This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Credo Releases The Text Of The Report To Shareholders Contained In Its 2010 Annual Report

Stocks in this article: CRED

DENVER, Feb. 22, 2011 (GLOBE NEWSWIRE) -- CREDO Petroleum Corporation (Nasdaq:CRED) today released the text of the Report to Shareholders that is included in the company's Annual Report for fiscal 2010. The Annual Report will soon be mailed to shareholders and will also be available on-line through Credo's website ( www.credopetroleum.com).

The Report to Shareholders contains important information about the company, including certain estimates. This information may be deemed to include "forward‑looking statements" as described in the last paragraph of this press release. Accordingly, readers are encouraged to carefully review the "forward-looking statements" section of this press release.

Report from Marlis E. Smith, Jr., President & CEO

Dear Shareholders:

The theme of last year's annual report was "Building Momentum in Oil Plays". This year's theme, "Growth Through Oil-Focused Drilling", defines Credo today—as we embark on the most aggressive drilling schedule in company history in order to exploit oil's significant price advantage over natural gas. We have built good momentum in several outstanding oil plays, and Credo is now well‑positioned to achieve substantial organic growth by significantly ramping-up our oil drilling operations.

Credo had a good year despite encountering some strong headwinds in 2010, such as a 27% drop in realized natural gas prices and production delays due to shortages of fracture stimulation equipment for horizontal wells. Highlights included a 15% revenue increase, with oil accounting for 59% of our total production revenue. Net income increased 277% to $2,203,000, compared to adjusted net income of $584,000 in 2009. We ended the year in very strong financial condition with significant operating cash flow and a rock-solid balance sheet, including ample cash and no debt. That enables us to enter 2011 with a significantly expanded drilling program and to seize opportunities that will propel future growth. 

Business Strategy. Credo's business has undergone very significant changes over the last few years to implement your Board's decision to move away from natural gas and focus on building oil production and reserves. Our Board identified the opportunity and made that decision in 2008, well ahead of industry competition. That strategy proved both timely and correct, as oil is currently worth three times more than natural gas on an energy equivalent basis. In order to deliver outstanding results to our shareholders, we must own high quality assets that deliver profitability. We can exploit the significant value gap between oil and natural gas to dramatically benefit our bottom line by adding high-margin oil reserves in diversified plays through organic growth, and by making opportunistic acquisitions. 

Utilizing new technology is a key part of our business strategy to find and produce oil. We are employing advanced 3-D seismic technology to help locate previously hidden but very economically attractive shallow oil deposits in Kansas and Nebraska. We are also utilizing the latest advances in precision horizontal drilling and multi-stage, high pressure fracture stimulation technology to develop oil reserves in deeper plays, both conventional and non-conventional, such as the North Dakota Bakken and the Texas Panhandle Tonkawa.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs