SOURCE: Pyramid Oil Company

Pyramid Oil Company

November 14, 2012 08:00 ET

Pyramid Oil Company Reports Third Quarter and Nine-Month Financial Results

Company Delivers Continued Profitability and Improved Financial Strength; Value of Cash, Short-Term Investments and CDs Increases to $1.45 per Share

BAKERSFIELD, CA--(Marketwire - Nov 14, 2012) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its third quarter and nine-month period ended September 30, 2012.

Third quarter revenue was $1.2 million versus $1.4 million in the same quarter a year ago. The decline was attributable to lower average crude sales prices and a decrease in crude production volumes. The Company realized third quarter crude prices per average barrel of oil equivalent (BOE) of $99.81 versus $105.06 per average BOE in the same quarter last year, while its net revenue share of crude oil sales decreased by approximately 1,400 barrels versus the 2011 third quarter.

Operating income was $286,000 versus a loss from operations of $162,000 in the third quarter last year. Last year's operating results included a $673,000 non-cash valuation allowance associated with the Pike 1-H horizontal joint venture well. Third quarter net income was $208,000, or $0.04 per share, versus net income of $4,000, or $0.00 per share in comparable prior-year quarter. 

For the nine-month period, revenue was $3.9 million versus $4.3 million during the same period of 2011. Operating income was $1.1 million versus $726,000 in the comparable prior-year period, while net income was $869,000, or $0.19 per share, compared with net income of $751,000, or $0.16 per share, in the same period a year ago. Operating cash flow at the nine-month mark was to $1.7 million versus $2.0 million during the first nine months of last year. 

Pyramid further strengthened its financial position during the quarter, as cash, cash equivalents and short-term investments increased to $5.7 million from $5.3 million at the end of the second quarter and $4.9 million at December 31, 2011. Working capital improved to $6.1 million, while total current assets have increased to $6.7 million. The Company also held $1.1 million in CDs at the end of the quarter, which, when combined with cash, cash equivalents and short-term investments, was $6.8 million, or $1.45 per share. Pyramid's balance sheet remained free of long-term debt at the close of the quarter.

"Another quarter of solid earnings and cash flow has added to the strength of our financial position, giving us increased flexibility as we seek opportunities to grow the Company," said John Alexander, president and CEO. "Enhancing shareholder value remains our primary focus as we evaluate these opportunities."

Pyramid is in the process of acquiring Victory Oil Company's 32% working interest in the Pike 1-H well and 50 acres of surface and mineral interests associated with Victory's Murphy Fee property. The transaction will give Pyramid 100% working interest in the Pike 1-H, which was drilled as a joint venture by Pyramid and Victory during the first quarter of 2011. Both Companies expect to conclude the transaction in the fourth quarter of 2012.

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,
                 
    2012   2011   2012   2011
                         
REVENUES:                        
  Oil and gas sales   $ 1,198,420   $ 1,412,842   $ 3,907,792   $ 4,289,181
                         
COSTS AND EXPENSES:                        
  Operating expenses     476,122     421,405     1,365,861     1,282,950
  General and administrative     192,910     222,583     632,804     666,375
  Stock based compensation     0     0     0     43,743
  Taxes, other than income and payroll taxes     44,885     37,399     129,266     101,358
  Provision for depletion, depreciation and amortization     151,502     184,208     519,396     595,631
  Valuation allowances     0     673,000     0     727,384
  Accretion expense     13,153     5,229     31,970     26,793
  Other costs and expenses     33,975     31,280     118,449     118,964
                         
      912,547     1,575,104     2,797,746     3,563,198
                         
OPERATING INCOME (LOSS)     285,873     -162,262     1,110,046     725,983
                         
OTHER INCOME (EXPENSE):                        
  Interest income     10,975     12,193     31,835     38,704
  Other income     0     0     250     500
  Interest expense     -152     -568     -868     -2,459
                         
      10,823     11,625     31,217     36,745
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)     296,696     -150,637     1,141,263     762,728
  Income tax provision (benefit)                        
    Current     16,800     52,700     99,800     163,300
    Deferred     72,000     -207,600     172,900     -151,500
      88,800     -154,900     272,700     11,800
                         
NET INCOME   $ 207,896   $ 4,263   $ 868,563   $ 750,928
                         
BASIC INCOME PER COMMON SHARE   $ 0.04   $ 0.00   $ 0.19   $ 0.16
                         
DILUTED INCOME PER COMMON SHARE   $ 0.04   $ 0.00   $ 0.19   $ 0.16
                         
Weighted average number of common shares outstanding                        
  4,687,644     4,683,853     4,685,117     4,682,492
                         
Diluted average number of common shares outstanding                        
  4,687,644     4,685,177     4,685,117     4,688,465
                         
                         
PYRAMID OIL COMPANY
BALANCE SHEETS
         
ASSETS
         
    September 30, 2012   December 31, 2011
    (Unaudited)   (Audited)
             
CURRENT ASSETS:            
  Cash and cash equivalents   $ 3,582,642   $ 2,762,676
  Short-term investments     2,134,391     2,128,380
  Trade accounts receivable     431,151     555,495
  Income taxes receivable     55,569     21,169
  Crude oil inventory     106,025     118,156
  Prepaid expenses and other assets     116,140     255,846
  Deferred income taxes     262,500     262,500
             
    TOTAL CURRENT ASSETS     6,688,418     6,104,222
             
PROPERTY AND EQUIPMENT, at cost            
  Oil and gas properties and equipment (successful efforts method)     19,919,006     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
             
      24,597,159     23,748,207
             
  Less: accumulated depletion, depreciation, amortization and valuation allowances     -20,611,051     -20,091,655
             
  TOTAL PROPERTY AND EQUIPMENT     3,986,108     3,656,552
             
INVESTMENTS AND OTHER ASSETS            
  Long-term investments     1,093,919     1,071,984
  Deferred income taxes     608,700     781,600
  Deposits     250,000     250,000
  Other Assets     17,380     17,380
             
  TOTAL INVESTMENTS OTHER ASSETS     1,969,999     2,120,964
             
    TOTAL ASSETS   $ 12,644,525   $ 11,881,738
             
PYRAMID OIL COMPANY
BALANCE SHEETS
         
LIABILITIES AND STOCKHOLDERS' EQUITY
         
    September 30, 2012,   December 31, 2011
    (Unaudited)   (Audited)
             
CURRENT LIABILITIES:            
  Accounts payable   $ 147,763   $ 88,494
  Accrued professional fees     126,876     142,990
  Accrued taxes, other than income taxes     40,203     77,471
  Accrued payroll and related costs     62,987     51,252
  Accrued royalties payable     206,513     224,810
  Accrued insurance     0     82,428
  Current maturities of long-term debt     5,981     32,285
             
    TOTAL CURRENT LIABILITIES     590,323     699,730
             
LONG TERM DEBT, net of current maturites     0     22,330
             
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS     1,304,850     1,278,889
             
    TOTAL LIABILITIES     1,895,173     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     9,066,381     8,197,818
             
    TOTAL STOCKHOLDERS' EQUITY     10,749,352     9,880,789
             
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 12,644,525   $ 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