Oil and natural gas company Tengasco Inc.’s stock has been downgraded by TheStreet Ratings from buy to hold.
The Knoxville-based company’s weak cash flow overshadows its revenue and profit growth, TheStreet, a digital financial media company, said today.
“The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue does not appear to have trickled down to the company’s bottom line, displaying stagnant earnings per share,” TheStreet reported.
Tengasco shares were up slightly in late morning trading.
Tengasco’s first quarter profit and revenue rose on higher oil prices and increased production at its Kansas operations.
The company reported net income of $900,000, or 1 cent per share of common stock, up from $400,000 in the first quarter last year. Revenue for the quarter ended March 31 rose to $4.9 million, compared to $3.6 million a year ago.
Tengasco is an oil and natural gas exploration and production company with operations in Kansas and Tennessee.
Click here for TheStreet report.