Oklahoma City-based Panhandle Oil and Gas says revenue from its oil and natural gas production in the first quarter dropped 38%, leading to net income of $12.7 million. The income resulted in 75 cents for each company share on total revenue of $26.3 million.
Earnings before interest, taxes, depreciation and amortization fell from $14.5 million reported a year ago to $7.2 million for the 2020 first quarter.
As for the 38% drop in oil and gas production revenue, Panhandle explained there was a production decline of 18% and a 25% drop in the price for oil and gas.
Despite the declines, Chad L. Stephens, Panhandle’s CEO said the firm is pushing ahead with a change in its strategy to become a firm primarily holding mineral interests and royalties instead of partnering with other operators to drill wells.
“As we stated in our last earnings release, the results from this strategy shift will not happen overnight, but we continue to be confident that Panhandle is well positioned with an attractive asset base and a resilient balanced sheet.”
The company sold 530 acres of mineral holdings for $3.4 million in New Mexico’s Eddy County which is in the Permian Basin. The same happened in the first quarter of this year. It followed a $9.1 million sale a year ago of holdings in another New Mexico Permian Basin county.
Source: Press release