FieldPoint Petroleum Reports Results for Fiscal Year 2010

Mar 31, 2011, 15:02 ET from FieldPoint Petroleum Corporation

AUSTIN, Texas, March 31, 2011/PRNewswire/ -- FieldPoint Petroleum Corporation (AMEX: FPP) today announced financial results for its fiscal year ended December 31, 2010.  

2010 Financial Highlights Compared to 2009

  • Revenues increased to $7,008,783 from $3,910,043;
  • Net Income increased to $787,470 from $1,235; and
  • Earnings per share increased, basic and fully diluted, to $0.10 from $0.00

Ray Reaves, President and CEO of FieldPoint stated, "2010 was a banner year for FieldPoint Petroleum. Although our net income and earnings per share goals were adversely affected by a non-cash property impairment charge of over $500,000, it was still a year of significant accomplishments.  This charge was a direct result of the sale of certain oil and gas properties, and reduced pre-tax earnings by approximately six cents per share for the year. However, during the year we increased our production by approximately 20% while at the same time increasing our net income and cash flow. Our operating income, before the non-cash impairment charge, reached almost two million dollars. In addition to the almost one million dollars in cash and cash equivalents on our balance sheets at year end, we had another almost one million dollars in prepaid drilling expenses. During the year we further increased shareholder value with the buy-back, from earnings, of over $800,000 worth of FPP stock."

Mr. Reaves continued by adding, "By maintaining our historically conservative management style and not being willing to pay the elevated property prices that occurred during the euphoric market rise of 2008, we positioned the company to survive the subsequent fall and take full advantage of the improved market conditions when they occurred. FieldPoint Petroleum is in an industry that is expected to see continued growth for the foreseeable future, and we have positioned the company well to participate in and contribute to that growth. This is a very exciting time for our shareholders."

The increase in revenue is attributed to higher oil and natural gas sales, which averaged approximately $78.40 per barrel and $5.21 per MCF in 2010, compared to $54.09 per barrel and $3.87 per MCF in the prior year. Overall production for the year increased 20% on a barrel of oil equivalent (BOE) basis.

Production expenses increased by $732,867 or 48% due to a combination of increased costs and increased sales volumes.  Costs increased by $4.20 per barrel equivalent (BOE) or 24% due primarily to increased repair and maintenance workovers incurred in 2010 as compared to 2009.  Many of FieldPoint's properties are mature and bear high operating expense.  Increased costs per equivalent unit contributed approximately $431,000 of the increase in lease operating expense while increased sales volumes contributed approximately $302,000 of the increase.

General and administrative expenses increased $5,870 or 1%. Significant components of general and administrative expenses include personnel-related costs and professional services fees.  Management expects FieldPoint's general and administrative expenses to remain relatively comparable between years.

About FieldPoint Petroleum Corporation

FieldPoint Petroleum Corporation is engaged in oil and natural gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas and Wyoming.  For more information, please visit www.fppcorp.com.

This press release may contain projection and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such projections or statement reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and that actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ from those projected, such as decreases in oil and natural gas prices and unexpected decreases in oil and natural gas production is included in the company's periodic reports filed with the Securities and Exchange Commission (at www.sec.gov)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

DECEMBER 31,

2010

2009

REVENUE:

Oil and natural gas sales

$  6,875,905

$  3,817,778

Well operational and pumping fees

68,265

68,265

Disposal fees

64,613

24,000

Total revenue

7,008,783

3,910,043

COSTS AND EXPENSES:

Lease operating

2,719,052

1,808,072

Depletion and depreciation

1,104,000

878,000

Impairment of oil and natural gas properties

539,226

-

Accretion of discount on asset retirement obligations

80,000

58,000

General and administrative

1,128,798

1,122,928

Total costs and expenses

5,571,076

3,867,000

OPERATING INCOME

1,437,707

43,043

OTHER INCOME (EXPENSE):

Interest income

5,366

3,229

Interest expense

(248,798)

(128,168)

Realized gain on short-term investments

-

73,463

Miscellaneous income

43,195

49,066

Total other income (expense)

(200,237)

(2,410)

INCOME BEFORE INCOME TAXES

1,237,470

40,633

INCOME TAX PROVISION – current

(245,000)

125,559

INCOME TAX PROVISION – deferred

(205,000)

(164,957)

TOTAL INCOME TAX PROVISION

(450,000)

(39,398)

NET INCOME

$  787,470

$  1,235

EARNINGS PER SHARE:

BASIC

$  0.10

$  0.00

DILUTED

$  0.10

$  0.00

WEIGHTED AVERAGE SHARES OUTSTANDING:

Basic

8,200,541

8,503,693

Diluted

8,200,541

8,503,693

CONSOLIDATED BALANCE SHEETS

ASSETS

Unaudited

DECEMBER 31,

2010

2009

CURRENT ASSETS:

Cash and cash equivalents

$  984,770

$  657,942

Short-term investments

44,422

44,605

Accounts receivable:

Oil and natural gas sales

723,218

707,026

Joint interest billings, less allowance for doubtful accounts of $99,192 each period

246,655

220,550

Income taxes receivable

206,000

90,323

Deferred income tax asset-current

99,000

37,000

Prepaid drilling expenses

975,538

-

Prepaid expenses and other current assets

76,433

101,949

Total current assets

3,356,036

1,859,395

PROPERTY AND EQUIPMENT:

Oil and natural gas properties (successful efforts method)

24,434,664

23,910,782

Other equipment

89,248

89,248

Less accumulated depletion and depreciation

(9,318,340)

(7,675,114)

Net property and equipment

15,205,572

16,324,916

Total assets

$  18,561,608

$  18,184,311

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable and accrued expenses

$  553,760

$  428,512

Oil and natural gas revenues payable

198,247

179,366

Total current liabilities

752,007

607,878

LONG-TERM DEBT

6,740,000

6,744,755

DEFERRED INCOME TAXES

1,033,000

831,595

ASSET RETIREMENT OBLIGATION

1,405,002

1,325,002

Total liabilities

9,930,009

9,509,230

COMMITMENTS AND CONTINGENCIES (Notes 8 and 9)

STOCKHOLDERS' EQUITY:

Common stock, $.01 par value, 75,000,000 shares authorized;

8,910,175 shares issued, each period; 8,077,175 and 8,370,175 outstanding, respectively

89,101

89,101

Additional paid-in capital

4,573,580

4,573,580

Retained earnings

5,577,260

4,789,790

Treasury stock, 833,000 and 540,000 shares, respectively, at cost

(1,608,342)

(777,390)

Total stockholders' equity

8,631,599

8,675,081

Total liabilities and stockholders' equity

$  18,561,608

$  18,184,311

SOURCE FieldPoint Petroleum Corporation



RELATED LINKS

http://www.fppcorp.com