Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 21, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-18774 | |
Entity Registrant Name | SPINDLETOP OIL & GAS CO. | |
Entity Central Index Key | 0000867038 | |
Entity Tax Identification Number | 75-2063001 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 12850 Spurling Rd. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75230 | |
City Area Code | (972) | |
Local Phone Number | 644-2581 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SPND | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,750,318 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 12,848,000 | $ 10,673,000 |
Restricted cash | 370,000 | 370,000 |
Accounts receivable, related parties | ||
Accounts receivable | 3,960,000 | 3,104,000 |
Prepaid Expenses | ||
Intercompany | ||
Income tax receivable | 548,000 | 450,000 |
Total Current Assets | 17,726,000 | 14,597,000 |
Property and Equipment - at cost | ||
Oil and gas properties (full cost method) | 25,748,000 | 26,305,000 |
Rental equipment | 412,000 | 412,000 |
Gas gathering system | 115,000 | 115,000 |
Other property and equipment | 395,000 | 317,000 |
26,670,000 | 27,149,000 | |
Accumulated depreciation and amortization | (26,160,000) | (26,127,000) |
Total Property and Equipment | 510,000 | 1,022,000 |
Real Estate Property - at cost | ||
Land | 688,000 | 688,000 |
Commercial office building | 1,901,000 | 1,624,000 |
Accumulated depreciation | (1,144,000) | (1,102,000) |
Total Real Estate Property | 1,445,000 | 1,210,000 |
Other Assets | ||
Deferred Income Tax Asset | 146,000 | 311,000 |
Other long-term investments | 10,675,000 | 8,941,000 |
Other | 4,000 | 4,000 |
Total Other Assets | 10,825,000 | 9,256,000 |
Total Assets | 30,506,000 | 26,085,000 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 8,620,000 | 7,601,000 |
Total Current Liabilities | 8,620,000 | 7,601,000 |
Noncurrent Liabilities | ||
Asset retirement obligation | 2,048,000 | 1,925,000 |
Total Noncurrent Liabilities | 2,048,000 | 1,925,000 |
Total Liabilities | 10,668,000 | 9,526,000 |
Shareholders' Equity | ||
Common stock, $.01 par value, 100,000,000 shares authorized; 7,677,471 shares issued and 6,750,318 outstanding at September 30, 2022 and 6,755,318 outstanding at December 31, 2021. | 77,000 | 77,000 |
Additional paid-in capital | 943,000 | 943,000 |
Treasury stock, at cost | (1,889,000) | (1,874,000) |
Retained earnings | 20,707,000 | 17,413,000 |
Total Shareholders' Equity | 19,838,000 | 16,559,000 |
Total Liabilities and Shareholders' Equity | $ 30,506,000 | $ 26,085,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 7,677,471 | 7,677,471 |
Common Stock, Shares, Outstanding | 6,750,318 | 6,755,318 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Oil and gas revenues | $ 1,844,000 | $ 1,624,000 | $ 6,003,000 | $ 3,582,000 |
Revenues from lease operations | 54,000 | 53,000 | 146,000 | 169,000 |
Gas gathering, compression, equipment rental | 20,000 | 30,000 | 69,000 | 69,000 |
Real estate rental revenue | 62,000 | 55,000 | 177,000 | 169,000 |
Interest Income | 13,000 | 34,000 | 74,000 | 115,000 |
Other revenues | 19,000 | 10,000 | 42,000 | 28,000 |
Total Revenues | 2,012,000 | 1,806,000 | 6,511,000 | 4,132,000 |
Expenses | ||||
Lease operating expenses | 535,000 | 265,000 | 1,279,000 | 787,000 |
Production taxes, gathering and marketing expenses | 189,000 | 272,000 | 654,000 | 607,000 |
Pipeline and rental expenses | 7,000 | 5,000 | 20,000 | 14,000 |
Real estate expenses | 31,000 | 34,000 | 109,000 | 99,000 |
Depreciation, Depletion and Amortization | 24,000 | 167,000 | 77,000 | 48,000 |
Depreciation, Depletion and Amortization | (24,000) | (167,000) | (77,000) | (48,000) |
ARO accretion expense | 34,000 | 143,000 | 104,000 | |
General and administrative expenses | 600,000 | 549,000 | 1,649,000 | 1,541,000 |
Total Expenses | 1,386,000 | 992,000 | 3,931,000 | 3,200,000 |
Income from operations | 626,000 | 814,000 | 2,580,000 | 932,000 |
Gain on sale of properties | 1,531,000 | 1,531,000 | ||
Income before income tax | 2,157,000 | 814,000 | 4,111,000 | 932,000 |
Current income tax provision | 416,000 | 229,000 | 652,000 | 251,000 |
Deferred income tax provision | 48,000 | 182,000 | 165,000 | 187,000 |
Total income tax provision | 464,000 | 411,000 | 817,000 | 438,000 |
Net income | $ 1,693,000 | $ 403,000 | $ 3,294,000 | $ 494,000 |
Earnings per Share of Common Stock Basic and Diluted | $ 0.25 | $ 0.06 | $ 0.49 | $ 0.07 |
Weighted Average Shares Outstanding Basic and Diluted | 6,751,948 | 6,776,392 | 6,754,315 | 6,776,392 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balance, value at Dec. 31, 2020 | $ 77,000 | $ 943,000 | $ 1,874,000 | $ 16,376,000 |
Shares, Issued at Dec. 31, 2020 | 7,677,471 | 922,153 | ||
Net Income | 97,000 | |||
Shares, Issued at Mar. 31, 2021 | 922,153 | |||
Ending balance, value at Mar. 31, 2021 | 77,000 | 943,000 | $ (1,874,000) | 16,473,000 |
Net Income | (6,000) | |||
Shares, Issued at Jun. 30, 2021 | 7,677,471 | 922,153 | ||
Ending balance, value at Jun. 30, 2021 | $ 77,000 | 943,000 | $ 1,874,000 | 16,467,000 |
Net Income | 403,000 | |||
Shares, Issued at Sep. 30, 2021 | 7,677,471 | 922,153 | ||
Ending balance, value at Sep. 30, 2021 | $ 77,000 | 943,000 | $ 1,874,000 | 16,870,000 |
Beginning balance, value at Dec. 31, 2021 | $ 77,000 | 943,000 | $ 1,874,000 | 17,413,000 |
Shares, Issued at Dec. 31, 2021 | 7,677,471 | 922,153 | ||
Net Income | 509,000 | |||
Shares, Issued at Mar. 31, 2022 | 922,153 | |||
Ending balance, value at Mar. 31, 2022 | 77,000 | 943,000 | $ (1,874,000) | 17,922,000 |
Beginning balance, value at Dec. 31, 2021 | $ 77,000 | 943,000 | $ 1,874,000 | 17,413,000 |
Shares, Issued at Dec. 31, 2021 | 7,677,471 | 922,153 | ||
Treasury stock, shares | 5,000 | |||
Shares, Issued at Sep. 30, 2022 | 7,677,471 | 927,153 | ||
Ending balance, value at Sep. 30, 2022 | $ 77,000 | 943,000 | $ 1,889,000 | 20,707,000 |
Beginning balance, value at Mar. 31, 2022 | 77,000 | 943,000 | $ (1,874,000) | 17,922,000 |
Shares, Issued at Mar. 31, 2022 | 922,153 | |||
Net Income | 1,092,000 | |||
Shares, Issued at Jun. 30, 2022 | 7,677,471 | 922,153 | ||
Ending balance, value at Jun. 30, 2022 | $ 77,000 | 943,000 | $ 1,874,000 | 19,014,000 |
Net Income | 1,693,000 | |||
Purchase of 5,000 shares of Common Stock as Treasury Stock | $ (15,000) | |||
Treasury stock, shares | 5,000 | |||
Shares, Issued at Sep. 30, 2022 | 7,677,471 | 927,153 | ||
Ending balance, value at Sep. 30, 2022 | $ 77,000 | $ 943,000 | $ 1,889,000 | $ 20,707,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 3,294,000 | $ 494,000 |
Reconciliation of net Income to net cash provided by operating activities | ||
Depreciation and amortization | 77,000 | 48,000 |
Accretion of asset retirement obligation | 143,000 | 84,000 |
Changes in accounts receivable | (856,000) | (388,000) |
Changes in income tax receivable | (98,000) | 251,000 |
Changes in accounts payable and accrued liabilities | 1,019,000 | 1,334,000 |
Changes in current tax payable | 111,000 | |
Changes in asset retirement obligation | 20,000 | |
Changes in deferred Income tax asset | 165,000 | 187,000 |
Net cash provided for operating activities | 3,744,000 | 2,141,000 |
Cash Flows from Investing Activities | ||
Capitalized acquisition, exploration and development | 534,000 | 1,498,000 |
Payments to Acquire Productive Assets | (76,000) | (1,000) |
Payments to Acquire Productive Assets | 76,000 | 1,000 |
Changes in other long-term investments | (1,734,000) | (41,000) |
Capitalized tenant improvements and broker fees | (278,000) | |
Net cash (used) for investing activities | (1,554,000) | 1,458,000 |
Cash Flows from Financing Activities | ||
Purchase of 5,000 shares of treasury stock | (15,000) | |
Changes in notes payable | 403,000 | |
Net cash used for financing activities | (15,000) | 403,000 |
Increase in cash, cash equivalents, and restricted cash | 2,175,000 | 4,002,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 11,043,000 | 7,775,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 13,218,000 | $ 11,777,000 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jul. 22, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Treasury stock, shares | 5,000 | ||
Treasury Stock [Member] | |||
Treasury stock, shares | 5,000 | 5,000 |
1. BASIS OF PRESENTATION AND OR
1. BASIS OF PRESENTATION AND ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
1. BASIS OF PRESENTATION AND ORGANIZATION | 1. BASIS OF PRESENTATION AND ORGANIZATION The accompanying financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by generally accepted accounting principles or those normally made in the Company's annual Form 10-K filing. Accordingly, the reader of this Form 10-Q may wish to refer to the Company's Form 10-K for the year ended December 31, 2021, for further information. The consolidated financial statements presented herein include the accounts of Spindletop Oil & Gas Co., a Texas corporation ("the Company") and its wholly owned subsidiaries, Prairie Pipeline Co., a Texas corporation and Spindletop Drilling Company, a Texas corporation. All significant inter-company transactions and accounts have been eliminated. In the opinion of management, the accompanying unaudited interim financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, the results of operations and changes in cash flows of the Company and its consolidated subsidiaries for the interim periods presented. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with generally accepted accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. |
2. COMMON STOCK
2. COMMON STOCK | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
2. COMMON STOCK | 2. COMMON STOCK Effective July 22, 2022, the Company repurchased 5,000 15,500 $3.10 The Company has not approved nor authorized any standing purchase program for its common stock. |
3. GAIN ON SALE OF PROPERTY
3. GAIN ON SALE OF PROPERTY | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
3. GAIN ON SALE OF PROPERTY | 3. GAIN ON SALE OF PROPERTY During the third quarter of 2022, the Company sold its interest in an operated well and associated leasehold acreage for $1,531,000 319,000 Rule 4-10 of Regulation S-X adopted the conveyance accounting requirements in FASB Statement No. 19, Financial Accounting and Reporting by Oil and Gas Producing Companies (which has been codified in FASB 932, Extractive Activities – Oil and Gas), for all oil and gas entities, with certain modifications for entities applying the full cost method. Under this standard, entities following the full cost method of accounting record sales of oil and gas properties, whether or not being amortized currently as adjustments of capitalized costs, with no gain of loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center. If a gain or loss is recognized on such a sale, total capitalization costs within the cost center shall be allocated between reserves sold and reserves retained on the same basis used to compute amortization, unless there are substantial economic differences between the properties sold and those retained, in which case capitalized cost shall be allocated on the basis of the relative fair value of the properties. In accordance with the aforementioned accounting pronouncements, the Company determined that an adjustment to capitalized costs for this sale would significantly alter the relationship between capitalized costs and proved oil and gas reserves. As a result, the Company recorded a gain on the sale of the property in the amount of $1,531,000 related to the sale. In determining the gain on the sale of the property, the Company considered that the Company’s most recent reserve report contained no reserves associated with the property sold, and therefore, no adjustment to capitalized costs is necessary. |
4. CONTINGENCIES
4. CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
4. CONTINGENCIES | 4. CONTINGENCIES On July 23, 2020, a subsidiary of the Company received notice of a lawsuit filed in Louisiana against the Company’s subsidiary and numerous other oil and gas companies alleging a pollution claim for properties operated by the defendants in Louisiana, and the Company’s subsidiary filed an answer. The Plaintiffs filed a First Supplemental and Amending Petition for Damages on January 21, 2021. The litigation is currently in the discovery phase. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of contingencies for litigation. The Company will continue to defend its subsidiary vigorously in this matter. Subsequent Events The Company has evaluated subsequent events through November 21, 2022, the date on which the financial statements were available to be issued. |
2. COMMON STOCK (Details Narrat
2. COMMON STOCK (Details Narrative) | 1 Months Ended |
Jul. 22, 2022 USD ($) $ / shares shares | |
Equity [Abstract] | |
Repurchased shares | shares | 5,000 |
Repurchased stock value | $ | $ 15,500 |
Share Price | $ / shares | $ 3.10 |
3. GAIN ON SALE OF PROPERTY (De
3. GAIN ON SALE OF PROPERTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Gain on sale of property | $ 1,531,000 | $ 1,531,000 | ||
Capitalized cost | $ 319,000 | $ 319,000 |