http://media.marketwire.com/attachments/201203/42826_Pyramid_Oil_logo.jpghttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=868012&ProfileId=051205&sourceType=1BAKERSFIELD, CA -- (Marketwire) -- 03/29/12 -- Pyramid Oil Company (NYSE Amex: PDO)
Selected Highlights:
- Full-year oil and gas sales increase 26% to $5.7 million versus 2010
- Full-year EPS improves to $0.23 from $0.05 in prior year
- Operating cash flow increases to $2.5 million from $1.7 million in 2010
- Year-end cash, cash equivalents and short-term investments increase to $6.0 million from $4.6 million at end of 2010; long-term debt less than $25,000
Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its fiscal year and fourth quarter ended December 31, 2011.
Full-year oil and gas sales increased 26% to $5.7 million from $4.5 million in 2010. The increase was principally due to higher average crude oil prices, which increased by $28.74 per average barrel of oil equivalent (BOE) to $104.78 from $76.04 per average BOE in 2010. Total revenue increased 18% to $5.7 million from $4.8 million last year. Total revenue in 2010 included a $321,000 third-quarter gain on the sale of a portion of the Company's interest in a Texas natural gas joint venture.
Full-year operating income increased to $1.2 million from $54,000 during in 2010. Net income increased to $1.1 million, or $0.23 per share, from net income of $246,000, or $0.05 per share, during 2010. The Company's strong bottom-line growth was achieved despite non-cash valuation allowances in 2011 of $727,000 associated with two new wells that did not achieve anticipated production results.
For the fourth quarter, total revenue increased 18% to $1.4 million from $1.2 million in the same quarter last year. Average crude oil prices during the quarter increased $26.50 per average BOE to $108.15 from $81.65 per average BOE in the fourth quarter of 2010.
Pyramid reported fourth quarter operating income of $435,000 versus an operating loss of $91,000 in the prior year's fourth quarter. Net income was $344,000, or $0.07 per share, versus a net loss of $27,000, or $0.01 per share, in the comparable prior-year period.
The Company closed the year with in cash, cash equivalents and short-term investments of $6.0 million, up 30% from $4.6 million at the end of 2010. Total current assets at December 31, 2011, were $7.2 million, working capital was $6.5 million and the Company had a current ratio of 10:1. Long-term debt was $22,000. Pyramid reported full-year cash flow from operations of $2.5 million, up 45% from $1.7 million during 2010.
"The financial results we delivered during 2011 resulted from the sustained strong price environment for crude coupled with our very lean cost structure," said John Alexander, president and CEO. "Production from our core properties drove solid growth at both the top and bottom lines, as well as in operating cash flow. We also have augmented Pyramid's financial position, and entered fiscal 2012 with the strongest balance sheet we have had in several years.
"Looking forward, we will continue to pursue exploratory and developmental drilling prospects on our leases in Kern County, California. During the first quarter we commenced drilling the Santa Fe #20 well on our Carneros Creek property, and we hope to wrap up well completion efforts in the next few days. This is one of up to three wells we hope to drill during 2012, depending on rig availability. We also will continue to evaluate external growth opportunities as part of our overall objective of building 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 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 Twelve months ended
December 31, December 31,
--------------------- ---------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------
REVENUES:
Oil and gas sales $1,400,768 $1,185,617 $5,688,437 $4,515,211
Gain on sales of property and
equipment 0 0 1,512 320,556
---------- ---------- ---------- ----------
1,400,768 1,185,617 5,689,949 4,835,767
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Operating expenses 506,619 411,683 1,789,569 1,576,892
General and administrative 213,404 221,106 879,779 874,899
Stock based compensation 0 9,783 43,743 123,283
Taxes, other than income and
payroll taxes 35,805 31,038 137,163 128,351
Provision for depletion,
depreciation and amortization 139,600 204,979 735,231 703,094
Valuation allowances 23,879 355,059 751,263 1,222,527
Accretion expense 18,521 16,180 45,314 34,955
Other costs and expenses 28,366 27,097 147,330 118,043
---------- ---------- ---------- ----------
966,194 1,276,925 4,529,392 4,782,044
---------- ---------- ---------- ----------
OPERATING INCOME (LOSS) 434,574 -91,308 1,160,557 53,723
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest income 11,159 13,697 49,863 43,601
Other income (expense) 0 -24,058 500 -14,061
Interest expense -561 33 -3,020 -300
---------- ---------- ---------- ----------
10,598 -10,328 47,343 29,240
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAX
PROVISION (BENEFIT) 445,172 -101,636 1,207,900 82,963
Income tax provision (benefit)
Current 39,903 17,000 203,203 109,100
Deferred 61,000 -91,900 -90,500 -272,000
---------- ---------- ---------- ----------
100,903 -74,900 112,703 -162,900
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 344,269 -$26,736 $1,095,197 $ 245,863
========== ========== ========== ==========
Basic Income (Loss) Per Common
Share $ 0.07 -$0.01 $ 0.23 $ 0.05
========== ========== ========== ==========
Diluted Income (Loss) Per Common
Share $ 0.07 -$0.01 $ 0.23 $ 0.05
========== ========== ========== ==========
Weighted average number of
common shares outstanding 4,683,853 4,677,728 4,683,853 4,677,728
========== ========== ========== ==========
Diluted average number of common
shares outstanding 4,687,580 4,686,003 4,687,580 4,686,003
========== ========== ========== ==========
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
December 30, December 31,
2011 2010
(Unaudited) (Audited)
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 2,762,676 $ 1,535,532
Short-term investments 3,200,364 3,058,528
Trade accounts receivable 549,476 508,457
Joint interest billing receivable 6,019 0
Income taxes receivable 21,169 0
Crude oil inventory 118,156 86,361
Prepaid expenses and other assets 255,846 230,876
Deferred income taxes 262,500 245,100
------------- -------------
TOTAL CURRENT ASSETS 7,176,206 5,664,854
------------- -------------
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 19,124,558 18,101,529
Capitalized asset retirement costs 401,242 389,463
Drilling and operating equipment 1,956,371 1,946,805
Land, buildings and improvements 1,073,918 1,066,571
Automotive, office and other property and
equipment 1,192,118 1,182,613
------------- -------------
23,748,207 22,686,981
Less: accumulated depletion, depreciation,
amortization and valuation allowances -20,091,655 -18,687,908
------------- -------------
TOTAL PROPERTY AND EQUIPMENT 3,656,552 3,999,073
------------- -------------
OTHER ASSETS
Deferred income taxes 781,600 708,500
Deposits 250,000 250,000
Other Assets 17,380 7,380
------------- -------------
TOTAL OTHER ASSETS 1,048,980 965,880
------------- -------------
TOTAL ASSETS $ 11,881,738 $ 10,629,807
============= =============
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
December 30, December 31,
2011 2010
(Unaudited) (Audited)
------------- -------------
CURRENT LIABILITIES:
Accounts payable $ 88,494 $ 73,374
Accrued professional fees 142,990 122,506
Accrued taxes, other than income taxes 77,471 63,361
Accrued payroll and related costs 51,252 60,365
Accrued royalties payable 224,810 193,052
Accrued insurance 82,428 86,888
Accrued income taxes 0 12,800
Current maturities of long-term debt 32,285 13,473
------------- -------------
TOTAL CURRENT LIABILITIES 699,730 625,819
------------- -------------
LONG TERM DEBT, net of current maturites 22,330 26,946
------------- -------------
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS 1,278,889 1,235,193
------------- -------------
TOTAL LIABILITIES 2,000,949 1,887,958
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock-no par value;
Authorized - 10,000,000 shares;
Issued and outstanding - none 0 0
Common stock-no par value;
Authorized - 50,000,000;
Issued and outstanding - 4,683,853 shares
and 4,677,728 shares at December 31, 2011
and December 31, 2010, respectively 1,682,971 1,639,228
Retained earnings 8,197,818 7,102,621
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 9,880,789 8,741,849
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,881,738 $ 10,629,807
============= =============
CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044