OKLAHOMA CITY, Aug. 8, 2016 /PRNewswire/ -- PANHANDLE OIL AND
GAS INC. (NYSE: PHX) today reported financial and operating results
for the Company's fiscal third quarter and nine months ended
June 30, 2016.
SIGNIFICANT ITEMS FOR THE PERIODS ENDED JUNE 30, 2016
- Recorded net loss of $786,795 for
the fiscal third quarter 2016, $0.05
per diluted share, as compared to net loss of $728,946, $0.04 per
diluted share, for the 2015 quarter.
- Recorded net loss of $11,024,074
for the 2016 nine months, $0.65 per
diluted share, compared to net income of $10,209,022, $0.61
per diluted share, for the 2015 nine months.
- Incurred noncash impairment provision for the 2016 nine months
of $11,849,064.
- Generated cash from operating activities of $13,058,724 for the 2016 nine months, well in
excess of $3,359,518 of capital
expenditures for drilling and equipping wells.
- Received lease bonus proceeds of $4.3
million in the third quarter and $7.5
million in the first nine months of fiscal 2016.
- Reported production for the 2016 third quarter and nine months
of 2,887,821 Mcfe and 8,817,524 Mcfe, respectively.
- Reduced debt $15.8 million from
Sept. 30, 2015, to $49.2 million through June
30, 2016 (as of Aug. 8, 2016,
balance is $44.8 million).
FISCAL THIRD QUARTER 2016 RESULTS
For the 2016 third quarter, the Company recorded a net loss of
$786,795, or $0.05 per diluted share. This compared to a net
loss of $728,946, or $0.04 per diluted share, for the 2015 third
quarter. Net cash provided by operating activities decreased 74% to
$2,492,074 for the 2016 third
quarter, versus the 2015 third quarter. Capital expenditures for
the 2016 fiscal quarter totaled $804,975 and continue to be principally directed
toward oil and NGL rich plays in south central Oklahoma including the SCOOP and STACK
plays.
Total revenues for the 2016 third quarter were $9,862,578, a 16% decrease from $11,748,888 for the 2015 quarter. Oil, NGL and
natural gas sales decreased $4,077,692, or 36%, in the 2016 quarter, compared
to the 2015 quarter, as a result of a 13% decrease in Mcfe
production and a 26% decrease in the average per Mcfe sales price.
The average sales price per Mcfe of production during the 2016
third quarter was $2.55, compared to
$3.45 for the 2015 third quarter. The
2016 quarter included a $1.8 million
loss on derivative contracts, as compared to a $1.4 million loss for the 2015 quarter. The
Company will typically hedge 40-60% of its expected production
volumes of oil and gas for a duration of up to one year.
Oil production decreased 19% in the 2016 quarter to 88,732
barrels, versus 109,738 barrels in the 2015 quarter, while gas
production decreased 12% to 2,112,567 Mcf for the 2016 quarter,
compared to the 2015 quarter. In addition, 40,477 barrels of NGL
were sold in the 2016 quarter, as compared to 41,737 barrels in the
2015 quarter. These production decreases are the result of normal
well decline Company wide and the lack of new production coming on
line. Capital expenditures for drilling, as highlighted above,
continue to be depressed by the low product prices experienced over
the last 18 months.
NINE MONTHS 2016 RESULTS
For the 2016 nine months, the Company recorded a net loss of
$11,024,074, or $0.65 per diluted share. This compared to a net
income of $10,209,022, or
$0.61 per diluted share, for the 2015
nine months. Net cash provided by operating activities decreased
65% year over year to $13,058,724 for
the 2016 nine months, versus $37,347,802 for the 2015 nine months. Again, cash
flow from operations fully funded costs to drill and equip wells
for the nine months. Capital expenditures for the 2016 nine months
totaled $3,359,518. The Company
recorded an $11.8 million noncash
provision for impairment in the 2016 nine months, as compared to a
$3.5 million provision in the 2015
period.
Total revenues for the 2016 nine months were $28,911,794, a 50% decrease from $57,427,092 for the 2015 nine months. Oil, NGL
and natural gas sales decreased $20,843,467 or 48% in the 2016 nine months,
compared to the 2015 nine months, as a result of a 16% decrease in
Mcfe production and a 38% decrease in the average per Mcfe sales
price. The average sales price per Mcfe of production during the
2016 nine months was $2.56, compared
to $4.13 for the 2015 nine months.
The 2016 nine months included a $0.8
million loss on derivative contracts as compared to an
$11.7 million gain for the 2015
period.
Oil production decreased 16% in the 2016 nine months to 285,854
barrels from 340,888 barrels in the 2015 nine months, while gas
production decreased 1,140,359 Mcf, or 15%, compared to the 2015
nine months. In addition, 126,462 barrels of NGL were sold in the
2016 nine months, which was a 23% decrease compared to 2015 NGL
volumes.
MANAGEMENT COMMENTS
Michael C. Coffman, President and
CEO, said: "Our 2016 fiscal third quarter results again
demonstrated the value of Panhandle's mineral acreage asset base.
The $4.3 million of lease bonus
proceeds generated in the third quarter, combined with the
$3.2 million generated in the first
half of the year, was a significant piece of our overall operating
cash flow this year. We have been able to fund our operations,
continue to pay a dividend and reduce debt $15.8 million this fiscal year. Additional
monetization of certain assets continues, and we will analyze and
exploit appropriate opportunities that fit with our operating
strategies.
"Natural gas represents 72% of our Mcfe production volume, so
recent natural gas price increases will add to our cash flows and
also provide us the opportunity to add to our hedge book, which
will help stabilize our future cash flows. In addition, drilling
for gas has been proposed by a third party operator on one of our
largest mineral acreage holding plays, the Southeast Oklahoma
Woodford Shale. We have ample liquidity and plan to take
appropriate advantage of the opportunity."
Coffman continued: "We have been patient through this downturn,
continuing to follow our proven operating strategies, which has
positioned the Company to prosper as the industry begins a
recovery."
Paul F. Blanchard, Senior Vice
President and COO, said "The third quarter of 2016 saw significant
activity and transition for Panhandle Oil and Gas. Leasing activity
during the quarter resulted in proceeds of $4.3 million. Shortly after the quarter close, we
sold a non-strategic group of assets for $3.9 million. The operator of our Cochran County, Texas, mineral block has
scheduled drilling on our acreage to begin in the fourth quarter of
2016. A well on our Eagle Ford acreage was completed with improved
completion techniques, which has yielded a significant increase in
early production as compared to previous wells. Also, we
elected to participate in eight Southeastern Oklahoma Woodford
Shale wells, with an average 27.4% net revenue interest. These
wells have the potential to materially impact both our 2017 natural
gas production and proved developed reserves."
OPERATIONS UPDATE
Third quarter leasing activity included the leasing of 792 acres
in the STACK play and extension area, yielding approximately
$2.9 million, and 706 acres in an
extension area of the SCOOP play, yielding approximately
$1.3 million. The Company maintained
all participation rights on its mineral acreage in the SCOOP core
and the CANA core, which includes a significant portion of the
STACK play. We also sold a package of wells that came from the
dissolution of one of our partnerships for $3.9 million in mid-July. This package consisted
of more than 1,700 wells, each with minimal interest, along with
associated minerals and leasehold that were not strategic to the
Company. Leasing activity and the sale of non-strategic wells
yielded a combined total of $8.1
million.
Capital investment activity during the quarter was minimal, with
notable activity being the drilling of two Bakken wells in the Ft.
Berthold area of North Dakota. These wells have an average net
revenue interest of approximately 5% per well and are scheduled to
be completed in the fourth quarter.
The operator of the Company's 34.5 square mile gross acreage
block in Cochran County, Texas,
has permitted a 1.5 mile horizontal San Andres well and a salt
water disposal well with plans to commence operations during the
fourth quarter. The Company owns 4,057 net mineral acres in the
block and will receive a proportionately reduced 25% royalty as
well as the right to participate in drilling wells with up to 10%
working interest. With full participation, Panhandle would have an
average 10% working interest and a 12.1% net revenue interest in
wells drilled on the block.
In July 2016, we participated in
the completion of the Flick A 6 well on our Eagle Ford acreage.
This well was fracture stimulated with a significantly larger
volume of sand than previous wells on our acreage. The well has
been on production for 20 days and its cumulative production is
materially higher than the average of the five most recent wells on
our acreage, which were completed in late 2015.
We have elected to participate in eight significant interest
wells in the Southeastern Oklahoma Woodford Shale in Coal County, Okla. The wells will be operated
by a major international oil and gas company that has ongoing
successful operations in the field. Panhandle will have an average
working interest of 20% and an average net revenue interest of
27.4% in the wells. The wells are projected to commence drilling in
mid-August 2016 and to begin
producing late in calendar year 2016 or early 2017. Assuming the
activity takes place as planned and the wells perform as projected,
the Company expects 2017 natural gas production volumes and proved
developed reserves to increase materially.
FINANCIAL
HIGHLIGHTS
|
|
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
(unaudited)
|
|
(unaudited)
|
Oil, NGL and natural
gas sales
|
$
|
7,365,898
|
|
$
|
11,443,590
|
|
$
|
22,557,372
|
|
$
|
43,400,839
|
Lease bonuses and
rentals
|
|
4,281,095
|
|
|
1,663,402
|
|
|
7,188,152
|
|
|
1,945,743
|
Gains (losses) on
derivative contracts
|
|
(1,782,903)
|
|
|
(1,443,472)
|
|
|
(842,726)
|
|
|
11,706,955
|
Income (loss) from
partnerships
|
|
(1,512)
|
|
|
85,368
|
|
|
8,996
|
|
|
373,555
|
|
|
9,862,578
|
|
|
11,748,888
|
|
|
28,911,794
|
|
|
57,427,092
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
3,520,196
|
|
|
4,071,634
|
|
|
10,274,085
|
|
|
13,233,980
|
Production
taxes
|
|
196,733
|
|
|
362,548
|
|
|
747,714
|
|
|
1,384,217
|
Exploration
costs
|
|
1,157
|
|
|
19,911
|
|
|
30,106
|
|
|
48,368
|
Depreciation,
depletion and amortization
|
|
5,959,482
|
|
|
5,729,460
|
|
|
18,963,017
|
|
|
17,680,069
|
Provision for
impairment
|
|
-
|
|
|
132,118
|
|
|
11,849,064
|
|
|
3,532,760
|
Loss (gain) on asset
sales and other
|
|
14,554
|
|
|
(18,459)
|
|
|
(228,018)
|
|
|
(27,586)
|
Interest
expense
|
|
331,117
|
|
|
383,047
|
|
|
1,034,027
|
|
|
1,195,056
|
General and
administrative
|
|
1,570,134
|
|
|
1,565,575
|
|
|
5,133,657
|
|
|
5,374,206
|
Bad debt expense
(recovery)
|
|
-
|
|
|
-
|
|
|
19,216
|
|
|
-
|
|
|
11,593,373
|
|
|
12,245,834
|
|
|
47,822,868
|
|
|
42,421,070
|
Income (loss) before
provision (benefit) for income taxes
|
|
(1,730,795)
|
|
|
(496,946)
|
|
|
(18,911,074)
|
|
|
15,006,022
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(944,000)
|
|
|
232,000
|
|
|
(7,887,000)
|
|
|
4,797,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(786,795)
|
|
$
|
(728,946)
|
|
$
|
(11,024,074)
|
|
$
|
10,209,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
(0.05)
|
|
$
|
(0.04)
|
|
$
|
(0.65)
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,582,416
|
|
|
16,514,435
|
|
|
16,575,117
|
|
|
16,504,512
|
Unissued, directors'
deferred compensation shares
|
|
263,649
|
|
|
246,893
|
|
|
259,382
|
|
|
256,084
|
|
|
16,846,065
|
|
|
16,761,328
|
|
|
16,834,499
|
|
|
16,760,596
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock and paid
in period
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.12
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
June 30,
2016
|
|
Sept. 30,
2015
|
Assets
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
506,541
|
|
$
|
603,915
|
Oil, NGL and natural
gas sales receivables (net of allowance for uncollectable accounts)
|
|
4,404,084
|
|
|
7,895,591
|
|
|
|
|
|
Deferred income
taxes
|
|
529,900
|
|
|
-
|
Refundable income
taxes
|
|
-
|
|
|
345,897
|
Assets held for
sale
|
|
1,456,851
|
|
|
-
|
Refundable production
taxes
|
|
-
|
|
|
476,001
|
Derivative contracts,
net
|
|
-
|
|
|
4,210,764
|
Other
|
|
182,779
|
|
|
252,016
|
Total current
assets
|
|
7,080,155
|
|
|
13,784,184
|
|
|
|
|
|
|
Properties and
equipment, at cost, based on successful efforts accounting:
|
|
|
|
|
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
433,025,959
|
|
|
441,141,337
|
Non-producing oil and
natural gas properties
|
|
7,593,698
|
|
|
8,293,997
|
Other
|
|
1,069,658
|
|
|
1,393,559
|
|
|
441,689,315
|
|
|
450,828,893
|
Less accumulated
depreciation, depletion and amortization
|
|
(246,216,837)
|
|
|
(228,036,803)
|
Net properties and
equipment
|
|
195,472,478
|
|
|
222,792,090
|
|
|
|
|
|
|
Investments
|
|
163,918
|
|
|
2,248,999
|
Total
assets
|
$
|
202,716,551
|
|
$
|
238,825,273
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,499,739
|
|
$
|
2,028,746
|
Derivative contracts,
net
|
|
1,690,516
|
|
|
-
|
Deferred income
taxes
|
|
-
|
|
|
1,517,100
|
Income taxes
payable
|
|
659,319
|
|
|
-
|
Accrued liabilities
and other
|
|
1,212,155
|
|
|
1,330,901
|
Total current
liabilities
|
|
5,061,729
|
|
|
4,876,747
|
|
|
|
|
|
|
Long-term
debt
|
|
49,200,000
|
|
|
65,000,000
|
Deferred income
taxes
|
|
30,821,907
|
|
|
39,118,907
|
Asset retirement
obligations
|
|
2,928,176
|
|
|
2,824,944
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Class A voting common
stock, $.0166 par value; 24,000,000 shares authorized, 16,863,004 issued at
June 30, 2016, and Sept. 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
280,938
|
|
|
280,938
|
Capital in excess of
par value
|
|
3,085,815
|
|
|
2,993,119
|
Deferred directors'
compensation
|
|
3,321,583
|
|
|
3,084,289
|
Retained
earnings
|
|
112,414,741
|
|
|
125,446,473
|
|
|
119,103,077
|
|
|
131,804,819
|
Less treasury stock,
at cost; 277,378 shares at June 30, 2016, and 302,623 shares at Sept. 30, 2015
|
|
|
|
|
|
|
(4,398,338)
|
|
|
(4,800,144)
|
Total stockholders'
equity
|
|
114,704,739
|
|
|
127,004,675
|
Total liabilities and
stockholders' equity
|
$
|
202,716,551
|
|
$
|
238,825,273
|
Condensed Statements
of Cash Flows
|
|
|
Nine months ended
June 30,
|
|
2016
|
|
2015
|
Operating
Activities
|
(unaudited)
|
Net income
(loss)
|
$
|
(11,024,074)
|
|
$
|
10,209,022
|
Adjustments to
reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
18,963,017
|
|
|
17,680,069
|
Impairment
|
|
11,849,064
|
|
|
3,532,760
|
Provision for deferred
income taxes
|
|
(10,344,000)
|
|
|
2,854,000
|
Exploration
costs
|
|
30,106
|
|
|
48,368
|
Gain from leasing of
fee mineral acreage
|
|
(7,187,377)
|
|
|
(1,973,773)
|
Net (gain) loss on
sale of assets
|
|
(271,080)
|
|
|
-
|
Income from
partnerships
|
|
(8,996)
|
|
|
(373,555)
|
Distributions received
from partnerships
|
|
33,201
|
|
|
535,400
|
Directors' deferred
compensation expense
|
|
247,835
|
|
|
232,088
|
Restricted stock
awards
|
|
644,783
|
|
|
740,043
|
Bad debt expense
(recovery)
|
|
19,216
|
|
|
-
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
3,472,291
|
|
|
6,771,690
|
Fair value of
derivative contracts
|
|
5,901,280
|
|
|
(3,500,264)
|
Refundable production
taxes
|
|
476,001
|
|
|
40,035
|
Other current
assets
|
|
69,237
|
|
|
158,431
|
Accounts
payable
|
|
(698,593)
|
|
|
148,384
|
Income taxes
receivable
|
|
345,897
|
|
|
-
|
Income taxes
payable
|
|
659,319
|
|
|
518,003
|
Accrued
liabilities
|
|
(118,403)
|
|
|
(272,899)
|
Total
adjustments
|
|
24,082,798
|
|
|
27,138,780
|
Net cash provided by
operating activities
|
|
13,058,724
|
|
|
37,347,802
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Capital expenditures,
including dry hole costs
|
|
(3,359,518)
|
|
|
(23,613,349)
|
Acquisition of working
interest properties
|
|
-
|
|
|
(308,180)
|
Proceeds from leasing
of fee mineral acreage
|
|
7,494,570
|
|
|
2,018,707
|
Investments in
partnerships
|
|
50,126
|
|
|
(313,053)
|
Proceeds from sales of
assets
|
|
627,547
|
|
|
-
|
Net cash provided
(used) by investing activities
|
|
4,812,725
|
|
|
(22,215,875)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
8,560,234
|
|
|
23,013,234
|
Payments of loan
principal
|
|
(24,360,234)
|
|
|
(35,513,234)
|
Purchase of treasury
stock
|
|
(117,165)
|
|
|
(242,313)
|
Payments of
dividends
|
|
(2,007,658)
|
|
|
(2,001,150)
|
Excess tax benefit on
stock-based compensation
|
|
(44,000)
|
|
|
27,000
|
Net cash provided
(used) by financing activities
|
|
(17,968,823)
|
|
|
(14,716,463)
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(97,374)
|
|
|
415,464
|
Cash and cash
equivalents at beginning of period
|
|
603,915
|
|
|
509,755
|
Cash and cash
equivalents at end of period
|
$
|
506,541
|
|
$
|
925,219
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
8,156
|
|
$
|
52,017
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
3,529,104
|
|
$
|
22,686,530
|
Net (increase)
decrease in accounts payable for properties and equipment additions
|
|
|
|
|
|
|
(169,586)
|
|
|
1,234,999
|
Capital expenditures
and acquisitions, including dry hole costs
|
$
|
3,359,518
|
|
$
|
23,921,529
|
OPERATING
HIGHLIGHTS
|
|
|
Third Quarter
Ended
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
Mcfe Sold
|
|
2,887,821
|
|
|
3,315,899
|
|
|
8,817,524
|
|
|
10,508,647
|
Average Sales Price
per Mcfe
|
$
|
2.55
|
|
$
|
3.45
|
|
$
|
2.56
|
|
$
|
4.13
|
Oil Barrels
Sold
|
|
88,732
|
|
|
109,738
|
|
|
285,854
|
|
|
340,888
|
Average Sales Price
per Barrel
|
$
|
38.91
|
|
$
|
51.20
|
|
$
|
35.35
|
|
$
|
56.07
|
Mcf Sold
|
|
2,112,567
|
|
|
2,407,049
|
|
|
6,343,628
|
|
|
7,483,987
|
Average Sales Price
per Mcf
|
$
|
1.60
|
|
$
|
2.17
|
|
$
|
1.72
|
|
$
|
2.82
|
NGL Barrels
Sold
|
|
40,477
|
|
|
41,737
|
|
|
126,462
|
|
|
163,222
|
Average Sales Price
per Barrel
|
$
|
12.93
|
|
$
|
14.30
|
|
$
|
11.95
|
|
$
|
19.46
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
Mcf Sold
|
|
NGL Bbls
Sold
|
|
Mcfe Sold
|
6/30/2016
|
|
88,732
|
|
2,112,567
|
|
40,477
|
|
2,887,821
|
3/31/2016
|
|
90,760
|
|
2,014,139
|
|
37,934
|
|
2,786,303
|
12/31/2015
|
|
106,362
|
|
2,216,922
|
|
48,051
|
|
3,143,400
|
9/30/2015
|
|
112,237
|
|
2,261,236
|
|
47,738
|
|
3,221,086
|
6/30/2015
|
|
109,738
|
|
2,407,049
|
|
41,737
|
|
3,315,899
|
The Company's derivative contracts in place for natural gas at
June 30, 2016, are outlined in its
Form 10-Q for the period ending June 30,
2016.
Panhandle Oil and Gas Inc. (NYSE:
PHX) is engaged in the exploration for and
production of natural gas and oil. Additional information on the
Company can be found at www.panhandleoilandgas.com.
Forward-Looking Statements and Risk Factors
– This report includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include current expectations or forecasts of future
events. They may include estimates of oil and gas reserves,
expected oil and gas production and future expenses, projections of
future oil and gas prices, planned capital expenditures for
drilling, leasehold acquisitions and seismic data, statements
concerning anticipated cash flow and liquidity and Panhandle's
strategy and other plans and objectives for future operations.
Although Panhandle believes the expectations reflected in these and
other forward-looking statements are reasonable, we can give no
assurance they will prove to be correct. They can be affected by
inaccurate assumptions or by known or unknown risks and
uncertainties. Factors that could cause actual results to differ
materially from expected results are described under "Risk Factors"
in Part 1, Item 1 of Panhandle's 2015 Form 10-K filed with the
Securities and Exchange Commission. These "Risk Factors" include
the worldwide economic recession's continuing negative effects on
the natural gas business; Panhandle's hedging activities may reduce
the realized prices received for natural gas sales; the volatility
of oil and gas prices; the Company's ability to compete effectively
against strong independent oil and gas companies and majors; the
availability of capital on an economic basis to fund reserve
replacement costs; Panhandle's ability to replace reserves and
sustain production; uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production
and the amount and timing of development expenditures;
uncertainties in evaluating oil and gas reserves; unsuccessful
exploration and development drilling; decreases in the values of
our oil and gas properties resulting in write-downs; the negative
impact lower oil and gas prices could have on our ability to
borrow; drilling and operating risks; and we cannot control
activities on our properties as the Company is a non-operator.
Do not place undue reliance on these forward-looking statements,
which speak only as of the date of this release, as Panhandle
undertakes no obligation to update this information. Panhandle
urges you to carefully review and consider the disclosures made in
this presentation and Panhandle's filings with the Securities and
Exchange Commission that attempt to advise interested parties of
the risks and factors that may affect Panhandle's business.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/panhandle-oil-and-gas-inc-reports-fiscal-third-quarter-and-nine-months-2016-results-and-operations-update-300310598.html
SOURCE PANHANDLE OIL AND GAS INC.