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Tengasco Announces Third Quarter 2009 Financial Results
KNOXVILLE, Tenn., Nov. 9 /PRNewswire-FirstCall/ -- Tengasco, Inc. (NYSE Amex: TGC) announced today its financial results for the quarter ended September 30, 2009. The Company realized net loss attributable to common shareholders of $(0.4 million) or $(0.01) per share of common stock during the third quarter of 2009, compared to a net income in the third quarter of 2008 to common shareholders of $1.6 million or $0.03 per share of common stock.
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The Company recognized $2.6 million in revenues during the third quarter of 2009 compared to $5.1 million in the third quarter of 2008. The decrease in revenues was due to a sharp decrease in oil prices in 2009. Oil prices in the third quarter of 2009 averaged $60.96 per barrel compared to $110.85 per barrel in the third quarter of 2008. The Company recorded a non-cash unrealized hedging loss of $(0.6) million in the third quarter of 2009. The Company had recorded non-cash income tax expense of $0.8 million for the third quarter 2008 net income.
The Company recognized $6.8 million in revenues during the first nine months of 2009 compared to $13.0 million in the first nine months of 2008. The decrease in revenues was due to a decrease in oil prices in 2009. Oil prices in the first nine months of 2009 averaged $49.74 per barrel compared to $106.53 per barrel in the first nine months of 2008. The Company realized a net loss attributable to common shareholders of $(0.9 million) or $(0.02) per share of common stock during the first nine months of 2009, compared to a net income in the first nine months of 2008 to common shareholders of $8.8 million or $0.15 per share of common stock. Approximately $3.4 million [38%] of this income was attributable to the net effects of recognizing the Company's deferred tax assets in 2008. The Company recorded the remaining net operating loss carry forwards of $5.2 million in the first nine months of 2008 and recorded non-cash income tax expense of $1.8 million for the first nine months net income.
Jeffrey R. Bailey, CEO, said, "We have had modest operating income in the third quarter having seen a recovery in oil prices to about $60 per barrel in the third quarter from about $34 in January 2009. We plan to continue to rebuild revenues through the drill bit and workovers from our own cash flow while the oil price recovery continues. We believe the Company has weathered the storm of lower prices better than many other micro-cap oil and gas companies that have faced leverage issues and capital shortfalls. We expect to use the current higher prices to fund workovers and drill one more well late in the fourth quarter. Despite the lower oil prices than last year's levels, we have increased our gross oil sales in Kansas during the first nine months of 2009 to 175,948 barrels compared to 165,782 barrels during for the same period in 2008."
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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