Turnaround: for Panhandle Oil & Gas
Panhandle out of the fire
Oklahoma City-based Panhandle Oil & Gas bounced back into profit in its first fiscal quarter to 31 December 2009 as it throttled back on capital projects.
The company reported net income of $1.7 million, or 20 cents per share, compared to a net loss of $874,629, or a loss of 10 cents per share, in the first quarter of the 2009 fiscal year.
Panhandle reported a 9.8% rise in revenues in the period to $12.4 million. This was despite a 9% year-on-year fall in gas production over the earlier period to 2.28 billion cubic feet equivalent.
The company cut capital expenditure on leasehold acquisition and drilling costs by 86% to $2.7 million over the reporting period. Net cash from operations in the latest quarter was $4.2 million.
“We expect capital expenditures to increase as the year progresses as most operators in the shale plays in which we are involved have announced plans to ramp up drilling activity in calendar 2010,” chief executive Michael Coffman said in a company press release.
“With our strong financial position, we will participate in those drilling opportunities which are economically viable in the expected price environment," he added.