Category: Oil & Gas
- Published: 09 June 2016
- Written by Editor
New Concept Energy, Inc. Reports First Quarter 2016 Results
DALLAS -- New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss for the three months ended March 31, 2016 of $296,000 or ($0.15) per share, compared to net income of $314,000 or $0.16 per share for the three months ended March 31, 2015.
In March 2015 the Company recorded a $738,000 recovery of a note receivable which had been fully reserved in a prior year.
For the three months ended March 31, 2016, the Company recorded oil and gas revenues of $219,000 as compared to $172,000 for the comparable period of 2015. The increase in oil and gas revenue for the three months ended March 31, 2016 was $47,000. The increase is due to the production of more gas in 2016 than 2015. During 2016 the Company has reduced the production of oil from wells that were unprofitable due to the market price of oil.
The Company recorded revenues of $677,000 for the three months ended March 31, 2016 from its retirement property compared to $717,000 for the comparable period in 2014. The decrease is due to reduced occupancy at the facility.
For the three months ended March 31, 2016, the Company recorded oil and gas operating expenses of $396,000 as compared to $470,000 for the comparable period of 2015. The decrease was due to a specific effort by management to reduce operation costs. The decrease represents a $41,000 reduction in payroll costs and a reduction in general operating expenses of $38,000.
For the three months ended March 31, 2016, operating expenses at the retirement property were $348,000, as compared to $394,000 for the comparable period in 2015. The decreases were due
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (amounts in thousands) | ||||||||
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March 31, |
December 31, |
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| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 547 | $ | 473 | ||||
| Accounts receivable from oil and gas sales | 95 | 141 | ||||||
| Other current assets | 48 | 37 | ||||||
| Total current assets | 690 | 651 | ||||||
| Oil and natural gas properties (full cost accounting method) | ||||||||
| Proved developed and undeveloped oil and gas properties, net of depletion | 5,779 | 5,914 | ||||||
| Property and equipment, net of depreciation | ||||||||
| Land, buildings and equipment - oil and gas operations | 777 | 803 | ||||||
| Other | 130 | 134 | ||||||
| Total property and equipment | 907 | 937 | ||||||
| Other assets | 1,345 | 1,328 | ||||||
| Total assets | $ | 8,721 | $ | 8,830 | ||||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||||||||
| (amounts in thousands, except share amounts) | ||||||||||
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March 31, |
December 31, |
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| (unaudited) | ||||||||||
| Liabilities and stockholders' equity | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable - (including $348 and $168 due to related parties in 2016 and 2015) | $ | 440 | $ | 241 | ||||||
| Accrued expenses | 160 | 151 | ||||||||
|
Current portion of long-term debt |
831 | 831 | ||||||||
| Total current liabilities | 1,431 | 1,223 | ||||||||
| Long-term debt | ||||||||||
| Notes payable less current portion | 1,145 | 1,166 | ||||||||
| Asset retirement obligation | 2,770 | 2,770 | ||||||||
| Total liabilities | 5,346 | 5,159 | ||||||||
| Stockholders' equity | ||||||||||
| Preferred stock, Series B | 1 | 1 | ||||||||
| Common stock, $.01 par value; authorized, 100,000,000 | ||||||||||
| shares; issued and outstanding, 1,946,935 shares | ||||||||||
| at March 31, 2016 and December 31, 2015 | 20 | 20 | ||||||||
| Additional paid-in capital | 58,838 | 58,838 | ||||||||
| Accumulated deficit | (55,484 | ) | (55,188 | ) | ||||||
| Total shareholders' equity | 3,375 | 3,671 | ||||||||
| Total liabilities & equity | $ | 8,721 | $ | 8,830 | ||||||
| NEW CONCEPT ENERGY, INC AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||
| (unaudited) | ||||||||||
| (amounts in thousands, except per share data) | ||||||||||
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For the Three Months ended |
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| 2016 | 2015 | |||||||||
| Revenue | ||||||||||
| Oil and gas operations, net of royalties | $ | 219 | $ | 172 | ||||||
| Real estate operations | 677 | 717 | ||||||||
| Total Revenues | 896 | 889 | ||||||||
| Operating expenses | ||||||||||
| Oil and gas operations | 396 | 470 | ||||||||
| Real estate operations | 361 | 410 | ||||||||
| Real Estate - lease expense | 259 | 245 | ||||||||
| Corporate general and administrative | 166 | 154 | ||||||||
| Total Operating Expenses | 1,182 | 1,279 | ||||||||
| Operating earnings (loss) | (286 | ) | (390 | ) | ||||||
| Other income (expense) | ||||||||||
| Interest income | 6 | 0 | ||||||||
| Interest expense | (11 | ) | (26 | ) | ||||||
| Recovery of bad debt expense | - | 738 | ||||||||
| Other income (expense), net | (5 | ) | (8 | ) | ||||||
| Expense | (10 | ) | 704 | |||||||
| Net income (loss) applicable to common shares | $ | (296 | ) | $ | 314 | |||||
| Net income (loss) per common share-basic and diluted | $ | (0.15 | ) | $ | 0.16 | |||||
| Weighted average common and equivalent shares outstanding - basic | 1,947 | 1,947 | ||||||||
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New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
Gene Bertcher, 800-400-6407
This email address is being protected from spambots. You need JavaScript enabled to view it. to a reduction in general operating expenses.