Panhandle Oil & Gas presents at EnerCom’s The Oil & Gas Conference®
Panhandle Oil & Gas (ticker: PHX) is an E&P company with its majority of revenue deriving from the production and sale of oil and natural gas. The company’s oil and gas holdings, including its 255,000 net mineral acreage and its working interests and royalty interests in producing wells that are primarily located in Arkansas, Oklahoma and Texas
Q2 highlights
- Increased total equivalent production 19%, as compared to the nine months ended June 30, 2017.
- Reported third quarter 2018 net loss of $775,093, $0.05 per diluted share, as compared to a net income of $1,260,758, $0.07 per diluted share, for the 2017 quarter.
- Generated nine-month 2018 net income of $14,080,022, $0.83 per diluted share, as compared to a net income of $2,492,799, $0.15 per diluted share, for the 2017 nine months.
- Generated free cash flow of $13,914,805, as cash from operating activities of $21,657,902 for the 2018 nine-month period was well in excess of capital expenditures for drilling and equipping wells of $7,743,097.
- Decreased lease operating expense (LOE) per Mcfe to $1.08 for the nine-month period, as compared to $1.22 in the prior year’s nine-month period.
- Reduced debt from $52.2 million, as of Sept. 30, 2017, to $40.4 million, as of June 30, 2018, which has declined further to $39.5 million as of July 31, 2018.
- Generated 2018 third-quarter and nine-month EBITDA of $4,056,312 and $16,561,859, respectively.
Breakout session at the EnerCom conference
During Panhandle Oil & Gas’s breakout session at the 2018 EnerCom conference, management was asked the following questions:
- What type of acquisitions are you focusing on- oil or gas?
- How do you discover your acquisitions? Are there primary channels?
- On the lowest end, what do you think is the size of the deal which makes sense?
- What typical criteria is there for putting out a press release on an acquisition or deal?
- Do you guys always disclose purchase price and how many acres etc?
- What is your acquisition budget? Also, do you use stock as payment towards acquisition or cash basis if there is a 15 or a 7 or a 2 dollar acquisition which fits your profile?
- What are you looking for in an acquisition?
- Mineral market was pretty high in the past, have you guys sold anything?
- In the past, say 5 years, mineral acquisition and buying became quite fashionable. It has been quite boring in the last 50 years. How has that changed your business, if any.
You can listen to Panhandle Oil & Gas’s presentation here.
