2009-05-14 22:11:02 -
BAKERSFIELD, CA -- (Marketwire) -- 05/14/09 -- Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its first fiscal quarter ended March 31, 2009.
Revenue was $594,000 versus $1,590,000 in last year's first quarter. The decrease was largely due to lower average crude oil prices, which declined during the first quarter by 51%, or $52.76 per equivalent barrel (BOE), to $38.82 per BOE. This compares with an average price of $91.58 per BOE during last year's first quarter.
Pyramid reduced its operating expenses by 17% to $351,000 from $423,000 in the first quarter a year ago. The Company reported a loss from operations of $219,000 versus operating income of $740,000 in the first quarter a year ago. First quarter net loss was $189,000, or $0.04 per diluted share, versus net income of $834,000, or $0.18 per diluted share, in the comparable year-ago quarter.
John Alexander, president and CEO, said, "The dramatic decline in crude oil prices appears to have bottomed, and we are now seeing average prices that are well above those witnessed during the first quarter. While we cannot predict the future pricing environment, we have significant influence over the fundamental strength our Company. We believe we have effectively positioned Pyramid to weather the downturns and thrive when demand is strong. Our balance sheet includes more than $4.2 million in cash and cash equivalents, $4.4 million in working capital, and is free of long-term debt. Given our sound financial condition, we are actively evaluating opportunities to expand our asset portfolio, particularly in light of the more favorable valuations we are on seeing on oil and gas properties."
Mr. Alexander said additional progress has been made on the Company's Texas natural gas joint venture, and it is expected that a recently re-entered well will be on production before the end of the second quarter. He added that operations on Pyramid's core California fields are proceeding on plan.
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:
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
March 31,
2009 2008
----------- -----------
REVENUES: $ 594,045 $ 1,589,896
COSTS AND EXPENSES:
Operating expenses 351,350 422,806
Exploration costs 0 -28,812
General and administrative 225,304 232,511
Taxes, other than income and payroll taxes 48,298 35,510
Provision for depletion,
depreciation and amortization 158,314 162,820
Accretion expense 5,866 5,810
Other costs and expenses 24,171 19,552
----------- -----------
813,303 850,198
----------- -----------
OPERATING INCOME (LOSS) -219,258 739,698
----------- -----------
OTHER INCOME (EXPENSE):
Interest income 26,475 22,077
Other income 3,600 9,662
Interest expense -415 -641
----------- -----------
29,660 31,098
----------- -----------
INCOME (LOSS) BEFORE
INCOME TAX PROVISION (BENEFIT) -189,598 770,796
Income taxes
Current -103,383 91,625
Deferred 103,000 -155,100
----------- -----------
-383 -63,475
----------- -----------
NET INCOME (LOSS) -$ 189,215 $ 834,271
=========== ===========
BASIC INCOME (LOSS) PER COMMON SHARE -$ 0.04 $ 0.18
=========== ===========
DILUTED INCOME (LOSS) PER COMMON SHARE -$ 0.04 $ 0.18
Weighted average number of
common shares outstanding 4,677,728 4,677,728
Diluted average number of
common shares outstanding 4,677,728 4,677,728
=========== ===========
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
March 31, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 959,369 $ 1,793,563
Short-term investments 3,309,269 2,789,099
Trade accounts receivable 299,417 213,588
Income taxes receivable 25,555 0
Crude oil inventory 69,831 82,025
Deferred income taxes 112,000 108,000
Prepaid expenses and other assets 158,164 186,353
------------ ------------
TOTAL CURRENT ASSETS 4,933,605 5,172,628
------------ ------------
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 15,845,056 15,755,472
Capitalized asset retirement costs 382,550 382,550
Drilling and operating equipment 2,109,993 2,109,993
Land, buildings and improvements 1,065,371 1,065,371
Automotive, office and other
property and equipment 1,162,324 1,162,324
------------ ------------
20,565,294 20,475,710
Less: accumulated depletion, depreciation,
amortization and valuation allowance -16,305,471 -16,147,157
------------ ------------
4,259,823 4,328,553
------------ ------------
OTHER ASSETS
Deposits 250,000 250,000
Deferred income taxes 402,245 509,245
Other Assets 17,013 17,013
------------ ------------
$ 9,862,686 $ 10,277,439
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
CURRENT LIABILITIES:
Accounts payable $ 67,282 $ 40,820
Accrued professional fees 101,519 130,261
Accrued taxes, other than income taxes 81,067 76,222
Accrued payroll and related costs 69,185 50,451
Accrued royalties payable 144,088 132,472
Accrued insurance 40,480 59,096
Accrued income taxes 0 239,815
Current maturities of long-term debt 24,135 23,901
------------ ------------
TOTAL CURRENT LIABILITIES 527,756 753,038
------------ ------------
LONG-TERM DEBT, net of current maturities 14,518 20,640
------------ ------------
LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,157,572 1,151,706
------------ ------------
COMMITMENTS
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;
4,677,728 shares issued and outstanding 1,306,010 1,306,010
Retained earnings 6,856,830 7,046,045
------------ ------------
8,162,840 8,352,055
------------ ------------
$ 9,862,686 $ 10,277,439
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CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044
