-term investments, was equivalent to $1.37 per share. Pyramid's current ratio at the end of the second quarter was more than 13:1, and its balance sheet remained free of long-term debt.

"We have delivered another quarter of solid profitability and improved financial strength," said John Alexander, president and CEO. "Our results continue to reflect our lean corporate structure and the strong pricing we receive for our crude production. So far in the third quarter, our realized crude prices have continued to average more than $100 per BOE."

Alexander added, "Our recent efforts to increase production have not come without challenges. Our drilling plans have been hampered by the limited availability of contract rigs in our region, and we continue to face production issues with our most recent development well, the Santa Fe #20. We have achieved limited production volumes from the well to date, and have attempted a variety of technical procedures to address what we believe is a blockage in the well bore. We are now considering a re-perforation of the well, which we likely will perform later in the third quarter." 

"Although these issues have temporarily slowed some of our operational progress, we have remained solidly profitable in what is an inherently volatile industry," Alexander added. "Moreover, our strong financial position has given us the flexibility to evaluate various strategic opportunities that could enhance our reserve portfolio and increase production. Our primary objective in this review process is to enhance long-term value for our shareholders by targeting opportunities that appropriately balancing risk and reward."

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
June 30,
  Six months ended
June 30,
               
  2012   2011   2012   2011
                       
REVENUES:                      
  Oil and gas sales $ 1,340,314   $ 1,549,029   $ 2,709,372   $ 2,876,339
                       
COSTS AND EXPENSES:                      
  Operating expenses   459,798     447,889     889,739     861,545
  General and administrative   228,878     219,072     439,894     443,792
  Stock based compensation   0     43,743     0     43,743
  Taxes, other than income and payroll taxes   36,960     27,104     84,381     63,959
  Provision for depletion, depreciation and amortization   186,738     225,895     367,894     411,423
  Valuation allowances   0     5,851     0     54,384
  Accretion expense   5,730     5,229     18,817     21,564
  Other costs and expenses   54,669     62,197     84,474     87,684
                       
    972,773     1,036,980     1,885,199     1,988,094
                       
OPERATING INCOME   367,541     512,049     824,173     888,245
                       
OTHER INCOME (EXPENSE):                      
  Interest income   10,170     13,159     20,860     26,511
  Other income   250     0     250     500
  Interest expense   -290     -385     -716     -1,891
                       
    10,130     12,774     20,394     25,120
                       
INCOME BEFORE INCOME TAX PROVISION   377,671     524,823     844,567     913,365
  Income tax provision                      
    Current   34,600     64,400     83,000     110,600
    Deferred   54,500     33,400     100,900     56,100
    89,100     97,800     183,900     166,700
                       
NET INCOME $ 288,571   $ 427,023   $ 660,667   $ 746,665
                       
BASIC INCOME PER COMMON SHARE $ 0.06   $ 0.09   $ 0.14   $ 0.16
                       
DILUTED INCOME PER COMMON SHARE $ 0.06   $ 0.09   $ 0.14   $ 0.16
                       
Weighted average number of common shares outstanding   4,683,853     4,683,853     4,683,853     4,681,811
                       
Diluted average number of common shares outstanding   4,686,827     4,725,992     4,686,929     4,723,536
                       
                       
                       
PYRAMID OIL COMPANY
BALANCE SHEETS
       
ASSETS
       
       
  June 30,   December 31,
  2012   2011
  (Unaudited)   (Audited)
           
CURRENT ASSETS:          
  Cash and cash equivalents $ 3,213,023   $ 2,762,676
  Short-term investments   2,132,644     2,128,380
  Trade accounts receivable   358,945     549,476
  Joint interest billing receivable   3,235     6,019
  Income taxes receivable   23,669     21,169
  Crude oil inventory   116,168     118,156
  Prepaid expenses and other assets   113,352     255,846
  Deferred income taxes   262,500     262,500
           
    TOTAL CURRENT ASSETS   6,223,536     6,104,222
           
PROPERTY AND EQUIPMENT, at cost          
  Oil and gas properties and equipment (successful efforts method)   19,847,970     19,124,558
  Capitalized asset retirement costs   409,338     401,242
  Drilling and operating equipment   1,966,750     1,956,371
  Land, buildings and improvements   1,073,918     1,073,918
  Automotive, office and other property and equipment   1,228,147     1,192,118
           
    24,526,123     23,748,207
  Less: accumulated depletion, depreciation, amortization and valuation allowances   -20,459,549     -20,091,655
           
  TOTAL PROPERTY AND EQUIPMENT   4,066,574     3,656,552
           
INVESTMENTS AND OTHER ASSETS          
  Long-term investments   1,086,311     1,071,984
  Deferred income taxes   680,700     781,600
  Deposits   250,000     250,000
  Other Assets   17,380     17,380
           
  TOTAL INVESTMENTS OTHER ASSETS   2,034,391     2,120,964
           
TOTAL ASSETS $ 12,324,501   $ 11,881,738
           
 
PYRAMID OIL COMPANY
BALANCE SHEETS
       
LIABILITIES AND STOCKHOLDERS' EQUITY
           
           
  June 30,   December 31,
  2012   2011
  (Unaudited)   (Audited)
           
CURRENT LIABILITIES:          
  Accounts payable $ 98,430   $ 88,494
  Accrued professional fees   100,834     142,990
  Accrued taxes, other than income taxes   0     77,471
  Accrued payroll and related costs   51,968     51,252
  Accrued royalties payable   189,753     224,810
  Accrued insurance   13,928     82,428
  Accrued income taxes   0     0
  Current maturities of long-term debt   22,330     32,285
           
    TOTAL CURRENT LIABILITIES   477,243     699,730
           
LONG TERM DEBT, net of current maturites   0     22,330
           
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS   1,305,802     1,278,889
           
    TOTAL LIABILITIES   1,783,045     2,000,949
           
COMMITMENTS AND CONTINGENCIES          
           
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; 4,683,853 shares issued and outstanding   1,682,971     1,682,971
  Retained earnings   8,858,485     8,197,818
           
    TOTAL STOCKHOLDERS' EQUITY   10,541,456     9,880,789
           
           
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,324,501   $ 11,881,738
           

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