OKLAHOMA CITY, Aug. 7, 2017 /PRNewswire/ -- PANHANDLE OIL AND
GAS INC. (NYSE: PHX) today reported financial and operating results for the Company's fiscal third quarter and nine months ended
June 30, 2017.
HIGHLIGHTS FOR THE PERIODS ENDED JUNE 30, 2017
- Increased total equivalent production 26%, as compared to the quarter ended March 31,
2017.
- Generated fiscal third quarter 2017 net income of $1,260,758, $0.07 per diluted share, as compared to net loss of $786,795, $0.05 per diluted share, for the 2016 quarter.
- Generated nine month 2017 net income of $2,492,799, $0.15 per
diluted share, compared to net loss of $11,024,074, $0.65 per
diluted share, for the 2016 nine months.
- Collected lease bonus proceeds of $4.0 million in first nine months of fiscal 2017.
- Generated cash from operating activities of $14,321,237 for the 2017 nine-month period as
compared to $18,011,721 of capital expenditures for drilling and equipping wells.
- Produced on average 32.5 Mmcfe/day for $3.38/Mcfe net realized price during the quarter.
- Generated 2017 third-quarter and nine-month EBITDA (1) of $6,848,269 and $17,305,783, respectively.
(1) This is a Non-GAAP measure. Refer to the Non-GAAP Reconciliation section.
MANAGEMENT COMMENTS
Commenting on the results, Paul F. Blanchard Jr., President and CEO, said, "This quarter was a
solid one for Panhandle and highlights our focus on growing long-term shareholder value on a per-share basis.
"One of our foundational principles is to limit capital investments to projects we believe will generate appropriate
risk-weighted returns for our shareholders. The application of this principle led to declining production during the recent
downturn; however, this disciplined approach resulted in conservation of capital and material reductions in our debt. This
strategy distinguishes Panhandle from many other oil and gas companies that are primarily focused on delivering production and
reserve growth each quarter. Starting in late 2016, we began to see opportunities to make substantial investments in low-risk,
high-return wells. We have taken advantage of those opportunities, and are now seeing the benefits of those decisions. The
current quarter's gas production grew by 30% and oil production by 13%, resulting in overall production growth of 26%, as
compared to the second quarter of 2017. This production growth was primarily responsible for reducing our breakeven cost
structure by 12%, as compared to the prior quarter, which we believe is a reflection of the quality of these investments.
"We anticipate material production growth and significant reductions in our breakeven cost to continue in the fourth quarter
as several additional high-quality, low-risk wells are expected to begin producing. Additionally, we are in the process of
marketing and selling some of the company's existing high-cost production, which is anticipated to drive our cost structure down
even further.
"Since the products we sell are subject to significant price volatility, another element of our value-generation strategy is
to protect our investments and cash flows by hedging future oil and gas production. Today, we have hedges in place for a
majority of remaining 2017 natural gas production at an average floor of $3.06 per Mcf and an
average ceiling of $3.34 per Mcf. We also have roughly one quarter of 2018 natural gas production
hedged with an average floor of $3.20 per Mcf and an average ceiling of $3.59 per Mcf. A majority of our remaining 2017 oil production is hedged with an average floor of $50.48 per barrel and an average ceiling of $56.12 per barrel.
"We understand that the volatile commodity business we are in necessitates that we always have a debt structure that will
withstand product price fluctuations. Our debt at the end of the third quarter was $50 million,
yielding a conservative trailing twelve month debt to EBITDA (1) ratio of 2.07. Through the first three quarters of 2017, we
financed $18.0 million of capital investments while only borrowing $5.5
million from our line of credit. A majority of those capital expenditures were focused on drilling for natural gas and
NGLs.
"Given our investment principles, the volatility of the products we sell and the fact that we do not operate the wells in
which we take an ownership interest, it is difficult to predict the timing of future investments and related production as is
currently the case. However, we own material mineral and/or leasehold positions in several of the top resource plays in
the United States including STACK/Cana, SCOOP, southeastern Oklahoma Woodford Shale, Eagle Ford
Shale and Fayetteville Shale. These assets account for more than 570 Bcfe of undeveloped proved, probable and possible reserves.
The identified undeveloped locations associated with these reserves are primarily located in the cores of those low risk resource
plays. We are confident these assets will continue to deliver long-term, high-return growth for the Company.
"Beginning in third quarter 2017, we considerably ramped up our focus in sourcing and evaluating acquisition opportunities,
and we plan to search actively for additional properties we believe will be accretive to the company's long-term value. We will
focus on the acquisition of mineral holdings, but will also consider held-by-production leasehold properties with low risk and
material upside."
(1) This is a Non-GAAP measure. Refer to the Non-GAAP Reconciliation
section.
FISCAL THIRD QUARTER 2017 RESULTS
For the 2017 third quarter, the Company recorded net income of $1,260,758, or $0.07 per diluted share. This compared to a net loss of $786,795, or $0.05 per diluted share, for the 2016 third quarter. Net cash provided by operating activities decreased 27% to
$4,972,672 for the 2017 third quarter, versus $6,792,869 for the 2016
third quarter. Capital expenditures for the 2017 fiscal quarter totaled $10,290,467.
Total revenues for the 2017 third quarter were $12,437,186, a 26% increase from $9,864,090 for the 2016 quarter. Oil, NGL and natural gas sales increased $2,632,000 or 36% in the 2017 quarter, compared to the 2016 quarter, as a result of a 33% increase in the
average per Mcfe sales price and a 2% increase in Mcfe production. The average sales price per Mcfe of production during the 2017
third quarter was $3.38, compared to $2.55 for the 2016 third
quarter. The 2017 quarter included a $1.6 million gain on derivative contracts, as compared to a
$1.8 million loss for the 2016 quarter.
Gas production increased 7% to 2,265,091 Mcf for the 2017 quarter, compared to the 2016 quarter, while oil production
decreased 15% in the 2017 quarter to 75,467 barrels, versus 88,732 barrels in the 2016 quarter. In addition, 39,337 barrels of
NGL were sold in the 2017 quarter, as compared to 40,477 barrels in the 2016 quarter.
NINE MONTHS 2017 RESULTS
For the 2017 nine months, the Company recorded net income of $2,492,799, or $0.15 per diluted share. This compared to a net loss of $11,024,074, or
$0.65 per diluted share, for the 2016 nine months. Net cash provided by operating activities
decreased 30% year over year to $14,321,237 for the 2017 nine months, versus the 2016 nine months.
Capital expenditures for the 2017 nine months totaled $18,011,721. The Company recorded a
$10,788 non-cash provision for impairment in the 2017 nine months, as compared to an $11.8 million provision in the 2016 period.
Total revenues for the 2017 nine months were $33,438,117, a 16% increase from $28,902,798 for the 2016 nine months. Oil, NGL and natural gas sales increased $5,230,646 or 23% in the 2017 nine months, compared to the 2016 nine months, as a result of a 39% increase in
the average per Mcfe sales price somewhat offset by an 11% decrease in Mcfe production. The average sales price per Mcfe of
production during the 2017 nine months was $3.55, compared to $2.56
for the 2016 nine months. The 2017 nine months included a $1,658,347 gain on derivative contracts,
as compared to an $842,726 loss for the 2016 period.
Oil production decreased 24% in the 2017 nine months to 217,650 barrels from 285,854 barrels in the 2016 nine months, while
gas production decreased 479,936 Mcf, or 8%, compared to the 2016 nine months. In addition, 108,824 barrels of NGL were sold in
the 2017 nine months, which was a 14% decrease compared to 2016 NGL volumes.
OPERATIONS UPDATE
Drilling and completion activities continue on five significant projects. Three are in the cores of low-risk resource plays,
and two are higher risk plays in the Permian.
In the southeastern Oklahoma Woodford Shale, Panhandle participated in eight significant wells operated by BP, with an average
20% working interest and 27.4% net revenue interest. Four of the wells began producing late in the second quarter of 2017 and the
remaining four began producing during the third quarter. Together, these eight wells produced at the combined net rate of 6.9
Mmcf per day in the most recent 30 day period. Activity is increasing in this play as the application of new technology has
greatly improved well performance and economics. Panhandle has a 4.8% NRI in an additional well in the play that has been drilled
and is anticipated to begin producing in the fourth quarter. Panhandle has an additional 1,411 gross undeveloped locations
identified in this play, with 3P net reserves of 221 Bcfe.
A total of ten wells have been drilled on our Eagle Ford leasehold during 2017, and the drilling rig has now been released. We
own an average 13.2% working interest and 9.9% net revenue interest in these wells. The first two wells began producing in late
April and continue to exceed expectations, with gross production of 110 Mboe combined in the first 60 days. Four of the
remaining wells are currently being completed and are anticipated to begin producing in the first half of August. The remaining
four wells are scheduled to be completed in September and are expected to begin producing in October. An additional 96 Eagle Ford
infill development locations have been identified on our acreage.
In the 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 completed and are in the
early stages of completion fluid recovery. The wells are expected to be producing at their peak rates within the next 30 days and
are anticipated to materially increase the Company's daily production rate. Panhandle currently has an additional 1,135
gross undeveloped locations identified in STACK/SCOOP/Cana with 3P net reserves of 166 Bcfe.
In the Permian Basin, QEP is producing its second Woodford Shale test well on our contiguous
43.6-square-mile mineral holdings in Andrews and Winkler
Counties, Texas. After 57 days on sales the well has cumulative production of 16,200 Boe and is
currently producing 239 Boe per day. Like the first test well on the acreage block, this well has not confirmed the economic
viability of the play. Panhandle elected not to participate in both wells with a working interest and therefore has only a
royalty interest with no capital invested.
Also in the Permian Basin, Element Petroleum is evaluating the San Andres formation on and around our contiguous
34.5-square-mile gross acreage block in Cochran County, Texas. Panhandle has leased 4,050 net
mineral acres to Element and has a proportionately reduced 25% royalty. We also have 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 on the 34.5-square-mile block. Element is continuing to evaluate the play
with two wells producing, one waiting on completion, one being drilled and nine additional wells planned. The two producing wells
have combined cumulative production as follows: 30 day – 1.1 Mboe, 60 day – 8.4 Mboe and 90 day – 16.0 Mboe.
FINANCIAL HIGHLIGHTS
|
|
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Nine Months Ended June 30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
(unaudited)
|
|
|
(unaudited)
|
|
Oil, NGL and natural gas sales
|
$
|
9,997,898
|
|
|
$
|
7,365,898
|
|
|
$
|
27,788,018
|
|
|
$
|
22,557,372
|
|
Lease bonuses and rentals
|
|
819,591
|
|
|
|
4,281,095
|
|
|
|
3,991,752
|
|
|
|
7,188,152
|
|
Gains (losses) on derivative contracts
|
|
1,619,697
|
|
|
|
(1,782,903)
|
|
|
|
1,658,347
|
|
|
|
(842,726)
|
|
|
|
12,437,186
|
|
|
|
9,864,090
|
|
|
|
33,438,117
|
|
|
|
28,902,798
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses
|
|
3,391,079
|
|
|
|
3,520,196
|
|
|
|
9,545,990
|
|
|
|
10,274,085
|
|
Production taxes
|
|
390,387
|
|
|
|
196,733
|
|
|
|
1,129,785
|
|
|
|
747,714
|
|
Depreciation, depletion and amortization
|
|
4,714,350
|
|
|
|
5,959,482
|
|
|
|
13,654,268
|
|
|
|
18,963,017
|
|
Provision for impairment
|
|
-
|
|
|
|
-
|
|
|
|
10,788
|
|
|
|
11,849,064
|
|
Loss (gain) on asset sales and other
|
|
11,447
|
|
|
|
17,223
|
|
|
|
98,445
|
|
|
|
(187,692)
|
|
Interest expense
|
|
306,161
|
|
|
|
331,117
|
|
|
|
884,928
|
|
|
|
1,034,027
|
|
General and administrative
|
|
1,796,004
|
|
|
|
1,570,134
|
|
|
|
5,358,114
|
|
|
|
5,133,657
|
|
|
|
10,609,428
|
|
|
|
11,594,885
|
|
|
|
30,682,318
|
|
|
|
47,813,872
|
|
Income (loss) before provision (benefit) for income taxes
|
|
1,827,758
|
|
|
|
(1,730,795)
|
|
|
|
2,755,799
|
|
|
|
(18,911,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
567,000
|
|
|
|
(944,000)
|
|
|
|
263,000
|
|
|
|
(7,887,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
1,260,758
|
|
|
$
|
(786,795)
|
|
|
$
|
2,492,799
|
|
|
$
|
(11,024,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per common share
|
$
|
0.07
|
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
$
|
(0.65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
16,668,814
|
|
|
|
16,582,416
|
|
|
|
16,639,090
|
|
|
|
16,575,117
|
|
Unissued, directors' deferred compensation shares
|
|
254,891
|
|
|
|
263,649
|
|
|
|
277,294
|
|
|
|
259,382
|
|
|
|
16,923,705
|
|
|
|
16,846,065
|
|
|
|
16,916,384
|
|
|
|
16,834,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share of common
stock and paid in period
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheets
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
Sept. 30, 2016
|
|
Assets
|
(unaudited)
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
560,892
|
|
|
$
|
471,213
|
|
Oil, NGL and natural gas sales receivables (net of allowance for uncollectable accounts)
|
|
5,851,996
|
|
|
|
5,287,229
|
|
Refundable income taxes
|
|
571,986
|
|
|
|
83,874
|
|
Derivative contracts, net
|
|
1,439,686
|
|
|
|
-
|
|
Other
|
|
222,675
|
|
|
|
419,037
|
|
Total current assets
|
|
8,647,235
|
|
|
|
6,261,353
|
|
|
|
|
|
|
|
|
|
Properties and equipment, at cost, based
on successful efforts accounting:
|
|
|
|
|
|
|
|
Producing oil and natural gas properties
|
|
443,928,828
|
|
|
|
434,469,093
|
|
Non-producing oil and natural gas properties
|
|
7,462,082
|
|
|
|
7,574,649
|
|
Other
|
|
1,064,172
|
|
|
|
1,069,658
|
|
|
|
452,455,082
|
|
|
|
443,113,400
|
|
Less accumulated depreciation, depletion and amortization
|
|
(255,806,129)
|
|
|
|
(251,707,749)
|
|
Net properties and equipment
|
|
196,648,953
|
|
|
|
191,405,651
|
|
|
|
|
|
|
|
|
|
Investments
|
|
168,209
|
|
|
|
157,322
|
|
Derivative contracts, net
|
|
11,711
|
|
|
|
-
|
|
Total assets
|
$
|
205,476,108
|
|
|
$
|
197,824,326
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
3,791,830
|
|
|
$
|
2,351,623
|
|
Derivative contracts, net
|
|
-
|
|
|
|
403,612
|
|
Accrued liabilities and other
|
|
1,758,153
|
|
|
|
1,718,558
|
|
Total current liabilities
|
|
5,549,983
|
|
|
|
4,473,793
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
50,000,000
|
|
|
|
44,500,000
|
|
Deferred income taxes
|
|
30,825,007
|
|
|
|
30,676,007
|
|
Asset retirement obligations
|
|
3,114,867
|
|
|
|
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 June 30, 2017, and Sept. 30, 2016
|
|
280,938
|
|
|
|
280,938
|
|
Capital in excess of par value
|
|
2,531,822
|
|
|
|
3,191,056
|
|
Deferred directors' compensation
|
|
3,367,432
|
|
|
|
3,403,213
|
|
Retained earnings
|
|
112,962,754
|
|
|
|
112,482,284
|
|
|
|
119,142,946
|
|
|
|
119,357,491
|
|
Less treasury stock, at cost; 191,988 shares at
June 30, 2017, and 262,708 shares at Sept. 30, 2016
|
|
(3,156,695)
|
|
|
|
(4,165,672)
|
|
Total stockholders' equity
|
|
115,986,251
|
|
|
|
115,191,819
|
|
Total liabilities and stockholders' equity
|
$
|
205,476,108
|
|
|
$
|
197,824,326
|
|
Condensed Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30,
|
|
|
2017
|
|
|
2016
|
|
Operating Activities
|
(unaudited)
|
|
Net income (loss)
|
$
|
2,492,799
|
|
|
$
|
(11,024,074)
|
|
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
13,654,268
|
|
|
|
18,963,017
|
|
Impairment
|
|
10,788
|
|
|
|
11,849,064
|
|
Provision for deferred income taxes
|
|
149,000
|
|
|
|
(10,344,000)
|
|
Gain from leasing of fee mineral acreage
|
|
(3,999,632)
|
|
|
|
(7,187,377)
|
|
Proceeds from leasing of fee mineral acreage
|
|
4,026,283
|
|
|
|
7,494,570
|
|
Net (gain) loss on sale of assets
|
|
87,161
|
|
|
|
(271,080)
|
|
Directors' deferred compensation expense
|
|
266,182
|
|
|
|
247,835
|
|
Restricted stock awards
|
|
454,854
|
|
|
|
644,783
|
|
Other
|
|
2,897
|
|
|
|
73,527
|
|
Cash provided (used) by changes in assets and liabilities:
|
|
|
|
|
|
|
|
Oil, NGL and natural gas sales receivables
|
|
(564,767)
|
|
|
|
3,472,291
|
|
Fair value of derivative contracts
|
|
(1,879,668)
|
|
|
|
5,901,280
|
|
Refundable production taxes
|
|
-
|
|
|
|
476,001
|
|
Other current assets
|
|
196,362
|
|
|
|
69,237
|
|
Accounts payable
|
|
(127,375)
|
|
|
|
(698,593)
|
|
Income taxes receivable
|
|
(488,112)
|
|
|
|
345,897
|
|
Income taxes payable
|
|
-
|
|
|
|
659,319
|
|
Accrued liabilities
|
|
40,197
|
|
|
|
(118,403)
|
|
Total adjustments
|
|
11,828,438
|
|
|
|
31,577,368
|
|
Net cash provided by operating activities
|
|
14,321,237
|
|
|
|
20,553,294
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
Capital expenditures, including dry hole costs
|
|
(18,011,721)
|
|
|
|
(3,359,518)
|
|
Investments in partnerships
|
|
(18,531)
|
|
|
|
50,126
|
|
Proceeds from sales of assets
|
|
718,700
|
|
|
|
627,547
|
|
Net cash provided (used) by investing activities
|
|
(17,311,552)
|
|
|
|
(2,681,845)
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
Borrowings under debt agreement
|
|
16,702,602
|
|
|
|
8,560,234
|
|
Payments of loan principal
|
|
(11,202,602)
|
|
|
|
(24,360,234)
|
|
Purchase of treasury stock
|
|
(407,677)
|
|
|
|
(117,165)
|
|
Payments of dividends
|
|
(2,012,329)
|
|
|
|
(2,007,658)
|
|
Excess tax benefit on stock-based compensation
|
|
-
|
|
|
|
(44,000)
|
|
Net cash provided (used) by financing activities
|
|
3,079,994
|
|
|
|
(17,968,823)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
89,679
|
|
|
|
(97,374)
|
|
Cash and cash equivalents at beginning of period
|
|
471,213
|
|
|
|
603,915
|
|
Cash and cash equivalents at end of period
|
$
|
560,892
|
|
|
$
|
506,541
|
|
|
|
|
|
|
|
|
|
Supplemental Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
Additions to asset retirement obligations
|
$
|
60,276
|
|
|
$
|
8,156
|
|
|
|
|
|
|
|
|
|
Gross additions to properties and equipment
|
$
|
19,579,304
|
|
|
$
|
3,529,104
|
|
Net (increase) decrease in accounts payable for
properties and equipment additions
|
|
(1,567,583)
|
|
|
|
(169,586)
|
|
Capital expenditures and acquisitions, including dry hole costs
|
$
|
18,011,721
|
|
|
$
|
3,359,518
|
|
OPERATING HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
|
Third Quarter Ended
|
|
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
|
June 30, 2017
|
|
|
June 30, 2016
|
|
|
June 30, 2017
|
|
|
June 30, 2016
|
|
Mcfe Sold
|
|
2,953,915
|
|
|
|
2,887,821
|
|
|
|
7,822,536
|
|
|
|
8,817,524
|
|
Average Sales Price per Mcfe
|
$
|
3.38
|
|
|
$
|
2.55
|
|
|
$
|
3.55
|
|
|
$
|
2.56
|
|
Oil Barrels Sold
|
|
75,467
|
|
|
|
88,732
|
|
|
|
217,650
|
|
|
|
285,854
|
|
Average Sales Price per Barrel
|
$
|
44.38
|
|
|
$
|
38.91
|
|
|
$
|
46.06
|
|
|
$
|
35.35
|
|
Mcf Sold
|
|
2,265,091
|
|
|
|
2,112,567
|
|
|
|
5,863,692
|
|
|
|
6,343,628
|
|
Average Sales Price per Mcf
|
$
|
2.65
|
|
|
$
|
1.60
|
|
|
$
|
2.69
|
|
|
$
|
1.72
|
|
NGL Barrels Sold
|
|
39,337
|
|
|
|
40,477
|
|
|
|
108,824
|
|
|
|
126,462
|
|
Average Sales Price per Barrel
|
$
|
16.63
|
|
|
$
|
12.93
|
|
|
$
|
18.08
|
|
|
$
|
11.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Oil Bbls Sold
|
|
|
Mcf Sold
|
|
|
NGL Bbls Sold
|
|
|
Mcfe Sold
|
|
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
|
|
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
|
|
The Company's derivative contracts in place for natural gas at June 30, 2017, are outlined in its Form 10-Q for the
period ending June 30, 2017.
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.
|
Third Quarter Ended
|
|
|
Nine Months Ended
|
|
|
June 30, 2017
|
|
|
June 30, 2017
|
|
Net Income (Loss)
|
$
|
1,260,758
|
|
|
$
|
2,492,799
|
|
Plus:
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
567,000
|
|
|
|
263,000
|
|
Interest Expense
|
|
306,161
|
|
|
|
884,928
|
|
DD&A
|
|
4,714,350
|
|
|
|
13,654,268
|
|
Impairment
|
|
-
|
|
|
|
10,788
|
|
EBITDA
|
$
|
6,848,269
|
|
|
$
|
17,305,783
|
|
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.
View original content:http://www.prnewswire.com/news-releases/panhandle-oil-and-gas-inc-reports-fiscal-third-quarter-and-nine-months-2017-results-and-operations-update-300500663.html
SOURCE PANHANDLE OIL AND GAS INC.