Pyramid Oil announced financial results for its first quarter ended March 31, 2010.
Revenue increased 69% to $1.0 million from $594,000 in the first quarter last year. The increase resulted from higher average crude oil prices, which increased $36.73 per barrel of oil equivalent (BOE) to $75.55 from $38.82 per average BOE in the first quarter a year ago. The increase in average price received per BOE was partially offset by a 13% decline in production volumes.
Operating income was $229,000, a positive swing of $448,000 when compared with an operating loss of $219,000 in last year's first quarter. Total costs and expenses declined 5% to $773,000 from $813,000 in the first quarter last year. Net income was $181,000, or $0.04 per share, an improvement of $370,000 versus the net loss of $189,000, or $0.04 per share, reported in the comparable year-ago quarter.
Pyramid generated operating cash flow of $176,000 during the first three months of fiscal 2010. By comparison, the Company used cash of $218,000 during the same period of fiscal 2009. At March 31, 2010, the Company's balance sheet included $4.4 million in cash, cash equivalents and short-term investments; total current assets of $5.5 million; working capital of $5.0 million and no long-term debt.
Subsequent to the close of the quarter, the Company drilled a horizontal well on one of its Mountain View properties in Kern County, Calif. Results of the well did not warrant its completion, and the Company is projecting it will make a second quarter valuation allowance associated with the well of approximately $830,000.
"Our first quarter financial performance reflects the strong rebound in crude prices during the past year," said John Alexander, president and CEO. "We are working to capitalize on the improved price environment and have increased drilling activity on our California leases. A new well in our Carneros Creek field was put into production during the first quarter, and we are currently reviewing additional prospects on our Kern County properties. We expect to commence drilling one of these prospects during the next fiscal quarter. For the foreseeable future, we will fund our exploration efforts utilizing our strong cash position."
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