Panhandle Oil And Gas Inc. (NYSE: PHX) detailed financial and operating results for the 2014 fiscal first quarter ending Dec. 31, 2013, the company said. Feb. 7. Total first quarter revenues were more than double 2013’s first quarter revenues, and yearly net income had also doubled since 2013. Strong cash flow from operations funded all capex spending, and drilling capex was poured into oily and NGL-rich areas in Oklahoma, the company said.

Total 2014 first quarter revenues were $18,396,756, above 2013’s first quarter revenues of $14,180,435. The first quarter’s capex of $11, 498,717 included $9,892,262 for drilling and equipping wells, the company said.

Net income more than doubled in the current year’s first quarter, at $4,926,318 (59 cents per share), up from $2,148,298 (26 cents per share) in the first quarter 2013, the company said.

The company added a bolt-on acquisition—of producing gas wells and acreage—in the Fayetteville shale for $1.6 million in the first quarter, Panhandle said.

Oil production increased 79% in the 2014 first quarter, to 83,413 barrels, up from 46,656 barrels in the 2013 quarter. Natural gas liquids (NGLs) production increased 21% to 37,140 barrels, and natural gas production increased 9% for the 2014 quarter, compared to the 2013 quarter, the company said.

“This rate of oil production growth was largely the result of elevated oil drilling activity during the second half of fiscal 2013,” said Paul Blanchard, senior vice president and chief operating officer.

He added, “The increased level of capital expenditures experienced in the current quarter was in part due to the cost associated with that activity. Our pace of oil well drilling thus far in 2014 has moderated from that level, which, when combined with the natural decline from new oil properties, is anticipated to result in a leveling off of oil production for the second quarter of fiscal 2014. Substantial oil and NGL drilling opportunity exists on our mineral holdings, and we anticipate development of those reserves will continue for many years."

Additionally, the 2014 first quarter’s total costs and expenses were slightly down from the previous year, the company said.

"Our first quarter financial and operational results again demonstrate that continuing to execute on the company's fundamental business strategies while maintaining a longer-term outlook will increase shareholder value,” said president and CEO Michael C. Coffman.

Commenting on the performance of natural gas, he added, “The 2014 winter has driven natural gas prices to 3-year high levels, which we expect to moderate as we move into spring. However, these current prices and expected prices through 2014 should continue to have a positive effect on 2014 earnings."

"Panhandle is extremely well positioned to benefit from increasing natural gas prices. We have grown natural gas production, reserves and undeveloped opportunity materially through the trough in the gas market over the last several years,” added Blanchard.

Panhandle Oil And Gas is an oil and natural gas E&P company based in Oklahoma City.