BAKERSFIELD, CA, May 17, 2010 (Marketwire) --
BAKERSFIELD, CA -- (Marketwire) -- 05/17/10 -- Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its first quarter ended March 31, 2010.
Revenue increased 69% to $1.0 million from $594,000 in the first quarter last year. The increase resulted from higher average crude oil prices, which increased $36.73 per barrel of oil equivalent (BOE) to $75.55 from $38.82 per average BOE in the first quarter a year ago. The increase in average price received per BOE was partially offset by a 13% decline in production volumes.
Operating income was $229,000, a positive swing of $448,000 when compared with an operating loss of $219,000 in last year's first quarter. Total costs and expenses declined 5% to $773,000 from $813,000 in the first quarter last year. Net income was $181,000, or $0.04 per share, an improvement of $370,000 versus the net loss of $189,000, or $0.04 per share, reported in the comparable year-ago quarter.
Pyramid generated operating cash flow of $176,000 during the first three months of fiscal 2010. By comparison, the Company used cash of $218,000 during the same period of fiscal 2009. At March 31, 2010, the Company's balance sheet included $4.4 million in cash, cash equivalents and short-term investments; total current assets of $5.5 million; working capital of $5.0 million and no long-term debt.
Subsequent to the close of the quarter, the Company drilled a horizontal well on one of its Mountain View properties in Kern County, Calif. Results of the well did not warrant its completion, and the Company is projecting it will make a second quarter valuation allowance associated with the well of approximately $830,000.
"Our first quarter financial performance reflects the strong rebound in crude prices during the past year," said John Alexander, president and CEO. "We are working to capitalize on the improved price environment and have increased drilling activity on our California leases. A new well in our Carneros Creek field was put into production during the first quarter, and we are currently reviewing additional prospects on our Kern County properties. We expect to commence drilling one of these prospects during the next fiscal quarter. For the foreseeable future, we will fund our exploration efforts utilizing our strong cash position."
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
March 31,
2010 2009
------------ ------------
REVENUES: $ 1,001,739 $ 594,045
------------ ------------
COSTS AND EXPENSES:
Operating expenses 339,920 351,350
General and administrative 207,367 225,304
Taxes, other than income and payroll taxes 27,820 48,298
Provision for depletion,
depreciation and amortization 149,387 158,314
Valuation allowances 25,141 0
Accretion expense 6,213 5,866
Other costs and expenses 17,240 24,171
------------ ------------
773,088 813,303
------------ ------------
OPERATING INCOME (LOSS) 228,651 -219,258
------------ ------------
OTHER INCOME (EXPENSE):
Interest income 7,953 26,475
Other income 2,797 3,600
Interest expense -181 -415
------------ ------------
10,569 29,660
------------ ------------
INCOME (LOSS) BEFORE INCOME TAX PROVISION
(BENEFIT) 239,220 -189,598
Income tax provision (benefit)
Current 20,000 -103,383
Deferred 38,550 103,000
------------ ------------
58,550 -383
------------ ------------
NET INCOME (LOSS) $ 180,670 $ -189,215
============ ============
BASIC INCOME (LOSS) PER COMMON SHARE $ 0.04 $ -0.04
============ ============
DILUTED INCOME (LOSS) PER COMMON SHARE $ 0.04 $ -0.04
============ ============
Weighted average number of
common shares outstanding 4,677,728 4,677,728
============ ============
Diluted average number of
common shares outstanding 4,686,018 4,677,728
============ ============
PYRAMID OIL COMPANY
BALANCE SHEETS
ASSETS
March 31, December 31,
2010 2009
(Unaudited) (Audited)
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,083,551 $ 1,438,825
Short-term investments 3,348,487 3,344,061
Trade accounts receivable 585,980 375,954
Income taxes receivable 104,281 124,281
Crude oil inventory 89,177 62,760
Deferred income taxes 196,200 196,200
Prepaid expenses and other assets 141,837 169,595
------------ ------------
TOTAL CURRENT ASSETS 5,549,513 5,711,676
------------ ------------
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties and equipment
(successful efforts method) 16,596,418 16,085,228
Capitalized asset retirement costs 389,463 382,550
Drilling and operating equipment 2,109,993 2,109,993
Land, buildings and improvements 1,066,571 1,065,371
Automotive, office and other
property and equipment 1,164,035 1,160,617
------------ ------------
21,326,480 20,803,759
Less: accumulated depletion, depreciation,
amortization and valuation allowance -17,296,047 -17,125,834
------------ ------------
4,030,433 3,677,925
------------ ------------
OTHER ASSETS
Deposits 250,000 250,000
Deferred income taxes 446,850 485,400
Other Assets 17,013 17,013
------------ ------------
TOTAL ASSETS $ 10,293,809 $ 10,142,014
============ ============
PYRAMID OIL COMPANY
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2010 2009
(Unaudited) (Audited)
------------ ------------
CURRENT LIABILITIES:
Accounts payable $ 49,029 $ 88,170
Accrued professional fees 108,739 138,381
Accrued taxes, other than income taxes 62,310 62,310
Accrued payroll and related costs 65,108 51,606
Accrued royalties payable 197,955 159,933
Accrued insurance 36,326 54,947
Current maturities of long-term debt 14,518 20,640
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TOTAL CURRENT LIABILITIES 533,985 575,987
------------ ------------
LIABILITY FOR ASSET RETIREMENT OBLIGATION 1,206,451 1,193,324
------------ ------------
TOTAL LIABILITIES 1,740,436 1,769,311
------------ ------------
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 1,515,945 1,515,945
Retained earnings 7,037,428 6,856,758
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 8,553,373 8,372,703
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,293,809 $ 10,142,014
============ ============
CONTACTS:
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044
