Tengasco Announces Third Quarter 2014 Financial Results
GREENWOOD VILLAGE, Colo., Nov. 13, 2014 /PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today its financial results for the quarter ended September 30, 2014. The Company reported net income from continuing operations of $425,000 or $0.01 per share of common stock during the third quarter of 2014 compared to net income from continuing operations of $535,000 or $0.01 per share of common stock during the third quarter of 2013.
The Company recognized $3.6 million in revenues during the third quarter of 2014 compared to $4.0 million during the third quarter of 2013. The revenue decrease from 2013 levels was primarily due to a $336,000 decrease related to a $8.70 decrease in the average Kansas oil price from an average price of $99.01 per barrel during third quarter of 2013 compared to an average price of $90.31 per barrel during the third quarter of 2014, a $99,000 decrease in Swan Creek revenues as these properties were sold in August 2013, a $33,000 decrease related to approximately a 300 Bbl decrease in Kansas sales volumes, partially offset by a $50,000 increase in methane facility revenues due to increased facility run time.
The Company reported net income from continuing operations of $1.2 million, or $0.02 per share of common stock during the first nine months of 2014 compared to net income from continuing operations of $2.3 million or $0.04 per share of common stock during the first nine months of 2013. The $1.1 million decrease in net income from continuing operations was primarily due to a $1.1 million decrease in revenues, a $648,000 increase in production cost and taxes, and a $622,000 increase in general and administrative expense, partially offset by a $241,000 decrease in interest expense, and a $1.1 million decrease in associated income tax expense.
The Company recognized $11.1 million in revenues during the first nine months of 2014 compared to $12.2 million of revenues recognized during the first nine months of 2013. This $1.1 million decrease in net revenue was due primarily to a $1.0 million decrease related to the 11 MBbl decrease in Kansas sales volumes, a $396,000 reduction in Swan Creek revenues due to the sale of Swan Creek in August 2013, partially offset by a $218,000 increase related to a $1.90 per barrel increase in the average Kansas oil price from $91.00 per barrel during the first nine months of 2013 to $92.90 per barrel during the first nine months of 2014, and a $64,000 increase in methane facility revenues primarily as a result of increased facility run time.
Michael J. Rugen, CEO said "During the third quarter the Company continued its drilling operations on its leased acreage in Kansas. The Company drilled 3 wells during the third quarter of 2014 of which 2 wells were completed as producing wells and 1 well was a dry hole. Since late December 2013, the Company has leased approximately 8,300 additional acres in Kansas outside of the Central Kansas Uplift. The Company has completed a seismic program over a portion of this acreage and intends to drill its first well in early December of this year. The Company believes this area has good potential to become a significant addition to the Company's oil production and reserves. In addition, we plan to continue additional drilling on our legacy leases as well as the new prospect area as we move into 2015."
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Tengasco, Inc.
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