SOURCE: Pyramid Oil Company

Pyramid Oil Company

August 17, 2009 08:00 ET

Pyramid Oil Company Reports Second Quarter Financial Results

BAKERSFIELD, CA--(Marketwire - August 17, 2009) - Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its second fiscal quarter ended June 30, 2009.

Revenue for the second quarter was $802,000 versus $594,000 in this year's first quarter and $2,123,000 in the second quarter of fiscal 2008. Both the sequential improvement and quarter-over-quarter decline were primarily due to significant fluctuations in average crude oil prices. The average price received per barrel of oil equivalent (BOE) in the second quarter was $55.09, an increase of 40% compared with the 2009 first quarter, and a decline of 43% versus the average BOE during last year's second quarter.

Pyramid reduced its operating expenses for the quarter to $325,000 from $351,000 in this year's first quarter and $461,000 in the second quarter a year ago. The Company recorded a non-recurring, non-cash charge of $210,000 associated with a board-authorized supplemental stock-based severance payment.

As a result of the booked non-cash charge, the Company reported a loss from operations of $208,000 versus a loss from operations of $219,000 in this year's first quarter and operating income of $1,178,000 in the second quarter a year ago. Second quarter net loss was $39,000, or $0.01 per diluted share, versus a net loss of $189,000, or $0.04 per diluted share, in the first quarter and net income of $908,000, or $0.19 per diluted share, in the comparable year-ago quarter.

John Alexander, president and CEO, said, "The sequential improvement in our financial performance reflects both the rebound in oil prices off of the first quarter lows, as well as our efforts to tightly control operating costs. As anticipated, our strong balance sheet is allowing us to consider a range of opportunities to enhance our reserve base, including a potential joint venture investment in a 1,900-acre drilling prospect in Louisiana. We also are proceeding with our Texas natural-gas joint venture, on which we recently drilled a side-track section on our well re-entry program and encountered nearly twice the amount of gas zone as had been expected. While this project is taking longer than originally anticipated to bring on line, we are encouraged by the recent acceleration in activity."

Pyramid further strengthened its balance sheet during the second quarter, which at June 30 included cash and short-term investments of $4,335,000, working capital of $4,633,000 and less than $10,000 in long-term debt.

Six-month results

Through six months, Pyramid reported revenue of $1,396,000 versus $3,713,000 in the same period a year ago. Operating loss was $427,000 versus operating income of $1,918,000 at the six-month mark a year ago. Net loss was $228,000, or $0.05 per diluted share, versus net income of $1,742,000, or $0.37 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        Six months ended
                                    June 30,                June 30,
                            ----------- ----------- ----------- -----------
                               2009        2008        2009        2008
                            ----------- ----------- ----------- -----------


REVENUES:                   $   801,901 $ 2,123,186 $ 1,395,946 $ 3,713,082
                            ----------- ----------- ----------- -----------

COSTS AND EXPENSES:
    Operating expenses          325,189     461,477     676,539     884,283
    Exploration Costs                 0           0           0     -28,812
    General and
     administrative             229,797     209,088     455,102     441,600
    Severance award
     agreement                  209,935           0     209,935           0
    Taxes, other than
     income
      and payroll taxes          32,486      21,100      80,784      56,610
    Provision for
     depletion,
      depreciation and
       amortization             160,142     191,239     318,456     354,059
    Accretion expense             5,932       5,811      11,798      11,621
    Other costs and
     expenses                    45,975      56,020      70,145      75,572
                            ----------- ----------- ----------- -----------

                              1,009,456     944,735   1,822,759   1,794,933
                            ----------- ----------- ----------- -----------

OPERATING INCOME (LOSS)        -207,555   1,178,451    -426,813   1,918,149
                            ----------- ----------- ----------- -----------


OTHER INCOME (EXPENSE):
    Interest income              21,395      19,934      47,870      42,011
    Other income                  3,600       9,152       7,200      18,814
    Interest expense               -358        -593        -773      -1,234
                            ----------- ----------- ----------- -----------

                                 24,637      28,493      54,297      59,591
                            ----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE INCOME
   TAX PROVISION (BENEFIT)     -182,918   1,206,944    -372,516   1,977,740
    Income tax provision
      Current                   -34,200     182,850    -137,583     274,475
      Deferred                 -109,800     116,100      -6,800     -39,000
                            ----------- ----------- ----------- -----------
                               -144,000     298,950    -144,383     235,475
                            ----------- ----------- ----------- -----------

NET INCOME (LOSS)           $   -38,918 $   907,994 $  -228,133 $ 1,742,265
                            =========== =========== =========== ===========

BASIC INCOME (LOSS)
  PER COMMON SHARE          $     -0.01 $      0.19 $     -0.05 $      0.37
                            =========== =========== =========== ===========

DILUTED INCOME (LOSS)
  PER COMMON SHARE          $     -0.01 $      0.19 $     -0.05 $      0.37
                            =========== =========== =========== ===========

Basic and diluted weighted
 average number of common
 shares outstanding           4,677,728   4,677,728   4,677,728   4,677,728



                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                                  ASSETS



                                                    June 30,   December 31,
                                                      2009         2008
                                                   (Unaudited)   (Audited)
                                                  ------------ ------------

CURRENT ASSETS:
  Cash and cash equivalents                       $  1,009,273 $  1,793,563
  Short-term investments                             3,325,389    2,789,099
  Trade accounts receivable                            286,581      213,588
  Income taxes receivable                               60,555            0
  Crude oil inventory                                   80,832       82,025
  Deferred income taxes                                195,800      108,000
  Prepaid expenses and other assets                     87,787      186,353
                                                  ------------ ------------

         TOTAL CURRENT ASSETS                        5,046,217    5,172,628
                                                  ------------ ------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                      15,922,218   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                            1,163,076    1,162,324
                                                  ------------ ------------
                                                    20,643,208   20,475,710
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance            -16,465,613  -16,147,157
                                                  ------------ ------------
                                                     4,177,595    4,328,553
                                                  ------------ ------------
OTHER ASSETS
  Deposits                                             250,000      250,000
  Deferred income taxes                                428,245      509,245
  Other Assets                                          17,013       17,013
                                                  ------------ ------------

                                                  $  9,919,070 $ 10,277,439




                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                   LIABILITIES AND STOCKHOLDERS' EQUITY



                                                    June 30,   December 31,
                                                      2009         2008
                                                  (Unaudited)   (Audited)
                                                  ------------ ------------

CURRENT LIABILITIES:
  Accounts payable                                $     54,429 $     40,820
  Accrued professional fees                             76,871      130,261
  Accrued taxes, other than income taxes                     0       76,222
  Accrued payroll and related costs                     89,276       50,451
  Accrued royalties payable                            146,561      132,472
  Accrued insurance                                     21,865       59,096
  Accrued income taxes                                       0      239,815
  Current maturities of long-term debt                  24,371       23,901
                                                  ------------ ------------

         TOTAL CURRENT LIABILITIES                     413,373      753,038
                                                  ------------ ------------

LONG-TERM DEBT, net of current maturities                8,336       20,640
                                                  ------------ ------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION            1,163,504    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                                  6,817,912    7,046,045
                                                  ------------ ------------

                                                     8,333,857    8,352,055
                                                  ------------ ------------

                                                  $  9,919,070 $ 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