Panhandle Oil and Gas Inc. Reports Fiscal Second Quarter and Six Months 2017 Results, Mid-Year Reserve Update and Operations Update

OKLAHOMA CITY – May 5, 2017 – PANHANDLE OIL AND GAS INC. (NYSE: PHX) today reported financial and operating results for the Company’s fiscal second quarter and six months ended March 31, 2017.

HIGHLIGHTS FOR THE PERIODS ENDED MARCH 31, 2017

  • Recorded fiscal second quarter 2017 net income of $3,470,433, $0.21 per diluted share, as compared to net loss of $7,438,161, $0.44 per diluted share, for the 2016 quarter.
  • Recorded six month 2017 net income of $1,232,041, $0.07 per diluted share, compared to net loss of $10,237,279, $0.61 per diluted share, for the 2016 six months.
  • Generated cash from operating activities of $9,348,565 for the 2017 six-month period, well in excess of $7,721,254 of capital expenditures for drilling and equipping wells.
  • Received lease bonus proceeds of $3.2 million in first six months of fiscal 2017.
  • Reduced debt $0.5 million from Sept. 30, 2016, to $44 million as of March 31, 2017.
  • Produced on average 26.1 Mmcfe/day for $3.78/Mcfe net realized price during the quarter.
  • Proved reserves totaled 140.4 Bcfe at March 31, 2017, a 13% increase from reserves at Sept. 30, 2016.
  • Generated 2017 second-quarter and six-month EBITDA of $5,775,445 and $10,072,948, respectively.

MANAGEMENT COMMENTS

Commenting on the results, Paul F. Blanchard Jr., President and CEO said, “Panhandle experienced a material shift in momentum this quarter. Net income for the quarter of $3.5 million was the highest for the Company since the first quarter of 2015. Our average sales price of oil, gas and NGL also reached the highest level since the first quarter of 2015 at $3.78 per Mcfe and we generated lease bonus revenues of $2.3 million. Compared to 2016 year-end, total mid-year 2017 proved reserves increased 16.4 Bcfe, while proved developed reserves increased 12.5 Bcfe. During the six months ended March 31, 2017, we funded $7.7 million in capital expenditures with cash flow, while reducing debt by $.5 million.

“The first phase of our 2017 capital investment program, four significant southeastern Oklahoma Woodford wells operated by BP, went on sales late in the quarter. Combined, the wells were producing approximately 4,000 Mcf per day net to Panhandle after approximately one month of sales. The first two Eagle Ford wells of our 2017 drilling program began producing in late April at initial rates above our expectations. Additional material production is scheduled to begin in the third and fourth quarters from projects underway in the Eagle Ford, southeastern Oklahoma Woodford and STACK plays.

“The Company’s two high-potential Permian projects are advancing with the completion and initial production of two wells in the San Andres in Cochran County, Texas, operated by Element Petroleum, and QEP’s current completion activity on the 2-mile lateral Woodford Shale well in Andrews/Winkler County, Texas. Initial results from both San Andres wells are encouraging, as they have begun producing oil in the early stages of completion fluid recovery. If successful, these two Permian projects have the potential to add material production and reserves to the Company.

“We are very excited by all the operational programs underway, and we believe they will provide substantial production and proved developed reserve growth momentum in the second half of 2017.”

FISCAL SECOND QUARTER 2017 RESULTS

For the 2017 second quarter, the Company recorded net income of $3,470,433, or $0.21 per diluted share. This compared to a net loss of $7,438,161, or $0.44 per diluted share, for the 2016 second quarter. Net cash provided by operating activities increased 66% to $5,664,914 for the 2017 second quarter, versus $3,416,395 for the 2016 second quarter. Capital expenditures for the 2017 fiscal quarter totaled $5,546,731. In addition, the Company recorded a $10,788 non-cash provision for impairment in the 2017 quarter, as compared to an $8.1 million provision in the 2016 quarter.

Total revenues for the 2017 second quarter were $13,964,288, an 84% increase from $7,592,852 for the 2016 quarter. Oil, NGL and natural gas sales increased $2,754,716 or 45% in the 2017 quarter, compared to the 2016 quarter, as a result of a 72% increase in the average per Mcfe sales price somewhat offset by a 16% decrease in Mcfe production. The average sales price per Mcfe of production during the 2017 second quarter was $3.78, compared to $2.20 for the 2016 second quarter. The 2017 quarter included a $2.7 million gain on derivative contracts, as compared to a $1.0 million gain for the 2016 quarter.

Oil production decreased 27% in the 2017 quarter to 66,547 barrels, versus 90,760 barrels in the 2016 quarter, while gas production decreased 13% to 1,748,909 Mcf for the 2017 quarter, compared to the 2016 quarter. In addition, 33,836 barrels of NGL were sold in the 2017 quarter, as compared to 37,934 barrels in the 2016 quarter.

SIX MONTHS 2017 RESULTS

For the 2017 six months, the Company recorded net income of $1,232,041, or $0.07 per diluted share. This compared to a net loss of $10,237,279, or $0.61 per diluted share, for the 2016 six months. Net cash provided by operating activities decreased 32% year over year to $9,348,565 for the 2017 six months, versus the 2016 six months, but fully funded costs to drill and equip wells. Capital expenditures for the 2017 six months totaled $7,721,254. The Company recorded a $10,788 non-cash provision for impairment in the 2017 six months, as compared to an $11.8 million provision in the 2016 period.

Total revenues for the 2017 six months were $21,000,931, a 10% increase from $19,038,708 for the 2016 six months. Oil, NGL and natural gas sales increased $2,598,646 or 17% in the 2017 six months, compared to the 2016 six months, as a result of a 43% increase in the average per Mcfe sales price somewhat offset by an 18% decrease in Mcfe production. The average sales price per Mcfe of production during the 2017 six months was $3.65, compared to $2.56 for the 2016 six months. The 2017 six months included a $38,650 gain on derivative contracts as compared to a $940,177 gain for the 2016 period.

Oil production decreased 28% in the 2017 six months to 142,183 barrels from 197,122 barrels in the 2016 six months, while gas production decreased 632,460 Mcf, or 15%, compared to the 2016 six months. In addition, 69,487 barrels of NGL were sold in the 2017 six months, which was a 19% decrease compared to 2016 NGL volumes.

RESERVES UPDATE

March 31, 2017, mid-year proved reserves were 140.4 Bcfe, as calculated by the Company’s independent consulting petroleum engineering firm, DeGolyer and MacNaughton. This was an increase of 13%, compared to the 124.0 Bcfe of proved reserves at Sept. 30, 2016. SEC prices used for the March 31, 2017, report averaged $2.45 per Mcf for natural gas, $43.10 per barrel for oil and $15.84 per barrel for NGL, compared to $1.97 per Mcf for natural gas, $36.77 per barrel for oil and $12.22 per barrel for NGL at the Sept. 30, 2016, report. The above prices reflect the net prices received at the wellhead. Total proved developed reserves increased 15% to 93.9 Bcfe, as compared to Sept. 30, 2016, reserve volumes.

OPERATIONS UPDATE

Drilling and completion activities continue on five significant projects. Three are in the cores of lower risk resource plays and two are higher risk plays in the Permian Basin.

Southeastern Oklahoma Woodford Shale: Panhandle is participating in eight significant wells operated by BP. The first four wells, each with 25% working interest and 31.25% net revenue interest, began producing in late February and early March. After approximately one month of production, the four wells combined were producing 4,000 Mcf per day net to Panhandle. The remaining four wells, each with 15% working interest and 23.6% net revenue interest, are currently being completed and are expected to begin producing in May. Panhandle currently has an additional 1,411 gross undeveloped locations identified in this play with 3P net reserves of 221 Bcfe.

Eagle Ford: Six wells have been drilled on the leasehold during 2017. Panhandle owns an average 16.6% working interest and 12.4% net revenue interest in these wells. The first two wells began producing in late April and are currently making a combined rate of 300 Boe per day net to Panhandle after ten days on production. The remaining four wells are scheduled to be completed in June with initial production expected from those wells in July. An additional four-well pad, with 8.2% working interest and 6.1% net revenue interest, is scheduled to begin drilling this month. These wells should be on production during our fourth quarter, 2017. Panhandle has 97 additional Eagle Ford infill development locations identified on its acreage with 3P net reserves of 6.2 million Boe.

STACK/Cana Play: The Company is participating with a 17.5% working interest and a 16.25% net revenue interest in six Woodford Shale wells operated by Cimarex Energy. All six wells have been drilled, and completion activity is planned to begin mid-May, with initial production from all six wells scheduled for mid-June. Panhandle currently has an additional 1,135 gross undeveloped locations identified in STACK/SCOOP/Cana with 3P net reserves of 166 Bcfe.

Activity in these three low-risk resource plays is anticipated to result in material increases in daily oil, NGL and natural gas production in our 2017 third and fourth quarters. This activity will also result in a material increase in second half 2017 capital expenditures, when compared to the same period in 2016.

Permian Basin: QEP is currently completing a 2-mile lateral Woodford Shale well on the Company’s contiguous 43.6-square-mile mineral holdings in Andrews and Winkler Counties, Texas. Panhandle has leased its 2,440 net mineral acres in the block and is entitled to a proportionately reduced 25% royalty. Panhandle also has the right to participate with up to 10% working interest in each unit as initial unit wells are proposed. With full participation, Panhandle would have a 7% working interest and a 7.5% net revenue interest in these new units within the 43.6-square-mile block.

Also in the Permian Basin, Element Petroleum is evaluating the San Andres formation on and around Panhandle’s contiguous 34.5-square-mile gross acreage block in Cochran County, Texas. The Company has leased 4,050 net mineral acres to Element and has a proportionately reduced 25% royalty. Panhandle also has the right to participate with 10% working interest in each unit as initial unit wells are proposed. With full participation, Panhandle would have a 10% working interest and a 12.1% net revenue interest in these new units within the 34.5-square-mile block. Thus far, Element has drilled and cored five pilot wells, completed one salt water disposal well, drilled another salt water disposal well and completed two 1.5-mile lateral wells in the San Andres. The two completed San Andres wells are in early stages of completion fluid recovery, but have already started producing oil. Element has scheduled the drilling and completion of eight additional San Andres wells between now and October 2017.

HEDGING UPDATE

As of May 1, 2017, the Company had protected approximately 5.7 Bcf of its gas production from April 2017 through March 2018 at an average floor price of $3.15 per Mcf and an average ceiling price $3.48 per Mcf. The Company has also protected 201,000 barrels of oil production for the same period with an average floor price of $51.32 and an average ceiling price of $55.79. The oil and gas hedges consist of swaps and costless collars.

FINANCIAL HIGHLIGHTS

Statements of Operations

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues:

 

 

 

 

 

Oil, NGL and natural gas sales

$

8,890,902

 

 

$

6,136,186

 

 

$

17,790,120

 

 

$

15,191,474

 

Lease bonuses and rentals

 

2,334,203

 

 

 

481,553

 

 

 

3,172,161

 

 

 

2,907,057

 

Gains (losses) on derivative contracts

 

2,739,183

 

 

 

975,113

 

 

 

38,650

 

 

 

940,177

 

 

 

13,964,288

 

 

 

7,592,852

 

 

 

21,000,931

 

 

 

19,038,708

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

3,105,496

 

 

 

3,187,353

 

 

 

6,154,911

 

 

 

6,753,889

 

Production taxes

 

371,553

 

 

 

229,140

 

 

 

739,398

 

 

 

550,981

 

Depreciation, depletion and amortization

 

4,105,655

 

 

 

6,045,883

 

 

 

8,939,918

 

 

 

13,003,535

 

Provision for impairment

 

10,788

 

 

 

8,115,791

 

 

 

10,788

 

 

 

11,849,064

 

Loss (gain) on asset sales and other

 

91,337

 

 

 

34,054

 

 

 

86,998

 

 

 

(204,915

)

Interest expense

 

286,398

 

 

 

342,348

 

 

 

578,767

 

 

 

702,910

 

General and administrative

 

1,719,628

 

 

 

1,651,444

 

 

 

3,562,110

 

 

 

3,563,523

 

 

 

9,690,855

 

 

 

19,606,013

 

 

 

20,072,890

 

 

 

36,218,987

 

Income (loss) before provision (benefit) for income taxes

 

4,273,433

 

 

 

(12,013,161

)

 

 

928,041

 

 

 

(17,180,279

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

803,000

 

 

 

(4,575,000

)

 

 

(304,000

)

 

 

(6,943,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

3,470,433

 

 

$

(7,438,161

)

 

$

1,232,041

 

 

$

(10,237,279

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per common share

$

0.21

 

 

$

(0.44

)

 

$

0.07

 

 

$

(0.61

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

16,644,755

 

 

 

16,579,116

 

 

 

16,624,229

 

 

 

16,571,488

 

Unissued, directors' deferred compensation shares

 

277,167

 

 

 

259,381

 

 

 

277,200

 

 

 

258,206

 

 

 

16,921,922

 

 

 

16,838,497

 

 

 

16,901,429

 

 

 

16,829,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

common stock and paid in period

$

0.04

 

 

$

0.04

 

 

$

0.08

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheets

 

March 31, 2017

 

 

Sept. 30, 2016

 

Assets

(unaudited)

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

551,671

 

 

$

471,213

 

Oil, NGL and natural gas sales receivables (net of

 

5,150,560

 

 

 

5,287,229

 

allowance for uncollectable accounts)

 

 

 

 

 

 

 

Refundable income taxes

 

876,362

 

 

 

83,874

 

Other

 

337,712

 

 

 

419,037

 

Total current assets

 

6,916,305

 

 

 

6,261,353

 

 

 

 

 

 

 

 

 

Properties and equipment, at cost, based on

 

 

 

 

 

 

 

   successful efforts accounting:

 

 

 

 

 

 

 

Producing oil and natural gas properties

 

435,198,500

 

 

 

434,469,093

 

Non-producing oil and natural gas properties

 

7,497,046

 

 

 

7,574,649

 

Other

 

1,071,876

 

 

 

1,069,658

 

 

 

443,767,422

 

 

 

443,113,400

 

Less accumulated depreciation, depletion and amortization

 

(251,168,113

)

 

 

(251,707,749

)

Net properties and equipment

 

192,599,309

 

 

 

191,405,651

 

 

 

 

 

 

 

 

 

Investments

 

169,473

 

 

 

157,322

 

Total assets

$

199,685,087

 

 

$

197,824,326

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

5,294,624

 

 

$

2,351,623

 

Derivative contracts, net

 

43,705

 

 

 

403,612

 

Accrued liabilities and other

 

1,521,993

 

 

 

1,718,558

 

Total current liabilities

 

6,860,322

 

 

 

4,473,793

 

 

 

 

 

 

 

 

 

Long-term debt

 

44,000,000

 

 

 

44,500,000

 

Deferred income taxes

 

30,600,007

 

 

 

30,676,007

 

Asset retirement obligations

 

3,054,646

 

 

 

2,958,048

 

Derivative contracts, net

 

-

 

 

 

24,659

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Class A voting common stock, $.0166 par value;

 

 

 

 

 

 

 

24,000,000 shares authorized, 16,863,004 issued at March 31,

 

 

 

 

 

 

 

2017, and Sept. 30, 2016

 

280,938

 

 

 

280,938

 

Capital in excess of par value

 

2,431,161

 

 

 

3,191,056

 

Deferred directors' compensation

 

3,277,619

 

 

 

3,403,213

 

Retained earnings

 

112,373,669

 

 

 

112,482,284

 

 

 

118,363,387

 

 

 

119,357,491

 

Less treasury stock, at cost; 194,213 shares at March 31,

 

 

 

 

 

 

 

2017, and 262,708 shares at Sept. 30, 2016

 

(3,193,275

)

 

 

(4,165,672

)

Total stockholders' equity

 

115,170,112

 

 

 

115,191,819

 

Total liabilities and stockholders' equity

$

199,685,087

 

 

$

197,824,326

 

Condensed Statements of Cash Flows

 

Six months ended March 31,

 

 

2017

 

 

2016

 

Operating Activities

 

 

Net income (loss)

$

1,232,041

 

 

$

(10,237,279

)

Adjustments to reconcile net income (loss) to net cash provided

 

 

 

 

 

 

 

  by operating activities:

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

8,939,918

 

 

 

13,003,535

 

Impairment

 

10,788

 

 

 

11,849,064

 

Provision for deferred income taxes

 

(76,000

)

 

 

(7,405,000

)

Gain from leasing of fee mineral acreage

 

(3,171,490

)

 

 

(2,906,480

)

Proceeds from leasing of fee mineral acreage

 

3,191,075

 

 

 

3,193,775

 

Net (gain) loss on sale of assets

 

87,161

 

 

 

(271,080

)

Directors' deferred compensation expense

 

176,368

 

 

 

168,402

 

Restricted stock awards

 

317,633

 

 

 

508,095

 

Other

 

(835

)

 

 

70,289

 

Cash provided (used) by changes in assets and liabilities:

 

 

 

 

 

 

 

Oil, NGL and natural gas sales receivables

 

136,669

 

 

 

3,644,841

 

Fair value of derivative contracts

 

(384,566

)

 

 

3,880,013

 

Refundable production taxes

 

-

 

 

 

21,983

 

Other current assets

 

81,325

 

 

 

(79,829

)

Accounts payable

 

(203,053

)

 

 

(510,114

)

Income taxes receivable

 

(792,488

)

 

 

(775,806

)

Accrued liabilities

 

(195,981

)

 

 

(393,984

)

Total adjustments

 

8,116,524

 

 

 

23,997,704

 

Net cash provided by operating activities

 

9,348,565

 

 

 

13,760,425

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

Capital expenditures, including dry hole costs

 

(7,721,254

)

 

 

(2,554,543

)

Investments in partnerships

 

(17,220

)

 

 

48,462

 

Proceeds from sales of assets

 

718,700

 

 

 

627,547

 

Net cash provided (used) by investing activities

 

(7,019,774

)

 

 

(1,878,534

)

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

Borrowings under debt agreement

 

7,038,699

 

 

 

6,078,919

 

Payments of loan principal

 

(7,538,699

)

 

 

(16,578,919

)

Purchase of treasury stock

 

(407,677

)

 

 

(117,165

)

Payments of dividends

 

(1,340,656

)

 

 

(1,338,011

)

Excess tax benefit on stock-based compensation

 

-

 

 

 

(44,000

)

Net cash provided (used) by financing activities

 

(2,248,333

)

 

 

(11,999,176

)

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

80,458

 

 

 

(117,285

)

Cash and cash equivalents at beginning of period

 

471,213

 

 

 

603,915

 

Cash and cash equivalents at end of period

$

551,671

 

 

$

486,630

 

 

 

 

 

 

 

 

 

Supplemental Schedule of Noncash Investing and Financing Activities

 

 

 

 

 

 

 

Additions to asset retirement obligations

$

32,236

 

 

$

7,160

 

 

 

 

 

 

 

 

 

Gross additions to properties and equipment

$

10,867,308

 

 

$

2,483,225

 

Net (increase) decrease in accounts payable for properties

 

 

 

 

 

 

 

and equipment additions

 

(3,146,054

)

 

 

71,318

 

Capital expenditures and acquisitions, including dry hole costs

$

7,721,254

 

 

$

2,554,543

 

Proved Reserves

 

SEC Pricing

 

 

March 31, 2017

 

 

Sept. 30, 2016

 

Proved Developed Reserves:

 

(unaudited)

 

Barrels of NGL

 

 

1,138,567

 

 

 

 

1,095,256

 

Barrels of Oil

 

 

1,972,247

 

 

 

 

1,980,519

 

Mcf of Gas

 

 

75,234,358

 

 

 

 

62,929,047

 

Mcfe (1)

 

 

93,899,242

 

 

 

 

81,383,697

 

Proved Undeveloped Reserves:

 

 

 

 

 

 

 

 

 

Barrels of NGL

 

 

1,085,425

 

 

 

 

527,447

 

Barrels of Oil

 

 

3,565,651

 

 

 

 

3,445,571

 

Mcf of Gas

 

 

18,573,817

 

 

 

 

18,796,551

 

Mcfe (1)

 

 

46,480,273

 

 

 

 

42,634,659

 

Total Proved Reserves:

 

 

 

 

 

 

 

 

 

Barrels of NGL

 

 

2,223,992

 

 

 

 

1,622,703

 

Barrels of Oil

 

 

5,537,898

 

 

 

 

5,426,090

 

Mcf of Gas

 

 

93,808,175

 

 

 

 

81,725,598

 

Mcfe (1)

 

 

140,379,515

 

 

 

 

124,018,356

 

 

 

 

 

 

 

 

 

 

 

10% Discounted Estimated Future

 

 

 

 

 

 

 

 

 

Net Cash Flows (before income taxes):

 

 

 

 

 

 

 

 

 

Proved Developed

$

 

81,049,074

 

 

$

 

55,586,606

 

Proved Undeveloped

 

 

10,970,478

 

 

 

 

(7,696,741

)

Total

$

 

92,019,552

 

 

$

 

47,889,865

 

SEC Pricing

 

 

 

 

 

 

 

 

 

Oil/Barrel

$

 

43.10

 

 

$

 

36.77

 

Gas/Mcf

$

 

2.45

 

 

$

 

1.97

 

NGL/Barrel

$

 

15.84

 

 

$

 

12.22

 

 

 

 

 

 

 

 

 

 

 

Proved Reserves - NYMEX Futures Pricing (2)

 

 

 

 

 

 

 

 

 

 

 

10% Discounted Estimated Future

Proved Reserves

 

Net Cash Flows (before income taxes):

March 31, 2017

 

 

Sept. 30, 2016

 

Proved Developed

$

 

93,527,500

 

 

$

 

99,901,435

 

Proved Undeveloped

 

 

23,987,020

 

 

 

 

26,931,306

 

Total

$

 

117,514,520

 

 

$

 

126,832,741

 

 

 

 

 

 

 

 

 

 

 

(1) Crude oil and NGL converted to natural gas on a one barrel of crude oil or NGL equals six Mcf of natural gas basis

 

(2) NYMEX Futures Pricing as of March 31, 2017, and Sept. 30, 2016, basis adjusted to Company wellhead price

 

OPERATING HIGHLIGHTS

 

Second Quarter Ended

 

 

Second Quarter Ended

 

 

Six Months Ended

 

 

Six Months Ended

 

 

March 31, 2017

 

 

March 31, 2016

 

 

March 31, 2017

 

 

March 31, 2016

 

Mcfe Sold

 

2,351,207

 

 

 

2,786,303

 

 

 

4,868,621

 

 

 

5,929,703

 

Average Sales Price per Mcfe

$

3.78

 

 

$

2.20

 

 

$

3.65

 

 

$

2.56

 

Oil Barrels Sold

 

66,547

 

 

 

90,760

 

 

 

142,183

 

 

 

197,122

 

Average Sales Price per Barrel

$

47.93

 

 

$

27.19

 

 

$

46.96

 

 

$

33.75

 

Mcf Sold

 

1,748,909

 

 

 

2,014,139

 

 

 

3,598,601

 

 

 

4,231,061

 

Average Sales Price per Mcf

$

2.89

 

 

$

1.64

 

 

$

2.72

 

 

$

1.78

 

NGL Barrels Sold

 

33,836

 

 

 

37,934

 

 

 

69,487

 

 

 

85,985

 

Average Sales Price per Barrel

$

19.17

 

 

$

9.85

 

 

$

18.90

 

 

$

11.49

 

The Company’s derivative contracts in place for natural gas at March 31, 2017, are outlined in its Form 10-Q for the period ending March 31, 2017.

Quarter ended

 

Oil Bbls Sold

 

 

Mcf Sold

 

 

NGL Bbls Sold

 

 

Mcfe Sold

 

3/31/2017

 

 

66,547

 

 

 

1,748,909

 

 

 

33,836

 

 

 

2,351,207

 

12/31/2016

 

 

75,636

 

 

 

1,849,692

 

 

 

35,651

 

 

 

2,517,414

 

9/30/2016

 

 

78,398

 

 

 

1,940,749

 

 

 

44,598

 

 

 

2,678,725

 

6/30/2016

 

 

88,732

 

 

 

2,112,567

 

 

 

40,477

 

 

 

2,887,821

 

3/31/2016

 

 

90,760

 

 

 

2,014,139

 

 

 

37,934

 

 

 

2,786,303

 

Panhandle Oil and Gas Inc. (NYSE: PHX) is engaged in the exploration for and production of natural gas and oil. Additional information on the Company can be found at www.panhandleoilandgas.com.

Forward-Looking Statements and Risk Factors This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include current expectations or forecasts of future events. They may include estimates of oil and gas reserves, expected oil and gas production and future expenses, projections of future oil and gas prices, planned capital expenditures for drilling, leasehold acquisitions and seismic data, statements concerning anticipated cash flow and liquidity and Panhandle’s strategy and other plans and objectives for future operations. Although Panhandle believes the expectations reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to be correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” in Part 1, Item 1 of Panhandle’s 2016 Form 10-K filed with the Securities and Exchange Commission. These “Risk Factors” include the worldwide economic recession’s continuing negative effects on the natural gas business; Panhandle’s hedging activities may reduce the realized prices received for natural gas sales; the volatility of oil and gas prices; the Company’s ability to compete effectively against strong independent oil and gas companies and majors; the availability of capital on an economic basis to fund reserve replacement costs; Panhandle’s ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and the amount and timing of development expenditures; uncertainties in evaluating oil and gas reserves; unsuccessful exploration and development drilling; decreases in the values of our oil and gas properties resulting in write-downs; the negative impact lower oil and gas prices could have on our ability to borrow; drilling and operating risks; and we cannot control activities on our properties as the Company is a non-operator.

Do not place undue reliance on these forward-looking statements, which speak only as of the date of this release, as Panhandle undertakes no obligation to update this information. Panhandle urges you to carefully review and consider the disclosures made in this presentation and Panhandle’s filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Panhandle’s business.