GREENWOOD VILLAGE, Colo.,
Aug. 14, 2017 /PRNewswire/ --
Tengasco, Inc. (NYSE American: TGC) announced today its
financial results for the quarter ended June
30, 2017. The Company reported a net loss of $178,000 or $0.02
per share of common stock during the second quarter of 2017
compared to a net loss of $1.6
million or $0.27 per share of
common stock during the second quarter of 2016. The
improvement in net loss was primarily due to a $1.4 million decrease in non-cash ceiling test
impairment, a $36,000 increase in
revenues, a $70,000 decrease in
DD&A, a $27,000 reduction in
general and administrative costs, and a $22,000 decrease in interest expense, partially
offset by a $150,000 increase in
production costs and taxes and methane facility costs.
During the quarter ended June 30, 2016, net loss before
effect of impairment was $182,000 or
$0.03 per share of common stock (a
non-GAAP financial measure – see GAAP to Non-GAAP Reconciliation at
the end of this press release).
The Company recognized $1.318
million in revenues during the second quarter of 2017
compared to $1.282 million during the
second quarter of 2016. The revenue increase from 2016 levels was
primarily due to a $78,000 increase
related to a $2.96 per barrel
increase in the average oil price from an average price of
$39.86 per barrel during second
quarter of 2016 compared to an average price of $42.82 per barrel during the second quarter of
2017, partially offset by a $51,000
decrease related to a 1.3 MBbl decrease in sales volumes, primarily
from the Albers B, Howard A, Lewis, Liebenau, and Schneller leases.
In addition, there was a $10,000 increase in methane facility
revenues.
The Company reported a net loss of $391,000 or $0.04
per share of common stock during the first six months of 2017
compared to a net loss of $3.0
million or $0.50 per share of
common stock during the first six months of 2016. The
$2.6 million decrease in net loss was
primarily due to a $2.1 million
decrease in non-cash ceiling test impairment, a $447,000 increase in revenues, a $194,000 decrease in general and administrative
cost, a $169,000 decrease in
DD&A, partially offset by a $281,000 increase in production cost and taxes
and methane facility costs. During the six months ended
June 30, 2016, net loss before effect
of impairment was $945,000 or
$0.16 per share of common stock.(a
non-GAAP financial measure – see GAAP to Non-GAAP Reconciliation at
the end of this press release).
The Company recognized $2.7
million in revenues during the first six months of 2017
compared to $2.2 million during the
first six months of 2016. The revenue increase from 2016 levels was
due to a $566,000 increase related to
a $10.80 per barrel increase in the
average oil price from an average price of $33.75 per barrel during first six months of 2016
compared to an average price of $44.55 per barrel during the first six months of
2017, partially offset by a $106,000
decrease related to a 3.2 MBbl decrease in oil sales
volumes.
Michael J. Rugen, CEO said "
During the second quarter of 2017, we continued to experience oil
market pricing at depressed levels, although pricing has improved
somewhat over last year's average pricing. The improvement in
pricing from last year's has resulted in the absence of the noncash
ceiling test writedowns so far in 2017 that we incurred during the
first six months of 2016. We are currently able to fund operations
from cash flow while drilling activities are not occurring due to
low commodity pricing and have maintained the availability of our
entire borrowing base under our credit facility. Meanwhile,
the Company continues to evaluate acquisitions, joint ventures, and
corporate opportunities that may add shareholder value."
Forward-looking statements made in this release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all
forward-looking statements involve risk and uncertainties which may
cause actual results to differ from anticipated results, including
risks associated with the timing and development of the Company's
reserves and projects as well as risks of downturns in economic
conditions generally, and other risks detailed from time to time in
the Company's filings with the Securities and Exchange
Commission.
GAAP to Non-GAAP
Reconciliation ($ millions, except per share data)
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
2016
|
|
June 30,
2016
|
Net loss from
continuing operations (US
GAAP)
|
$
(1.6)
|
|
$
(3.0)
|
Impairment
|
$
1.4
|
|
$
2.1
|
Net loss before
effect of impairment
|
$
(0.2)
|
|
$
(0.9)
|
|
|
|
|
Net loss per share –
basic and diluted (US GAAP)
|
$
(0.27)
|
|
$
(0.50)
|
Impairment per share
– basic and diluted
|
$
0.24
|
|
$
0.34
|
Net loss per share
before effect of impairment – basic and
diluted
|
$
(0.03)
|
|
$
(0.16)
|
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SOURCE Tengasco, Inc.