ISRAMCO, INC. Reports Second Quarter Results

Aug 09, 2011, 16:01 ET from ISRAMCO, INC.

HOUSTON, Aug. 9, 2011 /PRNewswire/ --  ISRAMCO, INC. (Nasdaq: ISRL) reported today that second quarter 2011 revenues were $11,747,000, compared to $9,527,000 in the second quarter of 2010, an increase of approximately 23.3%. The largest components of revenue in the second quarter of 2011 were oil and gas sales, which increased by approximately 23% when compared to same period of 2010, due to higher natural gas, oil and condensate and natural gas liquids ("NGLs") commodity prices.

The Company reported net income of $1,301,000 or $0.48 per share for the second quarter of 2011 compared to net income of $966,000 or $0.36 per share for the same period in 2010. The increase in net income was primarily attributable to a $2,220,000 increase in revenues. This was partially offset by a $1,556,000 increase in lease operating expenses, transportation and taxes.

The Company reported a net loss of ($3,005,000), or ($1.11) per share, for the six months ended June 30, 2011, as compared to a net income of $2,323,000, or $0.85 per share, for the comparable six month period in 2010. This decrease was primarily due to the impact of derivatives and higher lease-operating expenses which were partially offset by higher natural gas, oil and NGLs sales revenues, due to higher oil and NGLs prices and lower depreciation depletion and amortization expenses.

There are currently 2,717,691 shares of Common Stock issued and outstanding.

Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):

For the Three Months Ended June 30,

For the Six Months  Ended June 30,

2011

2010

2011

2010

STATEMENT OF OPERATIONS DATA

Revenues

$11,747

$9,527

$22,897

$19,692

Total operating expenses

10,727

10,144

20,258

19,663

Operating income (loss)

1,020

(617)

2,639

29

Net income (loss)

1,301

966

(3,005)

2,323

Earnings (loss) per share – basic and diluted

0.48

0.36

(1.11)

0.85

CASH FLOW DATA

Net cash provided by operating activities

692

5,460

Net cash used in investing activities

(3,655)

(1,914)

Net cash used in financing activities

(987)

(2,529)

June 30, 2011

December 31, 2010

BALANCE SHEET DATA

Current assets

$  15,545

$  18,895

Total assets

169,433

171,878

Total liabilities

150,729

153,341

Total shareholders' equity

18,704

18,537

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2010, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.

SOURCE ISRAMCO, INC.