REPX(US:REPX)2020-03-30 20:41Financial Performance - The Company reported a net loss from continuing operations of $(436,000) or $(0.04) per share in 2019, compared to a net income of $442,000 or $0.04 per share in 2018[170]. - Revenues decreased to approximately $4.9 million in 2019 from $5.9 million in 2018, a decline of about $960,000, primarily due to a $7.36 per barrel decrease in average oil price and a 4.5 MBbl decrease in oil sales volumes[171]. - Net cash provided by operating activities was $226,000 in 2019, down from $1.3 million in 2018, primarily due to decreased revenues from lower oil prices and sales volumes[180]. Costs and Expenses - Production costs and taxes were approximately $3.4 million in 2019, down from $3.6 million in 2018, reflecting a decrease of $193,000 mainly due to lower utility costs[172]. - Depreciation, depletion, and amortization decreased to approximately $716,000 in 2019 from $795,000 in 2018, a reduction of $79,000 attributed to lower sales volumes and a decrease in the depletion rate[173]. - General and administrative costs increased to approximately $1.3 million in 2019 from $1.25 million in 2018, an increase of $57,000 primarily due to a payment related to potential transactions[174]. Cash Flow and Investments - Net cash used in investing activities was $233,000 in 2019, significantly lower than $1.0 million in 2018, due to reduced drilling and polymer costs[181]. - The Company had total contractual obligations of $153,000 as of December 31, 2019, with $113,000 due in 2020 and $40,000 in 2021[198]. Credit and Financing - The Company had a revolving credit facility with a borrowing base of $4 million and a credit limit of approximately $1.97 million as of December 31, 2019, with an interest rate of 5.25%[177]. - The interest rate on the Company's credit facility was 5.25% as of December 31, 2019, and a 10% increase in this rate would have an approximate zero impact on interest expense assuming no changes in borrowed amounts[202]. - The Company had no amounts owed on its credit facility with Prosperity Bank as of December 31, 2019[201]. Reserves and Future Projections - The Company's proved oil and gas reserves were determined by LaRoche Petroleum Consultants, Ltd., with future cash flows dependent on various factors including commodity prices and production levels[190]. - The Company faces significant uncertainties in projecting future production rates and development expenditures, which may vary significantly from estimates[204]. - Forward-looking statements regarding the Company's future plans are subject to various risks and uncertainties that could lead to actual results differing materially from expectations[203]. Market Conditions - Monthly oil price realizations in 2019 ranged from $46.39 to $58.60 per barrel, with a significant decline in prices observed in early 2020 due to global economic conditions and an oil price war[199]. - Fluctuations in oil and gas prices or prolonged periods of low prices may adversely affect the Company's financial position and cash flows[204]. - The Company can operate in the short term at depressed oil prices but would require additional capital if low prices persist[199]. Leases and Derivatives - The Company recorded right-of-use assets and liabilities associated with operating leases of approximately $98,000 following the implementation of ASU 2016-02 Leases (Topic 842) on January 1, 2019[196]. - The Company had finance leases outstanding of approximately $102,000 as of December 31, 2019, with fixed interest rates ranging from 5.0% to 6.5%[201]. - The Company did not participate in any derivative agreements during 2019 or 2018 but may consider such activities in the future[200].