GREENWOOD VILLAGE, Colo.,
May 12, 2017 /PRNewswire/ --
Tengasco, Inc. (NYSE MKT: TGC) announced today its financial
results for the quarter ended March 31,
2017. The Company reported a net loss of $213,000 or $0.03
per share of common stock during the first quarter of 2017 compared
to a net loss of $1.4 million or
$0.23 per share of common stock
during the first quarter of 2016. The improvement in net loss
was primarily due to no ceiling test impairment being recorded in
the first quarter of 2017 while a $641,000 non-cash ceiling test impairment was
recorded in the first quarter of 2016, a $412,000 increase in revenues, a $166,000 decrease in general and administrative
costs, and a $100,000 decrease in
DD&A, partially offset by a $132,000 increase in production costs and
taxes. Net loss before effect of impairment was $763,000 or $0.13
for the quarter ended March 31, 2016
(a non-GAAP financial measure – see GAAP to Non-GAAP Reconciliation
at the end of the press release).
The Company recognized $1.3
million in revenues during the first quarter of 2017
compared to $932,000 during the first
quarter of 2016. The revenue increase was primarily due to a
$484,000 increase resulting from an
$18.65 per barrel increase in the
average oil price from $27.67 per
barrel during first quarter of 2016 to $46.32 during the first quarter of 2017.
This increase was partially offset by a $52,000 decrease from a 1.8 MBbl decrease in oil
sales volumes, and a $15,000 decrease
in methane facility electricity revenues.
Michael J. Rugen, CEO said,
"Although average oil prices increased significantly from first
quarter 2016 levels, the current price levels continue to challenge
a return to profitability. We will continue to look for
additional ways to reduce costs and increase production on current
wells and acreage. As previously disclosed, the Company's
rights offering closed on February 2,
2017 raising approximately $2.7
million and providing 4.5 million new shares to current
stockholders. We used approximately $2.5 million from this rights offering to pay off
the Company's credit facility and we now have no borrowings under
it."
"As noted previously, during 2017 the Company plans to
participate in drilling certain wells on a non-operated
basis. The first of these was drilled in April 2017 and is being completed as a producing
well. In addition, the Company is continuing to evaluate
other acquisitions, joint ventures, and corporate opportunities
that may add shareholder value."
Forward-looking statements made in this release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and involve risk and uncertainties
which may cause actual results to differ from anticipated results
as detailed in the Company's periodic filings with the Securities
and Exchange Commission.
GAAP to Non-GAAP
Reconciliation ($ thousands, except per share data)
|
|
Quarter
Ended
|
|
March 31,
2016
|
|
|
Net loss (US
GAAP)
|
$
1,404
|
Impairment
|
$
(641)
|
Net loss from
continuing operations before effect of impairment
|
$
763
|
|
|
Net loss per share –
basic and diluted (US GAAP)
|
$
0.23
|
Impairment – basic
and diluted
|
$
(0.10)
|
Net loss per share
before effect of impairment – basic and diluted
|
$
0.13
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tengasco-announces-first-quarter-2017-financial-results-300457045.html
SOURCE Tengasco, Inc.