OKLAHOMA CITY, Aug. 7, 2017 /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, 2017.
HIGHLIGHTS FOR THE PERIODS ENDED JUNE 30, 2017
- Increased total equivalent production 26%, as compared to the
quarter ended March 31, 2017.
- Generated fiscal third quarter 2017 net income of $1,260,758, $0.07
per diluted share, as compared to net loss of $786,795, $0.05 per
diluted share, for the 2016 quarter.
- Generated nine month 2017 net income of $2,492,799, $0.15
per diluted share, compared to net loss of $11,024,074, $0.65
per diluted share, for the 2016 nine months.
- Collected lease bonus proceeds of $4.0
million in first nine months of fiscal 2017.
- Generated cash from operating activities of $14,321,237 for the 2017 nine-month period as
compared to $18,011,721 of capital
expenditures for drilling and equipping wells.
- Produced on average 32.5 Mmcfe/day for $3.38/Mcfe net realized price during the
quarter.
- Generated 2017 third-quarter and nine-month EBITDA (1) of
$6,848,269 and $17,305,783, respectively.
(1) This is a Non-GAAP measure. Refer to
the Non-GAAP Reconciliation section.
MANAGEMENT COMMENTS
Commenting on the results, Paul F.
Blanchard Jr., President and CEO, said, "This quarter was a
solid one for Panhandle and highlights our focus on growing
long-term shareholder value on a per-share basis.
"One of our foundational principles is to limit capital
investments to projects we believe will generate appropriate
risk-weighted returns for our shareholders. The application of this
principle led to declining production during the recent downturn;
however, this disciplined approach resulted in conservation of
capital and material reductions in our debt. This strategy
distinguishes Panhandle from many other oil and gas companies that
are primarily focused on delivering production and reserve growth
each quarter. Starting in late 2016, we began to see opportunities
to make substantial investments in low-risk, high-return wells. We
have taken advantage of those opportunities, and are now seeing the
benefits of those decisions. The current quarter's gas production
grew by 30% and oil production by 13%, resulting in overall
production growth of 26%, as compared to the second quarter of
2017. This production growth was primarily responsible for reducing
our breakeven cost structure by 12%, as compared to the prior
quarter, which we believe is a reflection of the quality of these
investments.
"We anticipate material production growth and significant
reductions in our breakeven cost to continue in the fourth quarter
as several additional high-quality, low-risk wells are expected to
begin producing. Additionally, we are in the process of marketing
and selling some of the company's existing high-cost production,
which is anticipated to drive our cost structure down even
further.
"Since the products we sell are subject to significant price
volatility, another element of our value-generation strategy is to
protect our investments and cash flows by hedging future oil and
gas production. Today, we have hedges in place for a majority
of remaining 2017 natural gas production at an average floor of
$3.06 per Mcf and an average ceiling
of $3.34 per Mcf. We also have
roughly one quarter of 2018 natural gas production hedged with an
average floor of $3.20 per Mcf and an
average ceiling of $3.59 per Mcf. A
majority of our remaining 2017 oil production is hedged with an
average floor of $50.48 per barrel
and an average ceiling of $56.12 per
barrel.
"We understand that the volatile commodity business we are in
necessitates that we always have a debt structure that will
withstand product price fluctuations. Our debt at the end of the
third quarter was $50 million,
yielding a conservative trailing twelve month debt to EBITDA (1)
ratio of 2.07. Through the first three quarters of 2017, we
financed $18.0 million of capital
investments while only borrowing $5.5
million from our line of credit. A majority of those capital
expenditures were focused on drilling for natural gas and NGLs.
"Given our investment principles, the volatility of the products
we sell and the fact that we do not operate the wells in which we
take an ownership interest, it is difficult to predict the timing
of future investments and related production as is currently the
case. However, we own material mineral and/or leasehold positions
in several of the top resource plays in the United States including STACK/Cana, SCOOP,
southeastern Oklahoma Woodford Shale, Eagle Ford Shale and
Fayetteville Shale. These assets account for more than 570 Bcfe of
undeveloped proved, probable and possible reserves. The identified
undeveloped locations associated with these reserves are primarily
located in the cores of those low risk resource plays. We are
confident these assets will continue to deliver long-term,
high-return growth for the Company.
"Beginning in third quarter 2017, we considerably ramped up our
focus in sourcing and evaluating acquisition opportunities, and we
plan to search actively for additional properties we believe will
be accretive to the company's long-term value. We will focus on the
acquisition of mineral holdings, but will also consider
held-by-production leasehold properties with low risk and material
upside."
(1) This
is a Non-GAAP measure. Refer to the Non-GAAP Reconciliation
section.
FISCAL THIRD QUARTER 2017 RESULTS
For the 2017 third quarter, the Company recorded net income of
$1,260,758, or $0.07 per diluted share. This compared to a net
loss of $786,795, or $0.05 per diluted share, for the 2016 third
quarter. Net cash provided by operating activities decreased 27% to
$4,972,672 for the 2017 third
quarter, versus $6,792,869 for the
2016 third quarter. Capital expenditures for the 2017 fiscal
quarter totaled $10,290,467.
Total revenues for the 2017 third quarter were $12,437,186, a 26% increase from $9,864,090 for the 2016 quarter. Oil, NGL and
natural gas sales increased $2,632,000 or 36% in the 2017 quarter, compared
to the 2016 quarter, as a result of a 33% increase in the average
per Mcfe sales price and a 2% increase in Mcfe production. The
average sales price per Mcfe of production during the 2017 third
quarter was $3.38, compared to
$2.55 for the 2016 third quarter. The
2017 quarter included a $1.6 million
gain on derivative contracts, as compared to a $1.8 million loss for the 2016 quarter.
Gas production increased 7% to 2,265,091 Mcf for the 2017
quarter, compared to the 2016 quarter, while oil production
decreased 15% in the 2017 quarter to 75,467 barrels, versus 88,732
barrels in the 2016 quarter. In addition, 39,337 barrels of NGL
were sold in the 2017 quarter, as compared to 40,477 barrels in the
2016 quarter.
NINE MONTHS 2017 RESULTS
For the 2017 nine months, the Company recorded net income of
$2,492,799, or $0.15 per diluted share. This compared to a net
loss of $11,024,074, or $0.65 per diluted share, for the 2016 nine
months. Net cash provided by operating activities decreased 30%
year over year to $14,321,237 for the
2017 nine months, versus the 2016 nine months. Capital expenditures
for the 2017 nine months totaled $18,011,721. The Company recorded a $10,788 non-cash provision for impairment in the
2017 nine months, as compared to an $11.8
million provision in the 2016 period.
Total revenues for the 2017 nine months were $33,438,117, a 16% increase from $28,902,798 for the 2016 nine months. Oil, NGL
and natural gas sales increased $5,230,646 or 23% in the 2017 nine months,
compared to the 2016 nine months, as a result of a 39% increase in
the average per Mcfe sales price somewhat offset by an 11% decrease
in Mcfe production. The average sales price per Mcfe of production
during the 2017 nine months was $3.55, compared to $2.56 for the 2016 nine months. The 2017 nine
months included a $1,658,347 gain on
derivative contracts, as compared to an $842,726 loss for the 2016 period.
Oil production decreased 24% in the 2017 nine months to 217,650
barrels from 285,854 barrels in the 2016 nine months, while gas
production decreased 479,936 Mcf, or 8%, compared to the 2016 nine
months. In addition, 108,824 barrels of NGL were sold in the 2017
nine months, which was a 14% decrease compared to 2016 NGL
volumes.
OPERATIONS UPDATE
Drilling and completion activities continue on five significant
projects. Three are in the cores of low-risk resource plays, and
two are higher risk plays in the Permian.
In the southeastern Oklahoma Woodford Shale, Panhandle
participated in eight significant wells operated by BP, with an
average 20% working interest and 27.4% net revenue interest. Four
of the wells began producing late in the second quarter of 2017 and
the remaining four began producing during the third quarter.
Together, these eight wells produced at the combined net rate of
6.9 Mmcf per day in the most recent 30 day period. Activity is
increasing in this play as the application of new technology has
greatly improved well performance and economics. Panhandle has a
4.8% NRI in an additional well in the play that has been drilled
and is anticipated to begin producing in the fourth quarter.
Panhandle has an additional 1,411 gross undeveloped locations
identified in this play, with 3P net reserves of 221 Bcfe.
A total of ten wells have been drilled on our Eagle Ford
leasehold during 2017, and the drilling rig has now been released.
We own an average 13.2% working interest and 9.9% net revenue
interest in these wells. The first two wells began producing in
late April and continue to exceed expectations, with gross
production of 110 Mboe combined in the first 60 days. Four of
the remaining wells are currently being completed and are
anticipated to begin producing in the first half of August. The
remaining four wells are scheduled to be completed in September and
are expected to begin producing in October. An additional 96 Eagle
Ford infill development locations have been identified on our
acreage.
In the STACK/Cana play, the Company is participating with a
17.5% working interest and a 16.25% net revenue interest in six
Woodford Shale wells operated by
Cimarex Energy. All six wells have been completed and are in the
early stages of completion fluid recovery. The wells are expected
to be producing at their peak rates within the next 30 days and are
anticipated to materially increase the Company's daily production
rate. Panhandle currently has an additional 1,135 gross
undeveloped locations identified in STACK/SCOOP/Cana with 3P net
reserves of 166 Bcfe.
In the Permian Basin, QEP is producing its second Woodford Shale test well on our contiguous
43.6-square-mile mineral holdings in Andrews and Winkler Counties, Texas. After 57 days on sales the well has
cumulative production of 16,200 Boe and is currently producing 239
Boe per day. Like the first test well on the acreage block, this
well has not confirmed the economic viability of the play.
Panhandle elected not to participate in both wells with a working
interest and therefore has only a royalty interest with no capital
invested.
Also in the Permian Basin, Element Petroleum is evaluating the
San Andres formation on and around our contiguous 34.5-square-mile
gross acreage block in Cochran County,
Texas. Panhandle has leased 4,050 net mineral acres to
Element and has a proportionately reduced 25% royalty. We also have
the right to participate with 10% working interest in each unit as
initial unit wells are proposed. With full participation, Panhandle
would have a 10% working interest and a 12.1% net revenue interest
in these new units on the 34.5-square-mile block. Element is
continuing to evaluate the play with two wells producing, one
waiting on completion, one being drilled and nine additional wells
planned. The two producing wells have combined cumulative
production as follows: 30 day – 1.1 Mboe, 60 day – 8.4 Mboe and 90
day – 16.0 Mboe.
FINANCIAL
HIGHLIGHTS
|
|
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Nine Months Ended
June 30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
(unaudited)
|
|
|
(unaudited)
|
|
Oil, NGL and natural
gas sales
|
$
|
9,997,898
|
|
|
$
|
7,365,898
|
|
|
$
|
27,788,018
|
|
|
$
|
22,557,372
|
|
Lease bonuses and
rentals
|
|
819,591
|
|
|
|
4,281,095
|
|
|
|
3,991,752
|
|
|
|
7,188,152
|
|
Gains (losses) on
derivative contracts
|
|
1,619,697
|
|
|
|
(1,782,903)
|
|
|
|
1,658,347
|
|
|
|
(842,726)
|
|
|
|
12,437,186
|
|
|
|
9,864,090
|
|
|
|
33,438,117
|
|
|
|
28,902,798
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
3,391,079
|
|
|
|
3,520,196
|
|
|
|
9,545,990
|
|
|
|
10,274,085
|
|
Production
taxes
|
|
390,387
|
|
|
|
196,733
|
|
|
|
1,129,785
|
|
|
|
747,714
|
|
Depreciation,
depletion and amortization
|
|
4,714,350
|
|
|
|
5,959,482
|
|
|
|
13,654,268
|
|
|
|
18,963,017
|
|
Provision for
impairment
|
|
-
|
|
|
|
-
|
|
|
|
10,788
|
|
|
|
11,849,064
|
|
Loss (gain) on asset
sales and other
|
|
11,447
|
|
|
|
17,223
|
|
|
|
98,445
|
|
|
|
(187,692)
|
|
Interest
expense
|
|
306,161
|
|
|
|
331,117
|
|
|
|
884,928
|
|
|
|
1,034,027
|
|
General and
administrative
|
|
1,796,004
|
|
|
|
1,570,134
|
|
|
|
5,358,114
|
|
|
|
5,133,657
|
|
|
|
10,609,428
|
|
|
|
11,594,885
|
|
|
|
30,682,318
|
|
|
|
47,813,872
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
1,827,758
|
|
|
|
(1,730,795)
|
|
|
|
2,755,799
|
|
|
|
(18,911,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
567,000
|
|
|
|
(944,000)
|
|
|
|
263,000
|
|
|
|
(7,887,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,260,758
|
|
|
$
|
(786,795)
|
|
|
$
|
2,492,799
|
|
|
$
|
(11,024,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
0.07
|
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
$
|
(0.65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,668,814
|
|
|
|
16,582,416
|
|
|
|
16,639,090
|
|
|
|
16,575,117
|
|
Unissued, directors'
deferred compensation shares
|
|
254,891
|
|
|
|
263,649
|
|
|
|
277,294
|
|
|
|
259,382
|
|
|
|
16,923,705
|
|
|
|
16,846,065
|
|
|
|
16,916,384
|
|
|
|
16,834,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share of common stock
and paid in period
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
Sept. 30,
2016
|
|
Assets
|
(unaudited)
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
560,892
|
|
|
$
|
471,213
|
|
Oil, NGL and natural
gas sales receivables (net of allowance for uncollectable
accounts)
|
|
5,851,996
|
|
|
|
5,287,229
|
|
Refundable income
taxes
|
|
571,986
|
|
|
|
83,874
|
|
Derivative contracts,
net
|
|
1,439,686
|
|
|
|
-
|
|
Other
|
|
222,675
|
|
|
|
419,037
|
|
Total current
assets
|
|
8,647,235
|
|
|
|
6,261,353
|
|
|
|
|
|
|
|
|
|
Properties and equipment, at cost, based on
successful efforts accounting:
|
|
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
443,928,828
|
|
|
|
434,469,093
|
|
Non-producing oil and
natural gas properties
|
|
7,462,082
|
|
|
|
7,574,649
|
|
Other
|
|
1,064,172
|
|
|
|
1,069,658
|
|
|
|
452,455,082
|
|
|
|
443,113,400
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(255,806,129)
|
|
|
|
(251,707,749)
|
|
Net properties and
equipment
|
|
196,648,953
|
|
|
|
191,405,651
|
|
|
|
|
|
|
|
|
|
Investments
|
|
168,209
|
|
|
|
157,322
|
|
Derivative contracts,
net
|
|
11,711
|
|
|
|
-
|
|
Total
assets
|
$
|
205,476,108
|
|
|
$
|
197,824,326
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
3,791,830
|
|
|
$
|
2,351,623
|
|
Derivative contracts,
net
|
|
-
|
|
|
|
403,612
|
|
Accrued liabilities
and other
|
|
1,758,153
|
|
|
|
1,718,558
|
|
Total current
liabilities
|
|
5,549,983
|
|
|
|
4,473,793
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
50,000,000
|
|
|
|
44,500,000
|
|
Deferred income
taxes
|
|
30,825,007
|
|
|
|
30,676,007
|
|
Asset retirement
obligations
|
|
3,114,867
|
|
|
|
2,958,048
|
|
Derivative contracts,
net
|
|
-
|
|
|
|
24,659
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Class A voting common stock, $.0166 par value;
24,000,000 shares authorized, 16,863,004 issued at June 30, 2017,
and Sept. 30, 2016
|
|
280,938
|
|
|
|
280,938
|
|
Capital in excess of
par value
|
|
2,531,822
|
|
|
|
3,191,056
|
|
Deferred directors'
compensation
|
|
3,367,432
|
|
|
|
3,403,213
|
|
Retained
earnings
|
|
112,962,754
|
|
|
|
112,482,284
|
|
|
|
119,142,946
|
|
|
|
119,357,491
|
|
Less treasury stock, at cost; 191,988 shares at
June 30, 2017, and 262,708 shares at Sept. 30,
2016
|
|
(3,156,695)
|
|
|
|
(4,165,672)
|
|
Total stockholders'
equity
|
|
115,986,251
|
|
|
|
115,191,819
|
|
Total liabilities and
stockholders' equity
|
$
|
205,476,108
|
|
|
$
|
197,824,326
|
|
Condensed Statements
of Cash Flows
|
|
|
|
|
|
|
|
|
|
Nine months ended
June 30,
|
|
|
2017
|
|
|
2016
|
|
Operating
Activities
|
(unaudited)
|
|
Net income
(loss)
|
$
|
2,492,799
|
|
|
$
|
(11,024,074)
|
|
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
13,654,268
|
|
|
|
18,963,017
|
|
Impairment
|
|
10,788
|
|
|
|
11,849,064
|
|
Provision for deferred
income taxes
|
|
149,000
|
|
|
|
(10,344,000)
|
|
Gain from leasing of
fee mineral acreage
|
|
(3,999,632)
|
|
|
|
(7,187,377)
|
|
Proceeds from leasing
of fee mineral acreage
|
|
4,026,283
|
|
|
|
7,494,570
|
|
Net (gain) loss on
sale of assets
|
|
87,161
|
|
|
|
(271,080)
|
|
Directors' deferred
compensation expense
|
|
266,182
|
|
|
|
247,835
|
|
Restricted stock
awards
|
|
454,854
|
|
|
|
644,783
|
|
Other
|
|
2,897
|
|
|
|
73,527
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
(564,767)
|
|
|
|
3,472,291
|
|
Fair value of
derivative contracts
|
|
(1,879,668)
|
|
|
|
5,901,280
|
|
Refundable production
taxes
|
|
-
|
|
|
|
476,001
|
|
Other current
assets
|
|
196,362
|
|
|
|
69,237
|
|
Accounts
payable
|
|
(127,375)
|
|
|
|
(698,593)
|
|
Income taxes
receivable
|
|
(488,112)
|
|
|
|
345,897
|
|
Income taxes
payable
|
|
-
|
|
|
|
659,319
|
|
Accrued
liabilities
|
|
40,197
|
|
|
|
(118,403)
|
|
Total
adjustments
|
|
11,828,438
|
|
|
|
31,577,368
|
|
Net cash provided by
operating activities
|
|
14,321,237
|
|
|
|
20,553,294
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital expenditures,
including dry hole costs
|
|
(18,011,721)
|
|
|
|
(3,359,518)
|
|
Investments in
partnerships
|
|
(18,531)
|
|
|
|
50,126
|
|
Proceeds from sales of
assets
|
|
718,700
|
|
|
|
627,547
|
|
Net cash provided
(used) by investing activities
|
|
(17,311,552)
|
|
|
|
(2,681,845)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
16,702,602
|
|
|
|
8,560,234
|
|
Payments of loan
principal
|
|
(11,202,602)
|
|
|
|
(24,360,234)
|
|
Purchase of treasury
stock
|
|
(407,677)
|
|
|
|
(117,165)
|
|
Payments of
dividends
|
|
(2,012,329)
|
|
|
|
(2,007,658)
|
|
Excess tax benefit on
stock-based compensation
|
|
-
|
|
|
|
(44,000)
|
|
Net cash provided
(used) by financing activities
|
|
3,079,994
|
|
|
|
(17,968,823)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
89,679
|
|
|
|
(97,374)
|
|
Cash and cash
equivalents at beginning of period
|
|
471,213
|
|
|
|
603,915
|
|
Cash and cash
equivalents at end of period
|
$
|
560,892
|
|
|
$
|
506,541
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
60,276
|
|
|
$
|
8,156
|
|
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
19,579,304
|
|
|
$
|
3,529,104
|
|
Net (increase) decrease in accounts payable for
properties and equipment
additions
|
|
(1,567,583)
|
|
|
|
(169,586)
|
|
Capital expenditures
and acquisitions, including dry hole costs
|
$
|
18,011,721
|
|
|
$
|
3,359,518
|
|
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended
|
|
|
Third Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
June 30,
2017
|
|
|
June 30,
2016
|
|
|
June 30,
2017
|
|
|
June 30,
2016
|
|
Mcfe Sold
|
|
2,953,915
|
|
|
|
2,887,821
|
|
|
|
7,822,536
|
|
|
|
8,817,524
|
|
Average Sales Price
per Mcfe
|
$
|
3.38
|
|
|
$
|
2.55
|
|
|
$
|
3.55
|
|
|
$
|
2.56
|
|
Oil Barrels
Sold
|
|
75,467
|
|
|
|
88,732
|
|
|
|
217,650
|
|
|
|
285,854
|
|
Average Sales Price
per Barrel
|
$
|
44.38
|
|
|
$
|
38.91
|
|
|
$
|
46.06
|
|
|
$
|
35.35
|
|
Mcf Sold
|
|
2,265,091
|
|
|
|
2,112,567
|
|
|
|
5,863,692
|
|
|
|
6,343,628
|
|
Average Sales Price
per Mcf
|
$
|
2.65
|
|
|
$
|
1.60
|
|
|
$
|
2.69
|
|
|
$
|
1.72
|
|
NGL Barrels
Sold
|
|
39,337
|
|
|
|
40,477
|
|
|
|
108,824
|
|
|
|
126,462
|
|
Average Sales Price
per Barrel
|
$
|
16.63
|
|
|
$
|
12.93
|
|
|
$
|
18.08
|
|
|
$
|
11.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
|
Mcf Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
6/30/2017
|
|
|
75,467
|
|
|
|
2,265,091
|
|
|
|
39,337
|
|
|
|
2,953,915
|
|
3/31/2017
|
|
|
66,547
|
|
|
|
1,748,909
|
|
|
|
33,836
|
|
|
|
2,351,207
|
|
12/31/2016
|
|
|
75,636
|
|
|
|
1,849,692
|
|
|
|
35,651
|
|
|
|
2,517,414
|
|
9/30/2016
|
|
|
78,398
|
|
|
|
1,940,749
|
|
|
|
44,598
|
|
|
|
2,678,725
|
|
6/30/2016
|
|
|
88,732
|
|
|
|
2,112,567
|
|
|
|
40,477
|
|
|
|
2,887,821
|
|
The Company's derivative contracts in place for natural gas at
June 30, 2017, are outlined in its Form 10-Q for the period
ending June 30, 2017.
Non-GAAP Reconciliation
This news release includes certain "non-GAAP financial measures"
under the rules of the Securities and Exchange Commission,
including Regulation G. These non-GAAP measures are calculated
using GAAP amounts in our financial statements.
EBITDA Reconciliation
EBITDA is defined as net income (loss) plus interest expense,
provision for impairment, depreciation, depletion and amortization
of properties and equipment (which includes amortization of other
assets), and provision (benefit) for income taxes. We believe that
certain investors consider EBITDA a useful means of measuring our
ability to meet our debt service obligations and evaluating our
financial performance. EBITDA has limitations and should not be
considered in isolation or as a substitute for net income,
operating income, cash flow from operations or other consolidated
income or cash flow data prepared in accordance with GAAP. Because
not all companies use identical calculations, this presentation of
EBITDA may not be comparable to a similarly titled measure of other
companies. The following table provides a reconciliation of net
income (loss) to EBITDA for the periods indicated.
|
Third Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
June 30,
2017
|
|
|
June 30,
2017
|
|
Net Income
(Loss)
|
$
|
1,260,758
|
|
|
$
|
2,492,799
|
|
Plus:
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
567,000
|
|
|
|
263,000
|
|
Interest Expense
|
|
306,161
|
|
|
|
884,928
|
|
DD&A
|
|
4,714,350
|
|
|
|
13,654,268
|
|
Impairment
|
|
-
|
|
|
|
10,788
|
|
EBITDA
|
$
|
6,848,269
|
|
|
$
|
17,305,783
|
|
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 2016 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.
View original
content:http://www.prnewswire.com/news-releases/panhandle-oil-and-gas-inc-reports-fiscal-third-quarter-and-nine-months-2017-results-and-operations-update-300500663.html
SOURCE PANHANDLE OIL AND GAS INC.