1. Pyramid Oil Company
Incorporated in 1909
Pyramid Oil
Company
Incorporated 1909
2. Safe Harbor Statement
Certain statements and information included in this presentation constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995, including statements regarding the
completion and testing of wells. Forward-looking statements involve known and
unknown risks and uncertainties, which may cause the Company's actual
results in future periods to differ materially from forecasted results. Factors that
could cause or contribute to such differences include, but are not limited to the
value of crude oil or the performance of wells.
3. Key Data
As of 11-29-11
Stock: AMEX: PDO
Recent price: $4.00
52-week range $3.74 - $9.40
Average daily share volume 21,000
Approximate Market cap $18,700,000
Approximate Enterprise Value $13,600,000
Shares outstanding 4,678,000
Approximate float 2,650,000
Fiscal year end Dec. 31
Cash (9-30-11) $5,500,000
LT Debt (9-30-10) Nil
Operating cash flow (9-30-11) $1,950,000
4. Company Overview
Independent oil and gas company focused on onshore
exploration, development and production
Most operations are in Kern County, California – one of
nation’s leading oil producing regions
Company owns and operates much of its own
equipment, including service rigs, mobile pumps,
vacuum units and hot oil trucks
Strong financial position
Significant insider ownership position (~43%)
More than 100-year operating history
5. Strategy
Pyramid seeks to build value by maximizing the
production potential of its U.S. oil and gas properties.
The Company is working to expand its portfolio of oil
and gas assets through an active drilling campaign, and
also is exploring potential partnerships with other energy
companies on new domestic, onshore prospects.
6. Operations
Pyramid owns and operates 27 oil and gas
leases within Kern & Santa Barbara Counties.
Of these, 18 were operating in 2010
California
Company has potential to operate 122 wells
on its California properties. 54 were operating California
in 2010
Most production currently classified as
primary recovery, although certain wells could
be considered for secondary recovery
programs depending on crude price
environment Kern
Santa County
Most oil production is light to intermediate oil Barbara
with an average API gravity of 23 County
Company enjoys 20+ year relationships with
its two largest crude customers:
ConocoPhillips & Kern Oil & Refining
7. Kern County’s Prolific Oil Production
Kern County accounts for
approximately 10% of overall U.S.
oil production
County is home to three of the five
largest U.S. oil fields
At approximately 400,000 bbls/day,
Kern is California's top oil-
producing county
County had 81% of the state's
52,144 active oil wells in 2009
8. Operations
Lost
Hills
Carneros
Creek
Edison Kern
County
Chico
Martinez
Mountain
View
Midway
Sunset
Pyramid’s Properties in Kern County, CA
9. Oil Reserves
Estimated future net recoverable oil reserves from proved reserves, both
developed and undeveloped
Crude Oil (Bbls)
10. PV-10
Present value of estimated future net revenues of proved developed reserves,
discounted at 10%*
$ In Millions
* Based on year-end oil and gas prices and lease operating expenses
11. Wells & Acreage
Gross and net position in wells and proved acres as of December 31, 2010
Wells Proved Acres
Gross* Net* Gross** Net**
149 133 21,387 5,844
* "Gross wells" represents the total number of wells in which the Company has a working interest.
"Net wells" represents the number of gross wells multiplied by the percentage of the working interests
therein held by the Company.
** "Gross acreage" represents all acres in which the Company has a working interest. "Net acres"
represents the aggregate of the working interests of the Company in the gross acres.!
12. Oil and Gas Production
Net oil and gas production after royalty and other working interest
2006 2007 2008 2009 2010
Crude Oil 66,000 67,000 65,000 57,000 60,000
(Bbls)
Nat. Gas 7,000 5,000 5,000 5,000 9,000
(Mcf)
13. Pricing and Production Costs
Average sales prices per barrel or per MCF of crude oil and natural gas,
respectively, and production costs per equivalent barrel* for the past five years
ending December 31
2006 2007 2008 2009 2010
Crude Oil $58.88 $67.83 $93.47 $57.16 $77.10
Nat. Gas $7.28 $7.16 $7.94 $4.02 $4.37
Production
Costs $22.80 $24.00 $27.20 $24.20 $26.60
*Gas production is converted to equivalent barrels at the rate of 6 MCF per barrel, representing
the estimated relative energy content of gas to oil
16. Statements of Operations Highlights
Nine months
Year ended December 31, ended Sept. 30,
In thousands except per share data 2008 2009 2010 2010 2011
Revenues $6,611 $3,312 $4,836 $3,330 $4,289
Operating expenses $1,942 $1,412 $1,577 $1,165 $1,283
General and administrative $925 $1,102 $875 $654 $666
Total costs and expenses $5,517 $3,849 $4,782 $3,505 $3,563
Operating income $1,094 $(537) $54 $145 $726
Other income $115 $89 $29 $40 $37
Income before income tax provision $1,209 $(449) $83 $185 $763
Net Income $1,514 $(189) $246 $273 $751
Diluted income per share $0.32 $(0.04) $0.05 $0.06 $0.16
Weighted average number of common shares outstanding 4,713 4,686 4,678 4,719 4,688
17. Balance Sheet Highlights
($K) December 31, September 30,
2010 2011
Assets
Cash and short term investments $4,594 $5,458
Trade accounts receivable $508 $532
Total current assets $5,665 $6,462
Oil and gas properties and equipment (successful efforts method) $18,102 $19,111
Other $4,585 $4,612
Less: accumulated depletion, depreciation, amortization and valuation allowance ($18,688) ($19,928)
Total Property and Equipment $3,999 $3,794
Total Assets $10,630 $11,366
Liabilities
Current liabilities $626 $517
Long-term debt, net of current maturities $27 $39
Liability for asset retirement obligation $1,235 $1,274
Stockholders’ equity $8,742 $9,537
Total liabilities and stockholders equity $10,630 $11,366
18. Management
John H. Alexander - Director, President and Chief Executive Officer
• President and CEO of Pyramid since June 2004
• Vice president and director of Pyramid from 1986 to 2004
• Independent oil operator in Orange County, Calif. since 1970
Michael D. Herman - Director & Chairman of the Board
• Chairman of Pyramid since July 2005 and majority shareholder since
June 2005
• Chairman and CEO of ENSERVCO Corporation (OTCBB: ENSV)
Provides water hauling, acidizing, frac heating and hot-oil services
• Past Chairman and Owner of Key Food Ingredients
- Worldwide supplier of dehydrated vegetables from factory in China
- Sold in October 2007
19. Investment Considerations
Substantial portfolio of new and re-entry well
targets in prolific oil producing region
Strong, debt-free balance sheet
Lean cost structure
Seasoned management team with extensive
industry expertise
