BAKERSFIELD, CA — (Marketwire) — 08/14/12 — Pyramid Oil Company (NYSE MKT: PDO) today announced financial results for its second quarter and six-month period ended June 30, 2012.
Second quarter revenue was $1.3 million versus $1.5 million in the same quarter a year ago. The decline was principally attributable to lower crude production volumes. The Company realized second quarter crude prices per average barrel of oil equivalent (BOE) of $108.06 versus $108.79 per average BOE in the same quarter last year.
Operating income was $368,000 versus $512,000 in the second quarter last year. Net income was $289,000, or $0.06 per share, versus net income of $427,000, or $0.09 per share in comparable prior-year quarter.
For the six-month period, revenue was $2.7 million versus $2.9 million during the same period of 2011. Operating income was $824,000 versus $888,000 in the comparable prior-year period, while net income was $661,000, or $0.14 per share, compared with net income of $747,000, or $0.16 per share, in the same period a year ago. Operating cash flow at the mid-year mark increased to $1.3 million from $1.2 million during the first six months of last year.
Pyramid–s financial position continued to strengthen, with cash, cash equivalents and short-term investments increasing to $5.3 million from $4.9 million at December 31, 2011. Working capital improved to $5.7 million from $5.4 million, while total current assets increased to $6.2 million from $6.1 million. At June 30, 2012, the Company also held long-term assets of $1.1 million in the form of certificates of deposit, which, when combined with cash, cash equivalents and short-term investments, was equivalent to $1.37 per share. Pyramid–s current ratio at the end of the second quarter was more than 13:1, and its balance sheet remained free of long-term debt.
“We have delivered another quarter of solid profitability and improved financial strength,” said John Alexander, president and CEO. “Our results continue to reflect our lean corporate structure and the strong pricing we receive for our crude production. So far in the third quarter, our realized crude prices have continued to average more than $100 per BOE.”
Alexander added, “Our recent efforts to increase production have not come without challenges. Our drilling plans have been hampered by the limited availability of contract rigs in our region, and we continue to face production issues with our most recent development well, the Santa Fe #20. We have achieved limited production volumes from the well to date, and have attempted a variety of technical procedures to address what we believe is a blockage in the well bore. We are now considering a re-perforation of the well, which we likely will perform later in the third quarter.”
“Although these issues have temporarily slowed some of our operational progress, we have remained solidly profitable in what is an inherently volatile industry,” Alexander added. “Moreover, our strong financial position has given us the flexibility to evaluate various strategic opportunities that could enhance our reserve portfolio and increase production. Our primary objective in this review process is to enhance long-term value for our shareholders by targeting opportunities that appropriately balancing risk and reward.”
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: .
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.
John H. Alexander
President and CEO
Pyramid Oil Company
661-325-1000
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044