Panhandle Oil and Gas posts loss, while AAON posts record sales
Oklahoma City-based Panhandle Oil and Gas posted a loss of nearly $20 million in the first quarter of 2020, while Tulsa’s AAON, a maker of semi-custom commercial and residential heating, air-conditioning and ventilation equipment company, posted record earnings for the same period.
Panhandle, which has transitioned from an exploration and production company to one that owns primarily mineral and production interests, said its net loss of about $20 million came out to $1.21 per share.
Officials stated in the earnings release results were driven by a non-cash impairment of $29.5 million related to its estimated value of its holdings in the Fayetteville and Eagle Ford Shale fields.
Its total revenues for the period, which it counts as the second quarter of its fiscal year, was about $12 million.
In the same quarter of 2019, the company earned total revenue of about $7.6 million, losing about $1.9 million.
The company’s earnings before interest, taxes, depreciation and amortization for the first three months of 2020 was about $3 million, compared to about $4 million the previous year.
“We recognize that the near-term uncertainty and market volatility makes it difficult to transact,” stated Chad L. Stephens, the company’s CEO, as part of its earnings release. “As such, in the short term we will focus on the important issues we can control, such as the safety and health of our employees, lowering general and administrative costs, reducing debt and continually improving our internal systems and processes.”
As for AAON, the company stated it earned first-quarter 2020 net income of about $21.9 million, or 41 cents per share, on revenue of about $137.5 million.
The previous year, it had earned a net income of about $8.8 million, or 17 cents per share, on total revenue of about $113.8 million.
“We have been extremely fortunate during these trying times,” Gary Fields, AAON’s president, stated as part of the earnings release.
Fields noted that equipment upgrades made before the end of 2019 put AAON in a good spot when demand for the products it makes began to climb as health care providers and government officials began adding temporary health facilities to treat coronavirus patients.
“Our team worked around the clock to produce and deliver multiple orders for temporary hospitals in the New York area,” Fields said.