Panhandle Oil and Gas Inc. Reports Fiscal Second Quarter, Six Months 2014 Results and Mid-Year Reserve Update
OKLAHOMA CITY – May 8, 2014 – PANHANDLE OIL AND GAS INC. (NYSE:PHX) today reported financial and operating results for the Company’s fiscal second quarter and six months ended March 31, 2014.
HIGHLIGHTS FOR THE PERIODS ENDED MARCH 31, 2014
- Recorded fiscal second quarter 2014 net income of $5,654,573, $0.68 per diluted share, as compared to $1,022,487, $0.12 per diluted share, for the 2013 quarter.
- Recorded six month 2014 net income of $10,580,891, $1.27 per diluted share, compared to net income of $3,170,785, $0.38 per diluted share, for the 2013 six months.
- Generated cash from operating activities of $21,733,352 for the 2014 six-month period, well in excess of $17,606,988 of capital expenditures for drilling and equipping wells.
- Reported 2014 second-quarter and six-month production of 3,496,222 Mcfe and 7,005,492 Mcfe, respectively, which were increases of 8% and 12%, respectively, over the same periods of fiscal 2013.
- Continued to record increased oil production, 26% and 51% for the quarter and six months, respectively, as compared to the same 2013 periods.
- Continued to record increased natural gas liquids (NGL) production, 105% and 59% for the quarter and six months, respectively, as compared to the same 2013 periods.
- Increased proved reserves 4.7% to 159.0 Bcfe at March 31, 2014, from 151.8 Bcfe at Sept. 30, 2013.
FISCAL SECOND QUARTER 2014 RESULTS
For the 2014 fiscal second quarter, the Company recorded net income of $5,654,573, or $0.68 per diluted share. This compared to net income of $1,022,487, or $0.12 per diluted share, for the 2013 second quarter. Net cash provided by operating activities increased 19% to $9,847,005 for the 2014 second quarter versus the 2013 fiscal second quarter. Capital expenditures for the 2014 fiscal quarter totaled $7,714,726 and continue to be principally directed toward oil and NGL rich plays in western and south central Oklahoma and the Texas Panhandle. The 2014 quarter included a $1.6 million loss on derivative contracts as compared to a $1.8 million loss for the 2013 period. The Company principally uses derivative contracts of less than one year duration to provide protection against significant declines in cash flows from fluctuations in the price of natural gas and, to a lesser extent, oil. The Company typically will hedge around 50% - 60% of its expected production volumes.
Total revenues for the 2014 second quarter were $19,752,045, a 57% increase from $12,581,986 for the 2013 quarter. Oil, NGL and natural gas sales increased $7,007,457 or 50% in the 2014 quarter, compared to the 2013 quarter, as a result of an 8% increase in Mcfe production and a 39% increase in the average per Mcfe sales price. The average sales price per Mcfe of production during the 2014 second quarter was $6.04, compared to $4.34 for the 2013 second quarter. Increases in the sales price of natural gas and higher sales volumes of high-value oil and NGL combined to improve the sales price per Mcfe.
Oil production increased 26% in the 2014 quarter to 66,239 barrels versus 52,567 barrels in the 2013 quarter, while gas production of 2,788,768 Mcf for the 2014 quarter was basically flat compared to the 2013 quarter. In addition, 51,670 barrels of NGL were sold in the 2014 quarter as compared to 25,190 barrels in the 2013 quarter.
SIX MONTHS 2014 RESULTS
For the 2014 six months, the Company recorded net income of $10,580,891, or $1.27 per diluted share. This compared to net income of $3,170,785, or $0.38 per diluted share, for the 2013 six months. Net cash provided by operating activities increased 41% year over year to $21,733,352 for the 2014 six months versus the 2013 six months. Again, cash flow from operations fully funded costs to drill and equip wells for the six months. Capital expenditures for the 2014 six months totaled $19,213,443, which included $17,606,988 for drilling and equipping wells and acquisitions of $1,606,455. The 2014 six months included a $2.1 million loss on derivative contracts as compared to a $0.9 million loss for the 2013 period.
Total revenues for the 2014 six months were $38,148,801, a 43% increase from $26,762,421 for the 2013 six months. Oil, NGL and natural gas sales increased $12,721,585 or 47% in the 2014 six months, compared to the 2013 six months, as a result of a 12% increase in Mcfe production and a 32% increase in the average per Mcfe sales price. The average sales price per Mcfe of production during the 2014 six months was $5.65, compared to $4.29 for the 2013 six months.
Oil production increased 51% in the 2014 six months to 149,652 barrels from 99,223 barrels in the 2013 six months while gas production increased 251,466 Mcf, or 5%, compared to the 2014 six months. In addition, 88,810 barrels of NGL were sold in the 2014 six months which was a 59% increase compared to 2013 NGL volumes. Drilling expenditures over the last 18 months targeting the oil and NGL rich plays are responsible for the increased oil and NGL volumes.
RESERVES UPDATE
March 31, 2014, mid-year proved reserves were 159.0 Bcfe, as calculated by the Company’s consulting petroleum engineering firm, DeGolyer and MacNaughton. This was an increase of 4.7%, compared to the 151.8 Bcfe of proved reserves at Sept. 30, 2013. SEC prices used for the March 31, 2014, report averaged $3.72 per Mcf for natural gas, $94.95 per barrel for oil and $27.99 per barrel for NGL compared to $3.33 per Mcf for natural gas, $89.06 per barrel for oil and $27.28 per barrel for NGL for the Sept. 30, 2013, report. The above prices reflect net at the wellhead prices. Total proved developed reserves increased 7.4% to 100.0 Bcfe as compared to Sept. 30, 2013, reserve volumes.
MANAGEMENT COMMENTS
Michael C. Coffman, President and CEO, said: “2014 continues to be an excellent financial and operational year. The winter of 2013-2014 was a game changer for 2014 natural gas prices. For our second quarter ended March 31, 2014, the average natural gas sales price was $4.74 as compared to $3.19 for the 2013 second quarter. The gas price increases and our increased oil and NGL sales volumes resulted in a net income for the quarter of $5,654,573 and a six-month net income of $10,580,891.”
Coffman continued: “Current expectations are that natural gas prices will continue to be elevated this summer as storage levels are extremely low and will need to be refilled prior to the winter heating season. These expected prices should continue to have a positive impact on our earnings for 2014. The Company remains in a very strong financial position that allows us to be ready to take advantage of drilling or acquisition opportunities that will add to our asset base and are expected to deliver additional value for our shareholders.”
OPERATIONS UPDATE
Paul Blanchard, Senior Vice President and COO, said: “During the last few years of relatively low natural gas prices, Panhandle pursued a contrarian strategy of growing its natural gas production through producing property acquisitions and participation in low cost drilling in the core of the Fayetteville Shale. At the same time, we have grown profitable oil and NGL production through selected drilling participation in high-quality oil and NGL rich projects on Company owned mineral holdings principally in western and south central Oklahoma and the Texas Panhandle. Through this growth period, the Company’s cost structure per Mcfe of production decreased materially and all capital investments were entirely funded through internally generated cash flow. With the rebound in natural gas prices experienced this quarter, we are enjoying the benefits of these efforts in the form of much higher cash flow and net income.”
FINANCIAL HIGHLIGHTS
Statements of Operations
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||
|
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2014 |
|
2013 |
|
2014 |
|
2013 |
||||
|
Revenues: |
(unaudited) |
|
(unaudited) |
||||||||
|
Oil, NGL and natural gas sales |
$ |
21,108,301 |
|
$ |
14,100,844 |
|
$ |
39,581,383 |
|
$ |
26,859,798 |
|
Lease bonuses and rentals |
|
19,717 |
|
|
140,941 |
|
|
215,946 |
|
|
515,333 |
|
Gains (losses) on derivative contracts |
|
(1,587,029) |
|
|
(1,811,359) |
|
|
(2,083,930) |
|
|
(918,666) |
|
Income from partnerships |
|
211,056 |
|
|
151,560 |
|
|
435,402 |
|
|
305,956 |
|
|
|
19,752,045 |
|
|
12,581,986 |
|
|
38,148,801 |
|
|
26,762,421 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
3,653,000 |
|
|
2,638,342 |
|
|
6,968,397 |
|
|
5,934,904 |
|
Production taxes |
|
706,033 |
|
|
412,886 |
|
|
1,277,597 |
|
|
716,439 |
|
Exploration costs |
|
24,429 |
|
|
15,412 |
|
|
63,184 |
|
|
35,179 |
|
Depreciation, depletion and amortization |
|
4,939,834 |
|
|
6,258,623 |
|
|
10,247,853 |
|
|
11,897,643 |
|
Provision for impairment |
|
227,152 |
|
|
63,476 |
|
|
430,143 |
|
|
218,441 |
|
Loss (gain) on asset sales, interest and other |
|
104,644 |
|
|
(211,896) |
|
|
27,189 |
|
|
(168,710) |
|
General and administrative |
|
1,651,380 |
|
|
1,643,656 |
|
|
3,524,547 |
|
|
3,541,740 |
|
|
|
11,306,472 |
|
|
10,820,499 |
|
|
22,538,910 |
|
|
22,175,636 |
|
Income before provision for income taxes |
|
8,445,573 |
|
|
1,761,487 |
|
|
15,609,891 |
|
|
4,586,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
2,791,000 |
|
|
739,000 |
|
|
5,029,000 |
|
|
1,416,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,654,573 |
|
$ |
1,022,487 |
|
$ |
10,580,891 |
|
$ |
3,170,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per common share |
$ |
0.68 |
|
$ |
0.12 |
|
$ |
1.27 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares |
|
8,236,672 |
|
|
8,254,226 |
|
|
8,234,261 |
|
|
8,252,145 |
|
Unissued, directors' deferred compensation shares |
|
126,051 |
|
|
113,258 |
|
|
125,712 |
|
|
113,045 |
|
|
|
8,362,723 |
|
|
8,367,484 |
|
|
8,359,973 |
|
|
8,365,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share of |
|
|
|
|
|
|
|
|
|
|
|
|
common stock and paid in period |
$ |
0.08 |
|
$ |
0.07 |
|
$ |
0.16 |
|
$ |
0.14 |
Balance Sheets
|
|
March 31, 2014 |
|
Sept. 30, 2013 |
||
|
Assets |
(unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,816,400 |
|
$ |
2,867,171 |
|
Oil, NGL and natural gas sales receivables |
|
17,105,718 |
|
|
13,720,761 |
|
Refundable production taxes |
|
666,180 |
|
|
662,051 |
|
Derivative contracts |
|
- |
|
|
425,198 |
|
Other |
|
185,725 |
|
|
129,998 |
|
Total current assets |
|
19,774,023 |
|
|
17,805,179 |
|
|
|
|
|
|
|
|
Properties and equipment, at cost, based on |
|
|
|
|
|
|
successful efforts accounting: |
|
|
|
|
|
|
Producing oil and natural gas properties |
|
317,646,446 |
|
|
304,889,145 |
|
Non-producing oil and natural gas properties |
|
9,151,030 |
|
|
8,932,905 |
|
Furniture and fixtures |
|
743,493 |
|
|
737,368 |
|
|
|
327,540,969 |
|
|
314,559,418 |
|
Less accumulated depreciation, depletion and amortization |
|
(193,194,710) |
|
|
(186,641,291) |
|
Net properties and equipment |
|
134,346,259 |
|
|
127,918,127 |
|
|
|
|
|
|
|
|
Investments |
|
1,664,914 |
|
|
1,574,642 |
|
Refundable production taxes |
|
272,305 |
|
|
540,482 |
|
Total assets |
$ |
156,057,501 |
|
$ |
147,838,430 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
6,532,367 |
|
$ |
8,409,634 |
|
Derivative contracts |
|
1,292,329 |
|
|
- |
|
Deferred income taxes |
|
43,100 |
|
|
127,100 |
|
Income taxes payable |
|
865,882 |
|
|
751,992 |
|
Accrued liabilities and other |
|
768,795 |
|
|
1,011,865 |
|
Total current liabilities |
|
9,502,473 |
|
|
10,300,591 |
|
|
|
|
|
|
|
|
Long-term debt |
|
6,000,000 |
|
|
8,262,256 |
|
Deferred income taxes |
|
32,763,907 |
|
|
31,226,907 |
|
Asset retirement obligations |
|
2,539,172 |
|
|
2,393,190 |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Class A voting common stock, $.0166 par value; |
|
|
|
|
|
|
24,000,000 shares authorized, 8,431,502 issued at March 31, 2014, and Sept. 30, 2013 |
|
140,524 |
|
|
140,524 |
|
Capital in excess of par value |
|
2,590,501 |
|
|
2,587,838 |
|
Deferred directors' compensation |
|
2,946,032 |
|
|
2,756,526 |
|
Retained earnings |
|
105,705,125 |
|
|
96,454,449 |
|
|
|
111,382,182 |
|
|
101,939,337 |
|
Less treasury stock, at cost; 194,830 shares at March 31, |
|
|
|
|
|
|
2014, and 200,248 shares at Sept. 30, 2013 |
|
(6,130,233) |
|
|
(6,283,851) |
|
Total stockholders' equity |
|
105,251,949 |
|
|
95,655,486 |
|
Total liabilities and stockholders' equity |
$ |
156,057,501 |
|
$ |
147,838,430 |
Condensed Statements of Cash Flows
|
|
March 31, 2014 |
|
Sept. 30, 2013 |
||
|
Assets |
(unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,816,400 |
|
$ |
2,867,171 |
|
Oil, NGL and natural gas sales receivables |
|
17,105,718 |
|
|
13,720,761 |
|
Refundable production taxes |
|
666,180 |
|
|
662,051 |
|
Derivative contracts |
|
- |
|
|
425,198 |
|
Other |
|
185,725 |
|
|
129,998 |
|
Total current assets |
|
19,774,023 |
|
|
17,805,179 |
|
|
|
|
|
|
|
|
Properties and equipment, at cost, based on |
|
|
|
|
|
|
successful efforts accounting: |
|
|
|
|
|
|
Producing oil and natural gas properties |
|
317,646,446 |
|
|
304,889,145 |
|
Non-producing oil and natural gas properties |
|
9,151,030 |
|
|
8,932,905 |
|
Furniture and fixtures |
|
743,493 |
|
|
737,368 |
|
|
|
327,540,969 |
|
|
314,559,418 |
|
Less accumulated depreciation, depletion and amortization |
|
(193,194,710) |
|
|
(186,641,291) |
|
Net properties and equipment |
|
134,346,259 |
|
|
127,918,127 |
|
|
|
|
|
|
|
|
Investments |
|
1,664,914 |
|
|
1,574,642 |
|
Refundable production taxes |
|
272,305 |
|
|
540,482 |
|
Total assets |
$ |
156,057,501 |
|
$ |
147,838,430 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
6,532,367 |
|
$ |
8,409,634 |
|
Derivative contracts |
|
1,292,329 |
|
|
- |
|
Deferred income taxes |
|
43,100 |
|
|
127,100 |
|
Income taxes payable |
|
865,882 |
|
|
751,992 |
|
Accrued liabilities and other |
|
768,795 |
|
|
1,011,865 |
|
Total current liabilities |
|
9,502,473 |
|
|
10,300,591 |
|
|
|
|
|
|
|
|
Long-term debt |
|
6,000,000 |
|
|
8,262,256 |
|
Deferred income taxes |
|
32,763,907 |
|
|
31,226,907 |
|
Asset retirement obligations |
|
2,539,172 |
|
|
2,393,190 |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Class A voting common stock, $.0166 par value; |
|
|
|
|
|
|
24,000,000 shares authorized, 8,431,502 issued at March 31, 2014, and Sept. 30, 2013 |
|
140,524 |
|
|
140,524 |
|
Capital in excess of par value |
|
2,590,501 |
|
|
2,587,838 |
|
Deferred directors' compensation |
|
2,946,032 |
|
|
2,756,526 |
|
Retained earnings |
|
105,705,125 |
|
|
96,454,449 |
|
|
|
111,382,182 |
|
|
101,939,337 |
|
Less treasury stock, at cost; 194,830 shares at March 31, |
|
|
|
|
|
|
2014, and 200,248 shares at Sept. 30, 2013 |
|
(6,130,233) |
|
|
(6,283,851) |
|
Total stockholders' equity |
|
105,251,949 |
|
|
95,655,486 |
|
Total liabilities and stockholders' equity |
$ |
156,057,501 |
|
$ |
147,838,430 |
Proved Reserves
|
|
SEC Pricing |
||||
|
|
March 31, 2014 |
|
Sept. 30, 2013 |
||
|
Proved Developed Reserves: |
|
(unaudited) |
|||
|
Barrels of NGL |
|
1,123,310 |
|
|
764,321 |
|
Barrels of Oil |
|
1,224,392 |
|
|
1,037,721 |
|
Mcf of Gas |
|
85,925,225 |
|
|
82,298,833 |
|
Mcfe (1) |
|
100,011,437 |
|
|
93,111,085 |
|
Proved Undeveloped Reserves: |
|
|
|
|
|
|
Barrels of NGL |
|
930,058 |
|
|
851,805 |
|
Barrels of Oil |
|
435,070 |
|
|
605,582 |
|
Mcf of Gas |
|
50,778,306 |
|
|
49,990,334 |
|
Mcfe (1) |
|
58,969,074 |
|
|
58,734,656 |
|
Total Proved Reserves: |
|
|
|
|
|
|
Barrels of NGL |
|
2,053,368 |
|
|
1,616,126 |
|
Barrels of Oil |
|
1,659,462 |
|
|
1,643,303 |
|
Mcf of Gas |
|
136,703,531 |
|
|
132,289,167 |
|
Mcfe (1) |
|
158,980,511 |
|
|
151,845,741 |
|
|
|
|
|
|
|
|
10% Discounted Estimated Future |
|
|
|
|
|
|
Net Cash Flows (before income taxes): |
|
|
|
|
|
|
Proved Developed |
$ |
155,038,658 |
|
$ |
125,186,445 |
|
Proved Undeveloped |
|
52,447,249 |
|
|
51,276,694 |
|
Total |
$ |
207,485,907 |
|
$ |
176,463,139 |
|
SEC Pricing |
|
|
|
|
|
|
Oil/Barrel |
$ |
94.95 |
|
$ |
89.06 |
|
Gas/Mcf |
$ |
3.72 |
|
$ |
3.33 |
|
NGL/Barrel |
$ |
27.99 |
|
$ |
27.28 |
|
|
|
|
|
|
|
|
Proved Reserves - NYMEX Futures Pricing (2) |
|||||
|
|
|
|
|
|
|
|
10% Discounted Estimated Future |
Proved Reserves |
||||
|
Net Cash Flows (before income taxes): |
March 31, 2014 |
|
Sept. 30, 2013 |
||
|
Proved Developed |
$ |
153,999,890 |
|
$ |
144,432,557 |
|
Proved Undeveloped |
|
53,600,280 |
|
|
63,586,718 |
|
Total |
$ |
207,600,170 |
|
$ |
208,019,275 |
|
|
|
|
|
|
|
|
(1) Crude oil and NGL converted to natural gas on a one barrel of crude oil or NGL equals six Mcf of natural gas basis |
|||||
|
(2) NYMEX Futures Pricing as of March 31, 2014, basis adjusted to Company wellhead price |
|||||
OPERATING HIGHLIGHTS
|
|
Second Quarter Ended |
|
Second Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
||||
|
|
March 31, 2014 |
|
March 31, 2013 |
|
March 31, 2014 |
|
March 31, 2013 |
||||
|
Mcfe Sold |
|
3,496,222 |
|
|
3,245,411 |
|
|
7,005,492 |
|
|
6,253,776 |
|
Average Sales Price per Mcfe |
$ |
6.04 |
|
$ |
4.34 |
|
$ |
5.65 |
|
$ |
4.29 |
|
Oil Barrels Sold |
|
66,239 |
|
|
52,567 |
|
|
149,652 |
|
|
99,223 |
|
Average Sales Price per Barrel |
$ |
92.74 |
|
$ |
87.90 |
|
$ |
93.26 |
|
$ |
86.00 |
|
Mcf Sold |
|
2,788,768 |
|
|
2,778,869 |
|
|
5,574,720 |
|
|
5,323,254 |
|
Average Sales Price per Mcf |
$ |
4.74 |
|
$ |
3.19 |
|
$ |
4.08 |
|
$ |
3.15 |
|
NGL Barrels Sold |
|
51,670 |
|
|
25,190 |
|
|
88,810 |
|
|
55,864 |
|
Average Sales Price per Barrel |
$ |
33.53 |
|
$ |
24.91 |
|
$ |
32.62 |
|
$ |
27.87 |
|
Quarter ended |
|
Oil Bbls Sold |
|
Mcf Sold |
|
NGL Bbls Sold |
|
Mcfe Sold |
|
3/31/2014 |
|
66,239 |
|
2,788,768 |
|
51,670 |
|
3,496,222 |
|
12/31/2013 |
|
83,413 |
|
2,785,952 |
|
37,140 |
|
3,509,270 |
|
9/30/2013 |
|
79,387 |
|
2,820,079 |
|
30,373 |
|
3,478,639 |
|
6/30/2013 |
|
55,474 |
|
2,742,996 |
|
25,660 |
|
3,229,800 |
|
3/31/2013 |
|
52,567 |
|
2,778,869 |
|
25,190 |
|
3,245,411 |
The Company’s derivative contracts in place for natural gas at March 31, 2014, are outlined in its Form 10-Q for the period ending March 31, 2014.
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 2013 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; decreases 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.