Operating as an independent oil and gas producer, Panhandle Oil and Gas Inc. (PHX) has a rich tradition in the Oklahoma Panhandle. Headquartered in Oklahoma City, Oklahoma, they trade on the American Stock Exchange (AMEX). Panhandle’s focus is on the exploration and production of natural gas and oil.
The company began in 1926 as the Panhandle Cooperative Royalty Company. They continued as a cooperative until 1979. In that year, they went public after merging with the Panhandle Royalty Company. April of 2007 saw a new name for the company; Panhandle Oil and Gas Inc., a name which many felt resolved confusion over the previous name, since they were never a royalty trust nor strictly a royalty company.
Panhandle made several acquisitions during the 80’s and 90’s. In 2001, they acquired Wood Oil Company, which they operate as a subsidiary. Panhandle Oil and Gas Inc. currently owns 254,778 mineral acres. They have a working interest or royalty interest in over 4,000 wells. However, they do not operate any wells on their own. They conduct all of their exploration and development in working arrangements with operating oil and gas companies. These companies are mostly large independents.
With most of their holdings centered in Oklahoma, Panhandle also has assets in other states. Panhandle owns net-fee mineral acres in Arkansas, Colorado, Kansas, North Dakota, New Mexico, and Texas. The company is developing gas resource projects on mineral acreage they own in southeast Oklahoma and Arkansas, and continues to focus much of their operating activities in these two areas.
With a wealth of natural resources in inventory, Panhandle Oil and Gas Inc. hopes to provide their shareholders with continued growth. They are a dividend-paying corporation. For the first quarter of 2008, their net income was $3,480,307 or $.41 per share as compared to a net income of $1,983,493 or $.23 per share for the same quarter in 2007. With a good handle on their operations, Panhandle seeks even greater return on investment in the years to come.
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