Pyramid Oil Company Reports Third Quarter Financial Results

14.11.2013  |  Marketwired

BAKERSFIELD, CA -- (Marketwired - Nov 14, 2013) - Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its third quarter ended September 30, 2013.

Third quarter revenue was $1.1 million versus $1.2 million in the same quarter last year. The decrease was principally attributable to a 7% decline in crude oil production volumes offset by higher average sales prices. Crude prices increased by $2.32 per average barrel of oil equivalent (BOE) to $102.21 from $99.89 per average BOE in the 2012 third quarter.

The Company reported an operating loss of $928,000 versus operating income of $286,000 in the third quarter last year. The decline is attributable to $1.1 million in one-time expenses related to an employment agreement entered into in 2002 with the former president and CEO, who retired effective September 30, 2013. Net loss was $534,000, or $0.11 per share, versus net income of $208,000, or $0.04 per share, during the same quarter in 2012.

For the nine-month period, revenue was $3.3 million versus $3.9 million during the same period of 2012. Operating loss was $591,000 versus operating income of $1.1 million in the comparable prior-year period, while net loss was $291,000, or $0.06 per share, versus net income of $869,000, or $0.19 per share, in the same period a year ago. Operating cash flow at the nine-month mark was $846,000 compared with $1.7 million during the first nine months of last year.

At September 30, Pyramid had cash, cash equivalents, restricted cash and short-term investments of $6.6 million, and total current assets of $8.0 million. The Company also reported long-term assets in the form of certificates of deposit of $1.1 million. Current liabilities at September 30 were $964,000 and total liabilities were $3.0 million. Stockholders' equity at the end of the quarter was $10.4 million.

"Absent one-time severance-related expenses, our year-to-date results would have generated income in excess of half a million dollars," said Mike Herman, interim president and CEO. "Moreover, we have maintained our financial strength and closed the quarter with a healthy balance sheet."

"Looking forward, we are establishing an aggressive program designed to improve oil production volumes and strengthen our financial performance. This program will include the rework and recompletion of several existing wells on our California properties."

Herman added, "We have made important progress on our previously announced program to re-drill and deepen three wells into the Monterey formation on our Delaney Tunnell property in Santa Maria, California. State permits to re-drill two wells are now in hand, and we have received verbal confirmation from the State that two additional permits, which allow us to re-drill a third well and utilize it for water disposal, have been approved and will be sent to the Company shortly. We expect drilling operations on this project will commence during next year's first quarter."

Pursuant to management's goal of growing the Company and improving shareholder value, Herman said Pyramid also will explore reserve acquisitions from other oil and gas operators, as well as potential merger and joint venture opportunities, should they arise.


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 September 30, Nine months ended September 30,
2013 2012 2013 2012
REVENUES:
Oil and gas sales $ 1,138,438 $ 1,198,420 $ 3,300,650 $ 3,907,792
COSTS AND EXPENSES:
Operating expenses 535,227 476,122 1,469,708 1,365,861
General and administrative 294,430 192,910 751,433 632,804
Termination expenses 1,040,764 0 1,040,764 0
Taxes, other than income and payroll taxes
33,044
44,885
100,599
129,266
Provision for depletion, depreciation and amortization
127,010
151,502
388,806
519,396
Accretion expense 6,288 13,153 24,599 31,970
Other costs and expenses 29,991 33,975 116,189 118,449
2,066,754 912,547 3,892,098 2,797,746
OPERATING (LOSS) INCOME (928,316 ) 285,873 (591,448 ) 1,110,046
OTHER INCOME (EXPENSE):
Interest income 10,235 10,975 30,550 31,835
Other income 0 0 0 250
Interest expense 0 (152 ) 0 (868 )
10,235 10,823 30,550 31,217
(LOSS) INCOME BEFORE INCOME TAX PROVISION (BENEFIT)
(918,081 )
296,696
(560,898 )
1,141,263
Income tax provision (benefit)
Current (4,000 ) 16,800 11,126 99,800
Deferred (380,300 ) 72,000 (281,000 ) 172,900
(384,300 ) 88,800 (269,874 ) 272,700
NET (LOSS) INCOME $ (533,781 ) $ 207,896 $ (291,024 ) $ 868,563
BASIC (LOSS) INCOME PER COMMON SHARE $
(0.11 ) $
0.04 $
(0.06 ) $
0.19
DILUTED (LOSS) INCOME PER COMMON SHARE $
(0.11 ) $
0.04 $
(0.06 ) $
0.19
Weighted average number of common shares outstanding
4,688,085
4,687,644
4,688,085
4,685,117
Diluted average number of common shares outstanding
4,688,085
4,687,644
4,688,085
4,685,117




PYRAMID OIL COMPANY
BALANCE SHEETS

ASSETS


September 30, December 31,
2013 2012
(Unaudited) (Audited)
CURRENT ASSETS:
Cash and cash equivalents $ 3,512,689 $ 3,834,097
Restricted cash 334,657 0
Short-term investments 2,139,695 2,135,709
Trade accounts receivable 446,973 375,090
Income taxes receivable 45,400 73,069
Crude oil inventory 85,684 82,180
Prepaid expenses and other assets 99,923 257,370
Deferred income taxes 694,500 264,400
TOTAL CURRENT ASSETS 7,359,521 7,021,915
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment (successful efforts method)
20,089,288
20,007,453
Capitalized asset retirement costs 425,978 425,978
Drilling and operating equipment 2,058,744 1,966,750
Land, buildings and improvements 1,098,918 1,098,918
Automotive, office and other property and equipment
1,136,566
1,202,544
24,809,494 24,701,643
Less: accumulated depletion, depreciation, amortization and valuation allowances
(21,306,941 )
(20,953,324 )
TOTAL PROPERTY AND EQUIPMENT 3,502,553 3,748,319
INVESTMENTS AND OTHER ASSETS
Long-term investments 1,124,100 1,101,526
Restricted cash 632,672 0
Deferred income taxes 472,700 621,800
Deposits 250,000 250,000
Other Assets 11,380 17,380
TOTAL INVESTMENTS OTHER ASSETS 2,490,852 1,990,706
TOTAL ASSETS $ 13,352,926 $ 12,760,940


PYRAMID OIL COMPANY
BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' EQUITY


September 30, December 31,
2013 2012
(Unaudited) (Audited)
CURRENT LIABILITIES:
Accounts payable $ 199,909 $ 226,759
Accrued professional fees 116,020 120,000
Accrued taxes, other than income taxes 28,822 70,407
Accrued payroll and related costs 65,649 58,954
Accrued royalties payable 218,783 204,509
Deferred compensation liability 334,657 0
Accrued insurance 0 94,116
TOTAL CURRENT LIABILITIES 963,840 774,745
LIABILITY FOR DEFERRED COMPENSATION 669,316 0
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS 1,352,460 1,327,861
TOTAL LIABILITIES 2,985,616 2,102,606
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; 4,688,085 shares issued and outstanding
1,682,971 1,682,971
Retained earnings 8,684,339 8,975,363
TOTAL STOCKHOLDERS' EQUITY 10,367,310 10,658,334
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,352,926 $ 12,760,940



Contact:

Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044