Tengasco Announces Third Quarter 2009 Financial Results
November 09 2009 - 4:14PM
PR Newswire (US)
KNOXVILLE, Tenn., Nov. 9 /PRNewswire-FirstCall/ -- Tengasco, Inc.
(NYSE Amex: TGC) announced today its financial results for the
quarter ended September 30, 2009. The Company realized net loss
attributable to common shareholders of $(0.4 million) or $(0.01)
per share of common stock during the third quarter of 2009,
compared to a net income in the third quarter of 2008 to common
shareholders of $1.6 million or $0.03 per share of common stock.
The Company recognized $2.6 million in revenues during the third
quarter of 2009 compared to $5.1 million in the third quarter of
2008. The decrease in revenues was due to a sharp decrease in oil
prices in 2009. Oil prices in the third quarter of 2009 averaged
$60.96 per barrel compared to $110.85 per barrel in the third
quarter of 2008. The Company recorded a non-cash unrealized hedging
loss of $(0.6) million in the third quarter of 2009. The Company
had recorded non-cash income tax expense of $0.8 million for the
third quarter 2008 net income. The Company recognized $6.8 million
in revenues during the first nine months of 2009 compared to $13.0
million in the first nine months of 2008. The decrease in revenues
was due to a decrease in oil prices in 2009. Oil prices in the
first nine months of 2009 averaged $49.74 per barrel compared to
$106.53 per barrel in the first nine months of 2008. The Company
realized a net loss attributable to common shareholders of $(0.9
million) or $(0.02) per share of common stock during the first nine
months of 2009, compared to a net income in the first nine months
of 2008 to common shareholders of $8.8 million or $0.15 per share
of common stock. Approximately $3.4 million [38%] of this income
was attributable to the net effects of recognizing the Company's
deferred tax assets in 2008. The Company recorded the remaining net
operating loss carry forwards of $5.2 million in the first nine
months of 2008 and recorded non-cash income tax expense of $1.8
million for the first nine months net income. Jeffrey R. Bailey,
CEO, said, "We have had modest operating income in the third
quarter having seen a recovery in oil prices to about $60 per
barrel in the third quarter from about $34 in January 2009. We plan
to continue to rebuild revenues through the drill bit and workovers
from our own cash flow while the oil price recovery continues. We
believe the Company has weathered the storm of lower prices better
than many other micro-cap oil and gas companies that have faced
leverage issues and capital shortfalls. We expect to use the
current higher prices to fund workovers and drill one more well
late in the fourth quarter. Despite the lower oil prices than last
year's levels, we have increased our gross oil sales in Kansas
during the first nine months of 2009 to 175,948 barrels compared to
165,782 barrels during for the same period in 2008."
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.
DATASOURCE: Tengasco, Inc. CONTACT: Jeffrey R. Bailey, CEO,
+1-865-675-1554 Web Site: http://www.tengasco.com/
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