Pyramid Oil Company Announces Strong Revenue and Earnings Growth in First Fiscal Quarter
Revenue Increases 92% to $1.6 Million Versus Q1 Last Year; Net Income Improves to $834,000, or $0.22 per Share, Versus $58,000, or $0.02 per Share, in Comparable Year-Ago Quarter
Last update: 2:34 p.m. EDT May 15, 2008Print E-mail RSS Disable Live Quotes
BAKERSFIELD, CA, May 15, 2008 (MARKET WIRE via COMTEX) -- Pyramid Oil Company (PDO) today announced financial results for its first fiscal quarter ended March 31, 2008.
Revenue increased 92% to $1,589,896 versus $826,180 in last year's first quarter. Approximately 81% of the increase was due to higher oil and gas prices, which were up by $38.50 per equivalent barrel of oil versus the first quarter last year. Approximately 12% of the increase was due to higher production and sales levels. Pyramid's first quarter net revenue share of crude oil production increased by approximately 1,800 barrels compared with the first quarter last year.
Operating income increased to $739,698 versus $44,379 in the first quarter a year ago. Net income rose to $834,271, or $0.22 per diluted share, from $57,929, or $0.02 per diluted share, in the comparable year-ago quarter.
John Alexander, president and CEO, said, "The sales and earnings momentum we carried at the end fiscal 2007 continued through the first fiscal quarter, and in light of the opportunities we are pursuing to increase our oil and gas production, we are optimistic about our prospects for continued financial growth during the remainder of the year.
"Important progress has been achieved on our natural gas joint venture in Texas, where the operator recently executed a gas sales contract," Alexander said. "We anticipate construction of the 3.8-mile gas pipeline will begin shortly, and are anticipating that sales will commence sometime this summer."
Post-frac testing on the initial well in the Texas JV indicated natural gas rates of more than 4 million cubic feet per day. Pyramid owns a gross 12.5% working interest (before payout) in the prospect. The JV also holds oil and gas leases on approximately 5,700 contiguous acres surrounding the initial well, and plans to commence additional drilling operations on the acreage shortly after completion of the gas sales pipeline.
Pyramid also is currently conducting completion and testing operations on a recently drilled well in its Carneros Creek field in California, and intends to report on production results once testing efforts have been completed. The Company plans to drill additional wells in the field during 2008, and also is conducting enhancement efforts on several existing Carneros Creek wells in an effort to boost production rates.
Cash and short-term investments at March 31, 2008, were $2,329,113, up from $2,097,427 at December 31, 2007. Working capital at the end of the first quarter improved to $2,398,148 from $2,251,635 at the end of fiscal 2007. Stockholders' equity increased to $7,438,226 from $6,603,955 during the three-month period.
