OKLAHOMA CITY, Dec. 8, 2010 /PRNewswire-FirstCall/ -- PANHANDLE
OIL AND GAS INC., the "Company", (NYSE: PHX) today reported
financial and operating results for the fiscal fourth quarter and
twelve months ended September 30,
2010.
HIGHLIGHTS FOR THE THREE AND TWELVE MONTH PERIODS ENDED
SEPTEMBER 30, 2010
- Recorded 12-month net income of $11,419,690 compared to a net loss of
$2,405,021 for fiscal 2009.
- Increased fourth quarter 2010 production by 3% over the third
quarter 2010 to 2.3 billion cubic feet equivalent (Bcfe).
- Ended year with zero dollars drawn on the credit facility.
- Cash generated by operating activities was $27.8 million for the year.
- Continued to convert Panhandle's mineral rights ownership
interests into producing working interest wells in the Fayetteville
Shale, Anadarko Basin
(Cana) Woodford Shale and several
other western Oklahoma oil and
natural gas liquids-rich plays, including the Granite Wash
play.
- On December 6, 2010, increased
credit facility to $80 million from
$50 million and extended maturity to
November 30, 2014.
Fiscal Fourth Quarter 2010 Results
The Company recorded net income of $3,036,446, or $.36
per share, as compared to net income of $343,376, or $.04
per share, for the 2009 fourth quarter. Capital expenditures
for drilling and equipping wells decreased 24% to $3,119,401, as compared to the corresponding 2009
quarter, reflecting an overall industry reduction in drilling
activity in dry gas plays. Net cash provided by operating
activities for the 2010 quarter rose 12.8% to $7,567,057 as compared to $6,708,784 for the 2009 quarter. Total
revenues for the 2010 quarter rose 44.5% to $12,298,310 as compared to $8,510,139 for the 2009 quarter. For the
2010 quarter, the average realized sales price was $4.80 per Mcfe as compared to $3.95 per Mcfe for the 2009 period.
For the fourth fiscal quarter ended September 30, 2010, production increased to
2,312,093 Mcfe as compared to 2,236,236 Mcfe for the 2010 third
quarter and 2,090,154 Mcfe for the 2010 second quarter.
Quarterly production was 2% lower compared to the 2009 fourth
quarter.
Fiscal Year 2010 Results
The Company recorded a net income of $11,419,690, or $1.36 per share, as compared to net loss for
fiscal 2009 of $2,405,021, or
$.29 per share. Net cash
provided by operating activities for 2010 was $27,806,475 as compared to $37,710,606 for 2009. Total revenues for
2010 rose 39.3% to $51,938,416 as
compared to $37,272,614 for 2009.
Capital expenditures for drilling and equipping wells totaled
$11,308,506 in 2010, as compared to
$39,915,051 for 2009. For
fiscal 2010, the average realized sales price was $4.94 per Mcfe as compared to $3.79 per Mcfe for 2009.
For the fiscal year ended September 30,
2010, the Company reported a production decrease of 10% to
8.9 Bcfe as compared to 9.9 Bcfe for fiscal 2009. The
production decrease reflects lower drilling activity across
Panhandle's acreage positions because of lower natural gas prices
and the associated 72% reduction in capital expenditures in fiscal
2010 versus 2009.
In a press release dated November 8,
2010, Panhandle announced a 74% increase in proved reserves
for fiscal 2010. Total proved reserves increased to 103.7
Bcfe at September 30, 2010.
Since 2005 the Company's total proved reserves have grown
232% from 31.3 Bcfe to 103.7 Bcfe, at a compound annual growth rate
of 27.2%. This growth is principally the result of reserves
added from development of two Oklahoma Woodford Shale plays and the
Arkansas Fayetteville Shale.
At September 30, 2010, Panhandle
had 12 producing working interest wells and 4 producing royalty
interest wells in the Cana play with an additional 9 wells in
process. The Company owns 3,545 net mineral acres in the core
area of this play yielding a 2.8% average net revenue interest in
1,063 gross proven, probable and possible undeveloped drilling
locations based on 80 acre well spacing. The Company
anticipates drilling activity will increase in this play as
development of this natural gas liquids-rich play expands during
2011.
At September 30, 2010, Panhandle
had 99 producing working interest wells and 281 producing royalty
interest wells in the Fayetteville Shale with an additional 24
wells in process. The Company owns 7,308 net mineral acres in
the core area of this play yielding a 2.2% average net revenue
interest in 1,735 gross proven, probable and possible undeveloped
drilling locations based on 80 acre well spacing. Because of
the very low finding costs associated with Fayetteville Shale
development, the Company expects drilling activity to continue in
this play in 2011 despite the low natural gas pricing
environment.
At September 30, 2010, Panhandle
had 137 producing working interest wells and 48 producing royalty
interest wells in the Southeast Oklahoma Woodford Shale play with
an additional 26 wells in process. The Company owns 6,310 net
mineral acres in the core area of this play yielding a 3.6% average
net revenue interest in 1,214 gross proven, probable and possible
undeveloped drilling locations based on 80 acre well spacing.
The Company does not anticipate an acceleration of drilling
activity in this play during 2011.
Management Comment
Michael C. Coffman, President and
CEO said, "Fiscal 2010 was another challenging year both from an
economic and operational standpoint. Despite the dual
challenges of the economic downturn and continuing downward
pressure on natural gas prices, Panhandle delivered the second
highest annual revenue and net income in the Company's history.
The strength of our assets is reflected in the 74% increase
in our proved reserves, and we end this fiscal year with zero debt.
These results prove that our commitment to increased drilling
on our mineral acreage continues to maximize value for our
shareholders."
Paul F. Blanchard, Panhandle's
Senior Vice-President and COO added, "We have been pleased with the
industry's continuing development of oil and natural gas
liquids-rich plays in Western
Oklahoma, where Panhandle owns a significant amount of its
254,000 net fee mineral acres. These plays allow us to
capitalize on current market prices and superior rates of return in
these plays, versus the dry gas plays such as the Southeast
Oklahoma Woodford. The development of oil and natural gas
liquids-rich plays again highlights the advantage Panhandle offers
investors through perpetual mineral acreage ownership. We
have been able to shift investment dollars rapidly to more oil and
natural gas liquids-rich drilling opportunities without having to
expend any capital for additional leasehold acreage."
Blanchard continued: "We expect to deploy substantially more
drilling capital in fiscal 2011, particularly in several of the oil
and natural gas liquids-rich plays in Western Oklahoma, including horizontal
drilling in the Granite Wash, Cleveland, Tonkawa and Marmaton plays, as well as the
Anadarko Basin (Cana) Woodford. Given our strong cash
flows and untapped line of credit, we are financially positioned to
accelerate our participation in drilling activity in these areas
next year."
OPERATING
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
Fiscal
Year
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
September
30, 2010
|
|
September
30, 2009
|
|
September
30, 2010
|
|
September
30, 2009
|
|
MCFE Sold
|
2,312,093
|
|
2,356,051
|
|
8,916,616
|
|
9,878,948
|
|
Average Sales Price per
MCFE
|
$4.80
|
|
$3.95
|
|
$4.94
|
|
$3.79
|
|
Barrels of Oil Sold
|
26,054
|
|
29,011
|
|
102,379
|
|
128,160
|
|
Average Sales Price per
Barrel
|
$71.85
|
|
$61.97
|
|
$72.83
|
|
$51.79
|
|
MCF of Natural Gas
Sold
|
2,155,769
|
|
2,181,985
|
|
8,302,342
|
|
9,109,988
|
|
Average Sales Price per
MCF
|
$4.27
|
|
$3.44
|
|
$4.41
|
|
$3.38
|
|
|
|
|
|
|
|
|
|
Quarterly
Production Levels
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Barrels
Sold
|
|
MCF
Sold
|
|
MCFE
|
|
9/30/10
|
|
26,054
|
|
2,155,769
|
|
2,312,093
|
|
6/30/10
|
|
26,873
|
|
2,074,998
|
|
2,236,236
|
|
3/31/10
|
|
21,998
|
|
1,958,166
|
|
2,090,154
|
|
12/31/09
|
|
27,454
|
|
2,113,409
|
|
2,278,133
|
|
9/30/09
|
|
29,011
|
|
2,181,985
|
|
2,356,051
|
|
|
|
|
|
|
|
|
Derivative
contracts in place as of
September 30, 2010
(prices
below reflect the Company's net price from the listed Oklahoma
pipelines)
|
|
|
|
|
|
|
|
Production
volume
|
Indexed
(1)
|
|
|
Contract
period
|
covered per
month
|
Pipeline
|
Fixed
price
|
|
Fixed price swaps
|
|
|
|
|
January -
December, 2010
|
100,000
Mmbtu
|
CEGT
|
$5.015
|
|
January -
December, 2010
|
50,000
Mmbtu
|
CEGT
|
$5.050
|
|
January -
December, 2010
|
100,000
Mmbtu
|
PEPL
|
$5.570
|
|
January -
December, 2010
|
50,000
Mmbtu
|
PEPL
|
$5.560
|
|
|
|
|
|
|
Basis protection
swaps
|
|
|
|
|
January -
December, 2011
|
50,000
Mmbtu
|
CEGT
|
NYMEX
-$.27
|
|
January -
December, 2011
|
50,000
Mmbtu
|
CEGT
|
NYMEX
-$.27
|
|
January -
December, 2011
|
50,000
Mmbtu
|
PEPL
|
NYMEX
-$.26
|
|
January -
December, 2011
|
50,000
Mmbtu
|
PEPL
|
NYMEX
-$.27
|
|
January -
December, 2012
|
50,000
Mmbtu
|
CEGT
|
NYMEX
-$.29
|
|
January -
December, 2012
|
40,000
Mmbtu
|
CEGT
|
NYMEX
-$.30
|
|
January -
December, 2012
|
50,000
Mmbtu
|
PEPL
|
NYMEX
-$.29
|
|
January -
December, 2012
|
50,000
Mmbtu
|
PEPL
|
NYMEX
-$.30
|
|
|
|
|
|
|
(1) CEGT - CenterPoint
Energy Gas Transmission's East pipeline in Oklahoma
|
|
|
PEPL
- Panhandle Eastern Pipeline Company's Texas/Oklahoma
mainline
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Twelve
Months Ended September 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas
sales
|
$ 11,087,717
|
|
$
9,306,699
|
|
$
44,068,947
|
|
$
37,421,688
|
|
|
Lease bonuses and
rentals
|
63,206
|
|
6,887
|
|
1,120,674
|
|
188,906
|
|
|
Gains (losses) on derivative
contracts
|
932,947
|
|
(874,406)
|
|
6,343,661
|
|
(661,828)
|
|
|
Income of
partnerships
|
214,440
|
|
70,959
|
|
405,134
|
|
323,848
|
|
|
|
12,298,310
|
|
8,510,139
|
|
51,938,416
|
|
37,272,614
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Lease operating expenses and
production taxes
|
2,432,024
|
|
2,007,794
|
|
9,639,864
|
|
8,897,235
|
|
|
Exploration costs
|
168,748
|
|
396,737
|
|
1,583,773
|
|
711,582
|
|
|
Depreciation, depletion and
amortization
|
3,223,625
|
|
7,286,528
|
|
19,222,123
|
|
28,168,933
|
|
|
Provision for
impairment
|
593,245
|
|
340,387
|
|
605,615
|
|
2,464,520
|
|
|
Loss (gain) on sale of assets,
interest and other
|
(40,815)
|
|
(2,534,385)
|
|
(1,028,148)
|
|
(2,677,407)
|
|
|
General and
administrative
|
1,241,037
|
|
1,144,974
|
|
5,594,499
|
|
4,866,044
|
|
|
Bad debt expense
(recovery)
|
-
|
|
(185,272)
|
|
-
|
|
(185,272)
|
|
|
|
7,617,864
|
|
8,456,763
|
|
35,617,726
|
|
42,245,635
|
|
Income (loss) before provision
(benefit) for income taxes
|
4,680,446
|
|
53,376
|
|
16,320,690
|
|
(4,973,021)
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes
|
1,644,000
|
|
(290,000)
|
|
4,901,000
|
|
(2,568,000)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
3,036,446
|
|
$
343,376
|
|
$
11,419,690
|
|
$
(2,405,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share
|
$
0.36
|
|
$
0.04
|
|
$
1.36
|
|
$
(0.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Common shares
|
8,308,701
|
|
8,300,253
|
|
8,310,896
|
|
8,300,160
|
|
|
Unissued, vested directors'
shares
|
113,962
|
|
99,242
|
|
111,491
|
|
97,177
|
|
|
|
8,422,663
|
|
8,399,495
|
|
8,422,387
|
|
8,397,337
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
of
|
|
|
|
|
|
|
|
|
|
common stock and paid in
period
|
$
0.07
|
|
$
0.07
|
|
$
0.28
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets
|
|
|
|
September
30, 2010
|
|
September
30, 2009
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
5,597,258
|
|
$
639,908
|
|
|
Oil and natural gas sales
receivables (net)
|
9,063,002
|
|
7,747,557
|
|
|
Deferred income taxes
|
-
|
|
1,934,900
|
|
|
Refundable production
taxes
|
804,120
|
|
616,668
|
|
|
Derivative contracts
|
1,481,527
|
|
-
|
|
|
Other
|
412,778
|
|
68,817
|
|
Total current assets
|
17,358,685
|
|
11,007,850
|
|
|
|
|
|
|
|
Properties and equipment, at
cost, based on
|
|
|
|
|
successful efforts
accounting:
|
|
|
|
|
|
Producing oil and natural gas
properties
|
207,928,578
|
|
198,076,244
|
|
|
Non-producing oil and natural
gas properties
|
9,616,330
|
|
10,332,537
|
|
|
Furniture and
fixtures
|
656,889
|
|
578,460
|
|
|
|
218,201,797
|
|
208,987,241
|
|
|
Less accumulated depreciation,
depletion and amortization
|
131,983,249
|
|
112,900,027
|
|
Net properties and
equipment
|
86,218,548
|
|
96,087,214
|
|
|
|
|
|
|
|
Investments
|
754,208
|
|
682,391
|
|
Derivative contracts
|
138,799
|
|
-
|
|
Refundable production
taxes
|
654,599
|
|
772,177
|
|
Total assets
|
$
105,124,839
|
|
$
108,549,632
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$
5,062,806
|
|
$
4,810,687
|
|
|
Derivative contracts
|
-
|
|
1,726,901
|
|
|
Deferred income taxes
|
354,100
|
|
53,100
|
|
|
Accrued income taxes and other
liabilities
|
1,842,918
|
|
980,470
|
|
Total current
liabilities
|
7,259,824
|
|
7,571,158
|
|
|
|
|
|
|
|
Long-term debt
|
-
|
|
10,384,722
|
|
Deferred income taxes
|
22,552,650
|
|
24,064,650
|
|
Asset retirement
obligations
|
1,730,369
|
|
1,620,225
|
|
Derivative contracts
|
-
|
|
786,534
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Class A voting common stock,
$.0166 par value;
|
|
|
|
|
|
24,000,000 shares
authorized, 8,431,502 issued at
September 30, 2010
and 2009
|
140,524
|
|
140,524
|
|
|
Capital in excess of par
value
|
1,816,365
|
|
1,922,053
|
|
|
Deferred directors'
compensation
|
2,222,127
|
|
1,862,499
|
|
|
Retained earnings
|
73,599,733
|
|
64,507,547
|
|
|
|
77,778,749
|
|
68,432,623
|
|
|
Less treasury stock, at cost;
120,560 shares at September
|
|
|
|
|
|
30, 2010 and 119,866 shares at
September 30, 2009
|
(4,196,753)
|
|
(4,310,280)
|
|
Total stockholders'
equity
|
73,581,996
|
|
64,122,343
|
|
Total liabilities and
stockholders' equity
|
$
105,124,839
|
|
$
108,549,632
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
September 30,
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
11,419,690
|
|
$
(2,405,021)
|
|
$
21,555,769
|
|
Adjustments to reconcile net
income (loss) to net
|
|
|
|
|
|
|
|
|
cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion,
amortization,
|
|
|
|
|
|
|
|
|
|
|
and impairment
|
|
19,827,738
|
|
30,633,453
|
|
20,311,040
|
|
|
|
Provision for deferred income
taxes
|
|
777,000
|
|
(3,814,000)
|
|
9,116,000
|
|
|
|
Exploration costs
|
|
1,208,653
|
|
711,582
|
|
455,943
|
|
|
|
Net (gain) loss on sales of
assets
|
|
(1,189,605)
|
|
(2,654,759)
|
|
20,632
|
|
|
|
Income from
partnerships
|
|
(405,134)
|
|
(323,848)
|
|
(631,891)
|
|
|
|
Distributions received from
partnerships
|
|
523,317
|
|
432,805
|
|
724,765
|
|
|
|
Other
|
|
64,555
|
|
4,708
|
|
-
|
|
|
|
Common stock contributed to
ESOP
|
|
287,194
|
|
245,811
|
|
218,733
|
|
|
|
Common stock (unissued) to
Directors'
|
|
|
|
|
|
|
|
|
|
|
Deferred Compensation
Plan
|
|
359,628
|
|
256,688
|
|
247,033
|
|
|
|
Restricted stock
awards
|
|
12,028
|
|
-
|
|
-
|
|
|
|
Bad debt expense
(recovery)
|
|
-
|
|
(185,272)
|
|
591,258
|
|
|
|
Cash provided (used) by changes
in assets
|
|
|
|
|
|
|
|
|
|
|
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas sales
receivables
|
|
(1,315,445)
|
|
9,620,843
|
|
(9,671,136)
|
|
|
|
|
|
Fair value of derivative
contracts
|
|
(4,133,761)
|
|
3,159,628
|
|
(539,277)
|
|
|
|
|
|
Refundable income
taxes
|
|
-
|
|
2,162,305
|
|
(2,162,305)
|
|
|
|
|
|
Refundable production
taxes
|
|
(69,874)
|
|
(921,769)
|
|
(467,076)
|
|
|
|
|
|
Other current assets
|
|
(343,961)
|
|
74,455
|
|
(25,927)
|
|
|
|
|
|
Accounts payable
|
|
(24,896)
|
|
287,883
|
|
59,921
|
|
|
|
|
|
Income taxes payable
|
|
583,625
|
|
338,511
|
|
(211,155)
|
|
|
|
|
|
Accrued liabilities
|
|
225,723
|
|
86,603
|
|
471,569
|
|
Total adjustments
|
|
16,386,785
|
|
40,115,627
|
|
18,508,127
|
|
Net cash provided by operating
activities
|
|
27,806,475
|
|
37,710,606
|
|
40,063,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital expenditures, including
dry hole costs
|
|
(11,308,506)
|
|
(39,915,051)
|
|
(38,747,749)
|
|
Proceeds from leasing of fee
mineral acreage
|
|
1,316,377
|
|
209,930
|
|
200,356
|
|
Investments in
partnerships
|
|
(254,555)
|
|
(59,742)
|
|
(139,177)
|
|
Proceeds from sales of
assets
|
|
401,168
|
|
3,441,871
|
|
840,398
|
|
Net cash used in investing
activities
|
|
(9,845,516)
|
|
(36,322,992)
|
|
(37,846,172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (continued)
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
September 30,
|
|
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under debt
agreement
|
|
$
10,799,814
|
|
$
49,027,225
|
|
$
47,281,411
|
|
Payments of loan
principal
|
|
(21,184,536)
|
|
(48,346,603)
|
|
(42,238,782)
|
|
Purchases of treasury
stock
|
|
(291,383)
|
|
-
|
|
(4,998,842)
|
|
Payments of dividends
|
|
(2,327,504)
|
|
(2,324,036)
|
|
(2,355,163)
|
|
Net cash used in financing
activities
|
|
(13,003,609)
|
|
(1,643,414)
|
|
(2,311,376)
|
|
Increase (decrease) in cash and
cash equivalents
|
|
4,957,350
|
|
(255,800)
|
|
(93,652)
|
|
Cash and cash equivalents at
beginning of year
|
|
639,908
|
|
895,708
|
|
989,360
|
|
Cash and cash equivalents at end
of year
|
|
$
5,597,258
|
|
$
639,908
|
|
$
895,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures of Cash
Flow
|
|
|
|
|
|
|
|
|
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid (net of
capitalized interest)
|
|
$
60,912
|
|
$
-
|
|
$
23,212
|
|
Income taxes paid, net of
refunds received
|
|
$
3,530,718
|
|
$
(1,261,808)
|
|
$
4,145,122
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental schedule of
noncash
|
|
|
|
|
|
|
|
|
investing and financing
activities:
|
|
|
|
|
|
|
|
|
Additions and revisions, net, to
asset
|
|
|
|
|
|
|
|
|
|
retirement
obligations
|
|
$
110,144
|
|
$
95,076
|
|
$
151,998
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross additions to properties
and equipment
|
|
$
11,585,521
|
|
$
28,540,290
|
|
$
52,812,138
|
|
|
Net (increase) decrease in
accounts payable for
|
|
|
|
|
|
|
|
|
|
properties and equipment
additions
|
|
(277,015)
|
|
11,374,761
|
|
(14,064,389)
|
|
|
Capital expenditures, including
dry hole costs
|
|
$
11,308,506
|
|
$
39,915,051
|
|
$
38,747,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
2010 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; our hedging activities may reduce the realized prices
received for natural gas sales; the volatility of oil and gas
prices; Panhandle'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; declines 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, and 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.
SOURCE Panhandle Oil and Gas Inc.