SEC Filing Summary: Tengasco, Inc. (8-K)
Business Context and Reporting Period
This Form 8-K, dated August 16, 2013, reports the closing of a significant asset sale by Tengasco, Inc. The transaction involved the divestiture of the Company's Swan Creek field, all Tennessee oil and natural gas leases, and a 67-mile natural gas pipeline system to Swan Creek Partners LLC and General Gas Pipeline LLC.
Key Financial Metrics
- Sale Proceeds: $1.5 million.
- Debt Reduction: Proceeds were used to pay down borrowings under the credit facility with F&M Bank.
- Debt Balance: Reduced from $5.2 million to approximately $3.8 million.
- Asset Impairment: The pipeline asset was previously impaired to a value of $1.4 million in 2012.
Material Changes
Following this transaction, Tengasco, Inc. holds no remaining oil or natural gas producing properties, lease positions for exploration, or natural gas pipeline assets in Tennessee. The sale excluded assets of Manufactured Methane Corporation, specifically the methane facility and electric generator at the Carter Valley landfill.
Outlook and Management Commentary
Management anticipates that the sale will have no effect on the Company's earnings for the current reporting period due to the prior impairment of the pipeline asset to $1.4 million in 2012. The closing was contingent upon regulatory approval from the Tennessee Regulatory Authority, which was granted in July 2013, and landowner approvals completed in early August 2013.
Investor Verification Points
- Confirm the exact remaining balance of the credit facility with F&M Bank post-payment.
- Verify the Company's current operational focus following the exit from Tennessee oil and gas production.
- Review the status of the excluded Manufactured Methane Corporation assets and their contribution to future revenue.
- Check for any subsequent filings regarding the Company's strategy for the remaining $3.8 million debt obligation.