Pyramid Oil Company Reports Third Quarter and Nine-Month Financial Results
(firmenpresse) - BAKERSFIELD, CA -- (Marketwire) -- 11/14/11 -- Pyramid Oil Company (NYSE Amex: PDO)
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 (NYSE Amex: PDO) today announced financial results for its year-to-date and third quarter periods ended September 30, 2011.
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."
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: .
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.
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044
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Datum: 14.11.2011 - 13:00 Uhr
Sprache: Deutsch
News-ID 87315
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BAKERSFIELD, CA
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Oil & Gas
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