New Concept Energy, Inc. (NYSE MKT: GBR), (the "Company" or "NCE"), a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter ended December 31, 2015. During the three months ended December 31, 2015 the Company reported a net loss of $2,971,000 or ($1.52) per share, compared to a net loss of $124,000 or ($0.22) per share for the same period ended December 31, 2014. Included in the loss for 2015 is a $2,717,000 non-cash charge for impairment of the value of the Company's oil and gas properties.
Revenues: Total revenues were $3.8 million in 2015 and $4.4 million in 2014. Net revenue for our oil and gas operation decreased by $700,000 in 2015 as compared to 2014. The fluctuation was principally due to the price the Company received for its oil in 2015 as compared to 2014. The revenue for the retirement community increased by approximately $100,000 in 2015 compared to 2014 principally due to rate increases.
Operating Expenses: Operating expenses were $7.8 million in 2015 and $5.3 million in 2014.
In 2015 pursuant to the requirements of the "full cost ceiling test" for oil & gas companies, we recorded a non-cash charge to operations of $2,717,000 to write down its investment in Ohio and West Virginia. This charge to earnings was caused by the severe drop in the market price of oil all throughout 2015.
Corporate Expenses were $605,000 in 2015 and $823,000 in 2014. The decrease is primarily due to a reduction in legal fees paid in 2015 as compared to 2014.
Interest Income & Expense: Interest Expense was $62,000 in 2015 as compared to $91,000 in 2014. The decrease was due to a reduction in the long term debt owed to the previous owners of the Company's oil and gas operation in West Virginia / Ohio.
Other Income & (Expense): Other income & (expense) was ($32,000) for 2015 as compared to $197,000 in 2014. The balances in 2015 and 2014 are comprised of numerous events.
Bad Debt Expense (Recovery): In 2015 the company recorded a bad debt expense recovery of $1,430,000 with respect to a note receivable that was fully reserved in a prior year
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based oil and gas company which owns oil and gas wells and mineral leases in Ohio and in West Virginia. In addition, the Company leases and operates a retirement center in King City, Oregon. For more information, visit the Company's website at www.newconceptenergy.com.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATION | |||||||||||||
(amounts in thousands, except per share data) | |||||||||||||
Year Ended December 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Revenue | |||||||||||||
Oil and gas operations, net of royalties | $ | 820 | $ | 1,489 | $ | 1,477 | |||||||
Real estate operations | 2,997 | 2,874 | 2,745 | ||||||||||
3,817 | 4,363 | 4,222 | |||||||||||
Operating expenses | |||||||||||||
Oil and gas operations | 1,800 | 1,853 | 1,867 | ||||||||||
Real estate operations | 1,685 | 1,616 | 1,555 | ||||||||||
Lease expense | 980 | 961 | 942 | ||||||||||
Corporate general and administrative | 605 | 823 | 500 | ||||||||||
Impairment of natural gas and oil properties | 2,717 | - | 200 | ||||||||||
7,787 | 5,253 | 5,064 | |||||||||||
Operating earnings (loss) | (3,970 | ) | (890 | ) | (842 | ) | |||||||
Other income (expense) | |||||||||||||
Interest income | 12 | 5 | 9 | ||||||||||
Interest expense | (62 | ) | (91 | ) | (114 | ) | |||||||
Bad debt expense (recovery) - note receivable | 1,430 | - | 1,562 | ||||||||||
Other income (expense), net | (32 | ) | 197 | (189 | ) | ||||||||
1,348 | 111 | 1,268 | |||||||||||
Earnings (loss) from continuing operations | (2,622 | ) | (779 | ) | 426 | ||||||||
Net income (loss) applicable to common shares | $ | (2,622 | ) | $ | (779 | ) | $ | 426 | |||||
Net income (loss) per common share-basic and diluted | $ | (1.35 | ) | $ | (0.40 | ) | $ | 0.22 | |||||
Weighted average common and equivalent shares outstanding - basic | 1,947 | 1,947 | 1,947 |
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(amounts in thousands) | |||||||
December 31, | |||||||
2015 | 2014 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 473 | $ | 300 | |||
Accounts receivable from oil and gas sales | 141 | 216 | |||||
Other current assets | 37 | 182 | |||||
Total current assets | 651 | 698 | |||||
Oil and natural gas properties (full cost accounting method) | |||||||
Proved developed and undeveloped oil and gas properties, net of depletion | 5,914 | 8,809 | |||||
Property and equipment, net of depreciation | |||||||
Land, buildings and equipment - oil and gas operations | 803 | 1,476 | |||||
Other | 134 | 162 | |||||
Total property and equipment | 937 | 1,638 | |||||
Other assets (including $126,000 and $122,000 in 2015 and 2014 due from related parties) | 1,373 | 1,129 | |||||
Total assets | $ | 8,875 | $ | 12,274 |
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||||
(amounts in thousands, except share amounts) | |||||||||
December 31, | |||||||||
2015 | 2014 | ||||||||
Liabilities and stockholders' equity | |||||||||
Current liabilities | |||||||||
Accounts payable - trade (including $168 and $494 in 2015 and 2014 due to related parties) |
$ | 241 | $ | 673 | |||||
Accrued expenses | 151 | 229 | |||||||
Current portion of long term debt | 831 | 881 | |||||||
Total current liabilities | 1,223 | 1,783 | |||||||
Long-term debt | |||||||||
Notes payable less current portion | 1,211 | 1,428 | |||||||
Asset retirement obligation | 2,770 | 2,770 | |||||||
Total liabilities | 5,204 | 5,981 | |||||||
Stockholders' equity | |||||||||
Series B convertible preferred stock, $10 par value, liquidation value of $100 authorized 100 shares, issued and outstanding one share |
1 | 1 | |||||||
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares at December 31, 2015 and 2014 |
20 | 20 | |||||||
Additional paid-in capital | 58,838 | 58,838 | |||||||
Accumulated deficit | (55,188 | ) | (52,566 | ) | |||||
3,671 | 6,293 | ||||||||
Total liabilities & stockholders' equity | $ | 8,875 | $ | 12,274 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160330006384/en/
New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
info@newconceptenergy.com
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