SOURCE: Pyramid Oil Company

Pyramid Oil Company

November 14, 2013 08:00 ET

Pyramid Oil Company Reports Third Quarter Financial Results

BAKERSFIELD, CA--(Marketwired - Nov 14, 2013) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its third quarter ended September 30, 2013.

Third quarter revenue was $1.1 million versus $1.2 million in the same quarter last year. The decrease was principally attributable to a 7% decline in crude oil production volumes offset by higher average sales prices. Crude prices increased by $2.32 per average barrel of oil equivalent (BOE) to $102.21 from $99.89 per average BOE in the 2012 third quarter.

The Company reported an operating loss of $928,000 versus operating income of $286,000 in the third quarter last year. The decline is attributable to $1.1 million in one-time expenses related to an employment agreement entered into in 2002 with the former president and CEO, who retired effective September 30, 2013. Net loss was $534,000, or $0.11 per share, versus net income of $208,000, or $0.04 per share, during the same quarter in 2012.

For the nine-month period, revenue was $3.3 million versus $3.9 million during the same period of 2012. Operating loss was $591,000 versus operating income of $1.1 million in the comparable prior-year period, while net loss was $291,000, or $0.06 per share, versus net income of $869,000, or $0.19 per share, in the same period a year ago. Operating cash flow at the nine-month mark was $846,000 compared with $1.7 million during the first nine months of last year.

At September 30, Pyramid had cash, cash equivalents, restricted cash and short-term investments of $6.6 million, and total current assets of $8.0 million. The Company also reported long-term assets in the form of certificates of deposit of $1.1 million. Current liabilities at September 30 were $964,000 and total liabilities were $3.0 million. Stockholders' equity at the end of the quarter was $10.4 million.

"Absent one-time severance-related expenses, our year-to-date results would have generated income in excess of half a million dollars," said Mike Herman, interim president and CEO. "Moreover, we have maintained our financial strength and closed the quarter with a healthy balance sheet."

"Looking forward, we are establishing an aggressive program designed to improve oil production volumes and strengthen our financial performance. This program will include the rework and recompletion of several existing wells on our California properties."

Herman added, "We have made important progress on our previously announced program to re-drill and deepen three wells into the Monterey formation on our Delaney Tunnell property in Santa Maria, California. State permits to re-drill two wells are now in hand, and we have received verbal confirmation from the State that two additional permits, which allow us to re-drill a third well and utilize it for water disposal, have been approved and will be sent to the Company shortly. We expect drilling operations on this project will commence during next year's first quarter."

Pursuant to management's goal of growing the Company and improving shareholder value, Herman said Pyramid also will explore reserve acquisitions from other oil and gas operators, as well as potential merger and joint venture opportunities, should they arise.

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,  
    2013     2012     2013     2012  
REVENUES:                                
  Oil and gas sales   $ 1,138,438     $ 1,198,420     $ 3,300,650     $ 3,907,792  
COSTS AND EXPENSES:                                
  Operating expenses     535,227       476,122       1,469,708       1,365,861  
  General and administrative     294,430       192,910       751,433       632,804  
  Termination expenses     1,040,764       0       1,040,764       0  
  Taxes, other than income and payroll taxes    
33,044
     
44,885
     
100,599
     
129,266
 
  Provision for depletion, depreciation and amortization    
127,010
     
151,502
     
388,806
     
519,396
 
  Accretion expense     6,288       13,153       24,599       31,970  
  Other costs and expenses     29,991       33,975       116,189       118,449  
      2,066,754       912,547       3,892,098       2,797,746  
OPERATING (LOSS) INCOME     (928,316 )     285,873       (591,448 )     1,110,046  
OTHER INCOME (EXPENSE):                                
  Interest income     10,235       10,975       30,550       31,835  
  Other income     0       0       0       250  
  Interest expense     0       (152 )     0       (868 )
      10,235       10,823       30,550       31,217  
(LOSS) INCOME BEFORE INCOME TAX PROVISION (BENEFIT)    
(918,081
)    
296,696
     
(560,898
)    
1,141,263
 
  Income tax provision (benefit)                                
    Current     (4,000 )     16,800       11,126       99,800  
    Deferred     (380,300 )     72,000       (281,000 )     172,900  
      (384,300 )     88,800       (269,874 )     272,700  
NET (LOSS) INCOME   $ (533,781 )   $ 207,896     $ (291,024 )   $ 868,563  
BASIC (LOSS) INCOME PER COMMON SHARE   $
(0.11
)   $
0.04
    $
(0.06
)   $
0.19
 
DILUTED (LOSS) INCOME PER COMMON SHARE   $
(0.11
)   $
0.04
    $
(0.06
)   $
0.19
 
Weighted average number of common shares outstanding    
4,688,085
     
4,687,644
     
4,688,085
     
4,685,117
 
Diluted average number of common shares outstanding    
4,688,085
     
4,687,644
     
4,688,085
     
4,685,117
 
                                 
                                 
   
   
PYRAMID OIL COMPANY  
BALANCE SHEETS  
             
ASSETS  
             
             
    September 30,     December 31,  
    2013     2012  
    (Unaudited)     (Audited)  
CURRENT ASSETS:                
  Cash and cash equivalents   $ 3,512,689     $ 3,834,097  
  Restricted cash     334,657       0  
  Short-term investments     2,139,695       2,135,709  
  Trade accounts receivable     446,973       375,090  
  Income taxes receivable     45,400       73,069  
  Crude oil inventory     85,684       82,180  
  Prepaid expenses and other assets     99,923       257,370  
  Deferred income taxes     694,500       264,400  
    TOTAL CURRENT ASSETS     7,359,521       7,021,915  
PROPERTY AND EQUIPMENT, at cost                
  Oil and gas properties and equipment (successful efforts method)    
20,089,288
     
20,007,453
 
  Capitalized asset retirement costs     425,978       425,978  
  Drilling and operating equipment     2,058,744       1,966,750  
  Land, buildings and improvements     1,098,918       1,098,918  
  Automotive, office and other property and equipment    
1,136,566
     
1,202,544
 
      24,809,494       24,701,643  
  Less: accumulated depletion, depreciation, amortization and valuation allowances    
(21,306,941
)    
(20,953,324
)
  TOTAL PROPERTY AND EQUIPMENT     3,502,553       3,748,319  
INVESTMENTS AND OTHER ASSETS                
  Long-term investments     1,124,100       1,101,526  
  Restricted cash     632,672       0  
  Deferred income taxes     472,700       621,800  
  Deposits     250,000       250,000  
  Other Assets     11,380       17,380  
  TOTAL INVESTMENTS OTHER ASSETS     2,490,852       1,990,706  
    TOTAL ASSETS   $ 13,352,926     $ 12,760,940  
                 
                 
PYRAMID OIL COMPANY  
BALANCE SHEETS  
             
LIABILITIES AND STOCKHOLDERS' EQUITY  
             
             
    September 30,     December 31,  
    2013     2012  
    (Unaudited)     (Audited)  
CURRENT LIABILITIES:                
  Accounts payable   $ 199,909     $ 226,759  
  Accrued professional fees     116,020       120,000  
  Accrued taxes, other than income taxes     28,822       70,407  
  Accrued payroll and related costs     65,649       58,954  
  Accrued royalties payable     218,783       204,509  
  Deferred compensation liability     334,657       0  
  Accrued insurance     0       94,116  
    TOTAL CURRENT LIABILITIES     963,840       774,745  
LIABILITY FOR DEFERRED COMPENSATION     669,316       0  
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS     1,352,460       1,327,861  
    TOTAL LIABILITIES     2,985,616       2,102,606  
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; 4,688,085 shares issued and outstanding    
1,682,971
      1,682,971  
  Retained earnings     8,684,339       8,975,363  
    TOTAL STOCKHOLDERS' EQUITY     10,367,310       10,658,334  
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 13,352,926     $ 12,760,940  
                 
                 

Contact Information

  • CONTACT:
    Geoff High
    Principal
    Pfeiffer High Investor Relations, Inc.
    303-393-7044