GREENWOOD VILLAGE, Colo.,
May 14, 2020 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today its
financial results for the quarter ended March 31, 2020. The Company reported a net
loss of $(527,000) or $(0.05) per share of common stock during the
first quarter of 2020 compared to a net loss of $(96,000) or $(0.01) per share of common stock during the
first quarter of 2019. The $431,000 decrease in net income was primarily due
to a $208,000 decrease in revenues, a
$185,000 increase in production cost
and taxes, and a $43,000 decrease in
gain on sale of assets.
The Company recognized $963,000 in
revenues during the first quarter of 2020 compared to $1.2 million during the first quarter of 2019.
The $208,000 decrease in revenues was
primarily due to a $8.82 per barrel
decrease in the average oil price from $49.88 per barrel received during the first three
months of 2019 to $41.06 per barrel
received during the first three months of 2020.
The increase in production cost and taxes was primarily related
to a change in oil inventory. The decrease in gain on sale of
assets was primarily related to the gain on sale of materials
inventory recorded during the first three months of 2019.
Michael J. Rugen, CEO, said "At
the end of the first quarter of 2020 and continuing during the
second quarter 2020, the oil and gas industry experienced a severe
decline in oil commodity pricing due to economic conditions of
reduced demand caused by the Coronavirus outbreak combined with an
oil price war between Saudi Arabia
and Russia. We expect availability
of crude storage to reach critical levels in the second quarter of
2020 and average crude oil pricing to remain significantly lower
than pricing received in the second quarter of 2019 as well as the
first quarter of 2020. The Company will continue to closely monitor
its costs and capital spending. At the end of the first
quarter in 2020, the Company has maintained both cash on hand and
no outstanding debt under the credit facility. The Company
applied and was approved by the Small Business Administration for a
PPP loan in amount of approximately $166,000 and was funded by Prosperity Bank in May
2020. The Company anticipates that it will be eligible for
forgiveness of the entire loan amount as it will be used for
eligible expenses as required by statute. In addition, we
continue to consider all opportunities identified in our ongoing
process through Roth Capital that may provide additional
shareholder value."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
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SOURCE Tengasco, Inc.