HOUSTON, Nov. 9, 2010 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that third quarter 2010 revenues were $9,928,000, compared to $7,810,000 in the third quarter of 2009, an increase of approximately 27.1%. The largest components of revenue in the third quarter of 2010 were oil and gas sales, which increased by approximately 27.6% when compared to same period of 2009, due to higher natural gas, oil and condensate and NGLs commodity prices and increase in sales volumes of oil and NGLs.
The Company reported net loss of $2,510,000 or ($0.92) per share for the third quarter of 2010 compared to net loss of $2,018,000 or ($0.74) per share for the same period in 2009. The increase in net loss was primarily due to a decrease in sales volumes of natural gas caused by the natural decline in production, higher lease operating expenses and the impact of our hedging (derivative) position. This was partially offset by higher natural gas, oil and natural gas liquids (NGLs) sales revenues due to higher prices and increase in sales volumes of oil and NGLs, lower depreciation, depletion and amortization expenses and lower interest expense.
The Company reported net loss of $187,000, or ($0.07) per share, for the nine months ended September 30, 2010, as compared to a net loss of $8,242,000, or ($3.03) per share, for the comparable nine month period in 2009. The decrease in net loss was primarily due to the impact of derivatives, higher natural gas, oil and NGLs sales revenues due to higher prices, lower depreciation, depletion and amortization expenses and lower interest expense. This was partially offset by a decrease in sales volumes of natural gas, oil and natural gas liquids ("NGLs") caused by adverse weather conditions in Texas that restricted our ability to access, repair and maintain our wells in the first quarter of 2010, along with the natural decline in production, and higher lease operating expenses.
There are currently 2,717,691 shares of Common Stock issued and outstanding.
ISRAMCO's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts): |
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For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
STATEMENT OF OPERATIONS DATA |
|||||
Revenues |
$9,928 |
$7,810 |
$29,620 |
$22,216 |
|
Total operating expenses |
10,124 |
9,874 |
29,787 |
28,016 |
|
Operating loss |
(196) |
(2,064) |
(167) |
(5,800) |
|
Net loss |
(2,510) |
(2,018) |
(187) |
(8,242) |
|
Loss per share – basic and diluted |
(0.92) |
(0.74) |
(0.07) |
(3.03) |
|
CASH FLOW DATA |
|||||
Net cash provided by operating activities |
9,644 |
16,394 |
|||
Net cash provided by (used in) investing activities |
(3,138) |
12 |
|||
Net cash used in financing activities |
(4,162) |
(16,423) |
|||
September 30, |
December 31, |
||
BALANCE SHEET DATA |
|||
Current assets |
$ 20,205 |
$ 18,879 |
|
Total assets |
177,297 |
176,318 |
|
Total liabilities |
156,290 |
162,585 |
|
Total shareholders' equity |
21,007 |
13,733 |
|
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2009, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.
SOURCE ISRAMCO, INC.
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