Panhandle Oil and Gas posts $1 million fourth-quarter profit
Energy Editor awilmoth@oklahoman.com
Increased drilling activity in Oklahoma’s STACK and SCOOP fields helped Panhandle Oil and Gas Inc. post a profit of $1.04 million in the fourth quarter ended Sept. 30, the company said Tuesday.
Panhandle spent $25.8 million on drilling activity in the fiscal year that ended Sept. 30, with most of that drilling in the state’s most active fields.
“As a result of this investing activity, the company’s fourth quarter 2017 production exceeded second quarter 2017 production by approximately 40 percent,” Panhandle CEO Paul F. Blanchard Jr. said in a statement. “Our approach of lowrisk meaningful return investment in working interest drilling on our mineral and leasehold acreage is the foundation of maximizing the value of the company’s existing assets.”
Panhandle in 2017 spent $5.2 million in lease bonuses to lease 2,473 acres. Panhandle has interest in wells and leases acreage to be used for wells, but does not operate wells.
The company’s production surged to 3.28 billion cubic feet of natural gas equivalent in the fourth quarter, up from 2.68 billion equivalent cubic feet in the yearago period.
Panhandle executives also announced Tuesday that the company’s lenders have agreed to extend the company’s credit facility through Nov. 20, 2022. The borrowing base was maintained at $80 million. Panhandle’s debt as of Nov. 30 was $49.9 million, the company said.
“The company has the flexibility to creatively manage its existing assets in a manner we believe will optimize long-term shareholder value,” Blanchard said. “We will endeavor to prudently add attractive new assets to the company’s portfolio where we believe they will be additive to long-term per share value. We will continue our strategy to maintain a conservative balance sheet throughout all commodity cycles.”
Panhandle’s fourthquarter profit of $1.04 million translates to 6 cents a share and is up from about $737,000, or 5 cents a share, one year ago. Revenues increased to $12.9 million, up from $10.2 million in the yearago quarter. The company had earnings before interest, taxes, depreciation and amortization (EBITDA) of $7.25 million
For the full year, Panhandle generated a profit of $3.52 million, or 21 cents a share, up from a loss of $10.3 million, or 61 cents a share, one year ago. Revenues increased to $46.3 million, up from $39.1 million in 2016. Full-year EBITDA was $24.6 million.