GREENWOOD VILLAGE, Colo.,
Aug. 13, 2020 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today its
financial results for the quarter ended June
30, 2020. The Company reported a net loss of
$554,000 or $0.05 per share of common stock during the second
quarter of 2020 compared to a net income from continuing operations
of $9,000 or $0.00 per share of common stock during the second
quarter of 2019. The $563,000
decrease in net income was primarily due to an $827,000 decrease in revenues, partially offset
by a $223,000 decrease in production
costs and taxes, and a $41,000
decrease in depreciation, depletion, and amortization costs.
The Company recognized $563,000 in
revenues during the second quarter of 2020 compared to $1.4 million during the second quarter of 2019.
The $827,000 decrease in net revenues
was primarily due to a $684,000
reduction related to a $30.26 per
barrel decrease in the average oil price from $54.98 per barrel during the second quarter of
2019 to $24.72 per barrel during the
second quarter of 2020, and a $142,000 reduction related to a 2.6MBbl decrease
in oil sales volumes. The 2.6MBbl decrease in sales volumes
was primarily related to lower sales on the Albers, BSU, Veverka D
leases related to natural production declines, partially offset by
sales from the Zimmerman well that was completed at the beginning
of 2020.
The Company reported a net loss of $(1.1
million) or $(0.10) per share
of common stock during the first six months of 2020 compared to a
net loss of $(87,000) or $(0.01) per share of common stock during the
first six months of 2019. The $994,000 decrease in net income was primarily due
to an $1.0 million decrease in
revenues, and a $41,000 decrease in
gain on sale of assets, partially offset by a $65,000 decrease in depreciation, depletion, and
amortization costs, and a $39,000
decrease in production costs and taxes.
The Company recognized $1.53
million in revenues during the first six months of 2020
compared to $2.56 million during the
first six months of 2019. The $1.03
million decrease in net revenues was primarily due to an
$896,000 reduction related to a
$19.50 per barrel decrease in the
average oil price from $52.53 per
barrel during the first six months of 2019 to $33.03 per barrel during the first six months of
2020, and a $135,000 reduction
related to a 2.6MBbl decrease in sales volumes. The 2.6MBbl
decrease in sales volumes was primarily related to lower sales on
the Albers, BSU, Veverka D leases related to natural production
declines, partially offset by sales from the Zimmerman well that
was completed at the beginning of 2020.
Michael J. Rugen, CEO, said
"During the second quarter the crude oil commodity market did see
some upward movement, though far less than needed to recover to
last year's level. The Company will continue to closely monitor its
costs and capital spending. At the end of the second quarter
in 2020, the Company has maintained both cash on hand and no
outstanding debt under the credit facility. We continue to
consider the opportunities identified in our ongoing process
through Roth Capital that would provide additional shareholder
value."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
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SOURCE Tengasco, Inc.