OKLAHOMA CITY, May 9, 2016 /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, 2016.
SIGNIFICANT ITEMS FOR THE PERIODS ENDED MARCH 31, 2016
- Recorded fiscal second quarter 2016 net loss of $7,438,161, $0.44
per diluted share, as compared to net income of $704,207, $0.04 per
diluted share, for the 2015 quarter.
- Recorded six month 2016 net loss of $10,237,279, $0.61
per diluted share, compared to net income of $10,937,968, $0.65
per diluted share, for the 2015 six months.
- Incurred 2016 six-month non-cash impairment provision of
$11,849,064.
- Generated cash from operating activities of $10,566,650 for the 2016 six-month period, well
in excess of $2,554,543 of capital
expenditures for drilling and equipping wells.
- Received lease bonus proceeds of $3.2
million in first six months of fiscal 2016 (as of
May 9, 2016, lease bonus received has
totaled approximately $5.9
million).
- Reported 2016 second-quarter and six-month production of
2,786,303 Mcfe and 5,929,703 Mcfe, respectively.
- Reduced debt $10.5 million from
Sept. 30, 2015, to $54.5 million through March 31, 2016 (as of May
9, 2016, balance is $51
million).
- Proved reserves totaled 144.9 Bcfe at March 31, 2016.
FISCAL SECOND QUARTER 2016 RESULTS
For the 2016 second quarter, the Company recorded net loss of
$7,438,161, or $0.44 per diluted share. This compared to net
income of $704,207, or $0.04 per diluted share, for the 2015 second
quarter. Net cash provided by operating activities decreased 77% to
$2,916,432 for the 2016 second
quarter, versus the 2015 second quarter. Capital expenditures for
the 2016 fiscal quarter totaled $1,268,429 and continue to be principally
directed toward oil and NGL rich plays in south central
Oklahoma including the SCOOP and
STACK plays. In addition, the Company recorded an $8.1 million non-cash provision for impairment in
the 2016 quarter, as compared to a $1.2
million provision in the 2015 quarter.
Total revenues for the 2016 second quarter were $7,587,091, a 48% decrease from $14,679,034 for the 2015 quarter. Oil, NGL and
natural gas sales decreased $6,301,363 or 51% in the 2016 quarter, compared
to the 2015 quarter, as a result of a 19% decrease in Mcfe
production and a 39% decrease in the average per Mcfe sales price.
The average sales price per Mcfe of production during the 2016
second quarter was $2.20, compared to
$3.60 for the 2015 second quarter.
The 2016 quarter included a $1
million gain on derivative contracts, as compared to a
$1.9 million gain for the 2015
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.
Oil production decreased 21% in the 2016 quarter to 90,760
barrels, versus 114,567 barrels in the 2015 quarter, while gas
production decreased 19% to 2,014,139 Mcf for the 2016 quarter,
compared to the 2015 quarter. In addition, 37,934 barrels of NGL
were sold in the 2016 quarter, as compared to 48,681 barrels in the
2015 quarter.
SIX MONTHS 2016 RESULTS
For the 2016 six months, the Company recorded a net loss of
$10,237,279, or $0.61 per diluted share. This compared to a net
income of $10,937,968, or
$0.65 per diluted share, for the 2015
six months. Net cash provided by operating activities decreased 62%
year over year to $10,566,650 for the
2016 six months, versus the 2015 six months. Again, cash flow from
operations fully funded costs to drill and equip wells for the six
months. Capital expenditures for the 2016 six months totaled
$2,554,543. The Company recorded an
$11.8 million non-cash provision for
impairment in the 2016 six months, as compared to a $3.4 million provision in the 2015 period.
Total revenues for the 2016 six months were $19,049,216, a 58% decrease from $45,678,204 for the 2015 six months. Oil, NGL and
natural gas sales decreased $16,765,775 or 52% in the 2016 six months,
compared to the 2015 six months, as a result of an 18% decrease in
Mcfe production and a 42% decrease in the average per Mcfe sales
price. The average sales price per Mcfe of production during the
2016 six months was $2.56, compared
to $4.44 for the 2015 six months. The
2016 six months included a $.9
million gain on derivative contracts as compared to a
$13.2 million gain for the 2015
period.
Oil production decreased 15% in the 2016 six months to 197,122
barrels from 231,150 barrels in the 2015 six months, while gas
production decreased 845,877 Mcf, or 17%, compared to the 2015 six
months. In addition, 85,985 barrels of NGL were sold in the 2016
six months, which was a 29% decrease compared to 2015 NGL
volumes.
RESERVES UPDATE
March 31, 2016, mid-year proved
reserves were 144.9 Bcfe, as calculated by the Company's consulting
petroleum engineering firm, DeGolyer and MacNaughton. This was a
decrease of 19.5%, compared to the 180.0 Bcfe of proved reserves at
Sept. 30, 2015. SEC prices used for
the March 31, 2016, report averaged
$2.14 per Mcf for natural gas,
$40.07 per barrel for oil and
$13.24 per barrel for NGL, compared
to $2.84 per Mcf for natural gas,
$55.27 per barrel for oil and
$19.10 per barrel for NGL at the
Sept. 30, 2015, report. The above
prices reflect net at the wellhead prices. Total proved developed
reserves decreased 15.9% to 90.9 Bcfe, as compared to Sept. 30, 2015, reserve volumes.
Paul Blanchard, Senior Vice
President and COO, said: "The Company's 2016 mid-year reserves were
down approximately 35 Bcfe as a result of the dramatically lower
product prices experienced in the last six months. This fall in
product prices produced a decrease in proved developed reserves of
12.6 Bcfe due to wells reaching their projected economic limits
much earlier than projected using Sept. 30,
2015, prices. PUD reserves declined 17.7 Bcfe as many future
drilling locations became uneconomic at this quarter's SEC mandated
product prices. In addition, due to extremely low commodity prices,
the Company produced 4.5 Bcfe more than was added through new
drilling and completion activity during the six-month period.
"The reserves associated with the product pricing revisions are
still in place and will be brought back into the Company's reserve
report when prices recover to a level seen in the 2015 year-end
report. All of Panhandle's proved, probable and possible locations
are either on Company owned perpetual minerals or
held-by-production leasehold, and therefore, there is no potential
for locations being lost through the expiration of leases at the
end of their primary terms."
MANAGEMENT COMMENTS
Michael C. Coffman, President and
CEO, said: "2016 continues to shape up as one of, if not the most
difficult years the energy industry has ever seen. Panhandle is
experiencing many of the issues other companies have faced.
"The low oil, natural gas and natural gas liquids prices have
dramatically reduced our revenues and resulting cash flows. In
addition, non-cash impairment charges resulting from the low
commodity prices have resulted in large losses for the Company.
These impairment charges reduce the carrying value of producing
properties on the Company's books to a point-in-time (March 31, 2016) estimated market valuation."
Coffman continued: "Thus far in fiscal 2016, we have incurred
$11.8 million, pre-tax, of impairment
charges. These charges are excluded in financial covenant
calculations of our loan agreement. The borrowing base under our
loan agreement will be reset in June
2016, and we expect the borrowing base to be reduced from
the current $100 million. We expect
it to be set at a level that provides ample liquidity for the
Company to continue to employ its normal operating strategies."
OPERATIONS UPDATE
Panhandle continues to actively lease out selected mineral
holdings during this commodity price downturn. The strategy behind
this activity is to lease out minerals in cases where we believe
the present value of the lease bonus plus the royalty will
ultimately exceed the risked present value of participating with a
working interest in wells drilled on these mineral holdings.
Thus far in the current fiscal year (Oct.
1, 2015 – May 9, 2016) leases
have totaled 6,327 net mineral acres and included approximately
$5.9 million of lease bonus receipts
(ranging from $100 per acre to
$4,300 per acre). The leased mineral
acreage covers the following areas in Oklahoma and Texas:
- 4,057 acres in the Permian Basin in Cochran County, Texas. We maintain the right
to buy back up to a 10% working interest on a unit-by-unit basis.
This lease has a three-year primary term with the right to renew
with an additional lease bonus.
- 685 acres in the STACK play in Canadian, Blaine, Custer and Dewey Counties, Oklahoma. The majority of these leases have a
four-year primary term. No Cana Core
acreage was leased; Panhandle therefore maintains all of its
pre-existing rights to participate with a working interest in that
play.
- 1,226 acres in northwest Dewey
and southern Woodward Counties,
Oklahoma. This is viewed by some
as a potential STACK expansion area.
The primarily targeted formations in each of these areas are
predominately either limestone or sandstone. By their nature, these
reservoirs can be very complex and tend to produce much more
variable results than consistent shale resource plays such as the
Cana and SCOOP Woodford cores. Generally, there are significant
variations over short distances in the reservoir properties in many
limestone and sandstone reservoirs leading to potentially wide
variations in well-to-well productivity. In fact, the primary
target in the STACK and STACK expansion play is the Meramec
formation, which is a sub-member of the Mississippian Limestone and
has a several-decade long history of producing highly variable
wells across northern, central and western Oklahoma. Any mineral acres not drilled within
the primary term of the leases will once again become unleased
minerals on Panhandle's books.
In all but the Cochran County
lease, by leasing we relinquished the right to participate in these
units as a working interest owner during the term of the lease;
however, we will retain the royalty interest and the perpetual
minerals. Royalty interests are considerably more valuable than an
equivalent working interest because they do not bear capital
investments or operating expenses.
In essence, these transactions eliminate the risk of investing
capital in plays and extensions of plays that have materially more
risk than drilling in the cores of shale resource plays, while at
the same time preserving risked value through lease bonus payments
and potential future royalty income streams.
We are also in late stage negotiations to lease out additional
mineral rights, which if completed would result in additional
meaningful lease bonuses to the Company.
Lease operating expenses were reduced by 10% when comparing the
first six months of 2016 to 2015. This decrease was principally due
to field optimization work on our Eagle Ford properties.
FINANCIAL
HIGHLIGHTS
|
|
Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
(unaudited)
|
|
(unaudited)
|
Oil, NGL and natural
gas sales
|
$
|
6,136,186
|
|
$
|
12,437,549
|
|
$
|
15,191,474
|
|
$
|
31,957,249
|
Lease bonuses and
rentals
|
|
481,553
|
|
|
253,050
|
|
|
2,907,057
|
|
|
282,341
|
Gains (losses) on
derivative contracts
|
|
975,113
|
|
|
1,900,162
|
|
|
940,177
|
|
|
13,150,427
|
Income (loss) from
partnerships
|
|
(5,761)
|
|
|
88,273
|
|
|
10,508
|
|
|
288,187
|
|
|
7,587,091
|
|
|
14,679,034
|
|
|
19,049,216
|
|
|
45,678,204
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
3,187,353
|
|
|
4,376,996
|
|
|
6,753,889
|
|
|
9,162,346
|
Production
taxes
|
|
229,140
|
|
|
399,157
|
|
|
550,981
|
|
|
1,021,669
|
Exploration
costs
|
|
1,159
|
|
|
3,105
|
|
|
28,949
|
|
|
28,457
|
Depreciation,
depletion and amortization
|
|
6,045,883
|
|
|
5,811,590
|
|
|
13,003,535
|
|
|
11,950,609
|
Provision for
impairment
|
|
8,115,791
|
|
|
1,208,645
|
|
|
11,849,064
|
|
|
3,400,642
|
Loss (gain) on asset
sales and other
|
|
27,134
|
|
|
(7,145)
|
|
|
(242,572)
|
|
|
(9,127)
|
Interest
expense
|
|
342,348
|
|
|
409,276
|
|
|
702,910
|
|
|
812,009
|
General and
administrative
|
|
1,651,444
|
|
|
1,850,203
|
|
|
3,563,523
|
|
|
3,808,631
|
Bad debt expense
(recovery)
|
|
-
|
|
|
-
|
|
|
19,216
|
|
|
-
|
|
|
19,600,252
|
|
|
14,051,827
|
|
|
36,229,495
|
|
|
30,175,236
|
Income (loss) before
provision (benefit) for income taxes
|
|
(12,013,161)
|
|
|
627,207
|
|
|
(17,180,279)
|
|
|
15,502,968
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(4,575,000)
|
|
|
(77,000)
|
|
|
(6,943,000)
|
|
|
4,565,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(7,438,161)
|
|
$
|
704,207
|
|
$
|
(10,237,279)
|
|
$
|
10,937,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
(0.44)
|
|
$
|
0.04
|
|
$
|
(0.61)
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
16,579,116
|
|
|
16,514,435
|
|
|
16,571,488
|
|
|
16,504,512
|
Unissued, directors'
deferred compensation shares
|
|
259,381
|
|
|
266,066
|
|
|
258,206
|
|
|
265,503
|
|
|
16,838,497
|
|
|
16,780,501
|
|
|
16,829,694
|
|
|
16,770,015
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock and paid
in period
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.08
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
|
|
|
|
|
March 31,
2016
|
|
Sept. 30,
2015
|
Assets
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
486,630
|
|
$
|
603,915
|
Oil, NGL and natural
gas sales receivables (net of allowance for uncollectable accounts)
|
|
4,231,534
|
|
|
7,895,591
|
|
|
|
|
|
Refundable income
taxes
|
|
1,121,703
|
|
|
345,897
|
Refundable production
taxes
|
|
454,018
|
|
|
476,001
|
Derivative contracts,
net
|
|
330,751
|
|
|
4,210,764
|
Other
|
|
331,845
|
|
|
252,016
|
Total current
assets
|
|
6,956,481
|
|
|
13,784,184
|
|
|
|
|
|
|
Properties and
equipment, at cost, based on
|
|
|
|
|
|
successful efforts accounting:
|
|
|
|
|
|
Producing oil and
natural gas properties
|
|
433,557,440
|
|
|
441,141,337
|
Non-producing oil and
natural gas properties
|
|
7,643,408
|
|
|
8,293,997
|
Other
|
|
1,060,392
|
|
|
1,393,559
|
|
|
442,261,240
|
|
|
450,828,893
|
Less accumulated
depreciation, depletion and amortization
|
|
(240,429,941)
|
|
|
(228,036,803)
|
Net properties and
equipment
|
|
201,831,299
|
|
|
222,792,090
|
|
|
|
|
|
|
Investments
|
|
167,663
|
|
|
2,248,999
|
Total
assets
|
$
|
208,955,443
|
|
$
|
238,825,273
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,447,314
|
|
$
|
2,028,746
|
Deferred income
taxes
|
|
312,100
|
|
|
1,517,100
|
Accrued liabilities
and other
|
|
936,629
|
|
|
1,330,901
|
Total current
liabilities
|
|
2,696,043
|
|
|
4,876,747
|
|
|
|
|
|
|
Long-term
debt
|
|
54,500,000
|
|
|
65,000,000
|
Deferred income
taxes
|
|
32,918,907
|
|
|
39,118,907
|
Asset retirement
obligations
|
|
2,895,488
|
|
|
2,824,944
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Class A voting common
stock, $.0166 par value;
|
|
|
|
|
|
24,000,000 shares
authorized, 16,863,004 issued at March 31, 2016, and Sept. 30, 2015
|
|
|
|
|
|
|
280,938
|
|
|
280,938
|
Capital in excess of
par value
|
|
3,000,554
|
|
|
2,993,119
|
Deferred directors'
compensation
|
|
3,242,150
|
|
|
3,084,289
|
Retained
earnings
|
|
113,871,183
|
|
|
125,446,473
|
|
|
120,394,825
|
|
|
131,804,819
|
Less treasury stock,
at cost; 280,624 shares at March 31, 2016, and 302,623 shares at Sept. 30, 2015
|
|
|
|
|
|
|
(4,449,820)
|
|
|
(4,800,144)
|
Total stockholders'
equity
|
|
115,945,005
|
|
|
127,004,675
|
Total liabilities and
stockholders' equity
|
$
|
208,955,443
|
|
$
|
238,825,273
|
Condensed Statements
of Cash Flows
|
|
|
|
|
|
|
|
Six months ended
March 31,
|
|
2016
|
|
2015
|
Operating
Activities
|
(unaudited)
|
Net income
(loss)
|
$
|
(10,237,279)
|
|
$
|
10,937,968
|
Adjustments to
reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
13,003,535
|
|
|
11,950,609
|
Impairment
|
|
11,849,064
|
|
|
3,400,642
|
Provision for deferred
income taxes
|
|
(7,405,000)
|
|
|
2,698,000
|
Exploration
costs
|
|
28,949
|
|
|
28,457
|
Gain from leasing of
fee mineral acreage
|
|
(2,906,480)
|
|
|
(281,124)
|
Net (gain) loss on
sale of assets
|
|
(271,080)
|
|
|
-
|
Income from
partnerships
|
|
(10,508)
|
|
|
(288,187)
|
Distributions received
from partnerships
|
|
32,632
|
|
|
395,852
|
Directors' deferred
compensation expense
|
|
168,402
|
|
|
169,464
|
Restricted stock
awards
|
|
508,095
|
|
|
531,243
|
Bad debt expense
(recovery)
|
|
19,216
|
|
|
-
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
Oil, NGL and natural
gas sales receivables
|
|
3,644,841
|
|
|
6,588,410
|
Fair value of
derivative contracts
|
|
3,880,013
|
|
|
(8,588,328)
|
Refundable production
taxes
|
|
21,983
|
|
|
26,625
|
Other current
assets
|
|
(79,829)
|
|
|
26,579
|
Accounts
payable
|
|
(510,114)
|
|
|
(41,635)
|
Income taxes
receivable
|
|
(775,806)
|
|
|
-
|
Income taxes
payable
|
|
-
|
|
|
503,394
|
Accrued
liabilities
|
|
(393,984)
|
|
|
(404,053)
|
Total
adjustments
|
|
20,803,929
|
|
|
16,715,948
|
Net cash provided by
operating activities
|
|
10,566,650
|
|
|
27,653,916
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Capital expenditures,
including dry hole costs
|
|
(2,554,543)
|
|
|
(19,797,996)
|
Acquisition of working
interest properties
|
|
-
|
|
|
(308,180)
|
Proceeds from leasing
of fee mineral acreage
|
|
3,193,775
|
|
|
286,844
|
Investments in
partnerships
|
|
48,462
|
|
|
(208,312)
|
Proceeds from sales of
assets
|
|
627,547
|
|
|
-
|
Net cash provided
(used) by investing activities
|
|
1,315,241
|
|
|
(20,027,644)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
6,078,919
|
|
|
18,894,612
|
Payments of loan
principal
|
|
(16,578,919)
|
|
|
(24,971,023)
|
Purchase of treasury
stock
|
|
(117,165)
|
|
|
(120,611)
|
Payments of
dividends
|
|
(1,338,011)
|
|
|
(1,333,023)
|
Excess tax benefit on
stock-based compensation
|
|
(44,000)
|
|
|
(19,000)
|
Net cash provided
(used) by financing activities
|
|
(11,999,176)
|
|
|
(7,549,045)
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(117,285)
|
|
|
77,227
|
Cash and cash
equivalents at beginning of period
|
|
603,915
|
|
|
509,755
|
Cash and cash
equivalents at end of period
|
$
|
486,630
|
|
$
|
586,982
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
Additions to asset
retirement obligations
|
$
|
7,160
|
|
$
|
32,728
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
2,483,225
|
|
$
|
18,207,598
|
Net (increase)
decrease in accounts payable for properties and equipment additions
|
|
|
|
|
|
|
71,318
|
|
|
1,898,578
|
Capital expenditures
and acquisitions, including dry hole costs
|
$
|
2,554,543
|
|
$
|
20,106,176
|
Proved
Reserves
|
|
|
|
|
|
|
|
SEC
Pricing
|
|
March 31,
2016
|
|
Sept. 30,
2015
|
Proved Developed
Reserves:
|
|
(unaudited)
|
Barrels of
NGL
|
|
1,236,528
|
|
|
1,466,834
|
Barrels of
Oil
|
|
2,284,144
|
|
|
2,725,077
|
Mcf of Gas
|
|
69,798,702
|
|
|
82,899,159
|
Mcfe (1)
|
|
90,922,734
|
|
|
108,050,625
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
Barrels of
NGL
|
|
1,179,666
|
|
|
1,453,766
|
Barrels of
Oil
|
|
3,555,534
|
|
|
4,313,353
|
Mcf of Gas
|
|
25,587,282
|
|
|
37,314,885
|
Mcfe (1)
|
|
53,998,482
|
|
|
71,917,599
|
Total Proved
Reserves:
|
|
|
|
|
|
Barrels of
NGL
|
|
2,416,194
|
|
|
2,920,600
|
Barrels of
Oil
|
|
5,839,678
|
|
|
7,038,430
|
Mcf of Gas
|
|
95,385,984
|
|
|
120,214,044
|
Mcfe (1)
|
|
144,921,216
|
|
|
179,968,224
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
Net Cash Flows
(before income taxes):
|
|
|
|
|
|
Proved
Developed
|
$
|
71,263,666
|
|
$
|
126,295,752
|
Proved
Undeveloped
|
|
(5,746,678)
|
|
|
17,948,482
|
Total
|
$
|
65,516,988
|
|
$
|
144,244,234
|
SEC
Pricing
|
|
|
|
|
|
Oil/Barrel
|
$
|
40.07
|
|
$
|
55.27
|
Gas/Mcf
|
$
|
2.14
|
|
$
|
2.84
|
NGL/Barrel
|
$
|
13.24
|
|
$
|
19.10
|
|
|
|
|
|
|
Proved Reserves -
NYMEX Futures Pricing (2)
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
Net Cash Flows
(before income taxes):
|
March 31,
2016
|
|
Sept. 30,
2015
|
Proved
Developed
|
$
|
93,576,643
|
|
$
|
123,465,294
|
Proved
Undeveloped
|
|
10,141,258
|
|
|
20,797,565
|
Total
|
$
|
103,717,901
|
|
$
|
144,262,859
|
|
|
|
|
|
|
(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, 2016, and Sept. 30, 2015, basis adjusted to
Company wellhead price
|
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
|
|
Second Quarter
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
March 31,
2016
|
|
March 31,
2015
|
|
March 31,
2016
|
|
March 31,
2015
|
Mcfe Sold
|
|
2,786,303
|
|
|
3,455,265
|
|
|
5,929,703
|
|
|
7,192,748
|
Average Sales Price
per Mcfe
|
$
|
2.20
|
|
$
|
3.60
|
|
$
|
2.56
|
|
$
|
4.44
|
Oil Barrels
Sold
|
|
90,760
|
|
|
114,567
|
|
|
197,122
|
|
|
231,150
|
Average Sales Price
per Barrel
|
$
|
27.19
|
|
$
|
45.67
|
|
$
|
33.75
|
|
$
|
58.38
|
Mcf Sold
|
|
2,014,139
|
|
|
2,475,777
|
|
|
4,231,061
|
|
|
5,076,938
|
Average Sales Price
per Mcf
|
$
|
1.64
|
|
$
|
2.64
|
|
$
|
1.78
|
|
$
|
3.13
|
NGL Barrels
Sold
|
|
37,934
|
|
|
48,681
|
|
|
85,985
|
|
|
121,485
|
Average Sales Price
per Barrel
|
$
|
9.85
|
|
$
|
13.82
|
|
$
|
11.49
|
|
$
|
21.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Oil Bbls
Sold
|
|
Mcf Sold
|
|
NGL Bbls
Sold
|
|
Mcfe Sold
|
3/31/2016
|
|
90,760
|
|
2,014,139
|
|
37,934
|
|
2,786,303
|
12/31/2015
|
|
106,362
|
|
2,216,922
|
|
48,051
|
|
3,143,400
|
9/30/2015
|
|
112,237
|
|
2,261,236
|
|
47,738
|
|
3,221,086
|
6/30/2015
|
|
109,738
|
|
2,407,049
|
|
41,737
|
|
3,315,899
|
3/31/2015
|
|
114,567
|
|
2,475,777
|
|
48,681
|
|
3,455,265
|
The Company's derivative contracts in place for natural gas at
March 31, 2016, are outlined in its
Form 10-Q for the period ending March 31,
2016.
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 2015 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-2016-results-mid-year-reserve-update-and-operations-update-300265322.html
SOURCE PANHANDLE OIL AND GAS INC.