BAKERSFIELD, 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.”
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