Panhandle Oil and Gas Inc (PHX, Financial) filed Quarterly Report for the period ended 2010-03-31.
Panhandle Oil And Gas Inc has a market cap of $191.2 million; its shares were traded at around $23 with a P/E ratio of 1150 and P/S ratio of 4.8. The dividend yield of Panhandle Oil And Gas Inc stocks is 1.1%. Panhandle Oil And Gas Inc had an annual average earning growth of 22.4% over the past 10 years. GuruFocus rated Panhandle Oil And Gas Inc the business predictability rank of 3-star.PHX is in the portfolios of Chuck Royce of Royce& Associates.
DD&A decreased $1,603,420 or 23% in the 2010 quarter. DD&A per Mcfe in the 2010 quarter was $2.62 as compared to $2.98 in the 2009 quarter. Oil and natural gas production decreased 12% in the 2010 quarter accounting for approximately $863,000 of the DD&A decrease. The remaining DD&A decrease of approximately $740,000 is attributable to the $.35 decline in the DD&A rate per Mcfe. This rate declined as a result of increased oil and natural gas reserves as of March 31, 2010 compared to March 31, 2009, and a net reduction during fiscal year 2009 of approximately $3.1 million of asset basis subject to DD&A. This asset basis reduction occurred as DD&A and impairment, combined with the basis reduction associated with assets sold, exceeded new additions to properties and equipment for oil and natural gas activities during fiscal year 2009.
In the 2010 quarter, G&A costs increased $101,110 or 8%. The increase is primarily related to increases (decreases) in the following expense categories: personnel $116,015, board of directors $63,750, insurance $20,866, legal ($55,479) and technical consulting ($52,067).
The 2010 quarter provision for income taxes of $1,801,000 was a result of a pre-tax income of $6,964,566 compared to a benefit for income taxes of $1,026,000 in the 2009 quarter resulting from a pre-tax loss of $1,971,256. The provision for income taxes increased in the 2010 quarter by $2,827,000, the result of an $8,935,822 increase in income (loss) before provision (benefit) for income taxes in the 2010 quarter compared to the 2009 quarter and removal of $161,000 of the valuation allowance on Oklahoma net operating loss carryforwards (NOLs). The effective tax rate for the 2010 and 2009 quarters were 26% and 52%, respectively. Utilization of excess percentage depletion (a permanent tax benefit) reduced taxable income a lesser proportion in the 2010 quarter compared to the 2009 quarter, resulting in a lower effective tax rate for the 2010 quarter. The reversal of $161,000 of the valuation allowance on Oklahoma NOLs reduced the effective tax rate by 2% for the 2010 quarter. For further discussion regarding excess percentage depletion and its effect on the effective tax rate, see NOTE 2: Income Taxes.
Exploration costs increased $674,455 in the 2010 period compared to the 2009 period. Due to the shorter timeframe before expiration of certain of the Companys non-producing leasehold, and the reassessment of risk of commercial production from such leases, non-producing leasehold was impaired $831,961 in the 2010 period compared to $148,024 in the 2009 period. Expired leases charges were $44,963 in the 2010 period compared to $18,190 in the 2009 period. The Company recorded a credit to exploratory dry holes of $161 during the 2010 period and a charge of $36,094 in the 2009 period.
DD&A decreased $3,260,817 or 23% in the 2010 period. DD&A was $2.47 per Mcfe in the 2010 period compared to $2.88 per Mcfe in the 2009 period. Oil and natural gas production decreased 10% in the 2010 period accounting for approximately $1,460,000 of the DD&A decrease. The remaining DD&A decrease of approximately $1,800,000 is attributable to the $.41 decline in the DD&A rate per Mcfe. This rate declined as a result of increased oil and natural gas reserves as of March 31, 2010, as compared to March 31, 2009, and a net reduction during fiscal year 2009 of approximately $3.1 million of asset basis subject to DD&A. This asset basis reduction occurred as DD&A and impairment, combined with the basis reduction associated with assets sold, exceeded new additions to properties and equipment for oil and natural gas activities during fiscal year 2009.
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Panhandle Oil And Gas Inc has a market cap of $191.2 million; its shares were traded at around $23 with a P/E ratio of 1150 and P/S ratio of 4.8. The dividend yield of Panhandle Oil And Gas Inc stocks is 1.1%. Panhandle Oil And Gas Inc had an annual average earning growth of 22.4% over the past 10 years. GuruFocus rated Panhandle Oil And Gas Inc the business predictability rank of 3-star.PHX is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Exploration costs were up $270,459 in the 2010 quarter compared to the 2009 quarter. Due to the shorter timeframe before expiration of certain of the Companys non-producing leasehold, and the reassessment of risk of commercial production from such leases, non-producing leasehold was impaired $256,328 in the 2010 quarter compared to $18,196 in the 2009 quarter. Expired leases charges were $44,063 in the 2010 quarter compared to $900 in the 2009 quarter. Charges for exploratory dry holes totaled $111 during the 2010 quarter and $11,847 in the 2009 quarter.DD&A decreased $1,603,420 or 23% in the 2010 quarter. DD&A per Mcfe in the 2010 quarter was $2.62 as compared to $2.98 in the 2009 quarter. Oil and natural gas production decreased 12% in the 2010 quarter accounting for approximately $863,000 of the DD&A decrease. The remaining DD&A decrease of approximately $740,000 is attributable to the $.35 decline in the DD&A rate per Mcfe. This rate declined as a result of increased oil and natural gas reserves as of March 31, 2010 compared to March 31, 2009, and a net reduction during fiscal year 2009 of approximately $3.1 million of asset basis subject to DD&A. This asset basis reduction occurred as DD&A and impairment, combined with the basis reduction associated with assets sold, exceeded new additions to properties and equipment for oil and natural gas activities during fiscal year 2009.
In the 2010 quarter, G&A costs increased $101,110 or 8%. The increase is primarily related to increases (decreases) in the following expense categories: personnel $116,015, board of directors $63,750, insurance $20,866, legal ($55,479) and technical consulting ($52,067).
The 2010 quarter provision for income taxes of $1,801,000 was a result of a pre-tax income of $6,964,566 compared to a benefit for income taxes of $1,026,000 in the 2009 quarter resulting from a pre-tax loss of $1,971,256. The provision for income taxes increased in the 2010 quarter by $2,827,000, the result of an $8,935,822 increase in income (loss) before provision (benefit) for income taxes in the 2010 quarter compared to the 2009 quarter and removal of $161,000 of the valuation allowance on Oklahoma net operating loss carryforwards (NOLs). The effective tax rate for the 2010 and 2009 quarters were 26% and 52%, respectively. Utilization of excess percentage depletion (a permanent tax benefit) reduced taxable income a lesser proportion in the 2010 quarter compared to the 2009 quarter, resulting in a lower effective tax rate for the 2010 quarter. The reversal of $161,000 of the valuation allowance on Oklahoma NOLs reduced the effective tax rate by 2% for the 2010 quarter. For further discussion regarding excess percentage depletion and its effect on the effective tax rate, see NOTE 2: Income Taxes.
Exploration costs increased $674,455 in the 2010 period compared to the 2009 period. Due to the shorter timeframe before expiration of certain of the Companys non-producing leasehold, and the reassessment of risk of commercial production from such leases, non-producing leasehold was impaired $831,961 in the 2010 period compared to $148,024 in the 2009 period. Expired leases charges were $44,963 in the 2010 period compared to $18,190 in the 2009 period. The Company recorded a credit to exploratory dry holes of $161 during the 2010 period and a charge of $36,094 in the 2009 period.
DD&A decreased $3,260,817 or 23% in the 2010 period. DD&A was $2.47 per Mcfe in the 2010 period compared to $2.88 per Mcfe in the 2009 period. Oil and natural gas production decreased 10% in the 2010 period accounting for approximately $1,460,000 of the DD&A decrease. The remaining DD&A decrease of approximately $1,800,000 is attributable to the $.41 decline in the DD&A rate per Mcfe. This rate declined as a result of increased oil and natural gas reserves as of March 31, 2010, as compared to March 31, 2009, and a net reduction during fiscal year 2009 of approximately $3.1 million of asset basis subject to DD&A. This asset basis reduction occurred as DD&A and impairment, combined with the basis reduction associated with assets sold, exceeded new additions to properties and equipment for oil and natural gas activities during fiscal year 2009.
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