GREENWOOD VILLAGE, Colo.,
Nov. 14, 2018 /PRNewswire/ -- Tengasco, Inc. (NYSE
American: TGC) announced today its financial results for the
quarter ended September 30,
2018. The Company reported a net income from continuing
operations of $298,000 or
$0.03 per share of common stock
during the third quarter of 2018 compared to a net loss from
continuing operations of $(361,000)
or $(0.03) per share of common stock
during the third quarter of 2017. The $659,000 improvement in net income from
continuing operations was primarily due to a $619,000 increase in revenues, a $45,000 decrease in production cost and taxes,
and a $15,000 decrease in interest
expense, partially offset by a $20,000 increase in general and administrative
expense.
The Company recognized $1.65
million in revenues from continuing operations during the
third quarter of 2018 compared to $1.04
million during the third quarter of 2017. The revenue
increase was primarily due to a $558,000 increase resulting from a $21.80 per barrel increase in the average oil
price from $42.54 per barrel during
third quarter of 2017 to $64.34 per
barrel during the third quarter of 2018 and a $61,000 increase from a 1.4 MBbl increase in oil
sales volumes.
The Company reported a net income from continuing operations of
$530,000 or $0.05 per share of common stock during the first
nine months of 2018 compared to a net loss from continuing
operations of $(761,000) or
$(0.08) per share of common stock
during the first nine months of 2017. The $1.3 million improvement in net income from
continuing operations was primarily due to a $1.1 million increase in revenues, a $93,000 decrease in production costs and taxes, a
$59,000 decrease in depreciation,
depletion, and amortization, a $32,000 decrease in interest expense, and a
$29,000 increase in gain from sale of
assets, partially offset by a $36,000
increase in general and administrative expense. The Company
also reported a net income from discontinued operations of
$1.1 million or $0.11 per share of common stock during the first
nine months of 2018, primarily from the gain on sale of the methane
facilities, compared to a net income from discontinued operations
of $55,000 or $0.01 per share of common stock during the first
nine months of 2017. The Company's methane facilities were sold on
January 26, 2018 for $2.65 million.
The Company recognized $4.5
million in revenues from continuing operations during the
first nine months of 2018 compared to $3.4
million during the first nine months of 2017. The revenue
increase was primarily due to a $1.3
million increase resulting from a $17.35 per barrel increase in the average oil
price from $43.92 per barrel during
first nine months of 2017 to $61.27
per barrel during the first nine months of 2018. This
increase was partially offset by a $154,000 decrease from a 3.5 MBbl decline in oil
sales volumes.
Michael J. Rugen, CEO said "The
increase in oil prices we have experienced during the first nine
months of 2018 has provided substantial improvement over 2017
earnings. Earnings per share from continuing operations have
increased six cents per share during
the third quarter of 2018 over the same period last year, and
thirteen cents per share during the
first nine months of 2018 over the same period in 2017. In
addition to improved pricing levels, during the third quarter of
2018, the Company was able to benefit from increased production as
a result of polymer work performed on its own wells in the second
and third quarters of 2018. Also during the third quarter,
the Company drilled two wells in Kansas on an operated basis. One of
these wells was completed as a producing well in October 2018 and the Company is currently
monitoring the results of this well. The polymer and drilling
costs were both funded using cash flows from operations. In
addition, the Company is continuing to evaluate other acquisitions,
joint ventures, or corporate opportunities."
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.