Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 16, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Yuma Energy, Inc. | |
Entity Central Index Key | 81,318 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 71,664,720 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,048,104 | $ 11,558,322 |
Short-term investments | 0 | 1,170,868 |
Accounts receivable, net of allowance for doubtful accounts: | ||
Trade | 5,379,899 | 9,739,737 |
Officers and employees | 49,765 | 316,077 |
Other | 468,181 | 697,991 |
Commodity derivative instruments | 1,822,034 | 3,338,537 |
Prepayments | 859,687 | 782,234 |
Deferred taxes | 245,922 | 245,922 |
Other deferred charges | 277,858 | 342,798 |
Total current assets | 14,151,450 | 28,192,486 |
OIL AND GAS PROPERTIES (full cost method): | ||
Not subject to amortization | 24,842,415 | 25,707,052 |
Subject to amortization | 196,299,194 | 186,530,863 |
Subtotal | 221,141,609 | 212,237,915 |
Less: accumulated depreciation, depletion and amortization | (114,741,341) | (103,929,493) |
Net oil and gas properties | 106,400,268 | 108,308,422 |
OTHER PROPERTY AND EQUIPMENT: | ||
Land, buildings and improvements | 2,795,000 | 2,795,000 |
Other property and equipment | 3,471,408 | 3,439,688 |
Total | 6,266,408 | 6,234,688 |
Less: accumulated depreciation and amortization | (2,117,783) | (1,909,352) |
Net other property and equipment | 4,148,625 | 4,325,336 |
OTHER ASSETS AND DEFERRED CHARGES: | ||
Commodity derivative instruments | 993,849 | 1,403,109 |
Deposits | 264,064 | 264,064 |
Goodwill | 0 | 5,349,988 |
Other noncurrent assets | 210,473 | 262,200 |
Total other assets and deferred charges | 1,468,386 | 7,279,361 |
TOTAL ASSETS | 126,168,729 | 148,105,605 |
CURRENT LIABILITIES: | ||
Current maturities of debt | 30,217,400 | 282,843 |
Accounts payable, principally trade | 8,086,414 | 25,004,364 |
Asset retirement obligations | 733,917 | 0 |
Deferred taxes | 471,995 | 471,995 |
Other accrued liabilities | 2,195,531 | 1,419,565 |
Total current liabilities | 41,705,257 | 27,178,767 |
LONG-TERM DEBT: | ||
Bank debt | 0 | 22,900,000 |
OTHER NONCURRENT LIABILITIES: | ||
Asset retirement obligations | 12,239,139 | 12,487,770 |
Deferred taxes | 8,577,081 | 14,388,662 |
Restricted stock units | 0 | 71,569 |
Other liabilities | 43,671 | 22,451 |
Total other noncurrent liabilities | 20,859,891 | 26,970,452 |
EQUITY: | ||
Common stock, no par value (300 million shares authorized, 71,609,741 and 69,139,869 issued) | 141,707,502 | 137,469,772 |
Preferred stock | 10,828,603 | 9,958,217 |
Accumulated other comprehensive income (loss) | (9,410) | 38,801 |
Accumulated earnings (deficit) | (88,923,114) | (76,410,404) |
Total equity | 63,603,581 | 71,056,386 |
TOTAL LIABILITIES AND EQUITY | $ 126,168,729 | $ 148,105,605 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares, Issued | 71,609,741 | 69,139,869 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES: | ||||
Sales of natural gas and crude oil | $ 4,649,009 | $ 7,821,497 | $ 14,756,582 | $ 31,837,566 |
Realized and unrealized net gains (losses) from commodity derivatives | 3,893,650 | 2,407,783 | 3,267,239 | (1,273,322) |
Total revenues | 8,542,659 | 10,229,280 | 18,023,821 | 30,564,244 |
EXPENSES: | ||||
Marketing cost of sales | 234,507 | 408,559 | 434,189 | 1,012,577 |
Lease operating | 2,718,919 | 2,838,055 | 9,168,260 | 9,761,203 |
Re-engineering and workovers | 1,136 | 778,628 | 555,628 | 1,330,539 |
General and administrative - stock-based compensation | 338,619 | 521,978 | 2,210,950 | 598,818 |
General and administrative - other | 1,873,484 | 2,054,961 | 5,389,859 | 6,450,446 |
Depreciation, depletion and amortization | 3,123,812 | 3,865,675 | 11,020,278 | 15,604,283 |
Asset retirement obligation accretion expense | 170,209 | 150,628 | 499,766 | 438,717 |
Goodwill impairment | 0 | 0 | 5,349,988 | 0 |
Bad debt expense | 49,728 | 55,102 | 787,264 | 85,101 |
Recovery of bad debts | (324,057) | 0 | (342,944) | (1,984) |
Total expenses | 8,186,357 | 10,673,586 | 35,073,238 | 35,279,700 |
INCOME (LOSS) FROM OPERATIONS | 356,302 | (444,306) | (17,049,417) | (4,715,456) |
OTHER INCOME (EXPENSE): | ||||
Change in fair value of preferred stock derivative liability - Series A and Series B | 0 | (11,172,928) | 0 | (15,676,842) |
Interest expense | (131,114) | (114,405) | (337,499) | (321,680) |
Other, net | 14,055 | 2,970 | 35,521 | 5,634 |
Total other income (expense) | (117,059) | (11,284,363) | (301,978) | (15,992,888) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 239,243 | (11,728,669) | (17,351,395) | (20,708,344) |
Income tax benefit | (398,400) | (576,632) | (5,779,000) | (1,710,632) |
NET INCOME (LOSS) | 637,643 | (11,152,037) | (11,572,395) | (18,997,712) |
PREFERRED STOCK, SERIES A AND SERIES B: | ||||
Dividends paid in cash, perpetual preferred Series A | 320,626 | 0 | 940,315 | 0 |
Accretion, Series A and Series B | 0 | 220,007 | 0 | 786,536 |
Dividends paid in cash, Series A and Series B | 0 | 346,192 | 0 | 445,152 |
Dividends paid in kind, Series A and Series B | 0 | 0 | 0 | 4,133,380 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 317,017 | $ (11,718,236) | $ (12,512,710) | $ (24,362,780) |
EARNINGS (LOSS) PER COMMON SHARE: | ||||
Basic | $ 0 | $ (0.25) | $ (0.18) | $ (0.56) |
Diluted | $ 0 | $ (0.25) | $ (0.18) | $ (0.56) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
Basic | 71,603,265 | 47,414,388 | 70,795,104 | 43,211,317 |
Diluted | 73,273,007 | 47,414,388 | 70,795,104 | 43,211,317 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
NET INCOME (LOSS) | $ 637,643 | $ (11,152,037) | $ (11,572,395) | $ (18,997,712) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Commodity derivatives sold | 0 | 0 | (119,917) | 0 |
Less income taxes | 0 | 0 | (46,168) | 0 |
Commodity derivatives sold, net of income taxes | 0 | 0 | (73,749) | 0 |
Reclassification of loss on settled commodity derivatives | 9,971 | (7,117) | 41,525 | (2,867) |
Less income taxes | 3,839 | (2,740) | 15,987 | (1,104) |
Reclassification of loss on settled commodity derivatives, net of income taxes | 6,132 | (4,377) | 25,538 | (1,763) |
OTHER COMPREHENSIVE INCOME (LOSS) | 6,132 | (4,377) | (48,211) | (1,763) |
COMPREHENSIVE INCOME (LOSS) | $ 643,775 | $ (11,156,414) | $ (11,620,606) | $ (18,999,475) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) | COMMON STOCK, NO PAR VALUE: | PERPETUAL PREFERRED STOCK | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ACCUMULATED EARNINGS (DEFICIT): | Total |
Beginning Balance, Amount at Dec. 31, 2013 | $ 2,669,465 | $ 38,770 | $ (50,596,088) | ||
Beginning Balance, Shares at Dec. 31, 2013 | 41,074,950 | 0 | |||
Sales of stock, Amount | $ 9,958,217 | ||||
Sales of stock, shares | 507,739 | ||||
Restricted stock awards vested, Amount | $ 3,272,638 | ||||
Restricted stock awards vested, Shares | 19,440 | ||||
Buy back of shares from vested stock awards, Amount | |||||
Stock appreciation rights issued, not vested | |||||
Restricted stock unit awards, Amount | $ 869,231 | ||||
Restricted stock unit awards, Shares | 273,907 | ||||
Convert preferred stock to 22,883,487 shares of common stock on September 10, 2014 | $ 107,552,938 | ||||
Pyramid Oil Company 4,788,085 shares outstanding last day of trading September 10, 2014 | 22,504,000 | ||||
Fair value of Pyramid Oil Company stock options | 100,500 | ||||
Stock awards (100,000 shares) to employees, directors and consultants of Pyramid Oil Company vested upon the change in control and issued September 11, 2014 | 501,000 | ||||
Comprehensive income (loss) from commodity derivative instruments, net of income taxes | 31 | ||||
Series A perpetual preferred stock cash dividends | (224,098) | ||||
Preferred stock accretion (Series A and B) | (786,536) | ||||
Preferred stock cash dividends (Series A and B) | (445,152) | ||||
Preferred stock dividends paid in kind (Series A and B) | (4,133,380) | ||||
Net loss | (20,225,150) | ||||
Ending Balance, Amount at Dec. 31, 2014 | $ 137,469,772 | $ 9,958,217 | 38,801 | (76,410,404) | $ 71,056,386 |
Ending Balance, Shares at Dec. 31, 2014 | 69,139,869 | 507,739 | |||
Sales of stock, Amount | $ 1,363,160 | $ 870,386 | |||
Sales of stock, shares | 1,347,458 | 46,857 | |||
Restricted stock awards vested, Amount | $ 3,079,743 | ||||
Restricted stock awards vested, Shares | 1,451,237 | ||||
Buy back of shares from vested stock awards, Amount | $ (300,732) | ||||
Buy back shares from vested stock awards, Shares | (328,823) | ||||
Stock appreciation rights issued, not vested | $ 95,559 | ||||
Comprehensive income (loss) from commodity derivative instruments, net of income taxes | (48,211) | ||||
Series A perpetual preferred stock cash dividends | (940,315) | ||||
Net loss | (11,572,395) | (11,572,395) | |||
Ending Balance, Amount at Sep. 30, 2015 | $ 141,707,502 | $ 10,828,603 | $ (9,410) | $ (88,923,114) | $ 63,603,581 |
Ending Balance, Shares at Sep. 30, 2015 | 71,609,741 | 554,596 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of net loss to net cash provided by (used in) operating activities | ||
Net loss | $ (11,572,395) | $ (18,997,712) |
Goodwill Impairment | 5,349,988 | 0 |
Increase in fair value of preferred stock derivative liability | 0 | 15,676,842 |
Depreciation, depletion and amortization of property and equipment | 11,020,278 | 15,604,283 |
Accretion of asset retirement obligation | 499,766 | 438,717 |
Stock-based compensation net of capitalized cost | 2,210,950 | 598,818 |
Amortization of other assets and liabilities | 209,904 | 140,954 |
Deferred tax expense (benefit) | (5,781,400) | (1,710,632) |
Bad debt expense | 787,264 | 85,101 |
Write off deferred offering costs | 0 | 1,257,160 |
Amortization of benefit from commodity derivatives sold | 0 | (70,313) |
Unrealized (gains) losses on commodity derivatives | 1,847,371 | (921,026) |
Other | (342,944) | 2,058 |
Changes in current operating assets and liabilities: | ||
Accounts receivable | 4,411,640 | 1,868,318 |
Other current assets | (77,453) | (274,235) |
Accounts payable | (13,938,649) | 6,165,919 |
Other current liabilities | 1,095,356 | 971,048 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (4,280,324) | 20,835,300 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures on property and equipment | (11,211,634) | (16,042,655) |
Proceeds from sale of property | 30,442 | 307,600 |
Cash received from merger | 0 | 4,550,082 |
Decrease in short-term investments | 1,170,868 | 2,142,128 |
Decrease in noncurrent receivable from affiliate | 0 | 95,634 |
NET CASH USED IN INVESTING ACTIVITIES | (10,010,324) | (8,947,211) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Change in borrowing on line of credit | 6,800,000 | (6,250,000) |
Proceeds from insurance note | 813,562 | 901,257 |
Payments on insurance note | (579,005) | (514,118) |
Line of credit financing costs | (215,141) | (47,291) |
Net proceeds from sale of common stock | 1,363,160 | 0 |
Net proceeds (preparations costs) from sale of perpetual preferred stock | 870,386 | (165,034) |
Cash dividends to preferred shareholders | (940,315) | (445,152) |
Common stock purchased from employees | (300,732) | 0 |
Other | (31,485) | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 7,780,430 | (6,520,338) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,510,218) | 5,367,751 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 11,558,322 | 4,194,511 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,048,104 | 9,562,262 |
Supplemental disclosure of cash flow information: | ||
Interest payments (net of interest capitalized) | 73,342 | 210,323 |
Interest capitalized | 750,107 | 767,908 |
Supplemental disclosure of significant non-cash activity: | ||
Change in capital expenditures financed by accounts payable | (2,979,301) | 1,858,609 |
Preferred dividends paid in kind | $ 0 | $ 4,133,380 |
A. BASIS OF PRESENTATION
A. BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
A. BASIS OF PRESENTATION | These consolidated financial statements are unaudited; however, in the opinion of management, they reflect all adjustments necessary for a fair presentation of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been condensed and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2014 and the notes thereto included with the Annual Report on Form 10-K of Yuma Energy, Inc. (the “Company”) filed with the Securities and Exchange Commission (“SEC”) on March 30, 2015. |
B. LIQUIDITY CONSIDERATIONS
B. LIQUIDITY CONSIDERATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
B. LIQUIDITY CONSIDERATIONS | The Company has borrowings which require, among other things, compliance with certain financial ratios. Due to operating losses the Company has sustained during recent quarters as a result of the prolonged weak commodity price environment, the Company is anticipating that it will not be in compliance with the trailing four quarter funded debt to EBITDA financial ratio covenant under its senior credit facility at September 30, 2015. A breach of any of the terms and conditions of the credit agreement or a breach of the financial covenants under the CompanyÂ’s senior credit facility could result in acceleration of the CompanyÂ’s indebtedness, in which case the debt would become immediately due and payable. As a result, the Company has classified its bank debt as a current liability in its financial statements. The Company is in discussions with its lenders who are still in the process of their borrowing base review. The Company is working on several strategic alternatives to remedy the Company's debt covenant compliance issue and provide working capital to develop the Company's existing assets. These alternatives include, but are not limited to, refinancing the Company's debt, a sale of equity, and possible joint ventures or mergers, but the Company cannot say with certainty that one or more of these alternatives will be realized. |
C. ACCOUNTING STANDARDS
C. ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2015 | |
C. Accounting Standards | |
C. ACCOUNTING STANDARDS | Not Yet Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued an update that requires debt issuance costs to be presented in the balance sheet as a direct reduction from the associated debt liability. This standard is effective for the Company in the first quarter of 2016 and will be applied on a retrospective basis. Early adoption is permitted, including in interim periods. The Company does not expect the adoption of this standard to have a significant impact on its consolidated results of operations, financial position or cash flows. In February 2015, the FASB issued an amendment to the guidance for determining whether an entity is a variable interest entity (“VIE”). The standard does not add or remove any of the five characteristics that determine if an entity is a VIE. However, it does change the manner in which a reporting entity assesses one of the characteristics. In particular, when decision-making over the entity’s most significant activities has been outsourced, the standard changes how a reporting entity assesses if the equity holders at risk lack decision making rights. This standard is effective for the Company in the first quarter of 2016 and early adoption is permitted, including in interim periods. The Company does not expect the adoption of this standard to have a significant impact on its consolidated results of operations, financial position or cash flows. In August 2014, the FASB issued an update that requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in United States auditing standards. This standard is effective for the Company in the first quarter of 2017 and early adoption is permitted. The Company does not expect the adoption of this standard to have a significant impact on its consolidated results of operations, financial position or cash flows. In May 2014, the FASB issued an update that supersedes the existing revenue recognition requirements. This standard includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminates industry-specific revenue guidance, requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. This standard is effective for the Company in 2018 and should be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of initial application. Early adoption is not permitted. The Company is evaluating the provisions of this accounting standards update and assessing the impact, if any, it may have on its consolidated results of operations, financial position or cash flows. |
D. FAIR VALUE MEASUREMENTS
D. FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
D. FAIR VALUE MEASUREMENTS | Certain financial instruments are reported at fair value on the Consolidated Balance Sheets. Under fair value measurement accounting guidance, fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. The Company uses a market valuation approach based on available inputs and the following methods and assumptions to measure the fair values of its assets and liabilities, which may or may not be observable in the market. Fair Value of Financial Instruments (other than Commodity Derivatives, see below) Derivatives Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques, and at least one significant model assumption or input is unobservable. Fair value measurements at September 30, 2015 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 2,502,368 $ - $ 2,502,368 Commodity derivatives – gas - 313,515 - 313,515 Total assets $ - $ 2,815,883 $ - $ 2,815,883 Fair value measurements at December 31, 2014 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 2,858,387 $ - $ 2,858,387 Commodity derivatives – gas - 1,883,259 - 1,883,259 Total assets $ - $ 4,741,646 $ - $ 4,741,646 Derivative instruments listed above include swaps, reverse swaps and three-way collars. For additional information on the Company’s derivative instruments and derivative liabilities, see Note E – Commodity Derivative Instruments. Debt Asset Retirement Obligations (“AROs”) |
E. COMMODITY DERIVATIVE INSTRUM
E. COMMODITY DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
E. COMMODITY DERIVATIVE INSTRUMENTS | Objective and Strategies for Using Commodity Derivative Instruments While these instruments mitigate the cash flow risk of future reductions in commodity prices, they may also curtail benefits from future increases in commodity prices. The Company elected to discontinue hedge accounting for all commodity derivative instruments beginning with the 2013 financial year. The balance in other comprehensive income (“OCI”) at year-end 2012 will remain in accumulated other comprehensive income (“AOCI”) until such time that the original hedged forecasted transaction occurs. The last of these contracts will expire in December 2015. Starting with year 2013, mark-to-market adjustments to the contracts that were in AOCI at year-end 2012 will not be made to AOCI, but instead are recognized in earnings, as are all other commodity derivative contracts going forward. As a result of discontinuing the application of hedge accounting, the Company’s earnings are potentially more volatile. See Note D – Fair Value Measurements for a discussion of methods and assumptions used to estimate the fair values of the Company’s commodity derivative instruments. Counterparty Credit Risk On February 18, 2015, the Company settled all of its natural gas and crude oil options, realizing $4.03 million. The Company retained its existing natural gas swap positions. Concurrent with the settlement of the Company’s option positions and during the following day, the Company entered into new swap transactions for crude oil and natural gas for the balance of 2015 and all of 2016. In addition, the Company entered into three-way collars for 2017 for both natural gas and crude oil. In conjunction with certain derivative hedging activity, the Company deferred the payment of $153,389 put premiums which was recorded in both current other deferred charges and current other accrued liabilities at year-end 2014 and was for production months January 2015 through December 2015. The put premium liabilities became payable monthly as the hedge production month became the prompt production month. The Company amortized the deferred put premium liabilities in January and February 2015; however, the liability for the remainder of the year was settled as part of the $4.03 million settlement. Commodity derivative instruments open as of September 30, 2015 are provided below. Natural gas prices are New York Mercantile Exchange (“NYMEX”) Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate (“WTI”), except for the oil swaps that are based on Argus Light Louisiana Sweet (“LLS”). 2015 2016 2017 Settlement Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 435,207 298,957 - Price (NYMEX) $ 3.15 * $ 3.28 - Reverse Swaps Volume 50,441 - - Price (NYMEX) $ 4.33 - - 3-way collars Volume - - 67,361 Ceiling sold price (call) (NYMEX) - - $ 4.03 Floor purchased price (put) (NYMEX) - - $ 3.50 Floor sold price (short put) (NYMEX) - - $ 3.00 CRUDE OIL (Bbls): Swaps Volume 44,966 138,286 - Price (LLS) $ 56.90 $ 62.27 - 3-way collars Volume - - 113,029 Ceiling sold price (call) (WTI) - - $ 77.00 Floor purchased price (put) (WTI) - - $ 60.00 Floor sold price (short put) (WTI) - - $ 45.00 * Price is a weighted average. Derivatives for each commodity are netted on the Consolidated Balance Sheets as they are all contracts with the same counterparty. The following table presents the fair value and balance sheet location of each classification of commodity derivative contracts on a gross basis without regard to same-counterparty netting: Fair value as of September 30, December 31, 2015 2014 Asset commodity derivatives: Current assets $ 1,909,426 $ 6,413,935 Noncurrent assets 1,659,323 3,163,891 3,568,749 9,577,826 Liability commodity derivatives: Current liabilities (87,392 ) (3,075,398 ) Noncurrent liabilities (665,474 ) (1,760,782 ) (752,866 ) (4,836,180 ) Total commodity derivative instruments $ 2,815,883 $ 4,741,646 Sales of natural gas and crude oil on the Consolidated Statements of Operations are comprised of the following: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Sales of natural gas and crude oil $ 4,649,009 $ 7,821,497 $ 14,756,582 $ 31,837,566 Gains (losses) realized from sale of commodity derivatives - - 4,030,000 - Other gains (losses) realized on commodity derivatives 432,825 (223,614 ) 1,084,610 (2,264,661 ) Unrealized gains (losses) on commodity derivatives 3,460,825 2,607,959 (1,847,371 ) 921,026 Amortized gains from benefit of sold qualified gas options - 23,438 - 70,313 Total revenue from natural gas and crude oil $ 8,542,659 $ 10,229,280 $ 18,023,821 $ 30,564,244 A reconciliation of the components of accumulated other comprehensive income (loss) in the Consolidated Statements of Changes in Equity is presented below: Nine Months Ended Year Ended September 30, 2015 December 31, 2014 Before tax After tax Before tax After tax Balance, beginning of period $ 63,091 $ 38,801 $ 63,041 $ 38,770 Sale of unexpired contracts previously subject to hedge accounting rules (119,917 ) (73,749 ) - - Other reclassifications due to expired contracts previously subject to hedge accounting rules 41,525 25,538 50 31 Balance, end of period $ (15,301 ) $ (9,410 ) $ 63,091 $ 38,801 |
F. PREFERRED STOCK
F. PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2015 | |
Preferred stock [Abstract] | |
F. PREFERRED STOCK | On October 23, 2014, the Company held an initial closing of its public offering of 9.25% Series A Cumulative Redeemable Preferred Stock, no par value per share, with a liquidation preference of $25.00 per share (the “Series A Preferred Stock”). The Company issued 477,273 shares at a public offering price of $22.00 per share, for gross proceeds of $10,500,006. On October 24, 2014, the Company held an additional closing for 30,466 shares of Series A Preferred Stock at a public offering price of $22.00 per share for gross proceeds of $670,252. In total, the Company received $9,983,335 net of the underwriters’ discount and other expenses. Preferred stock is also net of $25,118 in costs through December 31, 2014 to initiate an At Market Issuance Sales Agreement (“Sales Agreement”) (see Note L – At Market Issuance Sales Agreement). The $870,386 increase to preferred stock during 2015 represents the net proceeds from the sale of 46,857 shares (37,769 shares sold under the Sales Agreement during the quarter ended March 31, 2015 and 9,088 shares sold during the quarter ended June 30, 2015). The shares of Series A Preferred Stock trade on the NYSE MKT under the symbol “YUMAprA”. The Series A Preferred Stock cannot be converted into common stock (except upon a change in control and in the event the Company chooses to not redeem the Series A Preferred Stock), but may be redeemed by the Company, at the Company’s option, on or after October 23, 2017 (or in certain circumstances, prior to such date as a result of a change in control of the Company), at a redemption price of $25.00 per share plus any accrued and unpaid dividends. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption, and will remain outstanding indefinitely unless repurchased, redeemed or converted into common stock in connection with a change in control. Holders of the Series A Preferred Stock are entitled to receive, when, as and if declared by the Board of Directors, cumulative dividends at the rate of 9.25% per annum (the dividend rate) based on the liquidation price of $25.00 per share of the Series A Preferred Stock, payable monthly in arrears on each dividend payment date, with the first payment date of December 1, 2014. The Series A Preferred Stock is presented in the permanent equity section of the financial statements. Currently, dividend payments are suspended (see Note O – Subsequent Events). |
G. STOCK-BASED COMPENSATION
G. STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
G. STOCK-BASED COMPENSATION | Restricted stock awards were granted in the form of restricted shares of common stock (“RSAs”) subject to a “Liquidity Event” and time-based vesting. The merger with Pyramid Oil Company that closed on September 10, 2014 was a “Liquidity Event” within the Company’s stock award agreements. This event removed that requirement for vesting, and now each award will vest in accordance with its time-based vesting schedule, typically in equal amounts per year over three years, subject to continued service as an employee or director of the Company. A summary of the status of the RSAs and changes for the nine months ended September 30, 2015 is presented below. Number of Weighted average unvested grant-date RSA shares fair value Unvested shares as of January 1, 2015 1,952,671 $3.40 per share Granted on March 12, 2015 183,623 $2.67 per share Granted on August 18, 2015 2,155,538 $0.61 per share Granted on September 30, 2015 75,000 $0.48 per share Vested on January 25, 2015 (65,638 ) $3.14 per share Vested on April 1, 2015 (1,272,834 ) $3.16 per share Vested on May 1, 2015 (6,232 ) $2.39 per share Vested on May 20, 2015 (76,744 ) $3.96 per share Vested on July 14, 2015 (29,789 ) $3.89 per share Forfeited (148,940 ) $3.90 per share Unvested shares as of September 30, 2015 2,766,655 $1.17 per share On August 18, 2015, the Company also issued Stock Appreciation Rights (“SARs”) under the Yuma 2014 Long-Term Incentive Plan, as follows: Weighted Number of average unvested grant-date SARs fair value Unvested shares as of January 1, 2015 - Granted on August 18, 2015 2,159,855 $0.318 per share Vested, forfeited, or other changes - Unvested shares as of September 30, 2015 2,159,855 $0.318 per share The Company intends to settle these SARs in equity, as opposed to cash. Pyramid Oil Company issued stock options as compensation for non-employee members of its board of directors under the Pyramid Oil Company 2006 Equity Incentive Plan. The options vested immediately, and are exercisable for a five-year period from the date of the grant. The following is a summary of the Company’s stock option activity. Weighted- Weighted- average average remaining Aggregate exercise contractual intrinsic Options price life (years) value Outstanding at December 31, 2014 105,000 $ 5.17 2.91 $ - Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at September 30, 2015 105,000 $ 5.17 2.91 $ - Vested at September 30, 2015 105,000 $ 5.17 2.91 $ - Exercisable at September 30, 2015 105,000 $ 5.17 2.91 $ - As of September 30, 2015, there were no unvested stock options or unrecognized stock option expenses. The following table summarizes the information about stock options outstanding and exercisable at September 30, 2015. Options Outstanding Options Exercisable Weighted- Weighted Weighted average average average Exercise Number of remaining exercise Number of exercise price shares life (years) price shares price $ 5.40 5,000 .67 $ 5.40 5,000 $ 5.40 $ 5.16 100,000 3.02 $ 5.16 100,000 $ 5.16 105,000 105,000 On April 1, 2013, the Company granted 163 Restricted Stock Units or “RSUs” to employees. Based on the exchange ratio of the merger, the RSUs converted into 123,446 RSUs. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. In order to vest, an employee must have continuous service with the Company from time of the grant through April 1, 2016, the vesting date. The RSUs may be settled in cash and do not require the eventual issuance of common stock (although it is an election available to the Company); consequently, the awards are liability-based and the booked valuation will change as the market value for common stock changes. At September 30, 2015, the RSUs were valued at the closing price of the common stock of the Company on that date. Compensation expense is recognized over the three-year vesting period. A summary of the status of the unvested RSUs and changes during the nine months ended September 30, 2015 is presented below. Weighted Number of average unvested grant-date RSUs fair value Unvested shares as of January 1, 2015 95,424 $2.72 per share Granted, forfeited, or other changes - Unvested shares as of September 30, 2015 95,424 $2.72 per share |
H. EARNINGS PER COMMON SHARE
H. EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2015 | |
EARNINGS (LOSS) PER COMMON SHARE: | |
H. EARNINGS PER COMMON SHARE | Earnings per common share are computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Potential common stock equivalents are determined using the “if converted” method. Potentially dilutive securities for the computation of diluted weighted average shares outstanding are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Series A Preferred Stock - 11,662,749 - 13,411,550 Series B Preferred Stock - 5,997,333 - 7,037,394 Restricted Stock Awards 1,574,318 2,443,318 1,373,824 2,227,892 Restricted Stock Units 95,424 101,104 95,424 109,086 1,669,742 20,204,504 1,469,248 22,785,922 The Series A and Series B Preferred Stock was converted to common stock on September 10, 2014. The Company excludes preferred stock and stock-based awards whose effect would be anti-dilutive from the calculation. For the nine months ended September 30, 2015 and the three and nine months ended September 30, 2014, adjusted earnings were losses, therefore common stock equivalents were excluded from the calculation of diluted net loss per share of common stock, as their effect was anti-dilutive. |
I. DEBT AND INTEREST EXPENSE
I. DEBT AND INTEREST EXPENSE | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
I. DEBT AND INTEREST EXPENSE | September 30, December 31, 2015 2014 Variable rate revolving credit agreement payable to Société Générale, OneWest Bank, FSB (now CIT Bank, N.A.), and LegacyTexas Bank, maturing May 20, 2017, secured by the stock of Exploration and its interest in POL, and guaranteed by The Yuma Companies, Inc. $ 29,700,000 $ 22,900,000 Installment loan due February 29, 2016, originating from the financing of insurance premiums at 3.74% interest rate. 517,400 - Installment loan due June 11, 2015, originating from the financing of insurance premiums at 3.76% interest rate. - 154,750 Installment loan due February 28, 2015, originating from the financing of insurance premiums at 3.65% interest rate. - 128,093 30,217,400 23,182,843 Less: current portion (30,217,400 ) (282,843 ) Total long-term debt $ - $ 22,900,000 On January 23, 2015, the Company’s wholly owned subsidiary, Yuma Exploration and Production Company, Inc. (“Exploration”), entered into the Sixth Amendment (the “Sixth Amendment”) to the credit agreement dated August 10, 2011 with SocGen as Administrative Agent and Issuing Bank, and each of the lenders and guarantors. Pursuant to the Sixth Amendment, (i) the borrowing base under the credit agreement remained at $40.0 million until the next borrowing base redetermination date which occurred on April 7, 2015, subject to a loan covenant requiring a ten percent availability under the line in order to pay dividends on any preferred stock, (ii) the Company could issue additional series of preferred stock subject to certain restrictions, (iii) the definition of “Change of Control” was amended and restated; (iv) the Company pledged the stock of Exploration; (v) Exploration pledged its interest in its wholly owned subsidiary, Pyramid Oil LLC (“POL”), and (vi) the oil and natural gas properties held by the Company in the state of California were transferred from the Company to POL and were mortgaged under the credit agreement. In addition, Exploration’s properties in North Dakota were mortgaged. On April 7, 2015, Exploration entered into the Seventh Amendment (the “Seventh Amendment”) to the credit agreement, which reduced the Company’s borrowing base to $33.0 million, with an additional $3.0 million non-conforming borrowing base that was to expire on September 1, 2015. However, the Eighth Amendment (the “Eighth Amendment”) to the credit agreement became effective July 27, 2015 that changed the borrowing base to $33.5 million with a $1.5 million additional but non-conforming portion that expired on October 1, 2015. The banks participate in the Company’s revolving line of credit at 37.5%, 37.5% and 25% for SocGen, OneWest Bank, FSB (now CIT Bank, N.A.) and LegacyTexas Bank, respectively. The terms of the credit agreement require Exploration to meet a specific current ratio, interest coverage ratio, and a trailing four quarter funded debt to EBITDA ratio. In addition, the credit facility requires the guarantee of The Yuma Companies, Inc., a wholly owned subsidiary of the Company. The Company anticipates that it will not be in compliance with the trailing four quarter funded debt to EBITDA ratio as of September 30, 2015, as further described in Note B – Liquidity Considerations above. The following summarizes interest expense for the three and nine months ended September 30, 2015 and 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Credit agreement $ 314,177 $ 308,486 $ 835,584 $ 889,111 Credit agreement commitment fees 6,301 19,133 31,460 47,209 Amortization of credit agreement loan costs 73,146 47,715 209,903 140,955 Insurance installment loan 4,400 4,955 9,597 9,244 Other interest charges 39 616 1,062 3,069 Capitalized interest (266,949 ) (266,500 ) (750,107 ) (767,908 ) Total interest expense $ 131,114 $ 114,405 $ 337,499 $ 321,680 |
J. INCOME TAXES
J. INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
J. INCOME TAXES | The following summarizes the income tax expense (benefit) and effective tax rates: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Consolidated net income (loss) before income taxes $ 239,243 $ (11,728,669 ) $ (17,351,395 ) $ (20,708,344 ) Income tax expense (benefit) (398,400 ) (576,632 ) (5,779,000 ) (1,710,632 ) Effective tax rate 167 % 5 % 33 % 8 % The differences between the U.S. federal statutory rate of 35% and the CompanyÂ’s effective tax rates for the three and nine months ended September 30, 2015 and 2014 are due primarily to the tax effects of the excess of book basis over the tax basis in the full cost pool and net operating loss carryforwards. The three and nine month periods ended September 30, 2014 also included the tax effect of nondeductible changes in fair value of preferred stock derivative liability. The Company knows of no uncertain tax positions and has no unrecognized tax benefits for the nine months ended September 30, 2015 or September 30, 2014. When the Company believes that it is more likely than not that a net operating loss or credit may expire unused, it establishes a valuation allowance against that loss or credit. No valuation allowance has been established as of September 30, 2015 or September 30, 2014. |
K. MERGER WITH PYRAMID OIL COMP
K. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
K. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL | On September 10, 2014, a wholly owned subsidiary of Pyramid merged with and into Yuma Energy, Inc., a Delaware corporation (“Yuma Co.”), in exchange for 66,336,701 shares of common stock and Pyramid changed its name to “Yuma Energy, Inc.” (the “merger”). As a result of the merger, the former Yuma Co. stockholders received approximately 93% of the then outstanding common stock of the Company and thus acquired voting control. Although the Company was the legal acquirer, for financial reporting purposes the merger was accounted for as a reverse acquisition of Pyramid by Yuma Co. The transaction qualified as a tax-deferred reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”). As a result of the merger announcement with Pyramid on February 6, 2014, expenses of approximately $1.3 million previously incurred by the Company in connection with exploring options to obtain a public listing were written off during the first quarter of 2014. The merger was accounted for as a business combination in accordance with ASC 805 Business Combinations (“ASC 805”). ASC 805, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. Goodwill represents the excess of the purchase price over the estimated fair value of the assets acquired net of the fair value of liabilities assumed in an acquisition. Certain assets and liabilities may be adjusted as additional information is obtained; but no later than one year from the acquisition date. The provisions of ASC 350, on Intangibles – Goodwill and Other require that intangible assets with indefinite lives, including goodwill, be evaluated on an annual basis for impairment, or more frequently if events occur or circumstances change that could potentially result in impairment. The goodwill impairment test requires the allocation of goodwill and all other assets and liabilities to reporting units; however, the Company has only one reporting unit. The Company was to perform its goodwill impairment test annually, using a measurement date of July 1. The recent drop in crude oil prices and the resulting decline in the Company’s common share price caused the Company to test goodwill for impairment at June 30, 2015. Goodwill was determined to be fully impaired and as a result, the balance of $5,349,988 was written off. The following unaudited pro forma combined results of operations are provided for the nine months ended September 30, 2014 as though the merger had been completed as of January 1, 2014. These pro forma combined results of operations have been prepared by adjusting the historical results of the Company to include the historical results of Pyramid. Pyramid’s historical depletion of oil and gas property was also adjusted to reflect the change to full cost accounting. These supplemental pro forma results of operations are provided for illustrative purposes only, and do not purport to be indicative of the actual results that would have been achieved by the combined company for the period presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the merger or any estimated costs that will be incurred to integrate Pyramid. Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors. Nine Months Ended September 30, 2014 Revenues $ 34,352,101 Net loss $ (18,700,021 ) Net loss per share: Basic $ (.43 ) Diluted $ (.43 ) For the nine months ended September 30, 2014, non-recurring transaction costs of $1,442,115 related to the merger, and costs of $1,287,285 to explore other options for a public listing are included in the Consolidated Statements of Operations as general and administrative expenses; however, these non-recurring transaction costs have been excluded from the pro forma results in the above table. For the nine months ended September 30, 2015, the Company recognized $1,644,550 from sales of natural gas and crude oil less lease operating expenses, depletion and other operating expenses of $3,003,833 related to properties acquired in the merger. |
L. AT MARKET ISSUANCE SALES AGR
L. AT MARKET ISSUANCE SALES AGREEMENT | 9 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
L. AT MARKET ISSUANCE SALES AGREEMENT | The Company entered into an At Market Issuance Sales Agreement (“Sales Agreement”) with an investment banking firm (the “Agent”) on December 19, 2014. Under the Sales Agreement, the Company may sell both common stock and Series A Preferred Stock pursuant to the Registration Statement on Form S-3 of the Company filed on November 5, 2013 (Registration No. 333-192094), which became effective under the Securities Act on November 21, 2013. Upon the Company’s delivery and the Agent’s acceptance of a placement notice, the Agent will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell any shares subject to the placement notice. The Company initiated the sales of securities under the Sales Agreement on February 18, 2015, and as of September 30, 2015, the Company has sold the following securities for the net proceeds listed below (the Company made no sales of securities during the third quarter of 2015). Shares Net Proceeds Common Stock 1,347,458 $ 1,363,160 Series A Preferred Stock 46,857 870,386 Total $ 2,233,546 |
M. COMPENSATION
M. COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
M. COMPENSATION | On September 21, 2015, the Board of Directors of the Company terminated the Company’s Working Interest Incentive Plan (“WIIP”) which was an executive compensation plan of the Company. The WIIP provided the Company’s principal executive officer with the option to acquire from the Company a working interest in the Company’s prospects and acquisitions in an amount up to 2.5% of the Company’s working interest in such prospects and up to 5% in any production acquisition made by the Company proportionally reduced. |
N. CONTINGENCIES
N. CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
N. CONTINGENCIES | 1. Certain Legal Proceedings From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. While the outcome of lawsuits cannot be predicted with certainty, the Company is not currently a party to any proceeding that it believes, if determined in a manner adverse to the Company, could have a potential material adverse effect on its financial condition, results of operations, or cash flows. On July 9, 2014, Nabors Drilling USA, L.P. and other Nabors entities and Yuma Energy, Inc. and several of its wholly owned subsidiaries were named in a lawsuit filed in the District Court of Harris County, Texas, in the 80th Judicial District, concerning the death of an employee of Timco Services during the drilling of the Crosby 12-1 well. The Company has tendered its defense to its liability insurance carriers who are responding. There has been one unsuccessful mediation session. Depositions are being scheduled. Management believes that the Company has adequate insurance to meet this potential claim. 2. Environmental Remediation Contingencies As of September 30, 2015, there were no known environmental or other regulatory matters related to the Company’s operations that were reasonably expected to result in a material liability to the Company. The Company’s operations are subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Exploration has been named as one of 97 defendants in a matter entitled Board of Commissioners of the Southeast Louisiana Flood Protection Authority – East, Individually and As the Board Governing the Orleans Levee District, the Lake Borgne Basin Levee District, and the East Jefferson Levee District v. Tennessee Gas Pipeline Company, LLC, et al., Civil District Court for the Parish of Orleans, State of Louisiana, No. 13-6911, Division “J” - 5, now removed as Civil Action No. 13-5410, before the United States District Court, Eastern District of Louisiana. Plaintiff filed the suit on July 24, 2013 seeking damages and injunctive relief arising out of defendants’ drilling, exploration, and production activities from the early 1900s to the present day in coastal areas east of the Mississippi River in Southeast Louisiana. The suit alleges that defendants’ activities have caused “removal, erosion, and submergence” of coastal lands resulting in significant reduction or loss of the protection such lands afforded against hurricanes and tropical storms. Plaintiff alleges that it now faces increased costs to maintain and operate the man-made hurricane protection system and may reach the point where that system no longer adequately protects populated areas. Plaintiff lists hundreds of wells, pipelines, and dredging events as possible sources of the alleged land loss. Exploration is named in association with 11 wells, four rights-of-way, and one dredging permit. The suit does not specify any deficiency or harm caused by any individual activity or facility. Although the suit references various federal statutes as sources of standards of care, plaintiff claims that all causes of action arise under state law: negligence, strict liability, natural servitude of drain, public nuisance, private nuisance, and as third-party beneficiary under breach of contract. The Company tendered its defense to its liability insurance carriers, who are responding. On February 13, 2015, the federal judge adjudicating the matter granted defendants “Joint Motion to Dismiss for Failure to State a Claim Under Rule 12(b)(6)”, thereby dismissing plaintiff’s claims with prejudice in the matter. On February 20, 2015, the Board of Orleans filed a notice of appeal to the U. S. Fifth Circuit. The Company will continue to contest plaintiff’s legal arguments and factual assertions. At this point in the legal process, no evaluation of the likelihood of an unfavorable outcome or associated economic loss can be made; therefore no liability has been recorded on the Company’s books. 3. Escheat Audits The States of Louisiana, Texas, Minnesota and Wyoming have notified the Company that they will examine the Company’s books and records to determine compliance with each of the examining state’s escheat laws. The review is being conducted by Discovery Audit Services, LLC. The Company has engaged Ryan, LLC to represent it in this matter. The exposure related to the audits is not currently determinable. |
O. SUBSEQUENT EVENTS
O. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
O. SUBSEQUENT EVENTS | The Company has evaluated subsequent events through November 16, 2015, the date these financial statements were available to be issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements, except as noted below or already recognized or disclosed in the CompanyÂ’s filings with the SEC. 1. Payment of Series A Preferred Stock Dividend Dividends on the Series A Preferred Stock are declared monthly based on the assessment of the CompanyÂ’s financial position by the Board of Directors. Due to the current depressed commodity price environment which has adversely affected the CompanyÂ’s cash flows and liquidity, the dividends on the Series A Preferred Stock have been suspended until such time as the Company and the Board of Directors have deemed that the Company has sufficient liquidity to restore their payment. 2. Borrowing Base Redetermination The borrowing base review currently underway remains in process at this time, and the Company cannot say what the new borrowing base will be and what terms the lenders will require. |
D. FAIR VALUE MEASUREMENTS (Tab
D. FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements by hierarchy | Fair value measurements at September 30, 2015 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 2,502,368 $ - $ 2,502,368 Commodity derivatives – gas - 313,515 - 313,515 Total assets $ - $ 2,815,883 $ - $ 2,815,883 Fair value measurements at December 31, 2014 Significant Quoted prices other Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Assets: Commodity derivatives – oil $ - $ 2,858,387 $ - $ 2,858,387 Commodity derivatives – gas - 1,883,259 - 1,883,259 Total assets $ - $ 4,741,646 $ - $ 4,741,646 |
E. COMMODITY DERIVATIVE INSTR24
E. COMMODITY DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity derivative instruments | 2015 2016 2017 Settlement Settlement Settlement NATURAL GAS (MMBtu): Swaps Volume 435,207 298,957 - Price (NYMEX) $ 3.15 * $ 3.28 - Reverse Swaps Volume 50,441 - - Price (NYMEX) $ 4.33 - - 3-way collars Volume - - 67,361 Ceiling sold price (call) (NYMEX) - - $ 4.03 Floor purchased price (put) (NYMEX) - - $ 3.50 Floor sold price (short put) (NYMEX) - - $ 3.00 CRUDE OIL (Bbls): Swaps Volume 44,966 138,286 - Price (LLS) $ 56.90 $ 62.27 - 3-way collars Volume - - 113,029 Ceiling sold price (call) (WTI) - - $ 77.00 Floor purchased price (put) (WTI) - - $ 60.00 Floor sold price (short put) (WTI) - - $ 45.00 |
Schedule of derivative assets and liablities | Fair value as of September 30, December 31, 2015 2014 Asset commodity derivatives: Current assets $ 1,909,426 $ 6,413,935 Noncurrent assets 1,659,323 3,163,891 3,568,749 9,577,826 Liability commodity derivatives: Current liabilities (87,392 ) (3,075,398 ) Noncurrent liabilities (665,474 ) (1,760,782 ) (752,866 ) (4,836,180 ) Total commodity derivative instruments $ 2,815,883 $ 4,741,646 |
Sales of natural gas and crude oil | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Sales of natural gas and crude oil $ 4,649,009 $ 7,821,497 $ 14,756,582 $ 31,837,566 Gains (losses) realized from sale of commodity derivatives - - 4,030,000 - Other gains (losses) realized on commodity derivatives 432,825 (223,614 ) 1,084,610 (2,264,661 ) Unrealized gains (losses) on commodity derivatives 3,460,825 2,607,959 (1,847,371 ) 921,026 Amortized gains from benefit of sold qualified gas options - 23,438 - 70,313 Total revenue from natural gas and crude oil $ 8,542,659 $ 10,229,280 $ 18,023,821 $ 30,564,244 |
Schedule reconciliation of the components of accumulated other comprehensive income (loss) in the Consolidated Statements of Changes in Equity | Nine Months Ended Year Ended September 30, 2015 December 31, 2014 Before tax After tax Before tax After tax Balance, beginning of period $ 63,091 $ 38,801 $ 63,041 $ 38,770 Sale of unexpired contracts previously subject to hedge accounting rules (119,917 ) (73,749 ) - - Other reclassifications due to expired contracts previously subject to hedge accounting rules 41,525 25,538 50 31 Balance, end of period $ (15,301 ) $ (9,410 ) $ 63,091 $ 38,801 |
G. STOCK-BASED COMPENSATION (Ta
G. STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule stock option activity | Weighted- Weighted- average average remaining Aggregate exercise contractual intrinsic Options price life (years) value Outstanding at December 31, 2014 105,000 $ 5.17 2.91 $ - Granted - - - - Exercised - - - - Forfeited - - - - Outstanding at September 30, 2015 105,000 $ 5.17 2.91 $ - Vested at September 30, 2015 105,000 $ 5.17 2.91 $ - Exercisable at September 30, 2015 105,000 $ 5.17 2.91 $ - |
Summary of stock options outstanding | Options Outstanding Options Exercisable Weighted- Weighted Weighted average average average Exercise Number of remaining exercise Number of exercise price shares life (years) price shares price $ 5.40 5,000 .67 $ 5.40 5,000 $ 5.40 $ 5.16 100,000 3.02 $ 5.16 100,000 $ 5.16 105,000 105,000 |
Schedule unvested restricted stock units | Weighted Number of average unvested grant-date RSUs fair value Unvested shares as of January 1, 2015 95,424 $2.72 per share Granted, forfeited, or other changes - Unvested shares as of September 30, 2015 95,424 $2.72 per share |
Stock Appreciation Rights (SARs) [Member] | |
Company's stock-based activity, RSAs | On August 18, 2015, the Company also issued Stock Appreciation Rights (“SARs”) under the Yuma 2014 Long-Term Incentive Plan, as follows: Weighted Number of average unvested grant-date SARs fair value Unvested shares as of January 1, 2015 - Granted on August 18, 2015 2,159,855 $0.318 per share Vested, forfeited, or other changes - Unvested shares as of September 30, 2015 2,159,855 $0.318 per share |
Stock Appreciation Rights (RSAs) [Member] | |
Company's stock-based activity, RSAs | A summary of the status of the RSAs and changes for the nine months ended September 30, 2015 is presented below. Number of Weighted average unvested grant-date RSA shares fair value Unvested shares as of January 1, 2015 1,952,671 $3.40 per share Granted on March 12, 2015 183,623 $2.67 per share Granted on August 18, 2015 2,155,538 $0.61 per share Granted on September 30, 2015 75,000 $0.48 per share Vested on January 25, 2015 (65,638 ) $3.14 per share Vested on April 1, 2015 (1,272,834 ) $3.16 per share Vested on May 1, 2015 (6,232 ) $2.39 per share Vested on May 20, 2015 (76,744 ) $3.96 per share Vested on July 14, 2015 (29,789 ) $3.89 per share Forfeited (148,940 ) $3.90 per share Unvested shares as of September 30, 2015 2,766,655 $1.17 per share |
H. EARNINGS PER COMMON SHARE (T
H. EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
EARNINGS (LOSS) PER COMMON SHARE: | |
Potentially dilutive securities | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Series A Preferred Stock - 11,662,749 - 13,411,550 Series B Preferred Stock - 5,997,333 - 7,037,394 Restricted Stock Awards 1,574,318 2,443,318 1,373,824 2,227,892 Restricted Stock Units 95,424 101,104 95,424 109,086 1,669,742 20,204,504 1,469,248 22,785,922 |
I. DEBT AND INTEREST EXPENSE (T
I. DEBT AND INTEREST EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | September 30, December 31, 2015 2014 Variable rate revolving credit agreement payable to Société Générale, OneWest Bank, FSB (now CIT Bank, N.A.), and LegacyTexas Bank, maturing May 20, 2017, secured by the stock of Exploration and its interest in POL, and guaranteed by The Yuma Companies, Inc. $ 29,700,000 $ 22,900,000 Installment loan due February 29, 2016, originating from the financing of insurance premiums at 3.74% interest rate. 517,400 - Installment loan due June 11, 2015, originating from the financing of insurance premiums at 3.76% interest rate. - 154,750 Installment loan due February 28, 2015, originating from the financing of insurance premiums at 3.65% interest rate. - 128,093 30,217,400 23,182,843 Less: current portion (30,217,400 ) (282,843 ) Total long-term debt $ - $ 22,900,000 |
Schedule interest expense | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Credit agreement $ 314,177 $ 308,486 $ 835,584 $ 889,111 Credit agreement commitment fees 6,301 19,133 31,460 47,209 Amortization of credit agreement loan costs 73,146 47,715 209,903 140,955 Insurance installment loan 4,400 4,955 9,597 9,244 Other interest charges 39 616 1,062 3,069 Capitalized interest (266,949 ) (266,500 ) (750,107 ) (767,908 ) Total interest expense $ 131,114 $ 114,405 $ 337,499 $ 321,680 |
J. INCOME TAXES (Tables)
J. INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
J. Income Taxes Tables | |
Schedule income tax expense (benefit) and effective tax rates | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Consolidated net income (loss) before income taxes $ 239,243 $ (11,728,669 ) $ (17,351,395 ) $ (20,708,344 ) Income tax expense (benefit) (398,400 ) (576,632 ) (5,779,000 ) (1,710,632 ) Effective tax rate 167 % 5 % 33 % 8 % |
K. MERGER WITH PYRAMID OIL CO29
K. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
K. Merger With Pyramid Oil Company And Goodwill Tables | |
Schedule of pro forma combined results | Nine Months Ended September 30, 2014 Revenues $ 34,352,101 Net loss $ (18,700,021 ) Net loss per share: Basic $ (.43 ) Diluted $ (.43 ) |
L. AT MARKET ISSUANCE SALES A30
L. AT MARKET ISSUANCE SALES AGREEMENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
Summary of sales of securities and the net proceeds | Shares Net Proceeds Common Stock 1,347,458 $ 1,363,160 Series A Preferred Stock 46,857 870,386 Total $ 2,233,546 |
D. FAIR VALUE MEASUREMENTS (Det
D. FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Total assets | $ 2,815,883 | $ 4,741,646 |
Commodity derivatives - oil | ||
Total assets | 2,502,368 | 2,858,387 |
Commodity derivatives - gas | ||
Total assets | $ 313,515 | $ 1,883,259 |
Quoted prices in active markets (Level 1) | ||
Total assets | ||
Quoted prices in active markets (Level 1) | Commodity derivatives - oil | ||
Total assets | ||
Quoted prices in active markets (Level 1) | Commodity derivatives - gas | ||
Total assets | ||
Significant other observable inputs (Level 2) | ||
Total assets | $ 2,815,883 | $ 4,741,646 |
Significant other observable inputs (Level 2) | Commodity derivatives - oil | ||
Total assets | 2,502,368 | 2,858,387 |
Significant other observable inputs (Level 2) | Commodity derivatives - gas | ||
Total assets | $ 313,515 | $ 1,883,259 |
Significant unobservable inputs (Level 3) | ||
Total assets | ||
Significant unobservable inputs (Level 3) | Commodity derivatives - oil | ||
Total assets | ||
Significant unobservable inputs (Level 3) | Commodity derivatives - gas | ||
Total assets |
E. COMMODITY DERIVATIVE INSTR32
E. COMMODITY DERIVATIVE INSTRUMENTS (Details) | Dec. 31, 2017USD ($)bblMMBbls | Dec. 31, 2016USD ($)bblMMBbls | Dec. 31, 2015USD ($)bblMMBbls | |
Reverse Swaps | ||||
Volume | MMBbls | 0 | 0 | 50,441 | |
Price(NYMEX) | $ 0 | $ 0 | $ 4.33 | |
Swaps | ||||
Volume | MMBbls | 0 | 298,957 | 435,207 | |
Price(NYMEX) | $ 0 | $ 3.28 | $ 3.15 | [1] |
Volume | bbl | 0 | 138,286 | 44,966 | |
Price(LLS) | $ 0 | $ 62.27 | $ 56.9 | |
3-Way Collars | ||||
Volume | MMBbls | 67,361 | 0 | 0 | |
Ceiling sold price (call) (NYMEX) | $ 4.03 | $ 0 | $ 0 | |
Floor purchased price (put) (NYMEX) | 3.5 | 0 | 0 | |
Floor sold price (short put) (NYMEX) | $ 3 | $ 0 | $ 0 | |
Volume | bbl | 113,029 | 0 | 0 | |
Ceiling sold price (call) (WTI) | $ 77 | $ 0 | $ 0 | |
Floor purchased price (put) (WTI) | 60 | 0 | 0 | |
Floor sold price (short put) (WTI) | $ 45 | $ 0 | $ 0 | |
[1] | Price is a weighted average. |
E. COMMODITY DERIVATIVE INSTR33
E. COMMODITY DERIVATIVE INSTRUMENTS (Details 1) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Asset commodity derivatives: | ||
Current assets | $ 1,909,426 | $ 6,413,935 |
Noncurrent assets | 1,659,323 | 3,163,891 |
Total | 3,568,749 | 9,577,826 |
Liability commodity derivatives: | ||
Current liabilities | (87,392) | (3,075,398) |
Noncurrent liabilities | (665,474) | (1,760,782) |
Total | (752,866) | (4,836,180) |
Total commodity derivative instruments | $ 2,815,883 | $ 4,741,646 |
E. COMMODITY DERIVATIVE INSTR34
E. COMMODITY DERIVATIVE INSTRUMENTS (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
E. Commodity Derivative Instruments Details 2 | ||||
Sales of natural gas and crude oil | $ 4,649,009 | $ 7,821,497 | $ 14,756,582 | $ 31,837,566 |
Gains (losses) realized from sale of commodity derivatives | 4,030,000 | |||
Other gains (losses) realized on commodity derivatives | $ 432,825 | $ (223,614) | 1,084,610 | $ (2,264,661) |
Unrealized gains (losses) on commodity derivatives | $ 3,460,825 | 2,607,959 | $ (1,847,371) | 921,026 |
Amortized gains from benefit of sold qualified gas options | 23,438 | 70,313 | ||
Total revenue from natural gas and crude oil | $ 8,542,659 | $ 10,229,280 | $ 18,023,821 | $ 30,564,244 |
E. COMMODITY DERIVATIVE INSTR35
E. COMMODITY DERIVATIVE INSTRUMENTS (Details 3) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Balance, beginning of period, before tax | $ 63,091 | $ 63,041 |
Balance, beginning of period, after tax | 38,801 | $ 38,770 |
Sale of unexpired contracts previously subject to hedge accounting rules before tax | (119,917) | |
Sale of unexpired contracts previously subject to hedge accounting rules after tax | (73,749) | |
Other reclassifications due to expired contracts previously subject to hedge accounting rules, before tax | 41,525 | $ 50 |
Other reclassifications due to expired contracts previously subject to hedge accounting rules, after tax | 25,538 | 31 |
Balance, end of period, before tax | (15,301) | 63,091 |
Balance, end of period, after tax | $ (9,410) | $ 38,801 |
G. STOCK-BASED COMPENSATION (De
G. STOCK-BASED COMPENSATION (Details) - RSA | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Unvested shares as of January 1, 2015 | shares | 1,952,671 |
Granted on March 12, 2015 | shares | 183,623 |
Granted on August 18, 2015 | shares | 2,155,538 |
Granted on September 30, 2015 | shares | 75,000 |
Vested on January 25, 2015 | shares | (65,638) |
Vested on April 1, 2015 | shares | (1,272,834) |
Vested on May 1, 2015 | shares | (6,232) |
Vested on May 20, 2015 | shares | (76,744) |
Vested on July 14, 2015 | shares | (29,789) |
Forfeited | shares | (148,940) |
Unvested shares as of September 30, 2015 | shares | 2,766,655 |
Weighted Average Grant-Date Fair Value | |
Beginning of period | $ 3.40 |
Granted on March 12, 2015 | 2.67 |
Granted on August 18, 2015 | 0.61 |
Granted on September 30, 2015 | 0.48 |
Vested on January 25, 2015 | 3.14 |
Vested on April 1, 2015 | 3.16 |
Vested on May 1, 2015 | 2.39 |
Vested on May 20, 2015 | 3.96 |
Vested on July 14, 2015 | 3.89 |
Forfeited | 3.90 |
End of period | $ 1.17 |
G. STOCK-BASED COMPENSATION (37
G. STOCK-BASED COMPENSATION (Details 1) - Stock Appreciation Rights (SARs) [Member] | 1 Months Ended |
Aug. 31, 2015$ / sharesshares | |
Unvested shares as of January 1, 2015 | shares | |
Granted on August 18, 2015 | shares | 2,159,855 |
Vested, forfeited, or other changes | shares | |
Unvested shares as of September 30, 2015 | shares | 2,159,855 |
Weighted Average Grant-Date Fair Value | |
Beginning of period | |
Granted on August 18, 2015 | $ 0.318 |
Vested, forfeited, or other changes | |
End of period | $ 0.318 |
G. STOCK-BASED COMPENSATION (38
G. STOCK-BASED COMPENSATION (Details 2) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
G. Stock-based Compensation Details 2 | |
Number of Options Outstanding, Beginning | shares | 105,000 |
Number of Options Granted | shares | |
Number of Options Exercised | shares | |
Number of Options Forfeited | shares | |
Number of Options Outstanding, Ending | shares | 105,000 |
Vested | shares | 105,000 |
Number of Options Exercisable | shares | 105,000 |
Weighted Average Exercise Price Outstanding, Beginning | $ 5.17 |
Weighted Average Exercise Price Granted | |
Weighted Average Exercise Price Exercised | |
Weighted Average Exercise Price Forfeited | |
Weighted Average Exercise Price Outstanding, Ending | $ 5.17 |
Weighted Average Exercise Price Vested | 5.17 |
Weighted Average Exercise Price Exercisable | $ 5.17 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 2 years 10 months 28 days |
Weighted Average Remaining Contractual Life (in years) at September 30, 2015 | 2 years 10 months 28 days |
Weighted Average Remaining Contractual Life (in years) Vested at September 30, 2015 | 2 years 10 months 28 days |
Weighted Average Remaining Contractual Life (in years) Exercisable at September 30, 2015 | 2 years 10 months 28 days |
Aggregate Intrinsic Value Outstanding, Beginning | $ | |
Aggregate Intrinsic Value Granted | |
Aggregate Intrinsic Value Exercised | $ | |
Aggregate Intrinsic Value Forfeited | |
Aggregate Intrinsic Value Outstanding, Ending | $ | |
Aggregate Intrinsic Value Vested, Ending | $ | |
Aggregate Intrinsic Value Exercisable, Ending | $ |
G. STOCK-BASED COMPENSATION (39
G. STOCK-BASED COMPENSATION (Details 3) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Options Outstanding, Ending | shares | 105,000 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 2 years 10 months 28 days |
Weighted Average Exercise Price Outstanding, Ending | $ 5.17 |
Number of Options Exercisable | shares | 105,000 |
Weighted Average Exercise Price Exercisable | $ 5.17 |
$5.40 Exercise Price | |
Number of Options Outstanding, Ending | shares | 5,000 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 8 months 1 day |
Weighted Average Exercise Price Outstanding, Ending | $ 5.40 |
Number of Options Exercisable | shares | 5,000 |
Weighted Average Exercise Price Exercisable | $ 5.40 |
$5.16 Exercise Price | |
Number of Options Outstanding, Ending | shares | 100,000 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 3 years 7 days |
Weighted Average Exercise Price Outstanding, Ending | $ 5.16 |
Number of Options Exercisable | shares | 100,000 |
Weighted Average Exercise Price Exercisable | $ 5.16 |
G. STOCK-BASED COMPENSATION (40
G. STOCK-BASED COMPENSATION (Details 4) - RSUs | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Unvested shares as of January 1, 2015 | 95,424 |
Granted, forfeited, or other changes | |
Unvested shares as of September 30, 2015 | 95,424 |
Beginning of period | $ / shares | $ 2.72 |
End of period | $ / shares | $ 2.72 |
H. EARNINGS PER COMMON SHARE (D
H. EARNINGS PER COMMON SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
H. Earnings Per Common Share Details | ||||
Series A Preferred Stock | 11,662,749 | 13,411,550 | ||
Series B Preferred Stock | 5,997,333 | 7,037,394 | ||
Restricted Stock Awards | 1,574,318 | 2,443,318 | 1,373,824 | 2,227,892 |
Restricted Stock Units | 95,424 | 101,104 | 95,424 | 109,086 |
Total | 1,669,742 | 20,204,504 | 1,469,248 | 22,785,922 |
I. DEBT AND INTEREST EXPENSE (D
I. DEBT AND INTEREST EXPENSE (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Total Debt | $ 30,217,400 | $ 23,182,843 |
Less: current portion | (30,217,400) | (282,843) |
Total long-term debt | 0 | 22,900,000 |
Variable rate revolving credit facility payable [Member] | ||
Total Debt | 29,700,000 | 22,900,000 |
Installment loan due February 29, 2016 [Member] | ||
Total Debt | 517,400 | 0 |
Installment loan due June 11, 2015 [Member] | ||
Total Debt | 0 | 154,750 |
Installment loan due February 28, 2015 [Member] | ||
Total Debt | $ 0 | $ 128,093 |
I. DEBT AND INTEREST EXPENSE 43
I. DEBT AND INTEREST EXPENSE (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ||||
Credit agreement | $ 314,177 | $ 308,486 | $ 835,584 | $ 889,111 |
Credit agreement commitment fees | 6,301 | 19,133 | 31,460 | 47,209 |
Amortization of credit agreement loan costs | 73,146 | 47,715 | 209,903 | 140,955 |
Insurance installment loan | 4,400 | 4,955 | 9,597 | 9,244 |
Other interest charges | 39 | 616 | 1,062 | 3,069 |
Capitalized interest | (266,949) | (266,500) | (750,107) | (767,908) |
Total interest expense | $ 131,114 | $ 114,405 | $ 337,499 | $ 321,680 |
J. INCOME TAXES (Details)
J. INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
J. Income Taxes Tables | ||||
Consolidated net income (loss) before income taxes | $ 239,243 | $ (11,728,669) | $ (17,351,395) | $ (20,708,344) |
Income tax expense (benefit) | $ (398,400) | $ (576,632) | $ (5,779,000) | $ (1,710,632) |
Effective tax rate | 167.00% | 5.00% | 33.00% | 8.00% |
K. MERGER WITH PYRAMID OIL CO45
K. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL (Details) | 9 Months Ended |
Sep. 30, 2014USD ($)$ / shares | |
Business Combinations [Abstract] | |
Revenues | $ | $ 34,352,101 |
Net loss | $ | $ (18,700,021) |
Net loss per share: | |
Basic | $ (.43) |
Diluted | $ (.43) |
K. MERGER WITH PYRAMID OIL CO46
K. MERGER WITH PYRAMID OIL COMPANY AND GOODWILL (Details Narrative) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Combinations [Abstract] | |
Sales of natural gas and crude oil | $ 1,644,550 |
Other operating expenses | $ 3,003,833 |
L. AT MARKET ISSUANCE SALES A47
L. AT MARKET ISSUANCE SALES AGREEMENT (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
Net Proceeds | $ 2,233,546 |
COMMON STOCK, NO PAR VALUE: | |
Shares | shares | 1,347,458 |
Net Proceeds | $ 1,363,160 |
Series A Preferred Stock [Member] | |
Shares | shares | 46,857 |
Net Proceeds | $ 870,386 |