OKLAHOMA CITY, May 7, 2018 /PRNewswire/ -- PANHANDLE OIL AND GAS
INC. (NYSE: PHX) today reported financial and operating results for
the Company's fiscal second quarter and six months ended
March 31, 2018.
HIGHLIGHTS FOR THE PERIODS ENDED MARCH
31, 2018
- Increased total equivalent production 25%, as compared to the
quarter ended March 31, 2017, and
31%, as compared to the six months ended March 31, 2017.
- Generated second quarter 2018 net income of $1,070,176, $0.06
per diluted share, as compared to a net income of $3,470,433, $0.21
per diluted share, for the 2017 quarter.
- Generated six-month 2018 net income of $14,855,115, $0.87
per diluted share, as compared to a net income of $1,232,041, $0.07
per diluted share, for the 2017 six months.
- Generated free cash flow of $8,815,501 as cash from operating activities of
$15,359,982 for the 2018 six-month
period was well in excess of capital expenditures for drilling and
equipping wells of $6,544,481.
- Decreased lease operating expense (LOE) per Mcfe to
$1.08 for the six-month period, as
compared to $1.26 in the prior year's
six-month period.
- Reduced debt from $52.2 million,
as of Sept. 30, 2017, to $43.5 million, as of March
31, 2018, which has declined further to $42.0 million as of April
30, 2018.
- Generated 2018 second-quarter and six-month EBITDA
(1) of $5,723,205 and
$12,505,547, respectively.
(1) EBITDA is a Non-GAAP measure. Refer to the
Non-GAAP Reconciliation section.
MANAGEMENT COMMENTS
Paul F. Blanchard Jr., President
and CEO, said, "Fiscal year-to-date capital investment has been
focused in two areas: 1) approximately $4.0
million in the Eagle Ford, primarily for the completion of
four wells in the first quarter that were drilled as part of last
year's ten-well Eagle Ford drilling program, and 2) approximately
$1.8 million for drilling activity on
relatively small working interest wells in Oklahoma's STACK/Cana/SCOOP and southeastern
Oklahoma Woodford plays. Year-to-date capital investments total
$6.5 million, with $1.6 million invested in the second quarter.
"During this lower capital investing period, we have continued
to direct our free cash flow toward the reduction of debt. As a
result, the Company's debt has been reduced from $52.2 million at the beginning of fiscal 2018 to
$43.5 million at the end of the
second quarter. Subsequently, our debt at the end of April 2018 was reduced further to $42.0 million, which is a reduction of
$10.2 million or approximately 20%
during those 7 months.
"Activity on our mineral acreage in the Oklahoma plays has been robust this year.
Drilling and completion operations are currently underway on 32
wells, primarily in STACK/Cana/SCOOP. However, this activity has
been in units where we own small working interest participation
rights, relative to our average ownership and therefore, does not
require a significant capital commitment from us. This is in
contrast to last year when our participation was in units where we
owned much larger than average working interest participation
rights. The year-to-year difference is simply the result of our
exceptionally diverse and varied mineral ownership in the cores of
these plays, where our rights vary from less than 1% in some
drilling units up to 50% in others, and the specific units the
operators select to drill at any point in time.
"Second quarter 2018 production, in comparison to first quarter,
was impacted by three primary factors: 1) relatively steep early
decline rates from new high working interest wells placed on
production in the second half of 2017 and early 2018, plus
temporary production drops associated with the transition of these
wells from flowing efficiently up the production casing to
requiring downhole equipment modifications to resume efficient
flow, 2) the lack of material production from new wells during the
quarter and 3) the production loss associated with the sale of 199
marginal working interest properties during the quarter.
"Drilling operations with one rig are planned to begin in
mid-May on our Eagle Ford property, where the operator intends to
drill six initial wells ($5.3 million
capital requirement) from one pad, with the option to drill eight
more wells ($10.0 million capital
requirement) on two additional pads during calendar 2018.
Production from this drilling is anticipated to begin in early
fiscal 2019 when the first six-well pad is placed on line. The
Company has hedged 126,000 barrels of oil in calendar 2019 at
approximately $57.50 per barrel in
conjunction with this drilling program as part of our strategy to
protect returns on invested capital."
FISCAL SECOND QUARTER 2018 RESULTS
For the 2018 second quarter, the Company recorded net income of
$1,070,176, or $0.06 per diluted share. This compares to a net
income of $3,470,433, or $0.21 per diluted share, for the 2017 second
quarter. Net cash provided by operating activities increased 44% to
$8,161,399 for the 2018 second
quarter, versus $5,664,914 for the
2017 second quarter. Capital expenditures totaled $1,559,601 in the 2018 second quarter, compared
to $5,546,731 in the 2017 second
quarter.
Total revenues for the 2018 second quarter were $11,421,258, an 18% decrease from $13,964,288 for the 2017 quarter. Oil, NGL and
natural gas sales increased $3,375,134 or 38% in the 2018 quarter, compared
to the 2017 quarter, as a result of a 25% increase in Mcfe
production and a 10% increase in the average per Mcfe sales price.
The average sales price per Mcfe of production during the 2018
second quarter was $4.17, compared to
$3.78 for the 2017 second quarter.
Lease bonus income decreased $1,835,005 from $2,334,203 in the 2017 quarter to $499,198 in the 2018 quarter. Also, the 2018
quarter included a $1.3 million loss
on derivative contracts, as compared to a $2.7 million gain for the 2017 quarter.
Gas production increased 21% to 2,107,921 Mcf for the 2018
quarter, compared to the 2017 quarter, while oil production
increased 24% to 82,312 barrels versus 66,547 barrels. In addition,
56,747 barrels of NGL were sold in the 2018 quarter, as compared to
33,836 barrels in the 2017 quarter.
Total expenses increased $684,227
in the 2018 quarter as compared to the 2017 quarter. This increase
was mainly driven by an increase in LOE, production tax and
DD&A over the prior year quarter due to increased Mcfe
production. Although LOE and DD&A expenses increased over the
prior year quarter, the per Mcfe rates both declined
comparatively.
SIX MONTHS 2018 RESULTS
For the 2018 six month period, the Company recorded net income
of $14,855,115, or $0.87 per diluted share. This compares to net
income of $1,232,041, or $0.07 per diluted share, for the 2017 six months.
The 2018 six-month results include a $12,825,000 decrease in income tax as a result of
the new tax law (see income tax below). Net cash provided by
operating activities increased 64% year over year to $15,359,982 for the 2018 six months, versus the
2017 six months. This cash flow fully funded costs to drill and
equip wells, as well as significantly pay down our debt. Capital
expenditures for the 2018 six months totaled $6,544,481.
Total revenues for the 2018 six months were $23,911,784, a 14% increase from $21,000,931 for the 2017 six months. Oil, NGL and
natural gas sales increased $7,363,335, or 41% in the 2018 six months,
compared to the 2017 six months, as a result of a 31% increase in
Mcfe production and an 8% increase in the average per Mcfe sales
price. The average sales price per Mcfe of production during the
2018 six months was $3.95, compared
to $3.65 for the 2017 six months.
Lease bonus income decreased $2,576,004 from $3,172,161 in the 2017 six months to $596,157 in the 2018 six months. The 2018 six
months included a $1.8 million loss
on derivative contracts as compared to a $38,650 gain for the 2017 period.
Oil production increased 22% in the 2018 six month period to
173,149 barrels from 142,183 barrels in the 2017 six months, while
gas production increased 951,704 Mcf, or 26%, compared to the 2017
six months. In addition, 129,148 barrels of NGL were sold in the
2018 six months, which was an 86% increase compared to 2017 NGL
volumes.
Total expenses increased $1,717,779 in the 2018 period as compared to the
2017 period. This increase was mainly driven by an increase in LOE,
production tax and DD&A over the prior year six months due to
increased Mcfe production. Although LOE and DD&A expenses
increased over the prior year six months, the per Mcfe rates both
declined comparatively.
INCOME TAX
The provision (benefit) for income tax in the six-month period
includes an adjustment of $12,825,000
(benefit) for net deferred tax liabilities as a result of the Tax
Cuts and Jobs Act enacted in December
2017 which reduced income tax rates from 35% to 21%. This
adjustment represents the Company's reasonable estimate of the
effect of the change in future tax rates on deferred tax items at
March 31, 2018. Pre-tax net income
was $2,121,115 for the six-month
period of 2018.
RESERVES UPDATE
March 31, 2018, mid-year proved reserves were 163.4 Bcfe,
as calculated by DeGolyer and MacNaughton, the Company's
independent consulting petroleum engineering firm. This was a
decrease of 3%, compared to the 168.6 Bcfe of proved reserves at
Sept. 30, 2017. SEC prices used for
the March 31, 2018, report averaged $2.65 per Mcf for natural gas, $50.62 per barrel for oil and $22.79 per barrel for NGL, compared to
$2.81 per Mcf for natural gas,
$46.31 per barrel for oil and
$17.55 per barrel for NGL at the
Sept. 30, 2017, report. These prices
reflect the net prices received at the wellhead. Total proved
developed reserves decreased 3% to 107.9 Bcfe, as compared to
Sept. 30, 2017, reserve volumes.
FINANCIAL HIGHLIGHTS
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Six Months Ended
March 31,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenues:
|
(unaudited)
|
|
|
(unaudited)
|
|
Oil, NGL and natural
gas sales
|
$
|
12,266,036
|
|
|
$
|
8,890,902
|
|
|
$
|
25,153,455
|
|
|
$
|
17,790,120
|
|
Lease bonuses and
rentals
|
|
499,198
|
|
|
|
2,334,203
|
|
|
|
596,157
|
|
|
|
3,172,161
|
|
Gains (losses) on
derivative contracts
|
|
(1,343,976)
|
|
|
|
2,739,183
|
|
|
|
(1,837,828)
|
|
|
|
38,650
|
|
|
|
11,421,258
|
|
|
|
13,964,288
|
|
|
|
23,911,784
|
|
|
|
21,000,931
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
3,217,568
|
|
|
|
3,105,496
|
|
|
|
6,844,277
|
|
|
|
6,154,911
|
|
Production
taxes
|
|
497,823
|
|
|
|
371,553
|
|
|
|
986,813
|
|
|
|
739,398
|
|
Depreciation,
depletion and amortization
|
|
4,241,078
|
|
|
|
4,105,655
|
|
|
|
9,516,902
|
|
|
|
8,939,918
|
|
Provision for
impairment
|
|
-
|
|
|
|
10,788
|
|
|
|
-
|
|
|
|
10,788
|
|
Loss (gain) on asset
sales and other
|
|
216,472
|
|
|
|
91,337
|
|
|
|
(79,186)
|
|
|
|
86,998
|
|
Interest
expense
|
|
435,951
|
|
|
|
286,398
|
|
|
|
867,530
|
|
|
|
578,767
|
|
General and
administrative
|
|
1,766,190
|
|
|
|
1,719,628
|
|
|
|
3,654,333
|
|
|
|
3,562,110
|
|
|
|
10,375,082
|
|
|
|
9,690,855
|
|
|
|
21,790,669
|
|
|
|
20,072,890
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
1,046,176
|
|
|
|
4,273,433
|
|
|
|
2,121,115
|
|
|
|
928,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(24,000)
|
|
|
|
803,000
|
|
|
|
(12,734,000)
|
|
|
|
(304,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,070,176
|
|
|
$
|
3,470,433
|
|
|
$
|
14,855,115
|
|
|
$
|
1,232,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
0.06
|
|
|
$
|
0.21
|
|
|
$
|
0.87
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,766,010
|
|
|
|
16,644,755
|
|
|
|
16,725,076
|
|
|
|
16,624,229
|
|
Unissued, directors'
deferred compensation shares
|
|
205,867
|
|
|
|
277,167
|
|
|
|
267,005
|
|
|
|
277,200
|
|
|
|
16,971,877
|
|
|
|
16,921,922
|
|
|
|
16,992,081
|
|
|
|
16,901,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock and paid
in period
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
|
Sept. 30,
2017
|
|
Assets
|
(unaudited)
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
168,562
|
|
|
$
|
557,791
|
|
Oil, NGL and natural
gas sales receivables (net of allowance for uncollectable accounts)
|
|
6,475,117
|
|
|
|
7,585,485
|
|
Refundable income
taxes
|
|
792,315
|
|
|
|
489,945
|
|
Assets held for
sale
|
|
-
|
|
|
|
557,750
|
|
Derivative contracts,
net
|
|
-
|
|
|
|
544,924
|
|
Other
|
|
340,975
|
|
|
|
253,480
|
|
Total current
assets
|
|
7,776,969
|
|
|
|
9,989,375
|
|
|
|
|
|
|
|
|
|
Properties and
equipment, at cost, based on successful efforts accounting:
|
|
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
422,574,038
|
|
|
|
434,571,516
|
|
Non-producing oil and
natural gas properties
|
|
7,399,718
|
|
|
|
7,428,927
|
|
Other
|
|
1,510,982
|
|
|
|
1,067,894
|
|
|
|
431,484,738
|
|
|
|
443,068,337
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(240,207,008)
|
|
|
|
(246,483,979)
|
|
Net properties and
equipment
|
|
191,277,730
|
|
|
|
196,584,358
|
|
|
|
|
|
|
|
|
|
Investments
|
|
224,308
|
|
|
|
170,486
|
|
Total
assets
|
$
|
199,279,007
|
|
|
$
|
206,744,219
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
785,880
|
|
|
$
|
1,847,230
|
|
Derivative contracts,
net
|
|
1,881,022
|
|
|
|
-
|
|
Accrued liabilities
and other
|
|
1,378,284
|
|
|
|
1,690,789
|
|
Total current
liabilities
|
|
4,045,186
|
|
|
|
3,538,019
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
43,500,000
|
|
|
|
52,222,000
|
|
Deferred income
taxes
|
|
18,280,007
|
|
|
|
31,051,007
|
|
Asset retirement
obligations
|
|
2,895,355
|
|
|
|
3,196,889
|
|
Derivative contracts,
net
|
|
89,337
|
|
|
|
28,765
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Class A voting common
stock, $.0166 par value; 24,000,000 shares authorized, 16,895,603 issued at
March 31, 2018, and 16,863,004 issued at Sept. 30, 2017
|
|
281,481
|
|
|
|
280,938
|
|
Capital in excess of
par value
|
|
2,566,003
|
|
|
|
2,726,444
|
|
Deferred directors'
compensation
|
|
2,819,516
|
|
|
|
3,459,909
|
|
Retained
earnings
|
|
126,837,723
|
|
|
|
113,330,216
|
|
|
|
132,504,723
|
|
|
|
119,797,507
|
|
Less treasury stock,
at cost; 119,650 shares at March 31, 2018, and 184,988 shares at Sept. 30, 2017
|
|
(2,035,601)
|
|
|
|
(3,089,968)
|
|
Total stockholders'
equity
|
|
130,469,122
|
|
|
|
116,707,539
|
|
Total liabilities and
stockholders' equity
|
$
|
199,279,007
|
|
|
$
|
206,744,219
|
|
Condensed Statements
of Cash Flows
|
|
|
|
|
|
|
|
|
|
Six months ended
March 31,
|
|
|
2018
|
|
|
2017
|
|
Operating
Activities
|
(unaudited)
|
|
Net income
(loss)
|
$
|
14,855,115
|
|
|
$
|
1,232,041
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
9,516,902
|
|
|
|
8,939,918
|
|
Impairment
|
|
-
|
|
|
|
10,788
|
|
Provision for deferred
income taxes
|
|
(12,771,000)
|
|
|
|
(76,000)
|
|
Gain from leasing of
fee mineral acreage
|
|
(595,946)
|
|
|
|
(3,171,490)
|
|
Proceeds from leasing
of fee mineral acreage
|
|
610,552
|
|
|
|
3,191,075
|
|
Net (gain) loss on
sale of assets
|
|
466,128
|
|
|
|
87,161
|
|
Directors' deferred
compensation expense
|
|
170,826
|
|
|
|
176,368
|
|
Fair value of
derivative contracts
|
|
2,486,518
|
|
|
|
(384,566)
|
|
Restricted stock
awards
|
|
347,838
|
|
|
|
317,633
|
|
Other
|
|
(1,337)
|
|
|
|
(835)
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
1,110,368
|
|
|
|
136,669
|
|
Other current
assets
|
|
(87,495)
|
|
|
|
81,325
|
|
Accounts
payable
|
|
(73,066)
|
|
|
|
(203,053)
|
|
Income taxes
receivable
|
|
(302,370)
|
|
|
|
(792,488)
|
|
Other non-current
assets
|
|
(66,364)
|
|
|
|
-
|
|
Accrued
liabilities
|
|
(306,687)
|
|
|
|
(195,981)
|
|
Total
adjustments
|
|
504,867
|
|
|
|
8,116,524
|
|
Net cash provided by
operating activities
|
|
15,359,982
|
|
|
|
9,348,565
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(6,544,481)
|
|
|
|
(7,721,254)
|
|
Investments in
partnerships
|
|
7,493
|
|
|
|
(17,220)
|
|
Proceeds from sales of
assets
|
|
1,129,705
|
|
|
|
718,700
|
|
Net cash provided
(used) by investing activities
|
|
(5,407,283)
|
|
|
|
(7,019,774)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
10,596,451
|
|
|
|
7,038,699
|
|
Payments of loan
principal
|
|
(19,318,671)
|
|
|
|
(7,538,699)
|
|
Purchase of treasury
stock
|
|
(272,100)
|
|
|
|
(407,677)
|
|
Payments of
dividends
|
|
(1,347,608)
|
|
|
|
(1,340,656)
|
|
Net cash provided
(used) by financing activities
|
|
(10,341,928)
|
|
|
|
(2,248,333)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(389,229)
|
|
|
|
80,458
|
|
Cash and cash
equivalents at beginning of period
|
|
557,791
|
|
|
|
471,213
|
|
Cash and cash
equivalents at end of period
|
$
|
168,562
|
|
|
$
|
551,671
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
13,871
|
|
|
$
|
32,236
|
|
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
5,556,196
|
|
|
$
|
10,867,308
|
|
Net (increase)
decrease in accounts payable for properties and equipment
additions
|
|
988,285
|
|
|
|
(3,146,054)
|
|
Capital expenditures
and acquisitions
|
$
|
6,544,481
|
|
|
$
|
7,721,254
|
|
Proved
Reserves
|
|
|
|
|
|
|
|
|
|
|
|
Proved Reserves SEC
Pricing
|
|
|
March 31,
2018
|
|
|
Sept. 30,
2017
|
|
Proved Developed
Reserves:
|
|
(unaudited)
|
|
Barrels of
NGL
|
|
|
1,615,186
|
|
|
|
|
1,768,425
|
|
Barrels of
Oil
|
|
|
2,041,085
|
|
|
|
|
2,201,528
|
|
Mcf of Gas
|
|
|
86,008,174
|
|
|
|
|
87,861,043
|
|
Mcfe (1)
|
|
|
107,945,800
|
|
|
|
|
111,680,761
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
|
528,795
|
|
|
|
|
616,274
|
|
Barrels of
Oil
|
|
|
2,832,003
|
|
|
|
|
3,308,139
|
|
Mcf of Gas
|
|
|
35,296,239
|
|
|
|
|
33,334,077
|
|
Mcfe (1)
|
|
|
55,461,027
|
|
|
|
|
56,880,555
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
|
2,143,981
|
|
|
|
|
2,384,699
|
|
Barrels of
Oil
|
|
|
4,873,088
|
|
|
|
|
5,509,667
|
|
Mcf of Gas
|
|
|
121,304,413
|
|
|
|
|
121,195,120
|
|
Mcfe (1)
|
|
|
163,406,827
|
|
|
|
|
168,561,316
|
|
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
|
|
|
Net Cash Flows
(before income taxes):
|
|
|
|
|
|
|
|
|
|
Proved
Developed
|
$
|
|
109,399,362
|
|
|
$
|
|
112,276,166
|
|
Proved
Undeveloped
|
|
|
14,948,256
|
|
|
|
|
13,746,585
|
|
Total
|
$
|
|
124,347,618
|
|
|
$
|
|
126,022,751
|
|
SEC
Pricing
|
|
|
|
|
|
|
|
|
|
Oil/Barrel
|
$
|
|
50.62
|
|
|
$
|
|
46.31
|
|
Gas/Mcf
|
$
|
|
2.65
|
|
|
$
|
|
2.81
|
|
NGL/Barrel
|
$
|
|
22.79
|
|
|
$
|
|
17.55
|
|
|
|
|
|
|
|
|
|
|
|
Proved Reserves -
Projected Future Pricing (2)
|
|
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
Net Cash Flows
(before income taxes):
|
March 31,
2018
|
|
|
Sept. 30,
2017
|
|
Proved
Developed
|
$
|
|
143,317,737
|
|
|
$
|
|
146,699,256
|
|
Proved
Undeveloped
|
|
|
43,285,836
|
|
|
|
|
45,395,171
|
|
Total
|
$
|
|
186,603,573
|
|
|
$
|
|
192,094,427
|
|
|
(1) Crude oil and NGL
converted to natural gas on a one barrel of crude oil or NGL equals
six Mcf of natural gas basis
|
(2) Projected futures
pricing as of March 31, 2018, and Sept. 30, 2017, basis adjusted to
Company wellhead price
|
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
March 31,
2018
|
|
|
March 31,
2017
|
|
|
March 31,
2018
|
|
|
March 31,
2017
|
|
Mcfe Sold
|
|
2,942,275
|
|
|
|
2,351,207
|
|
|
|
6,364,087
|
|
|
|
4,868,621
|
|
Average Sales Price
per Mcfe
|
$
|
4.17
|
|
|
$
|
3.78
|
|
|
$
|
3.95
|
|
|
$
|
3.65
|
|
Oil Barrels
Sold
|
|
82,312
|
|
|
|
66,547
|
|
|
|
173,149
|
|
|
|
142,183
|
|
Average Sales Price
per Barrel
|
$
|
63.20
|
|
|
$
|
47.93
|
|
|
$
|
58.28
|
|
|
$
|
46.96
|
|
Mcf Sold
|
|
2,107,921
|
|
|
|
1,748,909
|
|
|
|
4,550,305
|
|
|
|
3,598,601
|
|
Average Sales Price
per Mcf
|
$
|
2.72
|
|
|
$
|
2.89
|
|
|
$
|
2.60
|
|
|
$
|
2.72
|
|
NGL Barrels
Sold
|
|
56,747
|
|
|
|
33,836
|
|
|
|
129,148
|
|
|
|
69,487
|
|
Average Sales Price
per Barrel
|
$
|
23.60
|
|
|
$
|
19.17
|
|
|
$
|
25.00
|
|
|
$
|
18.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
|
Mcf Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
3/31/2018
|
|
|
82,312
|
|
|
|
2,107,921
|
|
|
|
56,747
|
|
|
|
2,942,275
|
|
12/31/2017
|
|
|
90,837
|
|
|
|
2,442,384
|
|
|
|
72,401
|
|
|
|
3,421,812
|
|
9/30/2017
|
|
|
93,027
|
|
|
|
2,330,838
|
|
|
|
65,034
|
|
|
|
3,279,204
|
|
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
|
|
The Company's derivative contracts in place for oil and natural
gas at March 31, 2018, are outlined
in its Form 10-Q for the period ending March
31, 2018.
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.
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
March 31,
2018
|
|
|
March 31,
2018
|
|
Net Income
(Loss)
|
$
|
1,070,176
|
|
|
$
|
14,855,115
|
|
Plus:
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(24,000)
|
|
|
|
(12,734,000)
|
|
Interest Expense
|
|
435,951
|
|
|
|
867,530
|
|
DD&A
|
|
4,241,078
|
|
|
|
9,516,902
|
|
Impairment
|
|
-
|
|
|
|
-
|
|
EBITDA
|
$
|
5,723,205
|
|
|
$
|
12,505,547
|
|
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 2017 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 oil and 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 our inability to 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-second-quarter-and-six-months-2018-results-and-mid-year-reserve-update-300643952.html
SOURCE PANHANDLE OIL AND GAS INC.