Oklahoma City-based Panhandle Oil and Gas reported a loss of more than $775 thousand for the second quarter of 2018. It translated to a loss of five cents a share, according to a company press release.
Panhandle declared a loss of nearly $2.129 million on its derivative contracts for three months ending in June of 2018. This was due to higher than anticipated oil prices.
The company reflected positive growth from several initiatives including:
- Increased total production by 19 percent, as compared to the nine months ended June 30, 2017;
- Generated a nine-month net income of slightly more than $14 million, compared to a net income of nearly $2.5 million for the nine months in 2017; and
- Generated free cash flow of nearly $14 million while expending $7.7 million for drilling and equipping wells.
Panhandle also decreased the company’s lease operating expense and reduced the company’s debt from $52.2 million for the third quarter of 2017 to $40.4 million for the second quarter of 2018.
Panhandle indicated that it continues to reveal an increase in the percentage of oil and natural gas liquids from production of its wells.
“The company is continuing to deploy a majority of capital into low-risk drilling projects in the Eagle Ford, STACK and SCOOP,” said Paul Blanchard Jr., Panhandle’s President and CEO. “We also recently announced an agreement to purchase leased mineral acreage with 94 producing wells, 20 drilled uncompleted wells and 194 additional locations in the Bakken Shale for $9 million, which is projected to produce 83% oil and NGLs. As a result of these current drilling and acquisition activities along with the industry’s current emphasis on drilling for oil, we anticipate continued growth in oil and NGL as a percent of our total production.”