BAKERSFIELD, CA--(Marketwire - Nov 14, 2012) - Pyramid Oil Company (
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|
|Three months ended September 30,||Nine months ended September 30,|
|Oil and gas sales||$||1,198,420||$||1,412,842||$||3,907,792||$||4,289,181|
|COSTS AND EXPENSES:|
|General and administrative||192,910||222,583||632,804||666,375|
|Stock based compensation||0||0||0||43,743|
|Taxes, other than income and payroll taxes||44,885||37,399||129,266||101,358|
|Provision for depletion, depreciation and amortization||151,502||184,208||519,396||595,631|
|Other costs and expenses||33,975||31,280||118,449||118,964|
|OPERATING INCOME (LOSS)||285,873||-162,262||1,110,046||725,983|
|OTHER INCOME (EXPENSE):|
|INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)||296,696||-150,637||1,141,263||762,728|
|Income tax provision (benefit)|
|BASIC INCOME PER COMMON SHARE||$||0.04||$||0.00||$||0.19||$||0.16|
|DILUTED INCOME PER COMMON SHARE||$||0.04||$||0.00||$||0.19||$||0.16|
|Weighted average number of common shares outstanding|
|Diluted average number of common shares outstanding|
|PYRAMID OIL COMPANY|
|September 30, 2012||December 31, 2011|
|Cash and cash equivalents||$||3,582,642||$||2,762,676|
|Trade accounts receivable||431,151||555,495|
|Income taxes receivable||55,569||21,169|
|Crude oil inventory||106,025||118,156|
|Prepaid expenses and other assets||116,140||255,846|
|Deferred income taxes||262,500||262,500|
|TOTAL CURRENT ASSETS||6,688,418||6,104,222|
|PROPERTY AND EQUIPMENT, at cost|
|Oil and gas properties and equipment (successful efforts method)||19,919,006||19,124,558|
|Capitalized asset retirement costs||409,338||401,242|
|Drilling and operating equipment||1,966,750||1,956,371|
|Land, buildings and improvements||1,073,918||1,073,918|
|Automotive, office and other property and equipment||1,228,147||1,192,118|
|Less: accumulated depletion, depreciation, amortization and valuation allowances||-20,611,051||-20,091,655|
|TOTAL PROPERTY AND EQUIPMENT||3,986,108||3,656,552|
|INVESTMENTS AND OTHER ASSETS|
|Deferred income taxes||608,700||781,600|
|TOTAL INVESTMENTS OTHER ASSETS||1,969,999||2,120,964|
|PYRAMID OIL COMPANY|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|September 30, 2012,||December 31, 2011|
|Accrued professional fees||126,876||142,990|
|Accrued taxes, other than income taxes||40,203||77,471|
|Accrued payroll and related costs||62,987||51,252|
|Accrued royalties payable||206,513||224,810|
|Current maturities of long-term debt||5,981||32,285|
|TOTAL CURRENT LIABILITIES||590,323||699,730|
|LONG TERM DEBT, net of current maturites||0||22,330|
|LIABILITY FOR ASSET RETIREMENT OBLIGATIONS||1,304,850||1,278,889|
|COMMITMENTS AND CONTINGENCIES|
|Preferred stock-no par value; 10,000,000 authorized shares; no shares issued or outstanding||0||0|
|Common stock-no par value; 50,000,000 authorized shares; 4,683,853 shares issued and outstanding||1,682,971||1,682,971|
|TOTAL STOCKHOLDERS' EQUITY||10,749,352||9,880,789|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||12,644,525||$||11,881,738|