BAKERSFIELD, CA--(Marketwire - Nov 14, 2011) - Pyramid Oil Company (
Selected Highlights:
- 29% Increase in Nine-month Oil and Gas Sales Drives Strong Improvements in Year-to-date Operating Income and Net Income
- Operating Cash Flow Reaches $2.0 Million at Nine-Month Mark
- Cash, Cash Equivalents and Short-term Investments increase to $5.5 Million from $4.6 Million at December 31, 2011
Pyramid Oil Company (
Through nine months, oil and gas sales increased 29% to $4.3 million from $3.3 million in the nine-month period last year. The increase was due to higher average crude oil prices, which increased by $29.50 per average barrel of oil equivalent (BOE) to $103.72 from $74.22 per average BOE in the comparable 2010 period. Total revenue increased 18% to $4.3 million from $3.7 million in last year's nine-month period. Total revenue in the 2010 nine-month period included a $321,000 gain on the third quarter sale of a portion of the Company's interest in a Texas natural gas joint venture.
Nine-month operating income improved to $726,000 compared with $145,000 during the 2010 nine-month period. Net income increased 175% to $751,000, or $0.16 per share, from net income of $273,000, or $0.06 per share, during the same period last year. Pyramid reported cash flow from operations of $2.0 million, up 38% from $1.4 million during the first nine months of fiscal 2010.
For the third quarter, revenue from oil and gas sales increased 29% to $1.4 million from $1.1 million in the same quarter last year. Average crude oil prices during the quarter increased $31.80 per average BOE to $105.06 from $73.26 per average BOE in the 2010 third quarter. Total revenue was $1.4 million, flat versus revenue of $1.4 million in last year's third quarter, which included the previously mentioned $321,000 gain on the sale of fixed assets.
Third quarter operating loss, which included a $673,000 non-cash valuation allowance associated with Pyramid's Pike 1-H horizontal joint venture well, was $162,000 versus operating income of $499,000 in last year's third quarter. Pyramid and joint venture partner Victory Oil Company continued efforts to address production challenges associated with the Pike 1-H. However, the well has not responded favorably to a range of stimulation efforts. Third quarter net income was $4,000, or $0.00 per share, versus net income of $394,000, or $0.08 per share, in the year-ago third quarter.
Pyramid's balance sheet at September 30, 2011, included $5.5 million in cash, cash equivalents and short-term investments; up from $4.7 million at the end of the second quarter and $4.6 million at December 31, 2010. Total current assets at September 30, 2011, were $6.5 million and working capital was $5.9 million. Long-term debt was $39,000.
"We have achieved solid financial growth through the first three quarters of 2011, and we expect to finish the year with strong improvements in revenue, profitability and operating cash flow," said John Alexander, president and CEO. "Despite recent challenges with the Pike 1-H, we remain focused on enhancing shareholder value through increased production. We have re-prioritized our drilling plans, and now intend to focus on new well opportunities that could generate higher production volumes than the re-drill program previously under consideration. The first of our new wells is slated for early next year in our productive Carneros Creek field. Once contract rigs are more accessible, we also intend to revisit various well re-entry opportunities. The growing strength of our balance sheet clearly gives us the flexibility to pursue a range of options for enhancing our production portfolio."
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 September 30, | Nine months ended September 30, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||
| REVENUES: | ||||||||||||||
| Oil and gas sales | $ | 1,412,342 | $ | 1,099,464 | $ | 4,287,669 | $ | 3,329,594 | ||||||
| Gain on sale of fixed assets | 500 | 320,556 | 1,512 | 320,556 | ||||||||||
| 1,412,842 | 1,420,020 | 4,289,181 | 3,650,150 | |||||||||||
| COSTS AND EXPENSES: | ||||||||||||||
| Operating expenses | 421,405 | 386,897 | 1,282,950 | 1,165,209 | ||||||||||
| General and administrative | 222,583 | 195,838 | 666,375 | 653,793 | ||||||||||
| Stock based compensation | 0 | 113,500 | 43,743 | 113,500 | ||||||||||
| Taxes, other than income and payroll taxes | 37,399 | 39,654 | 101,358 | 97,313 | ||||||||||
| Valuation allowances | 673,000 | 0 | 727,384 | 867,468 | ||||||||||
| Provision for depletion, depreciation and amortization | 184,208 | 151,855 | 595,631 | 498,115 | ||||||||||
| Accretion expense | 5,229 | 6,664 | 26,793 | 18,775 | ||||||||||
| Other costs and expenses | 31,280 | 26,403 | 118,964 | 90,946 | ||||||||||
| 1,575,104 | 920,811 | 3,563,198 | 3,505,119 | |||||||||||
| OPERATING INCOME (LOSS) | -162,262 | 499,209 | 725,983 | 145,031 | ||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||
| Interest income | 12,193 | 13,521 | 38,704 | 29,904 | ||||||||||
| Other income | 0 | 3,600 | 500 | 9,997 | ||||||||||
| Interest expense | -568 | -30 | -2,459 | -333 | ||||||||||
| 11,625 | 17,091 | 36,745 | 39,568 | |||||||||||
| INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) | -150,637 | 516,300 | 762,728 | 184,599 | ||||||||||
| Income tax provision (benefit) | ||||||||||||||
| Current | 52,700 | 47,200 | 163,300 | 92,100 | ||||||||||
| Deferred | -207,600 | 75,300 | -151,500 | -180,100 | ||||||||||
| -154,900 | 122,500 | 11,800 | -88,000 | |||||||||||
| NET INCOME | $ | 4,263 | $ | 393,800 | $ | 750,928 | $ | 272,599 | ||||||
| BASIC INCOME PER COMMON SHARE | $ | 0.00 | $ | 0.08 | $ | 0.16 | $ | 0.06 | ||||||
| DILUTED INCOME PER COMMON SHARE | $ | 0.00 | $ | 0.08 | $ | 0.16 | $ | 0.06 | ||||||
| Weighted average number of common shares outstanding | 4,683,853 | 4,677,728 | 4,682,492 | 4,677,728 | ||||||||||
| Diluted weighted average number of common shares outstanding | 4,685,177 | 4,720,014 | 4,688,465 | 4,719,276 | ||||||||||
| PYRAMID OIL COMPANY | ||||||||
| BALANCE SHEETS | ||||||||
| ASSETS | ||||||||
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Audited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 2,267,006 | $ | 1,535,532 | ||||
| Short-term investments | 3,190,618 | 3,058,528 | ||||||
| Trade accounts receivable | 532,333 | 508,457 | ||||||
| Joint interest billing receivable | 10,776 | 0 | ||||||
| Income taxes receivable | 9,498 | 0 | ||||||
| Crude oil inventory | 96,697 | 86,361 | ||||||
| Prepaid expenses and other assets | 92,661 | 230,876 | ||||||
| Deferred income taxes | 262,500 | 245,100 | ||||||
| TOTAL CURRENT ASSETS | 6,462,089 | 5,664,854 | ||||||
| PROPERTY AND EQUIPMENT, at cost | ||||||||
| Oil and gas properties and equipment (successful efforts method) | 19,110,614 | 18,101,529 | ||||||
| Capitalized asset retirement costs | 401,242 | 389,463 | ||||||
| Drilling and operating equipment | 1,956,371 | 1,946,805 | ||||||
| Land, buildings and improvements | 1,073,918 | 1,066,571 | ||||||
| Automotive, office and other property and equipment | 1,180,042 | 1,182,613 | ||||||
| 23,722,187 | 22,686,981 | |||||||
| Less: accumulated depletion, depreciation, amortization and valuation allowances | -19,928,176 | -18,687,908 | ||||||
| TOTAL PROPERTY AND EQUIPMENT | 3,794,011 | 3,999,073 | ||||||
| OTHER ASSETS | ||||||||
| Deferred income taxes | 842,600 | 708,500 | ||||||
| Deposits | 250,000 | 250,000 | ||||||
| Other Assets | 17,380 | 7,380 | ||||||
| TOTAL OTHER ASSETS | 1,109,980 | 965,880 | ||||||
| TOTAL ASSETS | $ | 11,366,080 | $ | 10,629,807 | ||||
| PYRAMID OIL COMPANY | ||||||||
| BALANCE SHEETS | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Audited) | |||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 48,651 | $ | 73,374 | ||||
| Accrued professional fees | 123,045 | 122,506 | ||||||
| Accrued taxes, other than income taxes | 32,143 | 63,361 | ||||||
| Accrued payroll and related costs | 77,416 | 60,365 | ||||||
| Accrued royalties payable | 203,983 | 193,052 | ||||||
| Accrued insurance | 0 | 86,888 | ||||||
| Accrued income taxes | 0 | 12,800 | ||||||
| Current maturities of long-term debt | 32,015 | 13,473 | ||||||
| TOTAL CURRENT LIABILITIES | 517,253 | 625,819 | ||||||
| LONG TERM DEBT, net of current maturites | 38,541 | 26,946 | ||||||
| LIABILITY FOR ASSET RETIREMENT OBLIGATIONS | 1,273,765 | 1,235,193 | ||||||
| TOTAL LIABILITIES | 1,829,559 | 1,887,958 | ||||||
| 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 | 1,639,228 | ||||||
| Retained earnings | 7,853,550 | 7,102,621 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 9,536,521 | 8,741,849 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 11,366,080 | $ | 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