Pyramid Oil Company Reports Fourth Quarter and Full-Year Financial Results; Establishes Drilling Objectives for 2013

Marketwired

BAKERSFIELD, CA--(Marketwire - Apr 1, 2013) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its fourth quarter and full fiscal year ended December 31, 2012.

Fourth quarter revenue was $1.1 million versus $1.4 million in the same quarter in 2011. The decline was attributable to lower average crude sales prices and a decrease in crude production volumes. The Company realized fourth quarter crude prices per average barrel of oil equivalent (BOE) of $101.62 versus $108.15 per average BOE in the 2011 fourth quarter. The Company's net revenue share of crude oil sales decreased by approximately 2,250 barrels compared with the same quarter in 2011.

During the fourth quarter, the Company recorded a $237,000 non-cash valuation allowance associated with the Santa Fe #20 well, which was drilled during the first quarter but currently is not producing. The non-recurring charge resulted in a fourth quarter operating loss of $135,000 versus operating income of $435,000 in the comparable quarter last year. Fourth quarter net loss was $91,000, or $0.02 per share, versus net income of $344,000, or $0.07 per share, in comparable prior-year quarter.

For the full fiscal year, revenue was $5.0 million versus $5.7 million in 2011. The full-year realized price per average BOE was $105.38 versus $104.78 per average BOE in 2011, while the Company's net revenue share of crude oil sales decreased by 6,888 barrels versus 2011.

Operating income was $975,000 versus $1.2 million in the prior year, while net income was $778,000, or $0.17 per share, compared with net income of $1.1 million, or $0.23 per share, in 2011. The Company generated operating cash flow of $2.1 million versus $2.5 million during 2011.

Pyramid closed 2012 with cash, cash equivalents and short-term investments of $6.0 million, up from $4.9 million at the end of 2011. Working capital improved to $6.2 million from $5.4 million, while total current assets increased to $7.0 million from $6.1 million. The Company also held $1.1 million in CDs at December 31, 2012. The combined year-end value of the Company's cash, cash equivalents, short-term investments and CDs was $7.1 million, or $1.51 per share. Pyramid's balance sheet remained free of long-term debt at the end of the year.

"The enhanced the strength of our balance sheet will allow us to internally fund a more active drilling program during the coming year," said John Alexander, president and CEO. "One of our primary goals is to re-drill three existing wells on our Delaney Tunnell property in Santa Maria. Two of the wells will be producers, and will be re-drilled into the Monterey Formation at a depth of approximately 6,700 feet. The third well will be re-drilled as a disposal well for production water."

Mr. Alexander said the wells are currently in the planning and permitting phase, and depending on rig availability, the Company intends to commence re-drilling operations during this year's third or fourth quarter. The original wells were drilled to a depth of approximately 4,700 feet and produced from the Thomas Sands formation.

"If successful, these wells could represent meaningful additions to our daily production volumes," Mr. Alexander added. "They also could represent an important step toward our continuous objective of maximizing shareholder value."

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 Statemet
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 December 31,   Twelve months ended December 31,
                 
    2012   2011   2012   2011
                         
REVENUES:                        
  Oil and gas sales   $ 1,087,535   $ 1,400,768   $ 4,995,327   $ 5,689,949
                         
COSTS AND EXPENSES:                        
  Operating expenses     576,893     506,619     1,942,754     1,789,569
  General and administrative     209,233     213,404     842,037     879,779
  Stock based compensation     0     0     0     43,743
  Taxes, other than income                        
  and payroll taxes     30,878     35,805     160,144     137,163
  Provision for depletion,                        
  depreciation and amortization     130,163     139,600     649,559     735,231
  Valuation allowances     237,711     23,879     237,711     751,263
  Accretion expense     6,371     18,521     38,341     45,314
  Other costs and expenses     31,268     28,366     149,717     147,330
                         
      1,222,517     966,194     4,020,263     4,529,392
                         
OPERATING INCOME (LOSS)     -134,982     434,574     975,064     1,160,557
                         
OTHER INCOME (EXPENSE):                        
  Interest income     11,108     11,159     42,943     49,863
  Other income     200     0     450     500
  Interest expense     -223     -561     -1,091     -3,020
                         
      11,085     10,598     42,302     47,343
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)     -123,897     445,172     1,017,366     1,207,900
  Income tax provision (benefit)                        
    Current     -17,879     39,903     81,921     203,203
    Deferred     -15,000     61,000     157,900     -90,500
      -32,879     100,903     239,821     112,703
                         
NET INCOME   $ -91,018   $ 344,269   $ 777,545   $ 1,095,197
                         
BASIC INCOME PER COMMON SHARE   $ -0.02   $ 0.07   $ 0.17   $ 0.23
                         
DILUTED INCOME PER COMMON SHARE   $ -0.02   $ 0.07   $ 0.17   $ 0.23
                         
Weighted average number of common shares outstanding     4,685,859     4,683,853     4,685,859     4,683,853
                         
Diluted average number of common shares outstanding     4,685,859     4,687,580     4,685,859     4,687,580
                         
                         
 
 
PYRAMID OIL COMPANY
BALANCE SHEETS
         
ASSETS
         
         
    December 31,   December 31,
    2012   2011
    (Unaudited)   (Audited)
             
CURRENT ASSETS:            
  Cash and cash equivalents   $ 3,834,097   $ 2,762,676
  Short-term investments     2,135,709     2,128,380
  Trade accounts receivable     375,090     555,495
  Income taxes receivable     73,069     21,169
  Crude oil inventory     82,180     118,156
  Prepaid expenses and other assets     257,370     255,846
  Deferred income taxes     264,400     262,500
               
    TOTAL CURRENT ASSETS     7,021,915     6,104,222
             
PROPERTY AND EQUIPMENT, at cost            
  Oil and gas properties and equipment (successful efforts method)     20,007,453     19,124,558
  Capitalized asset retirement costs     425,978     401,242
  Drilling and operating equipment     1,966,750     1,956,371
  Land, buildings and improvements     1,098,918     1,073,918
  Automotive, office and other property and equipment     1,202,544     1,192,118
             
      24,701,643     23,748,207
  Less: accumulated depletion, depreciation, amortization and valuation allowances     -20,953,324     -20,091,655
             
  TOTAL PROPERTY AND EQUIPMENT     3,748,319     3,656,552
             
INVESTMENTS AND OTHER ASSETS            
  Long-term investments     1,101,526     1,071,984
  Deferred income taxes     621,800     781,600
  Deposits     250,000     250,000
  Other Assets     17,380     17,380
               
  TOTAL INVESTMENTS OTHER ASSETS     1,990,706     2,120,964
             
    TOTAL ASSETS   $ 12,760,940   $ 11,881,738
             
             
PYRAMID OIL COMPANY
BALANCE SHEETS
         
LIABILITIES AND STOCKHOLDERS' EQUITY
         
         
    December 31,   December 31,
    2012   2011
    (Unaudited)   (Audited)
             
CURRENT LIABILITIES:            
  Accounts payable   $ 226,759   $ 88,494
  Accrued professional fees     120,000     142,990
  Accrued taxes, other than income taxes     70,407     77,471
  Accrued payroll and related costs     58,954     51,252
  Accrued royalties payable     204,509     224,810
  Accrued insurance     94,116     82,428
  Current maturities of long-term debt     0     32,285
             
    TOTAL CURRENT LIABILITIES     774,745     699,730
             
LONG TERM DEBT, net of current maturites     0     22,330
             
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS     1,327,861     1,278,889
             
    TOTAL LIABILITIES     2,102,606     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     8,975,363     8,197,818
             
    TOTAL STOCKHOLDERS' EQUITY     10,658,334     9,880,789
             
             
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 12,760,940   $ 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
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