New Concept Energy, Inc. Reports Second Quarter 2020 Results

New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss from continuing operations for the three months ended June 30, 2020 of $137,000 or ($0.03) per diluted share, compared to net loss from continuing operations of $141,000 or ($0.03) per share for the three months ended June 30, 2019.

The Company reported a net loss from continuing operations for the six months ended June 30, 2020 of $234,000 or ($0.05) per share, compared to net loss from continuing operations of $15,000 for the six months ended June 30, 2019.

For the three months ended June 30, 2019, the Company recorded oil and gas revenues of $93,000 as compared to $164,000 for the comparable period of 2019. The decrease was principally due to a lower price received for the sale of natural gas.

For the three months ended June 30, 2020, the Company recorded oil and gas operating expenses of $163,000 as compared to $231,000 for the comparable period of 2019. The decrease was principally due to reductions in payroll, consulting fees and overall expenses.

For the three months ended June 30, 2019, corporate general & administrative expenses were $127, 000 as compared to $134,000 for the comparable periods in 2019.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(amounts in thousands)

June 30,
2020

December 31,
2019

 
Assets
 
Current assets
Cash and cash equivalents

$

39

$

22

Accounts receivable from oil and gas sales

 

69

 

73

Current portion note receivable (including $3,620 and $4,136 in 2020 and 2019 from related parties

 

3,660

 

4,046

Other current assets

 

25

 

-

Total current assets

 

3,793

 

4,141

 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion

 

706

 

767

 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations

 

662

 

668

 
Note receivable

 

192

 

214

 
Total assets

$

5,353

$

5,790

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - CONTINUED

(unaudited)

(dollars in thousands, except par value amount)

   
 

June 30,
2020

December 31,
2019

   
Liabilities and stockholders' equity  
   
Current liabilities  
Accounts payable - (including $20 and $180 due to related parties in 2020 and 2019)  

$

195

$

355

Accrued expenses  

 

37

 

35

Current portion of long term debt  

 

40

 

44

Total current liabilities  

 

272

 

434

   
Long-term debt  
Notes payable less current portion  

 

161

 

177

Asset retirement obligation  

 

2,745

 

2,770

Total liabilities  

 

3,178

 

3,381

   
Stockholders' equity  
Preferred stock, Series B  

 

1

 

1

Common stock, $.01 par value; authorized, 100,000,000  
shares; issued and outstanding, 5,131,934 and 2,036,935 shares  
at June 30, 2020 and December 31, 2019  

 

51

 

51

Additional paid-in capital  

 

63,579

 

63,579

Accumulated deficit  

 

(61,456)

 

(61,222)

   
Total shareholder equity  

 

2,175

 

2,409

   
Total liabilities & equity  

$

5,353

$

5,790

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(amounts in thousands, except per share data)

   
 

For the Three Months
ended June 30,

 

For the Six Months
ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenue  
Oil and gas operations, net of royalties  

$

93

$

164

$

218

$

344

   
Operating expenses  
Oil and gas operations  

 

163

 

231

 

341

 

410

Corporate general and administrative  

 

127

 

134

 

231

 

222

Total Operating Expenses  

 

290

 

365

 

572

 

632

Operating earnings (loss)  

 

(197)

 

(201)

 

(354)

 

(288)

   
   
Other income (expense)  
Interest income  

 

63

 

64

 

127

 

129

Interest expense  

 

(3)

 

(4)

 

(7)

 

(9)

Other income (expense), net  

 

-

 

-

 

-

 

153

Expense  

 

60

 

60

 

120

 

273

   
   
Net income (loss) applicable to common shares  

$

(137)

$

(141)

$

(234)

$

(15)

   
Net income (loss) per common share-basic and diluted  

$

(0.03)

$

(0.03)

$

(0.05)

$

-

   
   
Weighted average common and equivalent shares outstanding - basic  

 

5,132

 

5,132

 

5,132

 

5,132