New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2013 Results

DALLAS--()--New Concept Energy, Inc. (NYSE MKT: GBR) (the “Company” or “NCE”), a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter ended December 31, 2013. During the three months ended December 31, 2013 the Company reported net income of $124,000 or $0.06 per share, compared to net income of $84,000 or $0.04 per share for the same period ended December 31, 2012.

For the year ended December 31, 2013 the Company had net income of $426,000 or $0.22 per share, compared to net income of $168,000 or $0.09 per share for the year ended December 31, 2012.

Total revenue for 2013 was $1.5 million for our oil & gas segment and $2.7 million for our real estate segment as compared to $1.2 million for oil & gas and $2.7 million for real estate in 2012. Net revenue for our oil and gas operation increased by $300,000 principally due to both the quantity of both oil and gas produced as well as the price in 2013 as compared to 2012.

Operating expenses for the oil and gas operations were $2.1 million and $2.8 million for the years of 2013 and 2012 respectively. Included in operating expenses were non-cash expenses for depreciation, depletion and amortization of $654,000 in 2013 and $690,000 in 2012.

In 2013 the Company recorded a $200,000 non-cash charge to operations to write down its investment in two wells in Arkansas. In 2012 the Company recorded a similar non-cash charge to operations of $912,000 for its operations in West Virginia / Ohio. In 2013 the value of our investment in West Virginia / Ohio calculated in accordance with the “full cost ceiling test” was recovered; however, the accounting rules prohibit the recovery of a previously taken write-down.

Operating expense for the real estate segment were $2.5 million in 2013 and $2.4 million in 2012.

In the fourth quarter of 2011 the Company had a $10.3 million note receivable and determined that the financial condition of the debtor had deteriorated and there could be no assurance that the amount owed would or could be collected. At that time the company recorded a loss and established a reserve of $10.3 million. In 2013 and 2012 the Company recorded a gain from the partial recovery of the previously reserved note receivable of $1.6 million and $2.1 million respectively. The Company will continue to attempt to collect the balance of the receivable.

 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(amounts in thousands, except per share data)
           
Year Ended December 31,
2013 2012 2011
Revenue
Oil and gas operations, net of royalties $ 1,477 $ 1,182 $ 1,020
Real estate operations   2,745     2,762     2,881  
  4,222     3,944     3,901  
 
Operating expenses
Oil and gas operations 1,867 1,820 1,430
Real estate operations 1,555 1,465 1,290
Lease expense 942 924 906
Corporate general and administrative 500 577 579
Accretion of asset retirement obligation - 68 129

Impairment of natural gas and oil properties

  200     912     1,428  
  5,064     5,766     5,762  
Operating earnings (loss) (842 ) (1,822 ) (1,861 )
 
Other income (expense)
Interest income 9 - 360
Interest expense (114 ) (208 ) (131 )
Bad debt expense (recovery) - note receivable 1,562 2,076 (10,006 )
Other income (expense), net   (189 )   122     (155 )
1,268 1,990 (9,932 )
 
Earnings from continuing operations 426 168 (11,793 )
 
Net income (loss) applicable to common shares $ 426   $ 168   $ (11,793 )
 
Net income (loss) per common share-basic and diluted $ 0.22   $ 0.09   $ (6.06 )
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947
 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
 
    December 31
2013     2012
Assets
 
Current assets
Cash and cash equivalents $ 1,621 $ 398
Accounts receivable from oil and gas sales 195 210
Other current assets   203   2
Total current assets   2,019   610
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 9,190 9,717
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,442 1,410
Other   183   204
Total property and equipment 1,625 1,614
 
Other assets (including $122,000 and $161,000 in 2013 and 2012 due from related parties)   474   543
 
Total assets $ 13,308 $ 12,484
 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
       
December 31
2013 2012
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 121 $ 38
Accrued expenses 965 173
Current portion of long term debt   185     93  
Total current liabilities 1,271 304
 
Long-term debt
Notes payable less current portion 2,195 2,273
Payable - related parties - -
Asset retirement obligation 2,770 2,770
Other long-term liabilities   -     491  
Total liabilities 6,236 5,838
 
Stockholders' equity
Series B convertible preferred stock, $10 par value, liquidation value
of $100 authorized 100 shares, issued and outstanding one share 1 1
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares

at December 31, 2013 and 2012

20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (51,787 )   (52,213 )
 
  7,072     6,646  
 
Total liabilities & equity $ 13,308   $ 12,484  

Contacts

New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
info@newconceptenergy.com

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Contacts

New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
info@newconceptenergy.com