Seeking Alpha
Deep value, newsletter provider, micro-cap, nano-cap
Profile| Send Message|
( followers)  

Thanks to higher coal prices and increased coal production, Pardee Resources (OTCPK:PDER) reported record earnings of $29.98 per share representing an 80% increase over 2009 and a current P/E of only 8.27. This also eclipses the company's prior earnings per share record of $27.09 it achieved in 2008.

Revenues for the coal division jumped 106% to $44.6 million while operating income increased 89% to $34.05 million. Coal production increased 51% to 10.9 million tons with gains at both its Central Appalachia and Colorado properties. The company also saw a 15% increase in its per ton realization to $3.40.

Excluding a one-time gain on a legal settlement in 2009 the company's oil & gas division showed a slight increase in revenues to $7.1 million. Production fell 8% to 1.2 MMcfe due to natural production declines and maintenance. The realized price per Mcfe increased 13% to $5.50 in 2010.

The timber and surface division saw revenues increase 18% to $3.3 million. Timber production increased 2% to 10.1 million board feet. In addition, the company saw a 18% increase in their realized price per thousand board feet to $229. While the number in 2010 improved, this division is still suffering from a soft housing market. The company also acquired 7,728 acres of softwood timberland in central Virginia for investment purposes.

Pardee has continued its commitment to renewable energy by purchasing a total of seven solar photovoltaic electricity generating installations in New Jersey. All of these installations are supported by New Jersey's Clean Energy Program.

Finally, the company increased its 2011 annual dividend rate to $6.00 per share representing a yield of 2.37%. This increase represents a 9% increase over the 2010 payout.

Source: Pardee Resources Reports Blowout Numbers for 2010