10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

The largest discount in the last 10 years

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Panhandle Oil and Gas Inc Reports Operating Results (10-Q)

August 07, 2012 | About:
10qk

10qk

18 followers
Panhandle Oil and Gas Inc (PHX) filed Quarterly Report for the period ended 2012-06-30.

Panhandle Oil And Gas Inc. has a market cap of $244.2 million; its shares were traded at around $30.69 with a P/E ratio of 26.5 and P/S ratio of 5.4. The dividend yield of Panhandle Oil And Gas Inc. stocks is 0.9%. Panhandle Oil And Gas Inc. had an annual average earning growth of 15% over the past 10 years.

Highlight of Business Operations:

The Company recorded a third quarter 2012 net income of $3,100,299, or $.37 per share, compared to a net income of $2,650,429, or $.32 per share, in the 2011 quarter. The increase in net income was principally due to increased lease bonuses, higher oil and natural gas sales volumes and decreased exploration costs, partially offset by lower oil and natural gas prices, increased DD&A and impairment expenses and lower gains on derivative contracts. These items are further discussed below.

Oil and natural gas sales decreased $2,751,773 or 25% for the 2012 quarter. The decrease was due to lower natural gas sales prices of 56% and decreased oil sales prices of 8%, offset by increased oil volumes of 53% and increased natural gas volumes of 15%. The following table outlines the Companys sales volumes and average sales prices for oil, natural gas and NGL for the three month periods of fiscal 2012 and 2011:

The fair value of derivative contracts was an asset of $169,472 as of June 30, 2012, and $271,449 as of June 30, 2011. The Company had a net gain on derivative contracts of $81,164 in the 2012 quarter as compared to a net gain of $344,856 recorded in the 2011 quarter. The decrease in gains is mostly due to the natural gas fixed price swaps, which expired in October 2011, being profitable in the 2011 period, as natural gas prices were below the fixed prices.

The Company recorded a nine month period 2012 net income of $7,188,375, or $.86 per share, as compared to a net income of $5,849,531, or $.70 per share, in the 2011 period. Major contributing factors to the increase in net income were increased lease bonuses, higher oil and natural gas sales volumes and decreased exploration costs, partially offset by increased DD&A expense and lower natural gas prices. These items are further discussed below.

Oil and natural gas sales decreased $2,081,107 as a result of lower natural gas sales prices of 38%, partially offset by increased oil volumes of 40%, increased natural gas volumes of 13% and increasing oil sales prices of 4%. The table below outlines the Companys sales volumes and average sales prices for oil, natural gas and NGL for the nine month periods of fiscal 2012 and 2011:

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK