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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Israel Acquisitions Corporation | NASDAQ:ISRL | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.91 | 10.78 | 11.00 | 0 | 09:02:01 |
Check One
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☒
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Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended
March 31, 2018
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or
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☐
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Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Delaware
|
|
13-3145265
|
(State or other Jurisdiction of Incorporation or Organization)
|
|
I.R.S. Employer Number
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Large accelerated filer
☐
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|
Accelerated filer
☒
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Non-accelerated filer
☐
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Smaller Reporting Company
☐
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Emerging growth company
☐
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Page
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PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
Item 1.
|
4
|
|
|
4
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|
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5
|
|
|
6
|
|
|
7
|
|
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8
|
|
Item 2.
|
19
|
|
Item 3.
|
27
|
|
Item 4.
|
27
|
|
|
|
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PART II. OTHER INFORMATION
|
|
|
|
|
|
Item 1.
|
28
|
|
Item 1A.
|
28
|
|
Item 2.
|
28
|
|
Item 3.
|
28
|
|
Item 4.
|
28
|
|
Item 5.
|
28
|
|
Item 6.
|
29
|
|
|
30
|
|
As of
March 31, 2018
|
As of
December 31, 2017
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
11,886
|
$
|
30,009
|
||||
Accounts receivable, net of allowances for doubtful accounts of $2,241 and $2,431
|
14,037
|
12,549
|
||||||
Restricted and designated cash
|
703
|
802
|
||||||
Inventories
|
419
|
475
|
||||||
Prepaid expenses and other
|
2,115
|
2,711
|
||||||
Total Current Assets
|
29,160
|
46,546
|
||||||
|
||||||||
Property and Equipment, at cost – successful efforts method:
|
||||||||
Oil and Gas properties
|
243,974
|
243,812
|
||||||
Advanced payment for equipment
|
452
|
564
|
||||||
Production service equipment and other equipment and property
|
62,109
|
59,108
|
||||||
Total Property and Equipment
|
306,535
|
303,484
|
||||||
Accumulated depreciation, depletion, amortization and impairment
|
(252,594
|
)
|
(251,355
|
)
|
||||
Net Property and Equipment
|
53,941
|
52,129
|
||||||
|
||||||||
Derivative asset
|
837
|
187
|
||||||
Restricted cash – long term
|
26,519
|
9,674
|
||||||
Investments
|
261
|
261
|
||||||
Total Assets
|
$
|
110,718
|
$
|
108,797
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
13,329
|
$
|
13,515
|
||||
Short term debt and current maturities of long-term debt, net of discount of $834 and $828
|
21,639
|
18,517
|
||||||
Payables due to related party
|
50
|
60
|
||||||
Accrued interest
|
1,079
|
1,027
|
||||||
Derivative liability
|
47
|
457
|
||||||
Total Current Liabilities
|
36,144
|
33,576
|
||||||
|
||||||||
Long term debt, net of discount of $1,934 and $2,131
|
71,866
|
77,369
|
||||||
|
||||||||
Other Long-term Liabilities:
|
||||||||
Asset retirement obligations
|
21,872
|
21,670
|
||||||
Total Liabilities
|
129,882
|
132,615
|
||||||
|
||||||||
Commitments and contingencies
|
||||||||
|
||||||||
Shareholders’ Deficit:
|
||||||||
Common stock $0.01 par value; authorized 7,500,000 shares; issued 2,746,915 shares; outstanding 2,717,648 shares
|
27
|
27
|
||||||
Additional paid-in capital
|
23,853
|
23,853
|
||||||
Accumulated deficit
|
(35,935
|
)
|
(40,970
|
)
|
||||
Treasury stock, 29,267 shares at cost
|
(164
|
)
|
(164
|
)
|
||||
Total Isramco, Inc. Shareholders’ Deficit
|
(12,219
|
)
|
(17,254
|
)
|
||||
Non controlling interest
|
(6,945
|
)
|
(6,564
|
)
|
||||
Total Deficit
|
(19,164
|
)
|
(23,818
|
)
|
||||
Total Liabilities and Shareholders’ Deficit
|
$
|
110,718
|
$
|
108,797
|
|
Three Months Ended March 31
|
|||||||
|
2018
|
2017
|
||||||
Revenues
|
||||||||
Oil and gas sales
|
$
|
10,984
|
$
|
11,064
|
||||
Production services
|
5,763
|
3,468
|
||||||
Office services
|
136
|
137
|
||||||
Gain on divestiture
|
472
|
-
|
||||||
Other
|
138
|
131
|
||||||
Total revenues
|
17,493
|
14,800
|
||||||
|
||||||||
Operating expenses
|
||||||||
Lease operating expense, transportation and taxes
|
2,300
|
2,186
|
||||||
Depreciation, depletion and amortization
|
1,291
|
1,504
|
||||||
Accretion expense
|
230
|
222
|
||||||
Production services
|
5,585
|
3,942
|
||||||
Loss from plug and abandonment
|
58
|
22
|
||||||
General and administrative
|
1,365
|
1,178
|
||||||
Total operating expenses
|
10,829
|
9,054
|
||||||
Operating income
|
6,664
|
5,746
|
||||||
|
||||||||
Other expenses
|
||||||||
Interest expense, net
|
1,217
|
1,188
|
||||||
Loss (gain) from derivative contracts, net
|
(865
|
)
|
131
|
|||||
Total other expenses
|
352
|
1,319
|
||||||
|
||||||||
Income before income taxes
|
6,312
|
4,427
|
||||||
Income tax expense
|
1,658
|
1,706
|
||||||
|
||||||||
Net income
|
$
|
4,654
|
$
|
2,721
|
||||
Net loss attributable to non-controlling interests
|
(381
|
)
|
(447
|
)
|
||||
Net income attributable to Isramco
|
$
|
5,035
|
$
|
3,168
|
||||
|
||||||||
Earnings per share – basic:
|
$
|
1.85
|
$
|
1.17
|
||||
|
||||||||
Earnings per share – diluted:
|
$
|
1.85
|
$
|
1.17
|
||||
|
||||||||
Weighted average number of shares outstanding basic:
|
2,717,648
|
2,717,648
|
||||||
Weighted average number of shares outstanding diluted:
|
2,717,648
|
2,717,648
|
|
Three Months Ended March 31
|
|||||||
|
2018
|
2017
|
||||||
Net income
|
$
|
4,654
|
$
|
2,721
|
||||
Comprehensive income
|
4,654
|
2,721
|
||||||
Comprehensive loss attributable to non-controlling interests
|
(381
|
)
|
(447
|
)
|
||||
Comprehensive income attributable to Isramco
|
$
|
5,035
|
$
|
3,168
|
|
Three months Ended
March 31,
|
|||||||
|
2018
|
2017
|
||||||
|
||||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
4,654
|
$
|
2,721
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, depletion, and amortization
|
1,291
|
1,504
|
||||||
Bad debt expense
|
58
|
-
|
||||||
Accretion expense
|
230
|
222
|
||||||
Gain on divestiture
|
(472
|
)
|
-
|
|||||
Changes in deferred taxes
|
-
|
4
|
||||||
Net unrealized gain on derivative contracts
|
(1,060
|
)
|
(133
|
)
|
||||
Amortization of debt cost
|
191
|
201
|
||||||
Changes in components of working capital and other assets and liabilities
|
||||||||
Accounts receivable
|
(1,546
|
)
|
(1,530
|
)
|
||||
Prepaid expenses, and other
|
596
|
361
|
||||||
Due to related party
|
(10
|
)
|
(18
|
)
|
||||
Inventories
|
56
|
123
|
||||||
Accounts payable and accrued expenses
|
(255
|
)
|
(165
|
)
|
||||
Net cash provided by operating activities
|
3,733
|
3,290
|
||||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Addition to property and equipment, net
|
(2,992
|
)
|
(230
|
)
|
||||
Proceeds from sale of oil and gas properties and equipment
|
454
|
-
|
||||||
Net cash used in investing activities
|
(2,538
|
)
|
(230
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Repayment of long term debt
|
(2,400
|
)
|
(2,400
|
)
|
||||
Borrowings of bank overdraft, net
|
-
|
17
|
||||||
Repayments of short - term debt, net
|
(172
|
)
|
(223
|
)
|
||||
Net cash used in financing activities
|
(2,572
|
)
|
(2,606
|
)
|
||||
|
||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
(1,377
|
)
|
454
|
|||||
Cash, cash equivalents, and restricted cash at beginning of period
|
40,485
|
33,913
|
||||||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
39,108
|
$
|
34,367
|
|
As of
March 31, 2018
|
As of
December 31, 2017
|
||||||
Cash and cash equivalents
|
$
|
11,886
|
$
|
30,009
|
||||
Restricted and designated cash
|
703
|
802
|
||||||
Restricted cash – long term
|
26,519
|
9,674
|
||||||
Total Current Assets
|
$
|
39,108
|
$
|
40,485
|
2018
|
$
|
16,500
|
||
2019
|
21,900
|
|||
2020
|
17,100
|
|||
2021
|
14,700
|
|||
2022
|
14,400
|
|||
2023
|
11,400
|
|||
Total
|
$
|
96,000
|
● |
Increase in property and equipment of $112,000 included in accounts payable.
|
● |
Asset retirement obligation of $19,000 relieved in sale of oil and gas properties.
|
● |
Net refund of advance payment for property and equipment of $38,000 used to reduce accounts payable.
|
|
Three Months Ended March 31,
|
|||||||
|
2018
|
2017
|
||||||
Oil and Gas sales
|
||||||||
United States
|
$
|
3,775
|
$
|
3,950
|
||||
Israel
|
7,209
|
7,114
|
||||||
Production Services
|
5,763
|
3,468
|
||||||
Total revenues from contracts with customers
|
$
|
16,747
|
$
|
14,532
|
|
|
March 31, 2018
|
December 31, 2017
|
|||||||||||||||
Financial Instrument
|
Fair Value Input Level
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
|
|
Value
|
Value
|
Value
|
Value
|
|||||||||||||
|
|
|||||||||||||||||
ST Liabilities:
|
|
|||||||||||||||||
Interest rate swaps
|
Level 2
|
$
|
(47
|
)
|
$
|
(47
|
)
|
$
|
(457
|
)
|
$
|
(457
|
)
|
|||||
|
|
|||||||||||||||||
LT Assets:
|
|
|||||||||||||||||
Interest rate swaps
|
Level 2
|
837
|
837
|
187
|
187
|
|||||||||||||
|
|
|||||||||||||||||
|
|
$
|
790
|
$
|
790
|
$
|
(270
|
)
|
$
|
(270
|
)
|
|
As of
March 31, 2018
|
As of
December 31, 2017
|
||||||
Bank loan
|
||||||||
Principal amount
|
$
|
96,000
|
$
|
98,400
|
||||
Less: unamortized discount and debt costs
|
(2,768
|
)
|
(2,959
|
)
|
||||
Total long-term debt
|
93,232
|
95,441
|
||||||
Less: current maturities, net of current unamortized discount
|
(21,366
|
)
|
(18,072
|
)
|
||||
|
||||||||
Long-term debt, net of current maturities
|
$
|
71,866
|
$
|
77,369
|
|
Three Months Ended
March 31,
|
|||||||
|
2018
|
2017
|
||||||
|
(In thousands)
|
|||||||
Current debt, long-term debt and other - banks
|
$
|
1,217
|
$
|
1,188
|
● |
Completion Service
. Newly drilled wells require completion services to prepare the well for production. Production servicing rigs are frequently used to complete newly drilled wells to minimize the use of higher cost drilling rigs in the completion process. The completion process may involve selectively perforating the well casing in the productive zones to allow oil or gas to flow into the well bore, stimulating and testing these zones, and installing the production string and other downhole equipment. The completion process typically ranges from a few days to several weeks, depending on the nature and type of the completion, and generally requires additional auxiliary equipment in addition to a production services rigs. The demand for completion services is directly related to drilling activity levels, which are sensitive to fluctuations in oil and gas prices.
|
● |
Well-servicing/Maintenance Services.
We provide maintenance services on the mechanical apparatus used to pump or lift oil from producing wells. These services include, among other activities, repairing and replacing pumps, sucker rods and tubing. We provide the rigs, equipment and crews for these tasks, which are performed on both oil and natural gas wells, but which are more commonly required on oil wells. Maintenance services typically take less than 48 hours to complete. Rigs generally are provided to customers on a call-out basis.
|
● |
Workover Services
. Producing oil and natural gas wells occasionally require major repairs or modifications, called “workovers.” Workovers may be required to remedy failures, modify well depth and formation penetration to capture hydrocarbons from alternative formations, clean out and recomplete a well when production has declined, repair leaks or convert a depleted well to an injection well for secondary or enhanced recovery projects. Workovers normally are carried out with pumps and tanks for drilling fluids, blowout preventers, and other specialized equipment for servicing rigs. A workover may last anywhere from a few days to several weeks.
|
● |
Fluid Services.
We own and operate 42 fluid service trucks equipped with an average fluid hauling capacity of up to 130 barrels a piece. Each fluid service truck is equipped to pump fluids from or into wells, pits, tanks and other storage facilities. The majority of our fluid service trucks are also used to transport water to fill frac tanks on well locations, to transport produced salt water to disposal wells, and to transport drilling and completion fluids to and from well locations.
|
● |
Plugging Services
. Production servicing rigs are also used in the process of permanently closing oil and gas wells no longer capable of producing in economic quantities. Many well operators bid for this work on a “turnkey” basis, requiring the service company to perform the entire job, including the sale or disposal of equipment salvaged from the well as part of the compensation received, and complying with state regulatory requirements. Plugging and abandonment work can provide favorable operating margins and is less sensitive to oil and gas pricing than drilling and workover activity since well operators must plug a well in accordance with state regulations when it is no longer productive. We perform plugging and abandonment work throughout our core areas of operation in conjunction with equipment provided by us or by other service companies.
|
(in thousands)
|
Oil and Gas
Exploration
& Production
|
Production Services
|
Eliminations
|
Total
|
||||||||||||
Three Months Ended March 31, 2018:
|
||||||||||||||||
Sales revenues
|
||||||||||||||||
United States
|
$
|
3,775
|
$
|
5,763
|
$
|
-
|
$
|
9,538
|
||||||||
Israel
|
7,209
|
-
|
-
|
7,209
|
||||||||||||
Office services and other
|
776
|
-
|
(30
|
)
|
746
|
|||||||||||
|
||||||||||||||||
Total revenues and other
|
11,760
|
5,763
|
(30
|
)
|
17,493
|
|||||||||||
|
||||||||||||||||
Operating costs and expenses
|
3,775
|
5,793
|
(30
|
)
|
9,538
|
|||||||||||
Depreciation, depletion, and amortization
|
470
|
821
|
-
|
1,291
|
||||||||||||
Interest expenses, net
|
120
|
1,097
|
-
|
1,217
|
||||||||||||
Gain on derivative contracts
|
(865
|
)
|
-
|
-
|
(865
|
)
|
||||||||||
|
||||||||||||||||
Total expenses and other
|
3,500
|
7,711
|
(30
|
)
|
11,181
|
|||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
$
|
8,260
|
$
|
(1,948
|
)
|
$
|
-
|
$
|
6,312
|
|||||||
Net Income (loss)
|
6,214
|
(1,560
|
)
|
-
|
4,654
|
|||||||||||
Net loss attributable to noncontrolling interests
|
-
|
(381
|
)
|
-
|
(381
|
)
|
||||||||||
Net income (loss) attributable to Isramco
|
6,214
|
(1,179
|
)
|
-
|
5,035
|
|||||||||||
Total Assets
|
$
|
67,768
|
$
|
42,950
|
$
|
-
|
$
|
110,718
|
||||||||
Expenditures for Long-lived Assets
|
$
|
133
|
$
|
2,859
|
$
|
-
|
$
|
2,992
|
(in thousands)
|
Oil and Gas
Exploration
& Production
|
Production Services
|
Eliminations
|
Total
|
||||||||||||
Three Months Ended March 31, 2017:
|
||||||||||||||||
Sales revenues
|
||||||||||||||||
United States
|
$
|
3,950
|
$
|
3,468
|
$
|
-
|
$
|
7,418
|
||||||||
Israel
|
7,114
|
-
|
-
|
7,114
|
||||||||||||
Office services and other
|
298
|
-
|
(30
|
)
|
268
|
|||||||||||
|
||||||||||||||||
Total revenues and other
|
11,362
|
3,468
|
(30
|
)
|
14,800
|
|||||||||||
|
||||||||||||||||
Operating costs and expenses
|
3,495
|
4,085
|
(30
|
)
|
7,550
|
|||||||||||
Depreciation, depletion, and amortization
|
765
|
739
|
-
|
1,504
|
||||||||||||
Interest expenses, net
|
303
|
885
|
-
|
1,188
|
||||||||||||
Loss on derivative contracts
|
131
|
-
|
-
|
131
|
||||||||||||
|
||||||||||||||||
Total expenses and other
|
4,694
|
5,709
|
(30
|
)
|
10,373
|
|||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
$
|
6,668
|
$
|
(2,241
|
)
|
$
|
-
|
$
|
4,427
|
|||||||
Net Income (loss)
|
4,334
|
(1,613
|
)
|
-
|
2,721
|
|||||||||||
Net loss attributable to noncontrolling interests
|
-
|
(447
|
)
|
-
|
(447
|
)
|
||||||||||
Net income (loss) attributable to Isramco
|
4,334
|
(1,166
|
)
|
-
|
3,168
|
|||||||||||
Total Assets
|
$
|
104,941
|
$
|
36,517
|
$
|
-
|
$
|
141,458
|
||||||||
Expenditures for Long-lived Assets
|
$
|
96
|
$
|
134
|
$
|
-
|
$
|
230
|
|
As of
March 31,
|
As of
December 31,
|
||||||
In thousands
|
2018
|
2017
|
||||||
Long – term debt net of discount and bank fees
|
$
|
71,866
|
$
|
77,369
|
||||
|
||||||||
Current maturities of long-term debt, short-term debt and current portion of discount and debt cost
|
21,639
|
18,517
|
||||||
Total debt
|
$
|
93,505
|
$
|
95,886
|
||||
|
||||||||
Stockholders’ deficit
|
$
|
(19,164
|
)
|
$
|
(23,818
|
)
|
||
|
||||||||
Debt to capital ratio
|
126
|
%
|
133
|
%
|
2018
|
$
|
16,500
|
||
2019
|
21,900
|
|||
2020
|
17,100
|
|||
2021
|
14,700
|
|||
2022
|
14,400
|
|||
2023
|
11,400
|
|||
Total
|
$
|
96,000
|
|
Three Months Ended
March 31,
|
|||||||
|
2018
|
2017
|
||||||
|
(In thousands)
|
|||||||
Cash flows provided by operating activities
|
$
|
3,733
|
$
|
3,290
|
||||
Cash flows used in investing activities
|
(2,538
|
)
|
(230
|
)
|
||||
Cash flows used in financing activities
|
(2,572
|
)
|
(2,606
|
)
|
||||
Net increase (decrease) in cash
|
$
|
(1,377
|
)
|
$
|
454
|
Selected Data
|
||||||||
|
Three Months Ended March 31,
|
|||||||
|
2018
|
2017
|
||||||
|
(In thousands except per share
and BOE amounts)
|
|||||||
Financial Results
|
||||||||
Oil and Gas sales
|
||||||||
United States
|
$
|
3,775
|
$
|
3,950
|
||||
Israel
|
7,209
|
7,114
|
||||||
Production Services
|
5,763
|
3,468
|
||||||
Gain on divestiture
|
472
|
-
|
||||||
Other
|
274
|
268
|
||||||
Total revenues and other
|
17,493
|
14,800
|
||||||
|
||||||||
Cost and expenses
|
10,829
|
9,054
|
||||||
Other expenses
|
352
|
1,319
|
||||||
Income tax expense
|
1,658
|
1,706
|
||||||
Net income attributable to common shareholders
|
4,654
|
2,721
|
||||||
Net loss attributable to non-controlling interests
|
(381
|
)
|
(447
|
)
|
||||
Net income attributable to Isramco
|
5,035
|
3,168
|
||||||
Earnings per common share – basic
|
$
|
1.85
|
$
|
1.17
|
||||
Earnings per common share – diluted
|
$
|
1.85
|
$
|
1.17
|
||||
|
||||||||
Weighted average number of shares outstanding- basic
|
2,717,648
|
2,717,648
|
||||||
Weighted average number of shares outstanding- diluted
|
2,717,648
|
2,717,648
|
||||||
|
||||||||
Operating Results
|
||||||||
Adjusted EBITDAX
(1)
|
$
|
7,991
|
$
|
7,208
|
||||
Sales volumes United States (MBOE)
|
100
|
122
|
||||||
Sales volumes Israel (MBOE)
|
221
|
222
|
||||||
|
||||||||
Average cost per BOE United States:
(2)
|
||||||||
Production (excluding transportation and taxes)
|
$
|
18.32
|
$
|
14.05
|
||||
General and administrative (oil and gas production segment)
|
$
|
11.82
|
$
|
8.74
|
||||
Depletion
|
$
|
4.69
|
$
|
6.27
|
(1)
|
See Adjusted EBITDAX for a description of Adjusted EBITDAX, which is not a Generally Accepted Accounting Principles (GAAP) measure, and a reconciliation of Adjusted EBITDAX to income from operations before income taxes, which is presented in accordance with GAAP.
|
(2)
|
There are no costs associated with revenues from Israeli operations since the Company owns the Tamar Royalty, which is an overriding royalty free of operating expenses.
|
|
Three Months Ended March 31,
|
|||||||||||
In thousands except percentages
|
2018
|
2017
|
D
vs. 2017
|
|||||||||
Gas sales
|
$
|
750
|
$
|
1,097
|
(32
|
)%
|
||||||
Oil sales
|
2,670
|
2,447
|
9
|
|||||||||
Natural gas liquid sales
|
355
|
406
|
(13
|
)
|
||||||||
Total
|
$
|
3,775
|
$
|
3,950
|
(4
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||
|
2018
|
2017
|
D
vs. 2017
|
|||||||||
Natural Gas
|
||||||||||||
Sales volumes Mmcf
|
262.4
|
332.5
|
(21
|
)%
|
||||||||
Average Price per Mcf
|
$
|
2.86
|
$
|
3.30
|
(13
|
)
|
||||||
Total gas sales revenues (thousands)
|
$
|
750
|
$
|
1,097
|
(32
|
)%
|
||||||
|
||||||||||||
Crude Oil
|
||||||||||||
Sales volumes MBbl
|
43.0
|
49.1
|
(12
|
)%
|
||||||||
Average Price per Bbl
|
$
|
62.06
|
$
|
49.80
|
25
|
|||||||
Total oil sales revenues (thousands)
|
$
|
2,670
|
$
|
2,447
|
9
|
%
|
||||||
|
||||||||||||
Natural gas liquids
|
||||||||||||
Sales volumes MBbl
|
13.5
|
17.4
|
(22
|
)%
|
||||||||
Average Price per Bbl
|
$
|
26.22
|
$
|
23.32
|
12
|
|||||||
Total natural gas liquids sales revenues (thousands)
|
$
|
355
|
$
|
406
|
(13
|
)%
|
In thousands
|
Natural Gas
|
Oil
|
Natural gas liquids
|
|||||||||
2017 sales revenues
|
$
|
1,097
|
$
|
2,447
|
$
|
406
|
||||||
Changes associated with sales volumes
|
(231
|
)
|
(305
|
)
|
(90
|
)
|
||||||
Changes in prices
|
(116
|
)
|
528
|
39
|
||||||||
2018 sales revenues
|
$
|
750
|
$
|
2,670
|
$
|
355
|
|
Three Months Ended March 31,
|
|||||||||||
In thousands except percentages
|
2018
|
2017
|
D
vs. 2017
|
|||||||||
Lease operating expense, transportation and taxes
|
$
|
2,300
|
$
|
2,186
|
5
|
%
|
||||||
Depreciation, depletion and amortization of oil and gas properties
|
470
|
765
|
(39
|
)
|
||||||||
Accretion expense
|
230
|
222
|
4
|
|||||||||
Loss (gain) from plugging and abandonment of wells
|
58
|
22
|
164
|
|||||||||
General and administrative
|
1,186
|
1,066
|
11
|
|||||||||
|
$
|
4,244
|
$
|
4,261
|
(0.4
|
)%
|
·
|
Lease operating expense, transportation cost and taxes increased by 5%, or $114,000, in 2018 when compared to 2017 primarily due to increased repair work with increased economics. On a per unit basis, lease operating expenses (excluding transportation and taxes) increased by $4.27 per MBOE to $18.32 per MBOE in 2018 from $14.05 per MBOE in 2017.
|
·
|
Depreciation, Depletion & Amortization (“DD&A”) of the cost of proved oil and gas properties is calculated using the unit-of production method. Our DD&A rate and expense are the composite of numerous individual field calculations. There are several factors that can impact our composite DD&A rate and expense including, but not limited to, field production profiles, drilling or acquisition of new wells, disposition of existing wells, and reserve revisions (upward or downward) primarily related to well performance and commodity prices, and impairments. Changes in these factors may cause our composite DD&A rate and expense to fluctuate from period to period. DD&A decreased 39% in the first three months of 2018 as compared to the same period in 2017 as a result of a lower depletable base and lower production.
|
·
|
General and administrative expenses increased by 11% or $120,000, in 2018 when compared to 2017 as a result of increased professional fees, legal fees and wages.
|
|
Three Months Ended March 31,
|
|||||||||||
In thousands except percentages
|
2018
|
2017
|
D
vs. 2017
|
|||||||||
Production Services
|
$
|
5,763
|
$
|
3,468
|
66
|
%
|
||||||
Operating expenses
|
5,585
|
3,942
|
42
|
|||||||||
Depreciation
|
821
|
739
|
11
|
|||||||||
General and administrative
|
209
|
142
|
47
|
|||||||||
Operating loss
|
$
|
(852
|
)
|
$
|
(1,355
|
)
|
(37
|
)%
|
·
|
Our sales revenues from production services operations for the first quarter of 2018 increased by 66% or $2,295,000 when compared to same period in 2017 as a result of the increased demand for our services and related expansion in the market.
|
·
|
Operating expenses from production services operations for the first quarter of 2018 increased by 42% or $1,643,000 when compared to the same period in 2017 as a result increased operations and related payroll.
|
·
|
Production service equipment depreciation – the amounts represent depreciation of production services rigs and auxiliary equipment for our production services subsidiary. The depreciation expenses for the first quarter of 2018 totaled $821,000, an increase of $82,000 compared to the same period in 2017. This increase in depreciation is primarily a result of additional equipment purchases.
|
·
|
General and administrative expenses from production services operations for the first quarter of 2018 totaled $209,000, an increase of $67,000 compared to the same period in 2017 which was primarily related to increased legal fees and an increase in bad debt expense.
|
|
Three Months Ended March 31,
|
|||||||||||
In thousands except percentages
|
2018
|
2017
|
D
vs. 2017
|
|||||||||
Interest expense, net
|
$
|
1,217
|
$
|
1,188
|
|
2
|
%
|
|||||
Loss (gain) on interest rate swap
|
(865
|
)
|
131
|
(760
|
)
|
|||||||
|
$
|
352
|
$
|
1,319
|
|
(73
|
)%
|
|
Three Months Ended March 31,
|
|||||||
In thousands except percentages
|
2018
|
2017
|
||||||
Income from operations before income taxes
|
$
|
6,312
|
$
|
4,427
|
||||
Depreciation, depletion and amortization expense
|
1,291
|
1,504
|
||||||
Unrealized gain on interest rate swap
|
(1,060
|
)
|
(133
|
)
|
||||
Interest expense
|
1,217
|
1,188
|
||||||
Accretion expense
|
230
|
222
|
||||||
Consolidated Adjusted EBITDAX
|
$
|
7,990
|
$
|
7,208
|
Exhibits
|
|
31.1
|
|
31.2
|
|
31.3
|
|
32.1
|
|
32.2
|
|
32.3
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
ISRAMCO, INC
|
|
|
|
|
|
|
Date: MAY 10, 2018
|
By:
|
/s/ HAIM TSUFF
|
|
|
|
HAIM TSUFF
|
|
|
|
CO-CHIEF EXECUTIVE OFFICER
|
|
|
|
(PRINCIPAL EXECUTIVE OFFICER)
|
|
|
|
|
|
Date: MAY 10, 2018
|
By:
|
/s/ EDY FRANCIS
|
|
|
|
EDY FRANCIS
|
|
|
|
CO-CHIEF EXECUTIVE OFFICER &
CHIEF FINANCIAL OFFICER
|
|
|
|
(PRINCIPAL FINANCIAL OFFICER)
|
|
|
|
|
|
Date: MAY 10, 2018
|
By:
|
/s/ ZEEV KOLTOVSKOY
|
|
|
|
ZEEV KOLTOVSKOY
|
|
|
|
CHIEF ACCOUNTING OFFICER
|
|
|
|
(PRINCIPAL ACCOUNTING OFFICER)
|
|
1 Year Israel Acquisitions Chart |
1 Month Israel Acquisitions Chart |
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