Pyramid Builds Revenues, Up 91%
Pyramid Oil Company has announced financial results for its second quarter and six-month period ended June 30, 2008.
Second quarter revenue increased 91% to $2.1 million from $1.1 million in last year's second quarter. Approximately 93% of the increase resulted from higher oil and gas prices, which increased by approximately $57.19 per equivalent barrel of oil versus last year's second quarter. Operating income increased by 226% to $1.2 million versus $362,000 in the second quarter a year ago.
Net income improved by 154% to $908,000, or $0.24 per diluted share ($0.19 per diluted share after a 5-for-4 stock split that became effective July 7, 2008) from $357,000, or $0.10 per diluted share ($0.08 per diluted share, post split) in the second quarter last year.
Through six months, Pyramid reported revenue of $3.7 million, up 92% versus revenue of $1.9 million in the same period a year ago. Operating income increased 372% to $1.9 million from $406,000 in the six-month period last year. Net income increased 320% to $1.7 million, or $0.47 per diluted share ($0.37 per diluted share, post split) from $415,000, or $0.11 per diluted share ($0.09 per diluted share, post split) in the 2007 six-month period.
John Alexander, president and CEO, said, "Our strong second quarter performance helped fuel solid cash flow from operations, which through six months had increased 183% to $1.7 million versus the comparable period last year. We expect to elevate our oil and gas production rates during the second half of the year, and are therefore optimistic about our prospects for continued strong top- and bottom-line financial results."
Alexander said construction and hook up of a gas sales line at the Company's Texas natural gas joint venture was completed during the first week in August, and the well is scheduled to commence production in the coming days. A gas sales contract is in place, and the operator has plans for additional near-term drilling on the joint venture's 5,700-acre lease area in south-central Texas. Post-frac testing on the initial well 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.
Pyramid remained active in its Carneros Creek field in California, where it has been conducting enhancement efforts on several existing wells, and also has been executing a developmental drilling program. The Company is currently waiting on a drilling rig, which it will use on its Anderson property to penetrate the point-of-rocks formation at a depth of approximately 3,100 feet. Drilling is expected to commence late in the third quarter.
Cash and short-term investments at June 30, 2008, were $2.9 million, up from $2.1 million at December 31, 2007. Working capital at the end of the second quarter improved to $3.4 million from $2.3 million at the end of fiscal 2007. Stockholders' equity increased to $8.4 million from $6.6 million at the end of fiscal 2007.