The just-concluded quarter proved to be a losing one for Oklahoma City’s Panhandle Oil and Gas Company as the firm reported a net loss of nearly $3.5 million or 21 cents a share. The loss was on top of the $20.5 million reported lost in the previous quarter but the company still made strides in reducing its debt.
Panhandle confirmed the loss came on revenues of nearly $2.7 million for the third quarter of its fiscal year. Net income was $4.6 million or 28 cents a share while total revenues were $16.3 million.
“Clearly, the third quarter was challenging, given the effects of the global pandemic on the economy and the energy markets,” explained Chad L. Stephens, CEO. “Our sales volumes were down as operators curtailed production and brought fewer wells online due to low commodity prices.”
He said despite strides in cutting costs, the effort wasn’t enough to offset the lower revenue. Panhandle’s volume of oil, natural gas and natural gas liquids sold dropped by .47 billion cubic feet or 20% and the company’s royalties for the quarter were down 16%.
Panhandle’s adjusted EBITDA was $1.2 million compared to $2.4 million in the previous quarter.
As the company starts the fourth quarter of its fiscal year, Stephens said the company will continue focusing on the areas it can control including debt reduction. Panhandle managed to reduce debt from $35.4 million as of Sept. 30, 2019 to $30 million at the end of June 2020. As of Aug. 11, 2020, the company had trimmed it even further to $26.9 million.
“The energy sector is stabilizing as the rig count seems to have found a floor and operators are talking about bringing curtailed wells back on line and setting reasonable drilling plans going forward,” said the CEO. “—we expected more opportunities to come to market in the second half of 2020.”
Source: Panhandle Oil and Gas