Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-18774 | |
Entity Registrant Name | SPINDLETOP OIL & GAS CO. | |
Entity Central Index Key | 0000867038 | |
Entity Tax Identification Number | 75-2063001 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 12850 Spurling Rd. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75230 | |
City Area Code | (972) | |
Local Phone Number | 644-2581 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SPND | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,755,318 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 11,482,000 | $ 7,480,000 |
Restricted cash | 295,000 | 295,000 |
Accounts receivable | 3,001,000 | 2,613,000 |
Income tax receivable | 23,000 | 274,000 |
Total Current Assets | 14,801,000 | 10,662,000 |
Property and Equipment - at cost | ||
Oil and gas properties (full cost method) | 25,346,000 | 26,928,000 |
Rental equipment | 412,000 | 412,000 |
Gas gathering system | 115,000 | 115,000 |
Other property and equipment | 315,000 | 315,000 |
Accumulated depreciation and amortization | (26,067,000) | (26,061,000) |
Total Property and Equipment | 121,000 | 1,709,000 |
Real Estate Property - at cost | ||
Land | 688,000 | 688,000 |
Commercial office building | 1,624,000 | 1,624,000 |
Accumulated depreciation | (1,090,000) | (1,047,000) |
Total Real Estate Property | 1,222,000 | 1,265,000 |
Other Assets | ||
Deferred Income Tax Asset | 18,000 | 205,000 |
Other long-term investments | 8,866,000 | 8,825,000 |
Other | 4,000 | 4,000 |
Total Other Assets | 8,888,000 | 9,034,000 |
Total Assets | 25,032,000 | 22,670,000 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 7,048,000 | 5,714,000 |
Notes payable, Paycheck Protection Program | 403,000 | |
Income tax payable | 111,000 | |
Total Current Liabilities | 7,562,000 | 5,714,000 |
Noncurrent Liabilities | ||
Asset retirement obligation | 1,454,000 | 1,434,000 |
Total Noncurrent Liabilities | 1,454,000 | 1,434,000 |
Shareholders' Equity | ||
Common stock, $.01 par value, 100,000,000 shares authorized; 7,677,471 shares issued and 6,755,318 outstanding at September 30, 2021 and at December 31, 2020. | 77,000 | 77,000 |
Additional paid-in capital | 943,000 | 943,000 |
Treasury stock, at cost | (1,874,000) | (1,874,000) |
Retained earnings | 16,870,000 | 16,376,000 |
Total Shareholders' Equity | 16,016,000 | 15,522,000 |
Total Liabilities and Shareholders' Equity | $ 25,032,000 | $ 22,670,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 7,677,471 | 7,677,471 |
Common Stock, Shares, Outstanding | 6,755,318 | 6,755,318 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Oil and gas revenues | $ 1,624,000 | $ 933,000 | $ 3,582,000 | $ 2,025,000 |
Revenues from lease operations | 53,000 | 49,000 | 169,000 | 168,000 |
Gas gathering, compression, equipment rental | 30,000 | 12,000 | 69,000 | 57,000 |
Real estate rental revenue | 55,000 | 70,000 | 169,000 | 204,000 |
Interest Income | 34,000 | 61,000 | 115,000 | 164,000 |
Debt forgiveness income | ||||
Other revenues | 10,000 | 10,000 | 28,000 | 29,000 |
Total Revenues | 1,806,000 | 1,135,000 | 4,132,000 | 2,647,000 |
Expenses | ||||
Lease operating expenses | 265,000 | 265,000 | 787,000 | 727,000 |
Production taxes, gathering and marketing expenses | 272,000 | 212,000 | 607,000 | 468,000 |
Pipeline and rental expenses | 5,000 | 2,000 | 14,000 | 6,000 |
Real estate expenses | 34,000 | 39,000 | 99,000 | 106,000 |
Depreciation and amortization expenses | 126,000 | 48,000 | 261,000 | |
Depreciation and amortization expenses | (167,000) | |||
ARO accretion expense | 34,000 | 30,000 | 104,000 | 90,000 |
General and administrative expenses | 549,000 | 332,000 | 1,541,000 | 1,723,000 |
Total Expenses | 992,000 | 1,006,000 | 3,200,000 | 3,381,000 |
Income (Loss) before income tax | 814,000 | 129,000 | 932,000 | (734,000) |
Current income tax provision (benefit) | 229,000 | 43,000 | 251,000 | (131,000) |
Deferred income tax provision (benefit) | 182,000 | (17,000) | 187,000 | (12,000) |
Total income tax provision (benefit) | 411,000 | 26,000 | 438,000 | (143,000) |
Net income (Loss) | $ 403,000 | $ 103,000 | $ 494,000 | $ (591,000) |
Earnings (Loss) per Share of Common Stock Basic and Diluted | $ 0.06 | $ 0.02 | $ 0.07 | $ (0.09) |
Weighted Average Shares Outstanding Basic and Diluted | 6,776,392 | 6,776,392 | 6,776,392 | 6,776,392 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balance, value at Dec. 31, 2019 | $ 77,000 | $ 943,000 | $ 1,806,000 | $ 17,271,000 |
Shares, Issued, Beginning Balance at Dec. 31, 2019 | 7,677,471 | 867,869 | ||
Net Income | (272,000) | |||
Ending balance, value at Mar. 31, 2020 | $ 77,000 | 943,000 | $ (1,806,000) | 16,999,000 |
Shares, Issued, Ending Balance at Mar. 31, 2020 | 7,677,471 | 867,869 | ||
Purchase of 54,284 shares of Common Stock as Treasury Stock | $ (68,000) | |||
Purchase of 54,284 shares of Common Stock as Treasury Stock | 54,284 | |||
Net Income | (422,000) | |||
Ending balance, value at Jun. 30, 2020 | $ 77,000 | 943,000 | $ 1,874,000 | 16,577,000 |
Shares, Issued, Ending Balance at Jun. 30, 2020 | 7,677,471 | 922,153 | ||
Net Income | 103,000 | |||
Ending balance, value at Sep. 30, 2020 | $ 77,000 | 943,000 | $ 1,874,000 | 16,680,000 |
Shares, Issued, Ending Balance at Sep. 30, 2020 | 7,677,471 | 922,153 | ||
Beginning balance, value at Dec. 31, 2020 | $ 77,000 | 943,000 | $ 1,874,000 | 16,376,000 |
Shares, Issued, Beginning Balance at Dec. 31, 2020 | 7,677,471 | 922,153 | ||
Net Income | 97,000 | |||
Ending balance, value at Mar. 31, 2021 | $ 77,000 | 943,000 | $ (1,874,000) | 16,473,000 |
Shares, Issued, Ending Balance at Mar. 31, 2021 | 7,677,471 | 922,153 | ||
Net Income | (6,000) | |||
Ending balance, value at Jun. 30, 2021 | $ 77,000 | 943,000 | 1,874,000 | 16,467,000 |
Shares, Issued, Ending Balance at Jun. 30, 2021 | 7,677,471 | |||
Net Income | 403,000 | |||
Ending balance, value at Sep. 30, 2021 | $ 77,000 | $ 943,000 | $ 1,874,000 | $ 16,870,000 |
Shares, Issued, Ending Balance at Sep. 30, 2021 | 7,677,471 | 922,153 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders Equity (Parenthetical) | 3 Months Ended |
Jun. 30, 2020shares | |
Treasury Stock [Member] | |
Stock Repurchased During Period, Shares | 54,284 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 494,000 | $ (591,000) |
Reconciliation of net Income (Loss) to net cash provided by operating activities | ||
Depreciation and amortization | 48,000 | 261,000 |
Impairment of oil and gas properties | ||
Accretion of asset retirement obligation | 84,000 | 90,000 |
Changes in accounts receivable | (388,000) | 383,000 |
Changes in income tax receivable | 251,000 | (131,000) |
Changes in accounts payable and accrued liabilities | 1,334,000 | (356,000) |
Changes in current tax payable | 111,000 | |
Changes in asset retirement obligation | 20,000 | |
Changes in deferred Income tax asset | 187,000 | (12,000) |
Changes in other assets | (1,000) | |
Net cash provided (used) for operating activities | 2,141,000 | (357,000) |
Cash Flows from Investing Activities | ||
Capitalized acquisition, exploration and development | 1,498,000 | (174,000) |
Purchase of other property and equipment | 1,000 | |
Changes in other long-term investments | (41,000) | (7,575,000) |
Proceeds from sale of oil and gas properties | 250,000 | |
Capitalized tenant improvements and broker fees | (44,000) | |
Net cash provided (used) for investing activities | 1,458,000 | (7,543,000) |
Cash Flows from Financing Activities | ||
Changes in notes payable | 403,000 | 403,000 |
Purchase of 54,284 shares of treasury stock | (68,000) | |
Net cash used for financing activities | 403,000 | 335,000 |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 4,002,000 | (7,565,000) |
Cash, cash equivalents, and restricted cash at beginning of period | 7,775,000 | 16,024,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 11,777,000 | $ 8,459,000 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) | 3 Months Ended |
Jun. 30, 2020shares | |
Treasury Stock [Member] | |
Stock Repurchased During Period, Shares | 54,284 |
1. BASIS OF PRESENTATION AND OR
1. BASIS OF PRESENTATION AND ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
1. BASIS OF PRESENTATION AND ORGANIZATION | 1. BASIS OF PRESENTATION AND ORGANIZATION The accompanying financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by generally accepted accounting principles or those normally made in the Company's annual Form 10-K filing. Accordingly, the reader of this Form 10-Q may wish to refer to the Company's Form 10-K for the year ended December 31, 2020, for further information. The consolidated financial statements presented herein include the accounts of Spindletop Oil & Gas Co., a Texas corporation ("the Company") and its wholly owned subsidiaries, Prairie Pipeline Co., a Texas corporation and Spindletop Drilling Company, a Texas corporation. All significant inter-company transactions and accounts have been eliminated. In the opinion of management, the accompanying unaudited interim financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, the results of operations and changes in cash flows of the Company and its consolidated subsidiaries for the interim periods presented. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with generally accepted accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. |
2. NOTES PAYABLE
2. NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
2. NOTES PAYABLE | 2. NOTES PAYABLE During the first quarter of 2021, the Company applied for and was granted a loan in the amount of $ 402,573 On March 18, 2021, the loan (the “Loan”) was funded and matures twenty-four months from the date of the loan and bears interest at the rate of 0.98% The PPP provides that loan principal and accrued interest may be forgiven after a twenty-four-week period if the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. Under the CARES Act, the amount of loan forgiveness may be reduced if the borrower terminates employees or reduces salaries during the period set forth in the CARES Act. The Company believes it will use the loan proceeds from the loan for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds should meet the conditions for forgiveness of at least a portion of the loan, we cannot assure you that the Company will be eligible for forgiveness of the loan, in whole or in part. |
3. COMMON STOCK
3. COMMON STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
3. COMMON STOCK | 3. COMMON STOCK Effective April 6, 2020, and June 20, 2020, the Company repurchased 45,036 9,248 56,295 11,560 1.25 |
4. CONTINGENCIES
4. CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
4. CONTINGENCIES | 4. CONTINGENCIES On July 23, 2020, a subsidiary of the Company received notice of a lawsuit filed in Louisiana against the Company’s subsidiary and numerous other oil and gas companies alleging a pollution claim for properties operated by the defendants in Louisiana, and the Company’s subsidiary filed an answer. The Plaintiffs filed a First Supplemental and Amending Petition for Damages on January 21, 2021. The litigation is currently in the discovery phase. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of contingencies for litigation. The Company will continue to defend its subsidiary vigorously in this matter. Subsequent Events The Company has evaluated subsequent events through November 22, 2021, the date on which the financial statements were available to be issued. |
2. NOTES PAYABLE (Details Narra
2. NOTES PAYABLE (Details Narrative) - USD ($) | Jun. 30, 2021 | Mar. 18, 2021 |
Debt Disclosure [Abstract] | ||
Paycheck Protection Program | $ 402,573 | |
Debt Instrument, Interest Rate, Effective Percentage | 0.98% |
3. COMMON STOCK (Details Narrat
3. COMMON STOCK (Details Narrative) - Treasury Stock [Member] - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Apr. 06, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Stock Repurchased and Retired During Period, Shares | 9,248 | 45,036 |
Stock Repurchased and Retired During Period, Value | $ 11,560 | $ 56,295 |
Share Price | $ 1.25 |