SAN DIEGO, Nov. 6, 2014 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL), today, announced its results for the third quarter of 2014, earning a net income of $206,313, or $0.01 per share basic and fully diluted on increased revenues. Total revenue for the quarter increased to $677,259 or a 2.7% increase over same period 2013. Total revenues for the nine months ending September 30, 2014 increased 45.3% from $1,772,368 to $2,575,129.
The year to date increase is chiefly due to a 26.4% increase in oil and natural gas production compounded with a stronger natural gas price, which averaged $4.83 for the first nine months of 2014 vs. $3.67 for the same period in 2013.
"With the connection of the McKinney well this week, we expect to build on these results with further increases in production," said Stephen Hosmer. "Our significant portfolio weighs heavily towards natural gas and is a strategy we will continue to pursue, particularly in light of softening oil prices."
The company will also drill 2 wells prior to year end.
Forward Looking Statements
In addition to historical information contained herein, this news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company's actual results to differ materially from those in the "forward-looking" statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company's control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.
| ROYALE ENERGY, INC. | ||||
| STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| 2014 | 2013-restated | 2014 | 2013-restated | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Revenues: | ||||
| Sale of Oil and Gas | $ 507,784 | $ 498,838 | $ 2,077,750 | $ 1,286,834 |
| Supervisory Fees and Other | 169,475 | 160,496 | 497,379 | 485,534 |
| Total Revenues | 677,259 | 659,334 | 2,575,129 | 1,772,368 |
| Costs and Expenses: | ||||
| General and Administrative | 858,137 | 753,227 | 2,280,268 | 2,309,441 |
| Lease Operating | 248,028 | 301,635 | 969,390 | 808,772 |
| Delay Rentals | 2,400 | 24,880 | 34,192 | 51,693 |
| Lease Impairment | 37,494 | 46,311 | 37,494 | 46,311 |
| Geological and Geophysical Expense | 0 | 24,997 | 0 | 24,997 |
| Inventory Write Down | 0 | 39,185 | 0 | 39,185 |
| Legal and Accounting | 39,030 | 26,509 | 307,433 | 278,973 |
| Marketing | 133,047 | 101,844 | 263,365 | 204,565 |
| Depreciation, Depletion and Amortization | 62,880 | 77,691 | 241,015 | 204,002 |
| Total Costs and Expenses | 1,381,016 | 1,396,279 | 4,133,157 | 3,967,939 |
| Gain on Turnkey Drilling Programs | 562,885 | 739,816 | 959,339 | 981,748 |
| Gain on Sale of Assets | 369,977 | 350,233 | 335,376 | 2,645,153 |
| Income (Loss) From Operations | 229,105 | 353,104 | (263,313) | 1,431,330 |
| Other Income (Expense): | ||||
| Interest Expense | (22,792) | (1,105) | (60,085) | (304,472) |
| Income (Loss) Before Income Tax Expense (Benefit) | 206,313 | 351,999 | (323,398) | 1,126,858 |
| Net Income (Loss) | $ 206,313 | 351,999 | (323,398) | 1,126,858 |
| Basic Earnings (Loss) Per Share | $ 0.01 | 0.03 | (0.02) | 0.08 |
| Diluted Earnings (Loss) Per Share | $ 0.01 | 0.03 | (0.02) | 0.08 |
| Other Comprehensive Income | ||||
| Unrealized Gain (Loss) on Equity Securities | $ (9,741) | 9,945 | (9,741) | 9,945 |
| Other Comprehensive Income, before tax | ||||
| Income Tax Expense Related to Items of Other Comprehensive Income | 0 | 0 | 0 | 0 |
| Other Comprehensive Income (Loss), net of tax | (9,741) | 9,945 | (9,741) | 9,945 |
| Comprehensive Income (Loss) | $ 196,572 | 361,944 | (333,139) | 1,136,803 |
| The notes to unaudited financial statements are an integral part of this financial statement. | ||||