Attached files
| file | filename |
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| 8-K - TENGASCO, INC. 8-K 12-9-2015 - Riley Exploration Permian, Inc. | form8k.htm |
Exhibit 99.1
Annual Shareholders MeetingDecember 9, 2015 TENGASCO, INC. 1
Annual Shareholders Meeting – December 9, 2015Outline of Presentation Introduction of Directors and OfficersForward Looking StatementsSignificant Activities Since The Last Shareholders MeetingExploration Play UpdateOil PricesCapital Spending and Drilling ResultsKansas ProductionBorrowings on Credit FacilityFinancial ReviewNine months ended September 30, 2015 and 2014Year ended December 31, 2014 and 2013OutlookResults of VotingShareholder Questions 2
Annual Shareholders Meeting – December 9, 2015Directors and Officers Peter SalasDirector, Chairman of the Board, member of the Exploration CommitteeElected to the Board in 2002 and as Chairman of the Board in 2004Matt BehrentDirector, Chairman of the Audit Committee, member of the Compensation CommitteeElected to the Board in 2007Hugh BrooksDirector, Chairman of the Compensation Committee, member of the Exploration CommitteeElected to the Board in 2010Rich ThonDirector, member of the Audit Committee, member of the Compensation CommitteeElected to the Board in 2013Mike RugenCFO since 2009 and Interim CEO since 2013Cary SorensenVP, General Counsel, and Corporate Secretary since 1999 3
Forward Looking StatementsExcept for the historical information contained in this review, the matters discussed in this presentation are forward-looking statements within the meaning of applicable securities laws, that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward-looking statements include risks inherent in drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs and other services, land issues, federal and state regulatory developments and other risks more fully described in the Company’s filings with the U.S. Securities and Exchange Commission (SEC). 4
Annual Shareholders Meeting – December 9, 2015Significant Activities Since The Last Shareholders Meeting Continued to lease additional acreage outside the Central Kansas UpliftContinued to evaluate opportunities (primarily in Kansas and surrounding states)Current inventoryCorporateAcquisition of producing propertiesAcreageNon-operated opportunitiesWhile we reviewed numerous opportunities, we believe many seller’s expectations are still excessive, but we anticipate that continued low price environment and leverage will create opportunities for attractive transactions in the coming yearDebt levels remain low$7.8 million borrowing base$734K drawn at 12/31/2014$670K drawn at 12/9/2015Salary reductions for all employees and directors’ compensation reductions$135K reduction so far this year ($155K on an annualized basis) 5
Annual Shareholders Meeting – December 9, 2015Update on Acreage Outside Central Kansas Uplift In December 2013, leased approximately 4,100 acresIn 2014, shot seismic over originally lease acreageIn 2014, renewed approximately 1,900 acres of the original 4,100 acresDrilled a dry hole in December 2014, although dry, we were able to tie into our seismicLeased an additional 7,600 acres during 2014 and 2015 (total of approximately 9,500 currently leased)Will take advantage of current low seismic cost and begin shooting seismic in December 2015 over the newly leased acreageDiscussing opportunity with potential partners in order to share cost and risk, and maintain more debt capacity for acquisitionsPlan to drill in the second quarter of 2016 – drilling plans will be dependent on locations we are able to identify from seismic, as well as oil prices at that timeTo date the Company has invested $1.4 million in this project 6
Annual Shareholders Meeting – December 9, 2015Capital Spending and Drilling / Polymer Results($ Thousands) YTD Est. FY 2014 Sep. 2015 2015Capital Spending (includes accruals): Drilling 2,520 174 174 Recompletions 209 75 75 Polymers 175 - - Leasehold 648 90 90 Seismic 277 21 151 MMC 204 - - Other 58 118 118 Total Capital Spending 4,091 478 608Drilling and Polymers: Wells Drilled 10 (1 well started in Nov 2013) 1 1 Wells Completed 5 - - Polymers Performed 2 - - Convert to SWD 2 1 1 Recompletions 3 1 1 7
Annual Shareholders Meeting – December 9, 2015Average Monthly Oil Price Received($ per barrel) 8
Annual Shareholders Meeting – December 9, 2015Average Daily Kansas Gross Oil Production For Selected Months(Barrels) 9
Annual Shareholders Meeting – December 9, 2015Bank Borrowings – Quarter End Balance($ Thousands) 10
Annual Shareholders Meeting – December 9, 2015Financial Summary($ Thousands, except per share data, sales volumes, and price per barrel) 9 Months Ended September 30, * 2015 2014 Change PercentRevenues 4,958 11,108 (6,150) (55.4)%Production cost and taxes (3,223) (4,769) 1,546 32.4%DD&A (2,082) (2,217) 135 6.1%General & administrative (1,557) (2,062) 505 24.5%Impairment (non-cash charge) 7,189 - (7,189) Net income from operations (9,093) 2,060 (11,153) (541.4)%Interest expense (70) (78) 8 10.3%Gain on sale of assets 38 34 4 11.8%Tax expense 3,572 (789) 4,361 552.7%Net income (loss) (5,553) 1,227 (6,780) (552.6)%Net income (loss) per share – Basic and Diluted $ (0.09) $ 0.02 $ (0.11) (550.0)%Net Sales Volumes (MBbl) 101.0 114.9 (13.9) (12.1)%Oil Price ($/Bbl) $ 44.65 $ 92.90 $ (48.25) (51.9)%* Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. 11
Annual Shareholders Meeting – December 9, 2015Production Cost and Taxes & General and Administrative($ Thousands, except cost per barrel) 9 Months Ended September 30, * 2015 2014 Change PercentProduction Cost and Taxes:Kansas (2,930) (3,976) 1,046 26.3%Methane Facility (293) (407) 114 28.0%Other - (386) 386 100.0%Total Production Cost and Taxes (3,223) (4,769) 1,546 32.4%Kansas Cost Per Barrel (using net sales volumes) $ (29.01) $ (34.60) $ 5.59 16.2%General and Administrative:Payroll and Directors’ Compensation (688) (869) 181 20.8%Accounting, Consulting, Legal, and Engineering Services (418) (430) 12 2.8%Office, Relocation and Staffing Costs (51) (307) 256 83.4%Other (400) (456) 56 12.3% Total General and Administrative (1,557) (2,062) 505 24.5%* Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. 12
Annual Shareholders Meeting – December 9, 2015Financial Summary – Continuing Operations($ Thousands, except per share data, sales volumes, and price per barrel) Year Ended December 31, 2014 2013 Change PercentRevenues 13,788 15,700 (1,912) (12.2)%Production cost and taxes (5,994) (5,524) (470) (8.5)%DD&A (3,030) (2,912) (118) (4.1)%General & administrative (2,707) (2,059) (648) (31.5)%Impairment (non-cash charge) (2,796) - (2,796) Net income from operations (739) 5,205 (5,944) (115.2)%Interest expense (88) (357) 269 75.4%Gain on sale of assets 33 118 (85) (72.0)%Tax expense 6 (2,010) 2,016 100.3%Net income from continuing operations (788) 2,956 (3,744) (126.7)%Loss from discontinued operations, net of tax benefit _ - (137) 137 100.0%Net income (loss) (788) 2,819 (3,607) (128.0)%Net income (loss) per share – Basic and Diluted Continuing operations (0.01) 0.05 (0.06) (120.0)% Discontinued operations (0.00) 0.00Net Sales Volumes (MBbl) 153.5 166.2 (12.7) (7.6)%Oil Price ($/Bbl) $ 86.05 $ 91.03 $ (4.98) (5.5)% 13
Annual Shareholders Meeting – December 9, 2015Outlook Company anticipates prices to remain low during 2016Company will continue to manage our borrowing levelsContinue to identify and evaluate opportunities (increasing efforts outside of Kansas)Current inventoryCorporateAcquisition of producing propertiesAcreageNon-operated opportunitiesExploration Committee comprised of Directors Salas and Brooks was formed to more actively assist management in the identification and evaluation of opportunitiesProduction Cost & General and AdministrativeNo bonuses will be paid to corporate and office personnel this yearWhen wells go down and require repairs we won’t do the work at this time unless it is economic to do soContinue to review personnel, services and the service providers we use to determine if there are cost effective alternativesWill continue to monitor personnel levels and compensation, but believe further cuts would impede our ability to source and evaluate growth opportunities 14
Annual Shareholders Meeting – December 9, 2015 The Company’s management and Board of Directors want to thank all of our employees and their families for their dedication and contribution to Tengasco. We also want to thank the shareholders for your continued support. We hope to see you again next year at our Shareholder Meeting in 2016 15
Annual Shareholders Meeting – December 9, 2015 Results of Voting 16
Annual Shareholders Meeting – December 9, 2015 Shareholder QuestionsPlease state your name and confirm you are a shareholder of the Company 17