Comparable Earnings Increase 13% Versus Last Year Oil Production Increases 19%
DENVER, March 10, 2011 (GLOBE NEWSWIRE) -- Credo Petroleum Corporation (Nasdaq:CRED), an oil and gas exploration and production company with significant assets in the North Dakota Bakken, Kansas, Nebraska, the Texas Panhandle and Oklahoma, today reported financial results for the quarter ended January 31, 2011.
First quarter earnings, excluding unrealized commodity hedge losses, increased 13% to $725,000, or $.07 per diluted share, compared to $642,000, or $.06 per diluted share, last year. For the two periods, unrealized commodity hedge losses, after tax, totaled $556,000 and $3,000, respectively. Including unrealized commodity hedge losses, the Company reported net income of $169,000, or $.02 per diluted share for the first quarter, compared to $639,000, or $.06 per diluted share last year. First quarter revenue increased to $3,250,000 compared to $3,142,000 last year.REALIZED OIL PRICES GAIN 9%; NATURAL GAS PRICE REALIZATIONS FALL 12% The Company's net wellhead oil prices for the quarter ended January 31, 2011 increased 9% to $79.75 per barrel compared to $73.21 last year. Natural gas price realizations fell 12% to $4.50 per Mcf compared to $5.12 last year. Realized hedging transactions boosted wellhead gas prices $.16 this year compared to a $.03 loss last year. Wellhead gas prices (excluding hedging transactions) were $4.34 per Mcf compared to $5.15 last year. At January 31, 2011, the Company held costless collar contracts (hedges) for 5,000 barrels of oil for each production month of February through December 2011 with a floor of $80.00 and a ceiling ranging from $90.50 to $97.50 per barrel. The Company also held costless collar contracts for 3,000 barrels of oil for each production month of calendar year 2012 with a floor of $80.00 and a ceiling ranging from $94.00 to $99.00. The February contracts subsequently expired with no gain or loss realized. Additionally, the Company held natural gas derivative contracts for 60,000 MMBtus covering the production months of February and March 2011. The natural gas contracts have subsequently expired and a $22,000 gain was realized.