New Concept Energy, Inc. Reports Second 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 June 30, 2014 of $99,000 or $0.05 per share, compared to a net income of $138,000 or $0.07 per share for the three months ended June 30, 2013. Included in 2013 was income for a recovery of bad debt expense of $394,000.

Operating expenses included non-cash depletion, depreciation and amortization of $338,000 and $431,000 in 2014 and 2013 respectively.

For the three months ended June 30, 2014, the Company recorded oil and gas revenues, net of royalty expenses of $485,000 as compared to $384,000 for the comparable period of 2013. The changes in oil and gas revenue were due to new oil wells that were drilled in late 2013.

The Company recorded revenues of $728,000 for the three months ended June 30, 2014 from its retirement property compared to $666,000 for the comparable period in 2013. The increase was primarily due to rate increases.

For the three months ended June 30, 2014, the Company recorded oil and gas operating expenses of $425,000 as compared to $493,000 for the comparable period of 2013. The decrease was primarily due to a decrease in depletion expense of $55,000.

For the three months ended June 30, 2014, operating expenses at the retirement property were $628,000 as compared to $619,000 for the comparable period in 2013. The increases in operating expenses were due to an overall increase in non-payroll related expenses.

For the three months ended June 30, 2014, corporate general & administrative expenses were $205,000 as compared to $170,000 for the comparable period in 2013. The increase is primarily due to $36,000 of consulting fees paid to assist the Company in its operations and to identify new oil and gas opportunities.

               
 
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,

2014 2013 2014 2013
Revenue
Oil and gas operations, net of royalties $ 485 $ 384 $ 829 $ 724
Real estate operations   728     666     1,453     1,346  
  1,213     1,050     2,282     2,070  
 
 
Operating expenses
Oil and gas operations 425 493 908 949
Real estate operations 387 383 783 769
Lease expense 241 236 481 472
Corporate general and administrative   205     170     397     343  
  1,258     1,282     2,569     2,533  
Operating earnings (loss) (45 ) (232 ) (287 ) (463 )
 
 
Other income (expense)
Interest income 1 2 2 8
Interest expense (22 ) (24 ) (53 ) (73 )
Recovery of bad debt expense - 394 - 733
Other income (expense), net   (33 )   (2 )   199     (36 )
Other income (expense)   (54 )   370     148     632  
 
 

Net income (loss) applicable to common shares

$ (99 ) $ 138   $ (139 ) $ 169  

 

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

$ (0.05 ) $ 0.07   $ (0.07 ) $ 0.09  
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947 1,947
       
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
 

June 30,
2014

December 31,
2013

 
Assets
 
Current assets
Cash and cash equivalents $ 301 $ 1,621
Accounts receivable from oil and gas sales 228 195
Other current assets   203   203
Total current assets   732   2,019
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 8,975 9,190
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,527 1,442
Other   182   183
Total property and equipment 1,709 1,625
 

Other assets (including $124 and $161 due from related parties in 2014 and 2013)

  1,169   474
 
Total assets $ 12,585 $ 13,308
       
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
 

June 30,
2014

December 31,
2013

 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 239 $ 121
Accrued expenses 248 965
Current portion of long term debt   207     185  
Total current liabilities 694 1,271
 
Long-term debt
Notes payable less current portion 2,188 2,195
Asset retirement obligation   2,770     2,770  
Total liabilities 5,652 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 June 30, 2014 and December 31, 2013 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (51,926 )   (51,787 )
 
  6,933     7,072  
 
Total liabilities & equity $ 12,585   $ 13,308  

Contacts

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

Contacts

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