Net income for the third quarter was $2.4 million, equal to $0.07 per share on a diluted basis, compared with $6.4 million, or $0.19 per share on a diluted basis, for Q3 2006. Oil and gas sales were higher compared to both the year-earlier and prior quarters, offset by higher lease operating expense and depreciation, consistent with the acquisition of Output Exploration.
For the January to September period, net cash provided by operating activities was a record $27.3 million, up more than 90% from $14 million in the year-earlier period.
However, for the nine-month period, Txco reported a net loss of $827,000 or $0.02 per share. A year earlier, net income was $11.6 million, or $0.35 a share. Total revenues were a record $61.8 million, up from $57.2 million for the year-earlier period. Oil and gas sales rose to $52.9 million, a 19% increase from the 2006 period, partially offset by lower gas gathering results. Txco’s assets at September 30 stood at a record $326.2 million, more than double the $143.8 million recorded at year-end 2006, consistent with the acquisition.
James Sigmon, CEO of Txco, said: We continued to build momentum throughout the third quarter. Operational and financial results remain in line with our expectations following Txco’s acquisition of Output Exploration in the second quarter of this year. Our active drilling program translated into record oil and gas sales and cash flow. I believe 2007 is on its way to being an excellent year for Txco and its shareholders.
