Tough 1Q produces opposite results for Knox energy companies

Oil and gas

A pair of Knoxville based energy companies this week both reported
decreased sales in the first quarter, but one still scratched out a profit
while the other swung to a loss.

Oil company Tengasco reported a profit of $978,000, or 2
cents per share, while coal producer Xinergy said it lost $1.9 million, or 3
cents per share.

Tengasco’s earnings for the first three months of 2012 were a
slight improvement from a profit of $954,000, or 2 cents per share in the same
period a year ago.

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Revenues, however, were down to $4.3 million compared to $5
million a year ago. The drop was due to a 3 million barrel decrease in oil sold
and decrease in the average sales price for Kansas oil, the company said.

CEO Jeffrey R. Bailey offered said the Tengasco will
continue to streamline operations and reduce debt “As we complete these
activities, we expect to sharpen our focus on our own Kansas assets and other
Midcontinent properties as targets for future Company growth.”

Tengasco has oil and natural gas wells in Kansas and
Tennessee.

As for Xinergy, first quarter results was down sharply from
a year ago when the company reported net income of $1.7 million, or 3 cents per
share.

Xinergy reported coal revenues of  $4.1 million for the 2012 first-quarter
compared to $29.9 million a year ago.

CEO Matt Goldfarb put a positive spin on expectations for
the rest of the year. The company expects improved results when its South Fork
operation in Greenbrier, W. Va., “ramp(s) up production this summer.”

“Against a backdrop of continuing broader market
weakness, Xinergy made substantial progress during the first quarter towards
moving our world-class South Fork project closer to completion, while
maintaining a disciplined approach towards cost containment and balance sheet
liquidity,” Goldfarb said in a news release.

 

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