Tengasco Announces Year-End 2013 Financials and Results of Operations
KNOXVILLE, Tenn., March 31, 2014 /PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today that it has filed with the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended December 31, 2013.
The Company reported net income from continuing operations of $3.0 million or $0.05 per share in 2013, compared to net income from continuing operations of $4.2 million or $0.07 per share in 2012, and net income from continuing operations of $5.0 million or $0.08 per share in 2011. The Company reported a net loss from discontinued operations of $(0.14) million or $(0.00) per share in 2013 compared to a net loss from discontinued operations of $(4.3) million or $(0.07) per share in 2012 and a net loss from discontinued operations of $(0.29) million or $(0.00) per share in 2011. The net loss from discontinued operations in 2012 was primarily due to after-tax impairment of the Company's pipeline assets in the amounts of approximately $3.4 million.
The Company realized revenues of approximately $15.7 million in 2013 compared to $20.6 million in 2012 and $17.1 million in 2011. During 2013, revenues decreased approximately $(4.9) million of which $(5.2) million was related to decreases in oil sales volumes from 226.6 MBbl in 2012 to 166.2 MBbl in 2013. The more significant production declines were experienced in the Albers, Coddington, Hilgers B, Liebenau, McElhaney A, Veverka A, and Zerger A leases. In addition there was also a $(0.3) million decrease in sales from the Methane Project and electric generation at the landfill related to increase downtime. These decreases were partially offset by a $0.7 million increase related to a $4.11 per barrel increase in the average oil price received from $86.92 per barrel received in 2012 to $91.03 per barrel received in 2013. During 2012, revenues increased $3.5 million of which $3.3 million related to increases in oil sales volumes from 189.5 MBbl in 2011 to 226.6 MBbl in 2012. In addition, Methane Project revenues increased $0.5 million in 2012 primarily from electricity sales which commenced in January 2012. These increases were partially offset by a $(0.3) million decrease related to a $(1.21) per barrel decrease in the average oil price received from $88.13 per barrel in 2011 to $86.92 per barrel received in 2012.
The Company reported total proven reserves at December 31, 2013 of 2.04 million barrels, valued at $47.9 million on a discounted future net cash flow basis before effect of income taxes, down from 2.2 million barrels valued at $53.9 million at December 31, 2012.
Michael J. Rugen, CEO, said "The lack of drilling during the second half of 2012 and the first half of 2013 was primarily responsible for lower production, revenues, and reserves in 2013. We have re-started our drilling program in Kansas beginning in September 2013. Since that time, the Company has drilled 6 wells, 4 of which were completed as producers, 1 was dry, and 1 is still drilling. The Company expects to drill at least 4 more wells by the end of the second quarter. In December 2013, the Company opened an office in Denver, Colorado. This office is currently utilized by our technical staff comprised of our Exploration Manager and Senior Geologist, our Reservoir Engineer, our Engineering Tech, and our Geotech. With the assistance of this technical team, the Company will continue to look for acquisition, development, and exploration opportunities, particularly in central Kansas. In addition, in late February of this year we reconfigured the fuel supply, added some additional electric generation related equipment, and began an electric generation only program at the Carter Valley site. Since start up in late February, we have enjoyed an uptime efficiency of over 90%. The Company is optimistic about continuing at high uptime efficiency for electric generation. In summary, in 2013 we were becoming more active in development and exploratory drilling, in staffing with professional talent to enable us to analyze new oil and gas exploration opportunities, and in shedding our legacy properties that were no longer economic for the Company. We are looking to the remainder of 2014 with optimism for the growth of the Company for the benefit of the shareholders."
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements regarding "expectations," "anticipations," "intentions," "beliefs," or "strategies" regarding the future. Forward-looking statements also include statements regarding revenue, margins, expenses, and earnings analysis for 2013 and thereafter; oil and gas prices; reserve calculation and valuation; exploration activities; development expenditures; costs of regulatory compliance; environmental matters; technological developments; future products or product development; the Company's products and distribution development strategies; potential acquisitions or strategic alliances; and liquidity and anticipated cash needs and availability. The Company's actual results could differ materially from the forward-looking statements.
SOURCE Tengasco, Inc.