Tengasco Announces Second Quarter 2012 Financial Results
KNOXVILLE, Tenn., Aug. 14, 2012 /PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today its financial results for the quarter ended June 30, 2012. The Company realized net income attributable to common shareholders of $1.1 million or $0.02 per share of common stock during the second quarter of 2012, compared to a net income in the second quarter of 2011 to common shareholders of $1.0 million or $0.02 per share of common stock.
The Company recognized $5.23 million in revenues during the second quarter of 2012 compared to $4.79 million in the second quarter of 2011. The increase in 2012 revenues was primarily due to a $0.9 million increase related to a 9,400 barrel increase in sales volumes partially offset by a $(0.55) million decrease related to a $(9.56) per barrel decrease in average Kansas oil prices. Kansas oil prices in the second quarter of 2012 averaged $85.90 per barrel compared to $95.46 per barrel in the second quarter of 2011. In addition, MMC revenues increased $0.14 million from $0.06 million in the second quarter 2011 to $0.2 million in the second quarter 2012. The Company also received a cash payment of $999,540 in lieu of tax credits during the second quarter related to the methane facilities. The payment was made under Section 1603 of Division B of the American Recovery and Reinvestment Act of 2009 for the Company's generation of electricity from a landfill gas fuel source. However, due to the tax-related nature of the payment, Company revenues in the second quarter 2012 did not include any portion of this payment other than its related tax effects.
The Company recognized $10.2 million in revenues during the first six months of 2012 compared to $8.4 million in the first six months of 2011, an increase of 21%. The increase in revenues was primarily due to a $1.6 million increase related to an 18,000 barrel increase in oil sales volumes during the first six months of 2012, partially offset by a $(0.1) million decrease related to a $(1.00) per barrel decrease in average oil prices from $91.57 during the first six months of 2011 to $90.57 during the first six months of 2012. In addition, MMC revenues increased $0.3 million, from $0.1 million during the first six months for 2011 to $0.4 million during the first six months of 2012, an increase of 324%. Electric revenues contributed $0.24 million of this increase as a result of installation of an electric generator in January 2012 at the methane facilities. The Company realized net income attributable to common shareholders of $2.0 million or $0.03 per share of common stock during the first six months of 2012 compared to a net income in the first six months of 2011 to common shareholders of $1.3 million, an increase of 47%, or $0.02 per share of common stock. During the first six months of 2012, the Company had income from operations of $3.4 million compared to income from operations of $2.8 million during the first six months of 2011, an increase of 23%. The increase in net income attributable to common shareholders and the increase in income from operations were primarily due to the increase in Kansas sales volumes and MMC revenues, partially offset by a $1.1 million increase in costs and expenses.
Jeffrey R. Bailey, the Company's Chief Executive Officer, said, "As a result of the drilling and polymers in the first half of 2012, we are now seeing a spike in production that has resulted in back-to-back monthly production records for the Company's production of oil. In June 2012 we broke our gross monthly oil production record previously recorded in November of 2008, with a production total of approximately 27,400 barrels. That June 2012 record was then surpassed in July with a gross monthly oil production total of approximately 30,500 barrels. These results reflected the increased drilling from the first 5 months of 2012 and the follow-on polymer jobs performed in the last 7 months. Due to oil pricing pressures that we have seen from lower oil prices in May and June, we have not drilled any new wells in the last 2 months. I would expect a natural decline of production from the newer wells and the flush polymer production to occur in the next few months. We will continue to do some polymer jobs during that time while we monitor oil prices, politics, and industry conditions."
The Company will hold a telephone conference call on Tuesday, August 14, 2012 at 4:15 PM Eastern Daylight Time to discuss the Company's Report on Form 10-Q for the quarter ended June 30, 2012 as follows:
AUDIO: Shareholders and other interested parties may call Toll-Free (US & Canada): (888) 669-0684 and International Dial-In (Toll): (201) 604-0469 to participate in the conference call. Participants in the call will be required to register in order to participate in the conference call. In addition, the audio presentation may also be heard by going to: http://www.visualwebcaster.com/event.asp?id=89009.
Participants will be required to register at the above address to listen to the presentation. Registration may be completed at any time prior to the beginning of the call.
VIDEO: A slideshow corresponding with the subjects of the conference call presentation will be accessible only on Tengasco (TGC)'s website in PDF format before the call.
A transcript of the conference call will be prepared 24 hours following the conference and will be available on the Company's website, which can be accessed at http://www.tengasco.com.
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Tengasco, Inc.