Timothy Smith
12年前
PANHANDLE OIL AND GAS INC. Reports Fiscal 2013 First Quarter Results
Records Net Income of $2,148,298 ($.26 per share) and an 18% Production Increase
Feb 7, 2013 6:00:00 AM
OKLAHOMA CITY, Feb. 7, 2013 /PRNewswire/ -- PANHANDLE OIL AND GAS INC. (NYSE-PHX) today reported financial and operating results for the 2013 fiscal first quarter ending Dec. 31, 2012.
FIRST QUARTER 2013 HIGHLIGHTS
Recorded first quarter 2013 net income of $2,148,298, $.26 per share, compared to net income of $3,412,110, $.41 per share, for the 2012 first quarter.
Recorded highest quarterly Mcfe production in Company history of 3,008,365 Mcfe, compared to 2,559,524 Mcfe for the 2012 first quarter.
Increased quarterly oil production by 23% to 46,656 barrels (a Company record), compared to 38,040 barrels for the 2012 first quarter.
Fully funded capital expenditures of $6.9 million for drilling and equipping wells for the 2013 first quarter with cash generated by operating activities of $7.2 million during the quarter.
Continued to receive a large number of oily and natural gas liquids (NGL) rich well proposals on mineral acreage, with drilling commitments ahead of fiscal 2012 thus far.
For the 2013 first quarter, the Company recorded net income of $2,148,298, or $.26 per share, as compared to net income of $3,412,110, or $.41 per share, for the 2012 first quarter. Net cash provided by operating activities decreased 8% to $7,158,243 for the 2013 first quarter, as compared to the 2012 first quarter. Cash flow from operations fully funded costs to drill and equip wells for the quarter. Capital expenditures for the 2013 quarter totaled $7,194,399, which included $6,864,399 for drilling and equipping wells. Capital expenditures thus far in fiscal 2013 are 65% directed toward oily and NGL rich plays, principally in Western and South Central Oklahoma and the Texas Panhandle.
Total revenues for the 2013 quarter were $14,180,435, as compared to $13,404,333 for the 2012 quarter. The 2012 quarter included lease bonuses and rentals of $1,755,191, as compared to $374,392 in the 2013 quarter. Oil and gas sales increased $1,014,677 or 9% in the 2013 quarter, as compared to the 2012 quarter, as a result of an 18% increase in Mcfe production somewhat offset by an 8% decrease in the average per Mcfe sales price. The average sales price per Mcfe of production during the 2013 first quarter was $4.24, as compared to $4.59 for the 2012 first quarter.
Oil production increased 23% in the 2013 quarter to 46,656 barrels, as compared to 38,040 barrels in the 2012 quarter, and gas production increased 301,073 Mcf, or 13%, as compared to the 2012 quarter. Gas production volumes attributable to the Fayetteville property acquisition (which closed in late October 2011) and subsequent drilling on those properties are primarily responsible for the gas production increase this quarter. In addition, 30,674 barrels of NGL were sold in the quarter.
MANAGEMENT COMMENTS
Michael C. Coffman, President and CEO said, "We are pleased with the first quarter results, both from a financial and operational standpoint. Our increasing focus on oily and NGL rich drilling projects over the last two year period has resulted in a trend of increasing production volumes of both oil and NGL. At today's price differentials for oil versus dry natural gas, this adds significantly to our revenue stream. Indications are capital expenditures for drilling in fiscal 2013 will continue to be very heavily weighted to these type projects.
"As we are still principally a natural gas company, the current market price for natural gas could make 2013 a somewhat challenging year for Panhandle, but our strong financial position, mineral acreage ownership in numerous oily plays, especially in Western Oklahoma, and our capital efficient strategies will allow us to continue to invest capital in projects with favorable rates of return, which will further enhance Panhandle's share value over the long term."
Paul Blanchard, Senior Vice President and COO said, "The oil and NGL rich plays continue to be aggressively developed by several large independent operators in Western Oklahoma and the Texas Panhandle. We own 25,000 net mineral acres in the counties with focused activity in the Granite Wash, Hogshooter, Cleveland, Marmaton and Tonkawa. Of the 25,000 acres, 17,100 acres are available for working interest participation, and that acreage is where a majority of the Company's drilling capital is currently being invested. We retain a non-cost bearing royalty on the remainder of the mineral acres, which were predominately leased prior to our 2006 strategy change. The activity in this area was the primary driver for the Company's record oil production this quarter. As operators transition from reservoir delineation to infill development in these plays, we anticipate sustained activity and continued growth in oil and NGL production and reserves. The Company's record gas production this quarter was primarily the result of the acquisition of and the continued development taking place in the prolific Fayetteville Shale core on the Company's fee mineral acreage and leasehold. We anticipate continual drilling activity in this play due to the extremely low finding and development cost. At the current pace we still have several years of Fayetteville core development, and we expect additional gas production growth as this asset is fully developed."