New Concept Energy, Inc. Reports Second Quarter 2013 Results

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New Concept Energy, Inc. Reports Second 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 June 30, 2013 of $138,000 or $0.07 per share, compared to a net loss of $169,000 or $(0.09) per share for the three months ended June 30, 2012.

For the three months ended June 30, 2013, the Company recorded oil and gas revenues, net of royalty expenses of $384,000 as compared to $325,000 for the comparable period of 2012. The changes in oil and gas revenue was due to new oil wells that were drilled in late 2012.


The Company recorded revenues of $666,000 for the three months ended June 30, 2013 from its retirement property compared to $663,000 for the comparable period in 2012.

For the three months ended June 30, 2013, the Company recorded oil and gas operating expenses of $493,000 as compared to $453,000 for the comparable period of 2012. The increase was partially due to an increase in depletion expense of $20,000. The marked decrease in the market price being paid for natural gas resulted in a modification in the valuation the Company placed on its gas reserves which impacted the anticipated production life of its wells. This led to an acceleration of the depletion expense being recorded. The balance of the increases in operating expenses were due to an overall increase in non-payroll related expenses.

For the three months ended June 30, 2013, operating expenses at the retirement property were $383,000 as compared to $353,000 for the comparable period in 2012. The increases in operating expenses were due to an overall increase in non-payroll related expenses.

For the three months ended June 30, 2013, corporate general & administrative expenses were $170,000 as compared to $134,000 for the comparable period 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 June 30, 2013, the Company recorded a bad debt expense recovery of $394,000 with respect to a note receivable that was fully reserved in 2011. During 2012 and the first six months of 2013 the Company has received $2.8 million in payments toward recovery of the note.

  
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
 

June 30,
2013

December 31,
2012

 
Assets
 
Current assets
Cash and cash equivalents$960$398
Accounts receivable from oil and gas sales236210
Other current assets 6 2
Total current assets 1,202 610
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion9,4329,717
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations1,4611,410
Other 193 204
Total property and equipment1,6541,614
 

Other assets (including $119,625 and $161,300 due from related parties in 2013 and 2012

 576 543
 
Total assets$12,864$12,484
  
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
 

June 30,
2013

December 31,
2012

 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade$137$38
Accrued expenses232173
Current portion of long term debt 48  93 
Total current liabilities417304
 
Long-term debt
Notes payable less current portion2,3212,273
Asset retirement obligation2,7702,770
Other long-term liabilities 541  491 
Total liabilities6,0495,838
 
Stockholders' equity
Preferred stock, Series B11
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares
at June 30, 2013 and December 31, 20122020
Additional paid-in capital58,83858,838
Accumulated deficit (52,044) (52,213)
 
 6,815  6,646 
 
Total liabilities & equity$12,864 $12,484 
    
 
NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
 

For the Three Months
ended June 30,

For the Six Months
ended June 30,

2013201220132012
Revenue
Oil and gas operations, net of royalties$384$325$724$615
Real estate operations 666  663  1,346  1,337 
 1,050  988  2,070  1,952 
 
 
Operating expenses
Oil and gas operations493453949924
Real estate operations383353769719
Lease expense236231472462
Corporate general and administrative170134343293
Accretion of asset retirement obligation-34-68
Impairment of natural gas and oil properties -  -  -  912 
 1,282  1,205  2,533  3,378 
Operating earnings (loss)(232)(217)(463)(1,426)
 
 
Other income (expense)
Interest income2-8-
Interest expense(24)(56)(73)(118)
Recovery of bad debt expense394-733-
Other income (expense), net (2) 104  (36) 108 
Other income (expense) 370  48  632  (10)
 
 

Net income (loss) applicable to common shares

$138 $(169)$169 $(1,436)

 

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

$0.07 $(0.09)$0.09 $(0.74)
 
Weighted average common and equivalent shares outstanding - basic1,9471,9471,9471,947

anImage


New Concept Energy Inc.
Gene Bertcher, 972-407-8400
info@newconceptenergy.com
or
Investor Relations, 800-400-6407

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

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