GREENWOOD VILLAGE, Colo.,
May 15, 2018 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today its
financial results for the quarter ended March 31, 2018. The Company reported a net
income from continuing operations of $133,000 or $0.01
per share of common stock during the first quarter of 2018 compared
to a net loss from continuing operations of $170,000 or $0.02
per share of common stock during the first quarter of 2017.
The $303,000 improvement in net
income from continuing operations was primarily due to a
$158,000 increase in revenues, a
$78,000 decrease in production costs
and taxes, and a $38,000 decrease in
depreciation, depletion, and amortization. The Company also
reported a net income from discontinued operations of $1.1 million or $0.10 per share of common stock during the first
quarter of 2018, primarily from the gain on sale of the methane
facilities, compared to a net loss from discontinued operations of
$43,000 or $0.01 per share of common stock during the first
quarter of 2017. Discontinued operations refer to the
Company's methane facilities which were sold on January 26, 2018 for $2.65
million.
The Company recognized $1.4
million in revenues from continuing operations during the
first quarter of 2018 compared to $1.2
million during the first quarter of 2017. The revenue
increase was primarily due to a $261,000 increase resulting from an $11.04 per barrel increase in the average oil
price from $46.32 per barrel during
first quarter of 2017 to $57.36 per
barrel during the first quarter of 2018. This increase was
partially offset by a $107,000
decrease from a 2.3 MBbl decrease in oil sales volumes.
Michael J. Rugen, CEO said "The
increase in oil prices we have experienced during the first quarter
of 2018 has allowed the Company to return to profitability.
In addition to the return to positive net income from continuing
operations, and as previously disclosed, the Company sold its methane facility assets for $2.65 million in January
2018 and reported a gain of approximately $1.1 million as a result of the sale.
During 2018 the Company plans to participate with other parties in
drilling certain wells on a non-operated basis as well as to perform work on its own
wells in order to move its reserves from the non-producing to the
producing category. This work will primarily be funded by
operating cash flow and the proceeds received from the sale of the
methane facility assets. To date, the Company has taken a
small working interest to participate in drilling two wells in
Kansas, both of which were
unsuccessful. In addition, the Company is continuing to
evaluate other acquisitions, joint ventures, or corporate
opportunities that may add shareholder value."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
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SOURCE Tengasco, Inc.