GREENWOOD VILLAGE, Colo.,
Nov. 13, 2017 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today
its financial results for the quarter ended September 30, 2017. The Company reported a net
loss of $315,000 or $0.03 per share of common stock during the third
quarter of 2017 compared to a net loss of $908,000 or $0.15
per share of common stock during the third quarter of 2016.
The $593,000 decrease in net loss was
primarily due to the absence of any ceiling test impairment in the
third quarter of 2017 compared to the ceiling test impairment of
$632,000 recorded in the third
quarter of 2016 (as a result of the low oil prices experienced
during 2015 and 2016), a $78,000
decrease in general and administrative costs, and a $30,000 decrease in DD&A, partially offset by
a $103,000 increase in production
cost and taxes, and a $63,000
decrease in revenues. During the quarter ended September 30, 2016, net loss before effect of
impairment was $276,000 or
$0.05 per share (a non-GAAP financial
measure – see GAAP to Non-GAAP Reconciliation at the end of this
press release).
The Company recognized $1.18
million in revenues during the third quarter of 2017
compared to $1.24 million during the
third quarter of 2016. The $63,000
revenue decrease from 2016 levels was primarily due to a
$102,000 decrease resulting from a
2.6 MBbl decrease in sales volumes, primarily due to natural
declines and timing of load pick-up by the oil purchaser, partially
offset by a $75,000 increase related
to a $3.12 per barrel increase in the
average oil price (from an average price of $39.42 per barrel during third quarter of 2016 to
an average price of $42.54 per barrel
during the third quarter of 2017.) In addition, there was a
$28,000 decrease in methane facility
revenues, primarily related to a decrease in facility uptime,
partially offset by an increase in efficiency.
The Company reported a net loss of $706,000 or $0.07
per share of common stock during the first nine months of 2017
compared to a net loss of $3.9
million or $0.65 per share of
common stock during the first nine months of 2016. The
$3.2 million decrease in net loss was
primarily due to the absence of any ceiling test impairment in the
first nine months of 2017 compared to the ceiling test impairment
of $2.7 million recorded in the third
quarter of 2016 (as a result of the low oil prices experienced
during 2015 and 2016), together with a $385,000 increase in revenues, a $271,000 decrease in general and administrative
costs, and a $199,000 decrease in
DD&A, partially offset by a $381,000 increase in production cost and taxes
and methane facility costs. During the nine months ended
September 30, 2016, net loss before
effect of impairment was $1.2 million
or $0.20 per share (a non-GAAP
financial measure – see GAAP to Non-GAAP Reconciliation at the end
of this press release).
The Company recognized $3.84
million in revenues during the first nine months of 2017
compared to $3.46 million during the
first nine months of 2016. The revenue increase from 2016 levels
was primarily due to a $637,000
increase related to a $8.33 per
barrel increase in the average oil price (from an average price of
$35.59 per barrel during the first
nine months of 2016 to an average price of $43.92 per barrel during the first nine months of
2017), partially offset by a $204,000
decrease related to 5.7 MBbl decrease in sales volumes, primarily
from the Albers A, Albers B, Howard A, Lewis, Liebenau, McElhany A,
and Veverka A leases mostly related to natural declines. In
addition, there was a $33,000
decrease in methane facility revenues, primarily related to a
decrease in facility uptime, partially offset by an increase in
efficiency.
Michael J. Rugen, CEO said,
"During the third quarter 2017 we saw oil prices increase over last
year's third quarter pricing by enough to largely offset the
reduction in revenues caused by the declines in our sales volumes,
although that increase was not sufficient to regain
profitability in the quarter. Similarly, for the first nine
months of 2017, oil prices increased more than eight dollars per barrel above the same period
last year, and revenues for the period exceeded revenues in the
same period last year, but were not sufficient to regain
profitability during the period. The Company has not made any
borrowings under its credit facility since it was paid down to zero
with the result of this year's rights offering as previously
announced. We continue to review ways to increase current
production and to trim costs where possible. In addition, we
continue to explore joint venture opportunities and potential
business combinations that may provide additional shareholder
value."
Forward-looking statements made in this release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all
forward-looking statements involve risk and uncertainties which may
cause actual results to differ from anticipated results, including
risks associated with the timing and development of the Company's
reserves and projects as well as risks of downturns in economic
conditions generally, and other risks detailed from time to time in
the Company's filings with the Securities and Exchange
Commission.
GAAP to Non-GAAP
Reconciliation ($ millions, except per share data)
|
|
Quarter
Ended
September
30,2016
|
Nine Months
Ended
September 30,
2016
|
|
|
|
Net loss (US
GAAP)
|
$
(0.9)
|
$
(3.9)
|
Impairment
|
$
0.6
|
$
2.7
|
Net loss from
continuing operations before effect of impairment
|
$
(0.3)
|
$
(1.2)
|
|
|
|
Net loss per share –
basic and diluted (US GAAP)
|
$
(0.15)
|
$
(0.65)
|
Impairment per share
– basic and diluted
|
$
0.10
|
$
0.45
|
Net loss per share
before effect of impairment – basic and diluted
|
$
(0.05)
|
$
(0.20)
|
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SOURCE Tengasco, Inc.