Pyramid Oil Company Reports Continued Earnings Growth in First Fiscal Quarter

Marketwired

BAKERSFIELD, CA--(Marketwire -05/15/12)- Pyramid Oil Company (PDO) today announced financial results for its first quarter ended March 31, 2012.

First quarter revenue increased to $1.4 million from $1.3 million in the same quarter of fiscal 2011. The increase was attributable to higher crude oil prices, which increased by $14.70 per average barrel of oil equivalent (BOE) to $111.82 from $97.12 per average BOE in the 2011 first quarter.

Operating income increased to $457,000, up 21% from $376,000 in the first quarter last year. Net income increased 16% to $372,000, or $0.08 per share, from $320,000, or $0.07 per share, during the 2011 first quarter.

Pyramid ended the quarter with cash, cash equivalents and short-term investments of $4.9 million, total current assets of $6.0 million, and working capital of $5.4 million. The Company also reported long-term assets in the form of certificates of deposit of $1.1 million. These CDs were classified on the December 31, 2011, balance sheet as short-term investments, but have been reclassified due to their date of maturity. At March 31, the Company remained free of long-term debt.

"We have delivered another quarter of solid earnings growth and have maintained a very strong balance sheet," said John Alexander, president and CEO. "During the period we also drilled a development well on our Carneros Creek property in Kern County, California. This well, the Santa Fe #20, has now been completed and stimulated using a gel-fracking procedure. Following an initial production of fluids, an unexplained blockage has occurred, and we are currently attempting to identify the cause and correct it."

Mr. Alexander added, "As part of our long-range effort to increase oil volumes, we hope to drill at least two additional wells during the balance of the year, provided we can obtain contract drilling rigs. Of course we also will continue to evaluate external growth opportunities that could further enhance value for our shareholders."

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 March 31,
2012 2011
-------------- --------------

REVENUES:
Oil and gas sales $ 1,369,058 $ 1,327,310
-------------- --------------

COSTS AND EXPENSES:
Operating expenses 429,941 413,656
General and administrative 211,016 224,720
Taxes, other than income and payroll taxes 47,421 36,855
Provision for depletion,
depreciation and amortization 181,156 185,528
Valuation allowances 0 48,533
Accretion expense 13,087 16,335
Other costs and expenses 29,805 25,487
-------------- --------------

912,426 951,114
-------------- --------------

OPERATING INCOME 456,632 376,196
-------------- --------------

OTHER INCOME (EXPENSE):
Interest income 10,690 13,352
Other income 0 500
Interest expense -426 -1,506
-------------- --------------

10,264 12,346
-------------- --------------
INCOME BEFORE INCOME TAX PROVISION 466,896 388,542
Income tax provision
Current 48,400 46,200
Deferred 46,400 22,700
-------------- --------------
94,800 68,900
-------------- --------------

NET INCOME $ 372,096 $ 319,642
============== ==============

BASIC INCOME PER COMMON SHARE $ 0.08 $ 0.07
============== ==============

DILUTED INCOME PER COMMON SHARE $ 0.08 $ 0.07
============== ==============

Weighted average number of common shares
outstanding 4,683,853 4,679,770
============== ==============

Diluted average number of common shares
outstanding 4,687,033 4,687,030
============== ==============


PYRAMID OIL COMPANY
BALANCE SHEETS

ASSETS


March 31, December 31,
2012 2011
(Unaudited) (Audited)
------------- -------------

CURRENT ASSETS:
Cash and cash equivalents $ 2,740,356 $ 2,762,676
Short-term investments 2,130,510 2,128,380
Trade accounts receivable 519,581 549,476
Joint interest billing receivable 8,495 6,019
Income taxes receivable 0 21,169
Crude oil inventory 134,709 118,156
Prepaid expenses and other assets 205,726 255,846
Deferred income taxes 262,500 262,500
------------- -------------

TOTAL CURRENT ASSETS 6,001,877 6,104,222
------------- -------------

PROPERTY AND EQUIPMENT, at cost

Oil and gas properties and equipment
(successful efforts method) 19,727,871 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 1,192,118 1,192,118
------------- -------------

24,369,995 23,748,207

Less: accumulated depletion, depreciation,
amortization and valuation allowances -20,272,811 -20,091,655
------------- -------------

TOTAL PROPERTY AND EQUIPMENT 4,097,184 3,656,552
------------- -------------

INVESTMENTS AND OTHER ASSETS
Long-term investments 1,078,787 1,071,984
Deferred income taxes 735,200 781,600
Deposits 250,000 250,000
Other Assets 17,380 17,380
------------- -------------

TOTAL INVESTMENTS OTHER ASSETS 2,081,367 2,120,964
------------- -------------

TOTAL ASSETS $ 12,180,428 $ 11,881,738
============= =============



PYRAMID OIL COMPANY
BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY


March 31, December 31,
2012 2011
(Unaudited) (Audited)
------------- -------------

CURRENT LIABILITIES:
Accounts payable $ 126,360 $ 88,494
Accrued professional fees 43,784 142,990
Accrued taxes, other than income taxes 77,471 77,471
Accrued payroll and related costs 59,645 51,252
Accrued royalties payable 209,085 224,810
Accrued insurance 45,354 82,428
Accrued income taxes 27,231 0
Current maturities of long-term debt 32,560 32,285
------------- -------------

TOTAL CURRENT LIABILITIES 621,490 699,730
------------- -------------

LONG TERM DEBT, net of current maturites 5,981 22,330
------------- -------------

LIABILITY FOR ASSET RETIREMENT OBLIGATIONS 1,300,072 1,278,889
------------- -------------

TOTAL LIABILITIES 1,927,543 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 8,569,914 8,197,818
------------- -------------

TOTAL STOCKHOLDERS' EQUITY 10,252,885 9,880,789
------------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,180,428 $ 11,881,738
============= =============

Contact:
CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044

Rates

View Comments (0)