Panhandle reports quarterly results

Panhandle Oil and Gas earned a net income of $12.7 million during the first quarter of its fiscal year for 2019, the company announced Thursday.

While officials said the firm posted significant gains in pre-tax earnings for the period that ended Dec. 31, they also reported Panhandle's net income of $12.7 million fell short of the $13.8 million in net income it earned during the same quarter a year ago.

Other operational highlights officials reported for the quarter included:

• Total production of 2.76 billion cubic feet of natural gas equivalent, compared to 3.42 billion equivalent cubic feet during the same period a year ago. Officials said the difference involves wells that just had been brought online a year ago that no longer are at peak production.

• An increase in the average sales price during the quarter to $4.42 per thousand cubic feet equivalent.

The company also reported that 20 rigs currently are drilling on Panhandle acreage.

Panhandle CEO Paul F. Blanchard Jr. said the company did a good job of executingstrategies to optimize its minerals portfolio and generate significant returns to its investors during the period.

He said Panhandle used $9.5 million from $13.1 million it generated in cash during the first quarter to reduce its debt to $41.5 million.

The firm also returned $700,000 to shareholders through dividend payments and retired $1.1 million worth of shares.

“We are confident in our ability to generate significant cash flow moving forward,” Blanchard said.