OKLAHOMA CITY, May 7, 2015 /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, 2015.
HIGHLIGHTS FOR THE PERIODS ENDED MARCH
31, 2015
- Recorded six month 2015 net income of $10,937,968, $0.65
per diluted share, compared to net income of $10,580,891, $0.63
per diluted share, for the 2014 six months.
- Recorded fiscal second quarter 2015 net income of $704,207, $0.04 per
diluted share, as compared to $5,654,573, $0.34
per diluted share, for the 2014 quarter.
- Generated cash from operating activities of $27,653,916 for the 2015 six-month period, well
in excess of $19,797,996 of capital
expenditures for drilling and equipping wells.
- Reported 2015 second-quarter and six-month production of
3,455,265 Mcfe and 7,192,748 Mcfe, respectively, which were a
decrease of 1% and an increase of 3%, respectively, over the same
periods of fiscal 2014.
- Reduced debt $6.1 million, to
$71.9 million, from Sept. 30, 2014.
- Increased proved developed reserves, after production, to 116.1
Bcfe at March 31, 2015, from 115.2
Bcfe at Sept. 30, 2014.
FISCAL SECOND QUARTER 2015 RESULTS
For the 2015 second quarter, the Company recorded net income of
$704,207, or $0.04 per diluted share. This compared to net
income of $5,654,573, or $0.34 per diluted share, for the 2014 second
quarter. Net cash provided by operating activities increased 27% to
$12,468,427 for the 2015 second
quarter, versus the 2014 second quarter. Capital expenditures for
the 2015 fiscal quarter totaled $4,896,365 and continue to be principally
directed toward oil and NGL rich plays in south central
Oklahoma. In addition, the Company
recorded a $1.2 million non-cash
provision for impairment in the 2015 quarter, as compared to a
$227,000 charge in the 2014
quarter.
Total revenues for the 2015 second quarter were $14,679,034, a 26% decrease from $19,752,045 for the 2014 quarter. Oil, NGL and
natural gas sales decreased $8,670,752 or 41% in the 2015 quarter, compared
to the 2014 quarter, as a result of a 1% decrease in Mcfe
production and a 40% decrease in the average per Mcfe sales price.
The average sales price per Mcfe of production during the 2015
second quarter was $3.60, compared to
$6.04 for the 2014 second quarter.
The 2015 quarter included a $1.9
million gain on derivative contracts, as compared to a
$1.6 million loss for the 2014
quarter. The Company will typically hedge 40-60% of its expected
production volumes of oil and gas for a duration of up to one year
to provide protection against significant declines in cash flows
from lower product prices.
Oil production increased 73% in the 2015 quarter to 114,567
barrels, versus 66,239 barrels in the 2014 quarter, while gas
production of 2,475,777 Mcf for the 2015 quarter decreased 11%,
compared to the 2014 quarter. In addition, 48,681 barrels of NGL
were sold in the 2015 quarter, as compared to 51,670 barrels in the
2014 quarter. The increased oil production is a result of the Eagle
Ford acquisition made in June
2014.
SIX MONTHS 2015 RESULTS
For the 2015 six months, the Company recorded net income of
$10,937,968, or $0.65 per diluted share. This compared to net
income of $10,580,891, or
$0.63 per diluted share, for the 2014
six months. Net cash provided by operating activities increased 27%
year over year to $27,653,916 for the
2015 six months, versus the 2014 six months. Again, cash flow from
operations fully funded costs to drill and equip wells for the six
months. Capital expenditures for the 2015 six months totaled
$20,106,176, which included
$19,797,996 for drilling and
equipping wells and acquisitions of $308,180. The Company recorded a $3.4 million non-cash provision for impairment in
the 2015 six months, as compared to a $430,000 charge in the 2014 period.
Total revenues for the 2015 six months were $45,678,204, a 20% increase from $38,148,801 for the 2014 six months. Oil, NGL and
natural gas sales decreased $7,624,134, or 19%, in the 2015 six months,
compared to the 2014 six months, as a result of a 3% increase in
Mcfe production and a 21% decrease in the average per Mcfe sales
price. The average sales price per Mcfe of production during the
2015 six months was $4.44, compared
to $5.65 for the 2014 six months. The
2015 six months included a $13.2
million gain on derivative contracts as compared to a
$2.1 million loss for the 2014
period.
Oil production increased 54% in the 2015 six months to 231,150
barrels from 149,652 barrels in the 2014 six months, while gas
production decreased 497,782 Mcf, or 9%, compared to the 2014 six
months. In addition, 121,485 barrels of NGL were sold in the 2015
six months, which was a 37% increase compared to 2014 NGL
volumes.
RESERVES UPDATE
March 31, 2015, mid-year proved
reserves were 193.8 Bcfe, as calculated by the Company's consulting
petroleum engineering firm, DeGolyer and MacNaughton. This was a
decrease of 6.0%, compared to the 206.2 Bcfe of proved reserves at
Sept. 30, 2014. SEC prices used for
the March 31, 2015, report averaged
$3.68 per Mcf for natural gas,
$79.46 per barrel for oil and
$27.25 per barrel for NGL, compared
to $4.04 per Mcf for natural gas,
$96.94 per barrel for oil and
$31.45 per barrel for NGL for the
Sept. 30, 2014, report. The above
prices reflect net at the wellhead prices. Total proved developed
reserves increased 0.7% to 116.1 Bcfe, as compared to Sept. 30, 2014, reserve volumes.
MANAGEMENT COMMENTS
Michael C. Coffman, President and
CEO, said: "Fiscal 2015 continues to be a difficult time in the
industry as product prices remain at depressed levels. Panhandle
has, and will continue to, maintain its discipline and consistent
long-term outlook and investment philosophies through this product
price cycle. We have significantly reduced our capital expenditure
level, choosing to participate with a working interest only in
those wells that are expected to earn a reasonable rate of return
based on anticipated product prices. As usual, we will generate
royalty interests in wells drilled on our mineral acreage whether
or not we take a working interest in the wells. Excess cash flow
will continue to be used to further reduce our bank debt."
Coffman continued: "We expect industry conditions to remain
challenging at least throughout fiscal 2015. Panhandle's strong
financial and operational position will provide us flexibility to
be opportunistic in terms of acquiring assets or taking advantage
of drilling opportunities when product prices will deliver
reasonable returns and growth of shareholder value."
OPERATIONS UPDATE
Paul Blanchard, Senior Vice
President and COO, said: "Our mid-year 2015 proved developed
reserves grew slightly to 116.1 Bcfe from 115.2 Bcfe at year-end
2014 as new reserves from drilling and a small positive performance
revision more than offset production and a negative pricing
revision due to falling commodity prices during the period.
"Our mid-year 2015 proved undeveloped (PUD) reserves declined
14.5% as compared to year-end 2014 primarily due to the movement of
over 8 Bcfe out of the PUD and into proved developed producing
resulting from drilling and development of those reserves. Because
of the extremely low commodity price environment, the Company
elected to add only PUD reserves for wells in progress at mid-year.
No future PUD locations were added. The removal of locations that
are no longer forecast to be drilled within 5 years and the pricing
revision due to falling commodity prices also contributed to the
decrease in PUD reserves. PUD reserves currently stand at 40% of
total proved reserves."
|
FINANCIAL
HIGHLIGHTS
|
|
|
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues:
|
(unaudited)
|
|
(unaudited)
|
|
Oil, NGL and natural
gas sales
|
$
|
12,437,549
|
|
$
|
21,108,301
|
|
$
|
31,957,249
|
|
$
|
39,581,383
|
|
Lease bonuses and
rentals
|
|
253,050
|
|
|
19,717
|
|
|
282,341
|
|
|
215,946
|
|
Gains (losses) on
derivative contracts
|
|
1,900,162
|
|
|
(1,587,029)
|
|
|
13,150,427
|
|
|
(2,083,930)
|
|
Income from
partnerships
|
|
88,273
|
|
|
211,056
|
|
|
288,187
|
|
|
435,402
|
|
|
14,679,034
|
|
|
19,752,045
|
|
|
45,678,204
|
|
|
38,148,801
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
4,376,996
|
|
|
3,653,000
|
|
|
9,162,346
|
|
|
6,968,397
|
|
Production
taxes
|
|
399,157
|
|
|
706,033
|
|
|
1,021,669
|
|
|
1,277,597
|
|
Exploration
costs
|
|
3,105
|
|
|
24,429
|
|
|
28,457
|
|
|
63,184
|
|
Depreciation,
depletion and amortization
|
|
5,811,590
|
|
|
4,939,834
|
|
|
11,950,609
|
|
|
10,247,853
|
|
Provision for
impairment
|
|
1,208,645
|
|
|
227,152
|
|
|
3,400,642
|
|
|
430,143
|
|
Loss (gain) on asset
sales and other
|
|
(7,145)
|
|
|
104,644
|
|
|
(9,127)
|
|
|
27,189
|
|
Interest
expense
|
|
409,276
|
|
|
-
|
|
|
812,009
|
|
|
-
|
|
General and
administrative
|
|
1,850,203
|
|
|
1,651,380
|
|
|
3,808,631
|
|
|
3,524,547
|
|
|
14,051,827
|
|
|
11,306,472
|
|
|
30,175,236
|
|
|
22,538,910
|
|
Income before
provision (benefit) for income taxes
|
|
627,207
|
|
|
8,445,573
|
|
|
15,502,968
|
|
|
15,609,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(77,000)
|
|
|
2,791,000
|
|
|
4,565,000
|
|
|
5,029,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
704,207
|
|
$
|
5,654,573
|
|
$
|
10,937,968
|
|
$
|
10,580,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per common share
|
$
|
0.04
|
|
$
|
0.34
|
|
$
|
0.65
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,514,435
|
|
|
16,473,344
|
|
|
16,504,512
|
|
|
16,468,522
|
|
Unissued, directors'
deferred compensation shares
|
|
266,066
|
|
|
252,102
|
|
|
265,503
|
|
|
251,424
|
|
|
16,780,501
|
|
|
16,725,446
|
|
|
16,770,015
|
|
|
16,719,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock and paid in
period
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.08
|
|
$
|
0.08
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
March 31,
2015
|
|
Sept. 30,
2014
|
|
Assets
|
(unaudited)
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
586,982
|
|
$
|
509,755
|
|
Oil, NGL and natural
gas sales receivables
|
|
9,639,059
|
|
|
16,227,469
|
|
Refundable production
taxes
|
|
599,371
|
|
|
625,996
|
|
Derivative contracts,
net
|
|
10,490,170
|
|
|
1,650,563
|
|
Other
|
|
328,249
|
|
|
354,828
|
|
Total current
assets
|
|
21,643,831
|
|
|
19,368,611
|
|
|
|
|
|
|
|
Properties and
equipment, at cost, based on successful efforts
accounting:
|
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
434,412,916
|
|
|
418,237,512
|
|
Non-producing oil and
natural gas properties
|
|
8,805,553
|
|
|
10,260,717
|
|
Other
|
|
1,381,454
|
|
|
1,317,725
|
|
|
444,599,923
|
|
|
429,815,954
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(216,596,904)
|
|
|
(204,731,661)
|
|
Net properties and
equipment
|
|
228,003,019
|
|
|
225,084,293
|
|
|
|
|
|
|
|
Investments
|
|
2,037,067
|
|
|
1,936,421
|
|
Derivative contracts,
net
|
|
-
|
|
|
251,279
|
|
Total
assets
|
$
|
251,683,917
|
|
$
|
246,640,604
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
5,094,559
|
|
$
|
7,034,773
|
|
Deferred income
taxes
|
|
1,015,100
|
|
|
600,100
|
|
Income taxes
payable
|
|
1,027,237
|
|
|
523,843
|
|
Accrued liabilities
and other
|
|
886,574
|
|
|
1,290,858
|
|
Total current
liabilities
|
|
8,023,470
|
|
|
9,449,574
|
|
|
|
|
|
|
|
Long-term
debt
|
|
71,923,589
|
|
|
78,000,000
|
|
Deferred income
taxes
|
|
39,646,907
|
|
|
37,363,907
|
|
Asset retirement
obligations
|
|
2,735,026
|
|
|
2,638,470
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Class A voting common
stock, $.0166 par value; 24,000,000
shares authorized, 16,863,004 issued at March 31, 2015, and Sept. 30, 2014
|
|
280,938
|
|
|
280,938
|
|
Capital in excess of
par value
|
|
2,932,208
|
|
|
2,861,343
|
|
Deferred directors'
compensation
|
|
2,951,400
|
|
|
3,110,351
|
|
Retained
earnings
|
|
128,399,133
|
|
|
118,794,188
|
|
|
134,563,679
|
|
|
125,046,820
|
|
Less treasury stock,
at cost; 330,636 shares at March 31, 2015, and 372,364 shares at Sept. 30,
2014
|
|
(5,208,754)
|
|
|
(5,858,167)
|
|
Total stockholders'
equity
|
|
129,354,925
|
|
|
119,188,653
|
|
Total liabilities and
stockholders' equity
|
$
|
251,683,917
|
|
$
|
246,640,604
|
|
Condensed Statements
of Cash Flows
|
|
|
|
|
|
|
|
Six months ended
March 31,
|
|
2015
|
|
2014
|
|
Operating
Activities
|
(unaudited)
|
|
Net income
|
$
|
10,937,968
|
|
$
|
10,580,891
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
11,950,609
|
|
|
10,247,853
|
|
Impairment
|
|
3,400,642
|
|
|
430,143
|
|
Provision for deferred
income taxes
|
|
2,698,000
|
|
|
1,453,000
|
|
Exploration
costs
|
|
28,457
|
|
|
63,184
|
|
Gain from leasing of
fee mineral acreage
|
|
(281,124)
|
|
|
(215,704)
|
|
Net (gain) loss on
sale of assets
|
|
-
|
|
|
152,766
|
|
Income from
partnerships
|
|
(288,187)
|
|
|
(435,402)
|
|
Distributions received
from partnerships
|
|
395,852
|
|
|
547,028
|
|
Directors' deferred
compensation expense
|
|
169,464
|
|
|
189,506
|
|
Restricted stock
awards
|
|
531,243
|
|
|
262,174
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
6,588,410
|
|
|
(3,384,957)
|
|
Fair value of
derivative contracts
|
|
(8,588,328)
|
|
|
1,717,527
|
|
Refundable production
taxes
|
|
26,625
|
|
|
264,048
|
|
Other current
assets
|
|
26,579
|
|
|
(55,727)
|
|
Accounts
payable
|
|
(41,635)
|
|
|
46,051
|
|
Income taxes
payable
|
|
503,394
|
|
|
113,890
|
|
Accrued
liabilities
|
|
(404,053)
|
|
|
(242,919)
|
|
Total
adjustments
|
|
16,715,948
|
|
|
11,152,461
|
|
Net cash provided by
operating activities
|
|
27,653,916
|
|
|
21,733,352
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital expenditures,
including dry hole costs
|
|
(19,797,996)
|
|
|
(17,606,988)
|
|
Acquisition of working
interest properties
|
|
(308,180)
|
|
|
(1,550,205)
|
|
Acquisition of
minerals and overrides
|
|
-
|
|
|
(56,250)
|
|
Proceeds from leasing
of fee mineral acreage
|
|
286,844
|
|
|
237,733
|
|
Investments in
partnerships
|
|
(208,312)
|
|
|
(201,898)
|
|
Proceeds from sales of
assets
|
|
-
|
|
|
92,000
|
|
Net cash used in
investing activities
|
|
(20,027,644)
|
|
|
(19,085,608)
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
18,894,612
|
|
|
8,312,545
|
|
Payments of loan
principal
|
|
(24,971,023)
|
|
|
(10,574,801)
|
|
Purchase of treasury
stock
|
|
(120,611)
|
|
|
(122,044)
|
|
Payments of
dividends
|
|
(1,333,023)
|
|
|
(1,330,215)
|
|
Excess tax benefit on
stock-based compensation
|
|
(19,000)
|
|
|
16,000
|
|
Net cash provided by
(used in) financing activities
|
|
(7,549,045)
|
|
|
(3,698,515)
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
77,227
|
|
|
(1,050,771)
|
|
Cash and cash
equivalents at beginning of period
|
|
509,755
|
|
|
2,867,171
|
|
Cash and cash
equivalents at end of period
|
$
|
586,982
|
|
$
|
1,816,400
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
32,728
|
|
$
|
84,786
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
18,207,598
|
|
$
|
17,290,125
|
|
Net (increase)
decrease in accounts payable for properties and equipment additions
|
|
1,898,578
|
|
|
1,923,318
|
|
Capital expenditures
and acquisitions, including dry hole costs
|
$
|
20,106,176
|
|
$
|
19,213,443
|
|
Proved
Reserves
|
|
|
|
|
|
|
|
SEC
Pricing
|
|
March 31,
2015
|
|
Sept. 30,
2014
|
|
Proved Developed
Reserves:
|
(unaudited)
|
|
Barrels of
NGL
|
|
1,550,459
|
|
|
1,564,859
|
|
Barrels of
Oil
|
|
2,705,502
|
|
|
2,890,678
|
|
Mcf of Gas
|
|
90,537,553
|
|
|
88,512,767
|
|
Mcfe (1)
|
|
116,073,319
|
|
|
115,245,989
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
Barrels of
NGL
|
|
1,477,371
|
|
|
1,475,322
|
|
Barrels of
Oil
|
|
4,313,209
|
|
|
4,678,901
|
|
Mcf of Gas
|
|
42,998,613
|
|
|
53,979,593
|
|
Mcfe (1)
|
|
77,742,093
|
|
|
90,904,931
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
Barrels of
NGL
|
|
3,027,830
|
|
|
3,040,181
|
|
Barrels of
Oil
|
|
7,018,711
|
|
|
7,569,579
|
|
Mcf of Gas
|
|
133,536,166
|
|
|
142,492,360
|
|
Mcfe (1)
|
|
193,815,412
|
|
|
206,150,920
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
Net Cash Flows
(before income taxes):
|
|
|
|
|
|
|
Proved
Developed
|
$
|
194,916,693
|
|
$
|
234,799,797
|
|
Proved
Undeveloped
|
|
84,117,435
|
|
|
135,228,020
|
|
Total
|
$
|
279,034,128
|
|
$
|
370,027,817
|
|
SEC
Pricing
|
|
|
|
|
|
|
Oil/Barrel
|
$
|
79.46
|
|
$
|
96.94
|
|
Gas/Mcf
|
$
|
3.68
|
|
$
|
4.04
|
|
NGL/Barrel
|
$
|
27.25
|
|
$
|
31.45
|
|
|
|
|
|
|
|
Proved Reserves -
NYMEX Futures Pricing (2)
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
Net Cash Flows
(before income taxes):
|
March 31,
2015
|
|
Sept. 30,
2014
|
|
Proved
Developed
|
$
|
144,083,316
|
|
$
|
210,517,588
|
|
Proved
Undeveloped
|
|
42,532,715
|
|
|
104,966,219
|
|
Total
|
$
|
186,616,031
|
|
$
|
315,483,807
|
|
|
|
|
|
|
|
(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, 2015, basis adjusted to Company wellhead
price
|
|
|
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
|
|
Second Quarter
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
March 31,
2015
|
|
March 31,
2014
|
|
March 31,
2015
|
|
March 31,
2014
|
|
Mcfe Sold
|
|
3,455,265
|
|
|
3,496,222
|
|
|
7,192,748
|
|
|
7,005,492
|
|
Average Sales Price
per Mcfe
|
$
|
3.60
|
|
$
|
6.04
|
|
$
|
4.44
|
|
$
|
5.65
|
|
Oil Barrels
Sold
|
|
114,567
|
|
|
66,239
|
|
|
231,150
|
|
|
149,652
|
|
Average Sales Price
per Barrel
|
$
|
45.67
|
|
$
|
92.74
|
|
$
|
58.38
|
|
$
|
93.26
|
|
Mcf Sold
|
|
2,475,777
|
|
|
2,788,768
|
|
|
5,076,938
|
|
|
5,574,720
|
|
Average Sales Price
per Mcf
|
$
|
2.64
|
|
$
|
4.74
|
|
$
|
3.13
|
|
$
|
4.08
|
|
NGL Barrels
Sold
|
|
48,681
|
|
|
51,670
|
|
|
121,485
|
|
|
88,810
|
|
Average Sales Price
per Barrel
|
$
|
13.82
|
|
$
|
33.53
|
|
$
|
21.23
|
|
$
|
32.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
Mcf Sold
|
|
NGL Bbls
Sold
|
|
Mcfe Sold
|
|
3/31/2015
|
|
114,567
|
|
2,475,777
|
|
48,681
|
|
3,455,265
|
|
12/31/2014
|
|
116,583
|
|
2,601,161
|
|
72,804
|
|
3,737,483
|
|
9/30/2014
|
|
126,256
|
|
2,690,493
|
|
55,849
|
|
3,783,123
|
|
6/30/2014
|
|
70,479
|
|
2,508,346
|
|
63,029
|
|
3,309,394
|
|
3/31/2014
|
|
66,239
|
|
2,788,768
|
|
51,670
|
|
3,496,222
|
The Company's derivative contracts in place for natural gas at
March 31, 2015, are outlined in its
Form 10-Q for the period ending March 31,
2015.
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 2014 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; our hedging activities may reduce the
realized prices received for natural gas sales; the volatility of
oil and gas prices; Panhandle'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, and 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-six-months-2015-results-and-mid-year-reserve-update-300079831.html
SOURCE Panhandle Oil and Gas Inc.