OKLAHOMA CITY, May 5, 2017 /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, 2017.
HIGHLIGHTS FOR THE PERIODS ENDED MARCH 31, 2017
- Recorded fiscal second quarter 2017 net income of $3,470,433, $0.21
per diluted share, as compared to net loss of $7,438,161, $0.44
per diluted share, for the 2016 quarter.
- Recorded six month 2017 net income of $1,232,041, $0.07
per diluted share, compared to net loss of $10,237,279, $0.61
per diluted share, for the 2016 six months.
- Generated cash from operating activities of $9,348,565 for the 2017 six-month period, well in
excess of $7,721,254 of capital
expenditures for drilling and equipping wells.
- Received lease bonus proceeds of $3.2
million in first six months of fiscal 2017.
- Reduced debt $0.5 million from
Sept. 30, 2016, to $44 million as of March 31, 2017.
- Produced on average 26.1 Mmcfe/day for $3.78/Mcfe net realized price during the
quarter.
- Proved reserves totaled 140.4 Bcfe at March 31, 2017, a
13% increase from reserves at Sept. 30,
2016.
- Generated 2017 second-quarter and six-month EBITDA of
$5,775,445 and $10,072,948, respectively.
MANAGEMENT COMMENTS
Commenting on the results, Paul F.
Blanchard Jr., President and CEO said, "Panhandle
experienced a material shift in momentum this quarter. Net income
for the quarter of $3.5 million was
the highest for the Company since the first quarter of 2015. Our
average sales price of oil, gas and NGL also reached the highest
level since the first quarter of 2015 at $3.78 per Mcfe and we generated lease bonus
revenues of $2.3 million. Compared to
2016 year-end, total mid-year 2017 proved reserves increased 16.4
Bcfe, while proved developed reserves increased 12.5 Bcfe. During
the six months ended March 31, 2017,
we funded $7.7 million in capital
expenditures with cash flow, while reducing debt by $.5 million.
"The first phase of our 2017 capital investment program, four
significant southeastern Oklahoma Woodford wells operated by BP,
went on sales late in the quarter. Combined, the wells were
producing approximately 4,000 Mcf per day net to Panhandle after
approximately one month of sales. The first two Eagle Ford wells of
our 2017 drilling program began producing in late April at initial
rates above our expectations. Additional material production is
scheduled to begin in the third and fourth quarters from projects
underway in the Eagle Ford, southeastern Oklahoma Woodford and
STACK plays.
"The Company's two high-potential Permian projects are advancing
with the completion and initial production of two wells in the San
Andres in Cochran County, Texas,
operated by Element Petroleum, and QEP's current completion
activity on the 2-mile lateral Woodford
Shale well in Andrews/Winkler
County, Texas. Initial results from both San Andres wells
are encouraging, as they have begun producing oil in the early
stages of completion fluid recovery. If successful, these two
Permian projects have the potential to add material production and
reserves to the Company.
"We are very excited by all the operational programs underway,
and we believe they will provide substantial production and proved
developed reserve growth momentum in the second half of 2017."
FISCAL SECOND QUARTER 2017 RESULTS
For the 2017 second quarter, the Company recorded net income of
$3,470,433, or $0.21 per diluted share. This compared to a net
loss of $7,438,161, or $0.44 per diluted share, for the 2016 second
quarter. Net cash provided by operating activities increased 66% to
$5,664,914 for the 2017 second
quarter, versus $3,416,395 for the
2016 second quarter. Capital expenditures for the 2017 fiscal
quarter totaled $5,546,731. In
addition, the Company recorded a $10,788 non-cash provision for impairment in the
2017 quarter, as compared to an $8.1
million provision in the 2016 quarter.
Total revenues for the 2017 second quarter were $13,964,288, an 84% increase from $7,592,852 for the 2016 quarter. Oil, NGL and
natural gas sales increased $2,754,716 or 45% in the 2017 quarter, compared
to the 2016 quarter, as a result of a 72% increase in the average
per Mcfe sales price somewhat offset by a 16% decrease in Mcfe
production. The average sales price per Mcfe of production during
the 2017 second quarter was $3.78,
compared to $2.20 for the 2016 second
quarter. The 2017 quarter included a $2.7
million gain on derivative contracts, as compared to a
$1.0 million gain for the 2016
quarter.
Oil production decreased 27% in the 2017 quarter to 66,547
barrels, versus 90,760 barrels in the 2016 quarter, while gas
production decreased 13% to 1,748,909 Mcf for the 2017 quarter,
compared to the 2016 quarter. In addition, 33,836 barrels of NGL
were sold in the 2017 quarter, as compared to 37,934 barrels in the
2016 quarter.
SIX MONTHS 2017 RESULTS
For the 2017 six months, the Company recorded net income of
$1,232,041, or $0.07 per diluted share. This compared to a net
loss of $10,237,279, or $0.61 per diluted share, for the 2016 six months.
Net cash provided by operating activities decreased 32% year over
year to $9,348,565 for the 2017 six
months, versus the 2016 six months, but fully funded costs to drill
and equip wells. Capital expenditures for the 2017 six months
totaled $7,721,254. The Company
recorded a $10,788 non-cash provision
for impairment in the 2017 six months, as compared to an
$11.8 million provision in the 2016
period.
Total revenues for the 2017 six months were $21,000,931, a 10% increase from $19,038,708 for the 2016 six months. Oil, NGL and
natural gas sales increased $2,598,646 or 17% in the 2017 six months,
compared to the 2016 six months, as a result of a 43% increase in
the average per Mcfe sales price somewhat offset by an 18% decrease
in Mcfe production. The average sales price per Mcfe of production
during the 2017 six months was $3.65,
compared to $2.56 for the 2016 six
months. The 2017 six months included a $38,650 gain on derivative contracts as compared
to a $940,177 gain for the 2016
period.
Oil production decreased 28% in the 2017 six months to 142,183
barrels from 197,122 barrels in the 2016 six months, while gas
production decreased 632,460 Mcf, or 15%, compared to the 2016 six
months. In addition, 69,487 barrels of NGL were sold in the 2017
six months, which was a 19% decrease compared to 2016 NGL
volumes.
RESERVES UPDATE
March 31, 2017, mid-year proved reserves were 140.4 Bcfe,
as calculated by the Company's independent consulting petroleum
engineering firm, DeGolyer and MacNaughton. This was an increase of
13%, compared to the 124.0 Bcfe of proved reserves at Sept. 30, 2016. SEC prices used for the
March 31, 2017, report averaged $2.45 per Mcf for natural gas, $43.10 per barrel for oil and $15.84 per barrel for NGL, compared to
$1.97 per Mcf for natural gas,
$36.77 per barrel for oil and
$12.22 per barrel for NGL at the
Sept. 30, 2016, report. The above
prices reflect the net prices received at the wellhead. Total
proved developed reserves increased 15% to 93.9 Bcfe, as compared
to Sept. 30, 2016, reserve
volumes.
OPERATIONS UPDATE
Drilling and completion activities continue on five significant
projects. Three are in the cores of lower risk resource plays and
two are higher risk plays in the Permian Basin.
Southeastern Oklahoma Woodford Shale: Panhandle is
participating in eight significant wells operated by BP. The first
four wells, each with 25% working interest and 31.25% net revenue
interest, began producing in late February and early March. After
approximately one month of production, the four wells combined were
producing 4,000 Mcf per day net to Panhandle. The remaining four
wells, each with 15% working interest and 23.6% net revenue
interest, are currently being completed and are expected to begin
producing in May. Panhandle currently has an additional 1,411 gross
undeveloped locations identified in this play with 3P net reserves
of 221 Bcfe.
Eagle Ford: Six wells have been drilled on the leasehold
during 2017. Panhandle owns an average 16.6% working interest and
12.4% net revenue interest in these wells. The first two wells
began producing in late April and are currently making a combined
rate of 300 Boe per day net to Panhandle after ten days on
production. The remaining four wells are scheduled to be completed
in June with initial production expected from those wells in July.
An additional four-well pad, with 8.2% working interest and 6.1%
net revenue interest, is scheduled to begin drilling this month.
These wells should be on production during our fourth quarter,
2017. Panhandle has 97 additional Eagle Ford infill development
locations identified on its acreage with 3P net reserves of 6.2
million Boe.
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 drilled, and completion
activity is planned to begin mid-May, with initial production from
all six wells scheduled for mid-June. Panhandle currently has an
additional 1,135 gross undeveloped locations identified in
STACK/SCOOP/Cana with 3P net reserves of 166 Bcfe.
Activity in these three low-risk resource plays is anticipated
to result in material increases in daily oil, NGL and natural gas
production in our 2017 third and fourth quarters. This activity
will also result in a material increase in second half 2017 capital
expenditures, when compared to the same period in 2016.
Permian Basin: QEP is currently completing a 2-mile
lateral Woodford Shale well on the
Company's contiguous 43.6-square-mile mineral holdings in
Andrews and Winkler Counties, Texas. Panhandle has leased its 2,440 net
mineral acres in the block and is entitled to a proportionately
reduced 25% royalty. Panhandle also has the right to participate
with up to 10% working interest in each unit as initial unit wells
are proposed. With full participation, Panhandle would have a 7%
working interest and a 7.5% net revenue interest in these new units
within the 43.6-square-mile block.
Also in the Permian Basin, Element Petroleum is evaluating the
San Andres formation on and around Panhandle's contiguous
34.5-square-mile gross acreage block in Cochran County, Texas. The Company has leased
4,050 net mineral acres to Element and has a proportionately
reduced 25% royalty. Panhandle also has 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 within the 34.5-square-mile block. Thus far, Element has
drilled and cored five pilot wells, completed one salt water
disposal well, drilled another salt water disposal well and
completed two 1.5-mile lateral wells in the San Andres. The two
completed San Andres wells are in early stages of completion fluid
recovery, but have already started producing oil. Element has
scheduled the drilling and completion of eight additional San
Andres wells between now and October
2017.
HEDGING UPDATE
As of May 1, 2017, the Company had
protected approximately 5.7 Bcf of its gas production from
April 2017 through March 2018 at an average floor price of
$3.15 per Mcf and an average ceiling
price $3.48 per Mcf. The Company has
also protected 201,000 barrels of oil production for the same
period with an average floor price of $51.32 and an average ceiling price of
$55.79. The oil and gas hedges
consist of swaps and costless collars.
FINANCIAL
HIGHLIGHTS
|
|
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Six Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
Oil, NGL and natural
gas sales
|
$
|
8,890,902
|
|
|
$
|
6,136,186
|
|
|
$
|
17,790,120
|
|
|
$
|
15,191,474
|
|
Lease bonuses and
rentals
|
|
2,334,203
|
|
|
|
481,553
|
|
|
|
3,172,161
|
|
|
|
2,907,057
|
|
Gains (losses) on
derivative contracts
|
|
2,739,183
|
|
|
|
975,113
|
|
|
|
38,650
|
|
|
|
940,177
|
|
|
|
13,964,288
|
|
|
|
7,592,852
|
|
|
|
21,000,931
|
|
|
|
19,038,708
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
3,105,496
|
|
|
|
3,187,353
|
|
|
|
6,154,911
|
|
|
|
6,753,889
|
|
Production
taxes
|
|
371,553
|
|
|
|
229,140
|
|
|
|
739,398
|
|
|
|
550,981
|
|
Depreciation,
depletion and amortization
|
|
4,105,655
|
|
|
|
6,045,883
|
|
|
|
8,939,918
|
|
|
|
13,003,535
|
|
Provision for
impairment
|
|
10,788
|
|
|
|
8,115,791
|
|
|
|
10,788
|
|
|
|
11,849,064
|
|
Loss (gain) on asset
sales and other
|
|
91,337
|
|
|
|
34,054
|
|
|
|
86,998
|
|
|
|
(204,915)
|
|
Interest
expense
|
|
286,398
|
|
|
|
342,348
|
|
|
|
578,767
|
|
|
|
702,910
|
|
General and
administrative
|
|
1,719,628
|
|
|
|
1,651,444
|
|
|
|
3,562,110
|
|
|
|
3,563,523
|
|
|
|
9,690,855
|
|
|
|
19,606,013
|
|
|
|
20,072,890
|
|
|
|
36,218,987
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
4,273,433
|
|
|
|
(12,013,161)
|
|
|
|
928,041
|
|
|
|
(17,180,279)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
803,000
|
|
|
|
(4,575,000)
|
|
|
|
(304,000)
|
|
|
|
(6,943,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
3,470,433
|
|
|
$
|
(7,438,161)
|
|
|
$
|
1,232,041
|
|
|
$
|
(10,237,279)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
0.21
|
|
|
$
|
(0.44)
|
|
|
$
|
0.07
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,644,755
|
|
|
|
16,579,116
|
|
|
|
16,624,229
|
|
|
|
16,571,488
|
|
Unissued, directors'
deferred compensation shares
|
|
277,167
|
|
|
|
259,381
|
|
|
|
277,200
|
|
|
|
258,206
|
|
|
|
16,921,922
|
|
|
|
16,838,497
|
|
|
|
16,901,429
|
|
|
|
16,829,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock and paid in period
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
Sept. 30,
2016
|
|
Assets
|
(unaudited)
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
551,671
|
|
|
$
|
471,213
|
|
Oil, NGL and natural
gas sales receivables (net of allowance
for uncollectable accounts)
|
|
5,150,560
|
|
|
|
5,287,229
|
|
Refundable income
taxes
|
|
876,362
|
|
|
|
83,874
|
|
Other
|
|
337,712
|
|
|
|
419,037
|
|
Total current
assets
|
|
6,916,305
|
|
|
|
6,261,353
|
|
|
|
|
|
|
|
|
|
Properties and
equipment, at cost, based on successful efforts
accounting:
|
|
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
435,198,500
|
|
|
|
434,469,093
|
|
Non-producing oil and
natural gas properties
|
|
7,497,046
|
|
|
|
7,574,649
|
|
Other
|
|
1,071,876
|
|
|
|
1,069,658
|
|
|
|
443,767,422
|
|
|
|
443,113,400
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(251,168,113)
|
|
|
|
(251,707,749)
|
|
Net properties and
equipment
|
|
192,599,309
|
|
|
|
191,405,651
|
|
|
|
|
|
|
|
|
|
Investments
|
|
169,473
|
|
|
|
157,322
|
|
Total
assets
|
$
|
199,685,087
|
|
|
$
|
197,824,326
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
5,294,624
|
|
|
$
|
2,351,623
|
|
Derivative contracts,
net
|
|
43,705
|
|
|
|
403,612
|
|
Accrued liabilities
and other
|
|
1,521,993
|
|
|
|
1,718,558
|
|
Total current
liabilities
|
|
6,860,322
|
|
|
|
4,473,793
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
44,000,000
|
|
|
|
44,500,000
|
|
Deferred income
taxes
|
|
30,600,007
|
|
|
|
30,676,007
|
|
Asset retirement
obligations
|
|
3,054,646
|
|
|
|
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 March 31, 2017, and Sept. 30, 2016
|
|
280,938
|
|
|
|
280,938
|
|
Capital in excess of
par value
|
|
2,431,161
|
|
|
|
3,191,056
|
|
Deferred directors'
compensation
|
|
3,277,619
|
|
|
|
3,403,213
|
|
Retained
earnings
|
|
112,373,669
|
|
|
|
112,482,284
|
|
|
|
118,363,387
|
|
|
|
119,357,491
|
|
Less treasury stock,
at cost; 194,213 shares at March 31, 2017, and 262,708 shares at
Sept. 30, 2016
|
|
(3,193,275)
|
|
|
|
(4,165,672)
|
|
Total stockholders'
equity
|
|
115,170,112
|
|
|
|
115,191,819
|
|
Total liabilities and
stockholders' equity
|
$
|
199,685,087
|
|
|
$
|
197,824,326
|
|
Condensed Statements
of Cash Flows
|
|
|
|
|
|
|
|
|
|
Six months ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
Operating
Activities
|
|
|
Net income
(loss)
|
$
|
1,232,041
|
|
|
$
|
(10,237,279)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
8,939,918
|
|
|
|
13,003,535
|
|
Impairment
|
|
10,788
|
|
|
|
11,849,064
|
|
Provision for deferred
income taxes
|
|
(76,000)
|
|
|
|
(7,405,000)
|
|
Gain from leasing of
fee mineral acreage
|
|
(3,171,490)
|
|
|
|
(2,906,480)
|
|
Proceeds from leasing
of fee mineral acreage
|
|
3,191,075
|
|
|
|
3,193,775
|
|
Net (gain) loss on
sale of assets
|
|
87,161
|
|
|
|
(271,080)
|
|
Directors' deferred
compensation expense
|
|
176,368
|
|
|
|
168,402
|
|
Restricted stock
awards
|
|
317,633
|
|
|
|
508,095
|
|
Other
|
|
(835)
|
|
|
|
70,289
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
136,669
|
|
|
|
3,644,841
|
|
Fair value of
derivative contracts
|
|
(384,566)
|
|
|
|
3,880,013
|
|
Refundable production
taxes
|
|
-
|
|
|
|
21,983
|
|
Other current
assets
|
|
81,325
|
|
|
|
(79,829)
|
|
Accounts
payable
|
|
(203,053)
|
|
|
|
(510,114)
|
|
Income taxes
receivable
|
|
(792,488)
|
|
|
|
(775,806)
|
|
Accrued
liabilities
|
|
(195,981)
|
|
|
|
(393,984)
|
|
Total
adjustments
|
|
8,116,524
|
|
|
|
23,997,704
|
|
Net cash provided by
operating activities
|
|
9,348,565
|
|
|
|
13,760,425
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital expenditures,
including dry hole costs
|
|
(7,721,254)
|
|
|
|
(2,554,543)
|
|
Investments in
partnerships
|
|
(17,220)
|
|
|
|
48,462
|
|
Proceeds from sales of
assets
|
|
718,700
|
|
|
|
627,547
|
|
Net cash provided
(used) by investing activities
|
|
(7,019,774)
|
|
|
|
(1,878,534)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
7,038,699
|
|
|
|
6,078,919
|
|
Payments of loan
principal
|
|
(7,538,699)
|
|
|
|
(16,578,919)
|
|
Purchase of treasury
stock
|
|
(407,677)
|
|
|
|
(117,165)
|
|
Payments of
dividends
|
|
(1,340,656)
|
|
|
|
(1,338,011)
|
|
Excess tax benefit on
stock-based compensation
|
|
-
|
|
|
|
(44,000)
|
|
Net cash provided
(used) by financing activities
|
|
(2,248,333)
|
|
|
|
(11,999,176)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
80,458
|
|
|
|
(117,285)
|
|
Cash and cash
equivalents at beginning of period
|
|
471,213
|
|
|
|
603,915
|
|
Cash and cash
equivalents at end of period
|
$
|
551,671
|
|
|
$
|
486,630
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
32,236
|
|
|
$
|
7,160
|
|
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
10,867,308
|
|
|
$
|
2,483,225
|
|
|
|
|
|
|
|
|
|
Net (increase)
decrease in accounts payable for properties and equipment
additions
|
|
(3,146,054)
|
|
|
|
71,318
|
|
Capital expenditures
and acquisitions, including dry hole costs
|
$
|
7,721,254
|
|
|
$
|
2,554,543
|
|
Proved
Reserves
|
|
|
|
|
|
|
|
|
|
|
|
SEC
Pricing
|
|
|
March 31,
2017
|
|
|
Sept. 30,
2016
|
|
Proved Developed
Reserves:
|
|
(unaudited)
|
|
Barrels of
NGL
|
|
|
1,138,567
|
|
|
|
|
1,095,256
|
|
Barrels of
Oil
|
|
|
1,972,247
|
|
|
|
|
1,980,519
|
|
Mcf of Gas
|
|
|
75,234,358
|
|
|
|
|
62,929,047
|
|
Mcfe (1)
|
|
|
93,899,242
|
|
|
|
|
81,383,697
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
|
1,085,425
|
|
|
|
|
527,447
|
|
Barrels of
Oil
|
|
|
3,565,651
|
|
|
|
|
3,445,571
|
|
Mcf of Gas
|
|
|
18,573,817
|
|
|
|
|
18,796,551
|
|
Mcfe (1)
|
|
|
46,480,273
|
|
|
|
|
42,634,659
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
|
2,223,992
|
|
|
|
|
1,622,703
|
|
Barrels of
Oil
|
|
|
5,537,898
|
|
|
|
|
5,426,090
|
|
Mcf of Gas
|
|
|
93,808,175
|
|
|
|
|
81,725,598
|
|
Mcfe (1)
|
|
|
140,379,515
|
|
|
|
|
124,018,356
|
|
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
|
|
|
Net Cash Flows
(before income taxes):
|
|
|
|
|
|
|
|
|
|
Proved
Developed
|
$
|
|
81,049,074
|
|
|
$
|
|
55,586,606
|
|
Proved
Undeveloped
|
|
|
10,970,478
|
|
|
|
|
(7,696,741)
|
|
Total
|
$
|
|
92,019,552
|
|
|
$
|
|
47,889,865
|
|
SEC
Pricing
|
|
|
|
|
|
|
|
|
|
Oil/Barrel
|
$
|
|
43.10
|
|
|
$
|
|
36.77
|
|
Gas/Mcf
|
$
|
|
2.45
|
|
|
$
|
|
1.97
|
|
NGL/Barrel
|
$
|
|
15.84
|
|
|
$
|
|
12.22
|
|
|
|
|
|
|
|
|
|
|
|
Proved Reserves -
NYMEX Futures Pricing (2)
|
|
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
Net Cash Flows
(before income taxes):
|
March
31, 2017
|
|
|
Sept. 30,
2016
|
|
Proved
Developed
|
$
|
|
93,527,500
|
|
|
$
|
|
99,901,435
|
|
Proved
Undeveloped
|
|
|
23,987,020
|
|
|
|
|
26,931,306
|
|
Total
|
$
|
|
117,514,520
|
|
|
$
|
|
126,832,741
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) NYMEX Futures
Pricing as of March 31, 2017, and Sept. 30, 2016, basis adjusted to
Company wellhead price
|
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
March 31,
2017
|
|
|
March 31,
2016
|
|
|
March 31,
2017
|
|
|
March 31,
2016
|
|
Mcfe Sold
|
|
2,351,207
|
|
|
|
2,786,303
|
|
|
|
4,868,621
|
|
|
|
5,929,703
|
|
Average Sales Price
per Mcfe
|
$
|
3.78
|
|
|
$
|
2.20
|
|
|
$
|
3.65
|
|
|
$
|
2.56
|
|
Oil Barrels
Sold
|
|
66,547
|
|
|
|
90,760
|
|
|
|
142,183
|
|
|
|
197,122
|
|
Average Sales Price
per Barrel
|
$
|
47.93
|
|
|
$
|
27.19
|
|
|
$
|
46.96
|
|
|
$
|
33.75
|
|
Mcf Sold
|
|
1,748,909
|
|
|
|
2,014,139
|
|
|
|
3,598,601
|
|
|
|
4,231,061
|
|
Average Sales Price
per Mcf
|
$
|
2.89
|
|
|
$
|
1.64
|
|
|
$
|
2.72
|
|
|
$
|
1.78
|
|
NGL Barrels
Sold
|
|
33,836
|
|
|
|
37,934
|
|
|
|
69,487
|
|
|
|
85,985
|
|
Average Sales Price
per Barrel
|
$
|
19.17
|
|
|
$
|
9.85
|
|
|
$
|
18.90
|
|
|
$
|
11.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
|
Mcf Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
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
|
|
3/31/2016
|
|
|
90,760
|
|
|
|
2,014,139
|
|
|
|
37,934
|
|
|
|
2,786,303
|
|
The Company's derivative contracts in place for natural gas at
March 31, 2017, are outlined in its Form 10-Q for the period
ending March 31, 2017.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/panhandle-oil-and-gas-inc-reports-fiscal-second-quarter-and-six-months-2017-results-mid-year-reserve-update-and-operations-update-300452595.html
SOURCE PANHANDLE OIL AND GAS INC.