BAKERSFIELD, CA -- (Marketwire) -- 11/14/12 -- 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 Nine months ended
September 30, 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, December 31,
2012 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, December 31,
2012, 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
================ ================
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