-- Third quarter diluted EPS reported at $0.05
-- Cash and short-term investments increase to $4.6 million; current
ratio at 12.9:1
-- Texas JV begins testing Pan Am #1 gas well; plans farmout agreement
-- Company targeting new oil well in California's Carneros Creek Field
Pyramid Oil Company today announced financial results for its third fiscal
quarter ended September 30, 2009.
Pyramid reported net income of $221,000, or $0.05 per diluted share, on
revenue of $945,000, representing a sequential improvement from a second
quarter net loss of $39,000, or $0.01 per diluted share, on revenue of
$802,000. Net income in the comparable third quarter last year was
$704,000, or $0.15 per diluted share, on revenue of $2,000,000.
The quarter-to-quarter revenue improvement was largely due to an increase
in average crude oil prices, which rose to $63.96 per barrel of oil
equivalent (BOE) from $55.09 per BOE in the second quarter. Average price
per BOE in the third quarter last year was $110.13.
Third quarter operating expenses were $347,000 versus $325,000 in this
year's second quarter and $549,000 in the third quarter a year ago. Income
from operations was $191,000 versus a second quarter loss from operations
of $208,000, which included a non-recurring, non-cash charge of $210,000
associated with a board-authorized supplemental stock-based severance
payment. Operating income in last year's third quarter was $860,000.
John Alexander, president and CEO, said, "Higher oil prices fueled another
sequential improvement in our financial results, and helped reinforce our
already strong balance sheet. At September 30, we had $4,602,000 in cash,
cash equivalents and short-term investments, and a working capital position
of $4,947,000. Our current ratio is 12.9:1 and we are free of any
long-term debt. We believe we are well positioned to pursue a variety of
near- and longer-range opportunities that could stimulate future growth."
Mr. Alexander said Pyramid and the Company's Texas joint venture partners
have re-perforated and acid fraced the Pan Am #1 natural gas well, which is
currently being flow tested prior to hooking it into a gas sales line. The
JV group also is executing a Farmout Agreement under which the farmee will
re-enter the existing Murray Franklin well and drill a 4,500-foot lateral
hole through the Eagle Ford formation at a depth of approximately 9,500
feet. The farmee also will drill a new horizontal well into the Eagle Ford
Formation and will have the right to drill additional wells subject to a
90-day continuous drilling obligation. The farmee will earn 100% of the
working interest prior to payout and 70% after payout. Pyramid will own
approximately 2.5% of the working interest after payout, with no out of
pocket costs for the drilling and completion of any Eagle Ford wells.
Pyramid also announced plans to drill a new oil well in California's
Carneros Creek field. The well is planned for Pyramid's Anderson property
and will target a depth of approximately 3,400 feet. Management hopes to
secure a contract-drilling rig for this well by late December.
Nine-month results
Through nine months, Pyramid reported revenue of $2,341,000 versus
$5,713,000 in the same period a year ago. Operating loss was $235,000
versus operating income of $2,778,000 at the nine-month mark a year ago.
Net loss was $7,000, or less than $0.01 per diluted share, versus net
income of $2,447,000, or $0.52 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 Nine months ended
September 30, September 30,
----------------------- -----------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
REVENUES:
Oil and gas sales $ 945,413 $ 1,999,119 $ 2,341,359 $ 5,712,201
Gain on sale of fixed
assets 0 500 0 500
----------- ----------- ----------- -----------
945,413 1,999,619 2,341,359 5,712,701
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Operating expenses 346,800 548,991 1,023,339 1,433,274
Exploration costs 0 0 0 -28,812
General and
administrative 198,703 298,759 653,805 740,359
Severance award
agreement 0 0 209,935 0
Taxes, other than
income and payroll
taxes 33,809 42,481 114,593 99,091
Provision for
depletion,
depreciation and
amortization 150,209 169,185 468,665 523,244
Accretion expense 5,898 54,847 17,696 66,468
Other costs and
expenses 18,628 25,643 88,773 101,215
----------- ----------- ----------- -----------
754,047 1,139,906 2,576,806 2,934,839
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 191,366 859,713 -235,447 2,777,862
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income 20,508 22,661 68,378 64,672
Other income 3,600 5,217 10,800 24,031
Interest expense -299 -529 -1,072 -1,763
----------- ----------- ----------- -----------
23,809 27,349 78,106 86,940
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
INCOME TAX PROVISION
(BENEFIT) 215,175 887,062 -157,341 2,864,802
Income tax provision
(benefit)
Current -43,499 -35,223 -181,082 239,252
Deferred 37,300 218,000 30,500 179,000
----------- ----------- ----------- -----------
-6,199 182,777 -150,582 418,252
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 221,374 $ 704,285 $ -6,759 $ 2,446,550
=========== =========== =========== ===========
EARNINGS PER COMMON SHARE
Basic and diluted
income (loss)
per common share $ 0.05 $ 0.15 $ 0.00 $ 0.52
=========== =========== =========== ===========
Basic weighted average
number of common shares
outstanding 4,677,728 4,677,728 4,677,728 4,677,728
=========== =========== =========== ===========
Diluted weighted average
number of common shares
outstanding 4,719,004 4,677,728 4,677,728 4,677,728
=========== =========== =========== ===========
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
September 30, December 31,
2009 2008
(Unaudited) (Audited)
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,261,651 $ 1,793,563
Short-term investments 3,340,743 2,789,099
Trade accounts receivable 315,865 213,588
Income taxes receivable 132,655 0
Crude oil inventory 56,165 82,025
Deferred income taxes 195,800 108,000
Prepaid expenses and other assets 58,297 186,353
------------- -------------
TOTAL CURRENT ASSETS 5,361,176 5,172,628
------------- -------------
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 15,999,336 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 1,160,617 1,162,324
------------- -------------
20,717,867 20,475,710
Less: accumulated depletion, depreciation,
amortization and valuation allowance -16,596,004 -16,147,157
------------- -------------
4,121,863 4,328,553
------------- -------------
OTHER ASSETS
Deposits 250,000 250,000
Deferred income taxes 390,945 509,245
Other Assets 17,013 17,013
------------- -------------
$ 10,140,997 $ 10,277,439
============= =============
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, December 31,
2009 2008
(Unaudited) (Audited)
------------- -------------
CURRENT LIABILITIES:
Accounts payable $ 28,997 $ 40,820
Accrued professional fees 120,426 130,261
Accrued taxes, other than income taxes 30,960 76,222
Accrued payroll and related costs 55,335 50,451
Accrued royalties payable 150,692 132,472
Accrued insurance 3,250 59,096
Accrued income taxes 0 239,815
Current maturities of long-term debt 24,610 23,901
------------- -------------
TOTAL CURRENT LIABILITIES 414,270 753,038
------------- -------------
LONG-TERM DEBT, net of current maturities 2,094 20,640
------------- -------------
LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,169,402 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 7,039,286 7,046,045
------------- -------------
8,555,231 8,352,055
------------- -------------
$ 10,140,997 $ 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