HOUSTON, Nov. 10 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that third quarter 2009 revenues were $7,810,000, compared to $17,866,000 in the third quarter of 2008, a decrease of approximately 56.3%. The largest components of revenue in the third quarter of 2009 were oil and gas sales, which decreased by approximately 57% when compared to same period of 2008, due to lower natural gas, oil and natural gas liquids commodity prices.
The Company reported net loss of $2,018,000 or ($0.74) per share for the third quarter of 2009 compared to net income of $34,488,000 or $12.69 per share for the same period in 2008. The decrease in the net loss recorded during the three months ended September 30, 2009, as compared to the net income recorded for the same period in 2008, is primarily attributable to a $49,008,000 decrease in gain on swap transactions, a $10,056,000 decrease in revenues and a $1,033,000 increase in depreciation, depletion and amortization expense. This was partially offset by a $2,553,000 decrease in lease operating expenses, transportation and taxes, a $18,302,000 increase in income tax benefit and an impairment of oil and gas properties in amount of $3,088,000 that was recorded in 2008.
The Company reported net loss of $8,242,000, or ($3.03) per share, for the nine months ended September 30, 2009, as compared to a net loss of $5,346,000, or ($1.97) per share, for the comparable nine month period in 2008. The increase in the loss recorded during the nine months ended September 30, 2009 is primarily attributable to a $22,253,000 decrease in revenues, a $5,764,000 increase in depreciation, depletion and amortization expense and a $1,396,000 increase in general and administrative expense. In addition, the results for the nine months ended September 30, 2009 fully reflected operations related to the GFB Acquisition, while the comparable period in 2008 only reflected six months of such operations. These factors were in turn partially offset by a $18,062,000 decrease in loss (gain) on swap transactions, a $4,086,000 decrease in lease operating expenses, transportation and taxes, a $1,929,000 increase in income tax benefit and an impairment of oil and gas properties in amount of $3,137,000 that was recorded in 2008.
There are currently 2,717,691 shares of Common Stock issued and outstanding.
Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):
For the Three For the Nine Months Ended Months Ended September 30, September 30, -------------- ------------------ 2009 2008 2009 2008 ---- ---- ---- ---- STATEMENT OF OPERATIONS DATA Revenues $7,810 $17,866 $22,216 $44,469 Total operating expenses 9,874 13,590 28,016 27,760 Operating income (loss) (2,064) 4,276 (5,800) 16,709 Net income (loss) (2,018) 34,488 (8,242) (5,346) Earnings (loss) per share - basic and diluted (0.74) 12.69 (3.03) (1.97) CASH FLOW DATA Net cash provided by operating activities 16,394 12,516 Net cash provided by (used in) investing activities 12 (98,988) Net cash provided by (used in) financing activities (16,423) 91,475 September December 30, 31, 2009 2008 ---- ---- BALANCE SHEET DATA Current assets $16,573 $21,988 Total assets 182,516 203,371 Current liabilities 24,722 39,050 Total liabilities 164,184 178,337 Total shareholders' equity 18,332 25,034
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2008, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.
SOURCE ISRAMCO, INC.