New Concept Energy, Inc. Reports First Quarter 2013 Results

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New Concept Energy, Inc. Reports First Quarter 2013 Results

DALLAS--(BUSINESS WIRE)-- New Concept Energy, Inc. (NYSE MKT: GBR), ( the "Company" or "NCE") a Dallas-based oil and gas company, today reported net income for the three months ended March 31, 2013 of $31,000 or $0.02 per share, compared to a net loss of $1,267,000 or $(0.65) per share for the three months ended March 31, 2012.

For the three months ended March 31, 2013, the Company recorded oil and gas revenues of $340,000 as compared to $290,000 for the comparable period of 2012. The change in oil & gas revenue was due to an increase of approximately $50,000 due to new oil wells that were opened in late 2012.


The Company recorded revenues of $680,000 for the three months ended March 31, 2013 from its retirement property compared to $674,000 for the comparable period in 2012.

For the three months ended March 31, 2013, the Company recorded oil and gas operating expenses of $456,000 as compared to $471,000 for the comparable period of 2012. Included in operating expense are depletion and depreciation expense of $225,000 for 2013 and $181,000 for 2012. The net decrease of $15,000 in overall operating expenses consists of an increase in depletion expense of $44,000 and a decrease in other operating expenses of $59,000. There was less overall development activity in 2013 resulting in less need for outside services.

For the three months ended March 31, 2013, operating expenses including lease expense at the retirement property were $622,000 as compared to $597,000 for the comparable period in 2012.

For the three months ended March 31, 2013, corporate general & administrative expenses were $173,000 as compared to $159,000 for the comparable periods in 2012. The increase is primarily due to legal fees incurred by the company to defend itself against certain lawsuits.

For the three months ended March 31, 2013 the company recorded a bad debt expense recovery of $339,000 with respect to a note receivable that was fully reserved in 2011. During 2012 and the first quarter of 2013 the company has received $2.4 million in payments toward recovery of the note.

      
NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
 
For the Three Months
ended March 31,
20132012
Revenue
Oil and gas operations, net of royalties$340$290
Real estate operations 680  674 
 1,020  964 
 
 
Operating expenses
Oil and gas operations456471
Real estate operations386366
Lease expense236231
Corporate general and administrative173159
Accretion of asset retirement obligation-34
Impairment of natural gas and oil properties -  912 
 1,251  2,173 
Operating earnings (loss)(231)(1,209)
 
Other income (expense)
Interest income60
Interest expense(49)(62)
Recovery of bad debt expense339-
Other income (expense), net (34) 4 
Expense 262  (58)
 
 
Net income (loss) applicable to common shares$31 $(1,267)
 

Net income (loss) per common share - basic and diluted

$0.02 $(0.65)
 
Weighted average common and equivalent shares outstanding - basic1,9471,947
 
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
 
    March 31,  December 31,
2013 2012
 
Assets
 
Current assets
Cash and cash equivalents$688$398
Accounts receivable from oil and gas sales187210
Other current assets 2 2
Total current assets 877 610
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion9,5589,717
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations1,4271,410
Other 203 204
Total property and equipment1,6301,614
 
Other assets (including $112,500 and $161,300 due from related parties

in 2013 and 2012

 576 543
 
Total assets$12,641$12,484
 
     
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
 

March 31,

December 31,

2013

 2012
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade$174$38
Accrued expenses139173
Current portion of long term debt 156  93 
Total current liabilities469304
 
Long-term debt
Notes payable less current portion2,2342,273
Asset retirement obligation2,7702,770
Other long-term liabilities 491  491 
Total liabilities5,9645,838
 
Stockholders' equity
Preferred stock, Series B11
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares
at March 31, 2013 and December 31, 20122020
Additional paid-in capital58,83858,838
Accumulated deficit (52,182) (52,213)
 
 6,677  6,646 
 
Total liabilities & equity$12,641 $12,484 



New Concept Energy, Inc.
Gene Bertcher, 972-407-8400
info@newconceptenergy.com

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

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