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New Concept Energy Reports Fourth Quarter And Full Year 2009 Financial Results

Corporate general and administrative expenses increased from $852,000 to $1.2 million, due primarily to the write-down of receivables of approximately $200,000 and the accrual of taxes of $200,000, offset by reductions in salaries and wages of approximately $50,000.

Interest Income: Interest income decreased approximately $200,000 from 2008 to 2009 due to the reduction interest rate on portions of the notes receivable from eight percent to the prime rate plus two percent during 2009.

Interest Expense: Interest expense for 2009 decreased approximately $150,000 due to the pay-off of $6.9 million of related party debt in the first quarter of 2008.

Gain on sale of assets: In 2008, the Company sold its investment in mineral rights in the Fayetteville Shale for a gain of approximately $16.4 million. No gain or loss was recorded on sales of assets in 2009.

Other Income: Other income decreased from $464,000 in 2008 to 68,000 in 2009. Other income in 2008 is primarily due to cash received from receivables that were previously fully reserved.

 
New Concept Energy, Inc. and Subsidiaries
 

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share amounts)

 

 

Year Ended
December 31,
2009   2008
 
Revenue
Oil and gas operations, net of royalties $ 1,241 $ 672
Real estate operations   2,857     2,888  
4,098 3,560
 
Operating expenses
Oil and gas operations 1,516 496
Real estate operations 1,334 1,400
Lease expense 958 954
Corporate general and administrative 1,207 852
Accretion of asset retirement obligation 117
Impairment of natural gas and oil properties   1,695      
  6,827     3,702  
 
Operating earnings (loss) (2,729 ) (142 )
 
Other income (expense)
Interest income 574 785
Interest expense (123 ) (270 )
Gain on sale of assets, net 16,432
Other income, net   68     464  
  519     17,411  
 
Earnings from continuing operations (2,210 ) 17,269
Provision for income taxes       (1,774 )
 
Net income from continuing operations (2,210 ) 15,495
 
Discontinued operations (net of income taxes)
Loss from operations
Gain (loss) from sale of assets        
 
Net loss from discontinued operations        
 
Net income applicable to common shares $ (2,210 ) $ 15,495  
Earnings (loss) per common share – basic
Continuing operations $ (1.27 ) $ 8.92
Discontinued operations        
Net earnings (loss) per share $ (1.27 ) $ 8.92  
 
Weighted average common and equivalent shares

outstanding – basic

1,737

1,737

 

The accompanying notes are an integral part of these statements.

 
New Concept Energy Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

 
December 31,
Assets 2009   2008
 
Current assets:
 
Cash and cash equivalents $ 155 $ 190
Accounts receivable from oil and gas sales 203 353
Note and interest receivable – related party 11,206 10,731
Other current assets (including $189 from related parties in

2008)

  567   428
 
Total current assets 12,131 11,702
 
Oil and natural gas properties (full cost accounting method):
 
Proved developed and undeveloped oil and gas properties, net of depletion

11,372

13,022

 
Property and equipment, net of depreciation:
 
Land, buildings and equipment - oil and gas operations 1,337 1,291
Other 149 149
   
Total property and equipment 1,486 1,440
 
Other assets   132   228
 
Total Assets $ 25,121 $ 26,392
 

The accompanying notes are an integral part of these statements.

 
New Concept Energy Inc. and Subsidiaries
 

CONSOLIDATED BALANCE SHEETS - CONTINUED

(amounts in thousands, except share amounts)

 
December 31,
Liabilities And Stockholders’ Equity 2009   2008
 
Current liabilities:
 
Accounts payable – trade $ 154 $ 202
Accrued expenses   2,711     1,944  
 
Total current liabilities 2,865 2,146
 
Long-term debt:
Notes payable 1,198 1,026
Asset retirement obligation 2,450 2,334
Other long-term liabilities   326     394  
 
Total liabilities 6,839 5,900
 
Stockholders’ equity:
Preferred stock, Series B 1 1
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,939 shares at
December 31, 2009 and 2008 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (40,577 )   (38,367 )
 
  18,282     20,492  
 
Total Liabilities & Equity $ 25,121   $ 26,392  




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