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AUSTIN -- United States Oil and Gas Corp. (USOG), an oil and gas products, services and technology company headquartered here, provided highlights from its recently filed 2010 annual report, including financial results for the fiscal year and quarter ended Dec. 31.
The company said several key measures improved significantly during the 12-month period. The following three elements played a key role in these positive operational changes:
• Subsidiary operations performed well. Earnings before income taxes, interest expense, depreciation and amortization (EBITDA) for the combined subsidiaries were $635,000 for the year. USOG believes EBITDA is useful to investors in evaluating the company’s operating performance by removing the impact of items such as interest expense, depreciation and amortization that can vary substantially from period to period.
• Drastic cuts in corporate overhead costs were achieved. Corporate operating expense was cut by $353,000, or 39 percent, for the 12 months vs. the same period in 2009.
• USOG consolidated taxes starting Aug. 1, 2010. This will allow losses at the corporate level to offset operational profits and reduce future federal tax expense by a considerable amount.
"The progresses we have achieved on several fronts at the corporate level in 2010 have established the foundation upon which we will move the company into the next stage of growth," CEO Alex Tawse said in a statement. "Over the next year, we will continue to seek opportunities to expand our business through the opening of new revenue streams at our existing subsidiaries, and we will continue to build our cash resources and working capital to focus on making our business more efficient, reducing our debt and funding additional acquisitions."
Through its subsidiaries, USOG markets and distributes refined oil and gas (diesel, gasoline, propane, high octane racing fuels and lubricants) to wholesale and retail customers in the United States. The company also owns and operates a gas station and convenience store in Belcourt, N.D., and holds approximately six acres of developable land in Bottineau, N.D.
United States Oil and Gas said it is focused on acquiring and growing domestic, mid-sized, family-run oil and gas services businesses that have historically profitable results, strong balance sheets, high profit margins and solid management teams in place.
The company reported 2010 revenues of $24.7 million, up from $9.4 million in 2009.