New Concept Energy, Inc. Reports First Quarter 2014 Results

DALLAS--()--New Concept Energy, Inc. (NYSE MKT: GBR), ( the “Company” or “NCE”) a Dallas-based oil and gas company, today reported net loss for the three months ended March 31, 2014 of $40,000 or $0.02 per share, compared to a net income of $31,000 or $(0.02) per share for the three months ended March 31, 2013.

For the three months ended March 31, 2014, the Company recorded oil and gas revenues of $344,000 as compared to $340,000 for the comparable period of 2013.

The Company recorded revenues of $725,000 for the three months ended March 31, 2014 from its retirement property compared to $680,000 for the comparable period in 2013. The increase was due principally due to rate increases.

For the three months ended March 31, 2014, the Company recorded oil and gas operating expenses of $483,000 as compared to $456,000 for the comparable period of 2013. Included in operating expenses are $166,000 and $207,000 for the three months ended March 31, 2014 and 2013 respectively of depreciation and depletion which are non-cash expenses. In 2014 operating expenses were $68,000 higher than in 2013. The increases were due to general operating expenses. The increase in operating expenses was partially offset by lower depreciation, depletion and amortization cost of $41,000.

For the three months ended March 31, 2014, operating expenses including lease expense at the retirement property were $636,000, as compared to $622,000 for the comparable period in 2013.

For the three months ended March 31, 2014, corporate general & administrative expenses were $192,000 as compared to $173,000 for the comparable periods in 2013. The increase is primarily due to $18,000 of consulting fees paid to assist the Company reviewing its oil and gas operations and identifying new oil & gas.

For the three months ended March 31, 2014 other income was $232,000 which represents a cash payment the Company received from the bankruptcy estate of the prior owners of the oil & gas operations which the Company acquired in 2008.

 
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,
  2014     2013  
Revenue
Oil and gas operations, net of royalties $ 344 $ 340
Real estate operations   725     680  
  1,069     1,020  
 
 
Operating expenses
Oil and gas operations 483 456
Real estate operations 396 386
Real Estate - lease expense 240 236
Corporate general and administrative   192     173  
  1,311     1,251  
Operating earnings (loss) (242 ) (231 )
 
Other income (expense)
Interest income 1 6
Interest expense (31 ) (49 )
Recovery of bad debt expense - 339
Other income (expense), net   232     (34 )
Expense   202     262  
 
 
Net income (loss) applicable to common shares $ (40 ) $ 31  
 
Net income (loss) per common share-basic and diluted $ (0.02 ) $ 0.02  
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947
   

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)

March 31,
2014

December 31,
2013

 
Assets
 
Current assets
Cash and cash equivalents $ 443 $ 1,621
Accounts receivable from oil and gas sales 168 195
Other current assets   201   203
Total current assets   812   2,019
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 9,025 9,190
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,422 1,442
Other   188   183
Total property and equipment 1,610 1,625
 

Other assets (including $123,000 and $122,000 due from related parties
in 2014 and 2013)

1,145 474
 
Total assets $ 12,592 $ 13,308
   
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
 

March 31,
2014

December 31,
2013

 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 303 $ 121
Accrued expenses 175 965
Current portion of long term debt   185     185  
Total current liabilities 663 1,271
 
Long-term debt
Notes payable less current portion 2,127 2,195
Asset retirement obligation   2,770     2,770  
Total liabilities 5,560 6,236
 
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, 2014 and December 31, 2013 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (51,827 )   (51,787 )
 
  7,032     7,072  
 
Total liabilities & equity $ 12,592   $ 13,308  

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