BAKERSFIELD, CA--(Marketwire - May 16, 2011) -
Highlights:
- Revenue increases 33% to $1.3 million from 2010 first quarter
- Operating income up 65% to $376,000
- Net income improves 77% to $320,000
- EPS of $0.07 versus $0.04 in Q1 last year
- Operating cash flow reaches $1.4 million
Pyramid Oil Company (
Revenue increased 33% to $1.3 million from $1.0 million in the first quarter last year. The increase was largely attributable to higher average crude oil prices, which increased $21.57 per barrel of oil equivalent (BOE) to $97.12 from $75.55 per average BOE in the 2010 first quarter. Revenue also benefitted from a 3% increase in production volumes during the quarter.
Operating income increased 65% to $376,000 from $229,000 in last year's first quarter. Operating margin in the first quarter was 28%, up from 23% in the comparable year-ago quarter. Net income improved 77% to $320,000, or $0.07 per share, from $181,000, or $0.04 per share, in the comparable year-ago quarter.
Pyramid generated operating cash flow of $1.4 million, up sharply from $176,000 during the first three months of fiscal 2010. At March 31, 2011, the Company's balance sheet included $4.9 million in cash, cash equivalents and short-term investments; total current assets of $6.3 million and working capital of $4.5 million.
"Our first quarter financial performance reflects the benefits of a strong price environment and our lean cost structure," said John Alexander, president and CEO. "During the quarter we maintained our focus on increasing production volumes in an effort to capitalize on our strong business model."
"Much of our attention was devoted to drilling operations on the Pike 1-H, our first Joint Venture well with Victory Oil Company. We received very encouraging test results during the drilling operations on this horizontal well, and moved in a pumping unit as we prepared to put it into production. However, in the weeks following completion, the well has generated significant water volumes, and we believe this has interrupted the initial flow of oil. We are currently working with several outside consultants in hopes of identifying and overcoming these technical issues."
Mr. Alexander said the Company has established a roster of additional drilling targets on its core properties in Kern County, California, and plans to drill up to two sidetrack wells and one potential new well during the latter half of the year. "Given the tight supply of contract rigs, we anticipate drilling on our next well will commence sometime this fall. In the meantime, we will continue to evaluate projects and opportunities that could accelerate our growth and enhance shareholder value."
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 March 31, | ||||||||||
| 2011 | 2010 | |||||||||
| REVENUES: | ||||||||||
| Oil and gas sales | $ | 1,326,298 | $ | 1,001,739 | ||||||
| Gain on sale of fixed assets | 1,012 | 0 | ||||||||
| 1,327,310 | 1,001,739 | |||||||||
| COSTS AND EXPENSES: | ||||||||||
| Operating expenses | 413,656 | 339,920 | ||||||||
| General and administrative | 224,720 | 207,367 | ||||||||
| Taxes, other than income and payroll taxes | 36,855 | 27,820 | ||||||||
| Provision for depletion, depreciation and amortization | 185,528 | 149,387 | ||||||||
| Valuation allowances | 48,533 | 25,141 | ||||||||
| Accretion expense | 16,335 | 6,213 | ||||||||
| Other costs and expenses | 25,487 | 17,240 | ||||||||
| 951,114 | 773,088 | |||||||||
| OPERATING INCOME | 376,196 | 228,651 | ||||||||
| OTHER INCOME (EXPENSE): | ||||||||||
| Interest income | 13,352 | 7,953 | ||||||||
| Other income | 500 | 2,797 | ||||||||
| Interest expense | (1,506 | ) | (181 | ) | ||||||
| 12,346 | 10,569 | |||||||||
| INCOME BEFORE INCOME TAX PROVISION | 388,542 | 239,220 | ||||||||
| Income tax provision | ||||||||||
| Current | 46,200 | 20,000 | ||||||||
| Deferred | 22,700 | 38,550 | ||||||||
| 68,900 | 58,550 | |||||||||
| NET INCOME | $ | 319,642 | $ | 180,670 | ||||||
| BASIC INCOME PER COMMON SHARE | $ | 0.07 | $ | 0.04 | ||||||
| DILUTED INCOME PER COMMON SHARE | $ | 0.07 | $ | 0.04 | ||||||
| Weighted average number of common shares outstanding | 4,679,770 | 4,677,728 | ||||||||
| Diluted average number of common shares outstanding | 4,687,030 | 4,686,018 | ||||||||
| PYRAMID OIL COMPANY | ||||||||||
| BALANCE SHEETS | ||||||||||
| ASSETS | ||||||||||
| March 31, | December 31, | |||||||||
| 2011 | 2010 | |||||||||
| (Unaudited) | (Audited) | |||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 1,841,418 | $ | 1,535,532 | ||||||
| Short-term investments | 3,069,270 | 3,058,528 | ||||||||
| Trade accounts receivable (net of reserve for doubtful accounts of $4,000 in 2011 and 2010) | 629,833 | 508,457 | ||||||||
| Joint interest billing receivable | 192,433 | -- | ||||||||
| Crude oil inventory | 95,736 | 86,361 | ||||||||
| Prepaid expenses and other assets | 195,098 | 230,876 | ||||||||
| Deferred income taxes | 245,100 | 245,100 | ||||||||
| TOTAL CURRENT ASSETS | 6,268,888 | 5,664,854 | ||||||||
| PROPERTY AND EQUIPMENT, at cost: | ||||||||||
| Oil and gas properties and equipment (successful efforts method) | 19,219,961 | 18,101,529 | ||||||||
| Capitalized asset retirement costs | 389,463 | 389,463 | ||||||||
| Drilling and operating equipment | 1,946,805 | 1,946,805 | ||||||||
| Land, buildings and improvements | 1,073,918 | 1,066,571 | ||||||||
| Automotive, office and other property and equipment | 1,195,396 | 1,182,613 | ||||||||
| 23,825,543 | 22,686,981 | |||||||||
| Less: accumulated depletion, depreciation, amortization and valuation allowance | (18,886,570 | ) | (18,687,908 | ) | ||||||
| TOTAL PROPERTY AND EQUIPMENT | 4,938,973 | 3,999,073 | ||||||||
| OTHER ASSETS | ||||||||||
| Deferred income taxes | 685,800 | 708,500 | ||||||||
| Deposits | 250,000 | 250,000 | ||||||||
| Other Assets | 17,380 | 7,380 | ||||||||
| TOTAL OTHER ASSETS | 953,180 | 965,880 | ||||||||
| TOTAL ASSETS | $ | 12,161,041 | $ | 10,629,807 | ||||||
| PYRAMID OIL COMPANY | ||||||||||
| BALANCE SHEETS | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| March 31, | December 31, | |||||||||
| 2011 | 2010 | |||||||||
| (Unaudited) | (Audited) | |||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 1,200,689 | $ | 73,374 | ||||||
| Accrued professional fees | 98,235 | 122,506 | ||||||||
| Accrued taxes, other than income taxes | 61,701 | 63,361 | ||||||||
| Accrued payroll and related costs | 78,562 | 60,365 | ||||||||
| Accrued royalties payable | 211,390 | 193,052 | ||||||||
| Accrued insurance | 46,840 | 86,888 | ||||||||
| Accrued income taxes | 59,000 | 12,800 | ||||||||
| Current maturities of long-term debt | 31,660 | 13,473 | ||||||||
| TOTAL CURRENT LIABILITIES | 1,788,077 | 625,819 | ||||||||
| LONG TERM DEBT, net of current maturites | 59,944 | 26,946 | ||||||||
| LIABILITY FOR ASSET RETIREMENT OBLIGATIONS | 1,251,528 | 1,235,193 | ||||||||
| TOTAL LIABILITIES | 3,099,549 | 1,887,958 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||
| Preferred stock-no par value; 10,000,000 authorized shares; no shares issued or outstanding | -- | -- | ||||||||
| Common stock-no par value; 50,000,000 authorized shares; 4,683,853 shares issued and outstanding | 1,639,228 | 1,639,228 | ||||||||
| Retained earnings | 7,422,264 | 7,102,621 | ||||||||
| TOTAL STOCKHOLDERS' EQUITY | 9,061,492 | 8,741,849 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 12,161,041 | $ | 10,629,807 | ||||||
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