RADNOR, PA — Pardee Resources Company (OTC: PDER) reported an 85% drop in second-quarter earnings attributable to shareholders as weaker coal and oil-and-gas operations, an agricultural impairment and the absence of a large prior-year asset-sale gain outweighed growth in alternative energy.
Net income attributable to Pardee shareholders fell to $1.51 million, or $2.30 a share, from $9.85 million, or $15.07 a share, in the second quarter of 2025. EBITDA per share declined 83% to $3.61 from $20.99.
Divisional revenue fell 23% to $6.66 million from $8.66 million, while net operating income declined 47.5% to $2.66 million from $5.10 million.
Metallurgical coal remained Pardee’s largest source of divisional revenue but weakened sharply during the quarter. Revenue dropped 34% to $2.85 million as coal shipments declined 41.2% to 400,000 tons.
Royalty revenue per ton increased 10.2% to $6.49, partially cushioning the volume decline. Pardee attributed the weaker coal results in part to difficult market conditions and noted that a major lessee’s mines remained idle during the period.
Oil and gas revenue declined 40.3% to $1.08 million from $1.81 million. Production fell 16.7% to 0.50 billion cubic feet equivalent, while the realized price per thousand cubic feet equivalent dropped 24.9% to $2.08.
The division’s quarterly operating income consequently fell nearly 90% to about $90,000 from $880,000 a year earlier. Pardee also noted that prior-period adjustments benefited the second quarter of 2025 but did not recur this year.
Timber and surface revenue was comparatively stable at $1.78 million, down 3.3% from $1.84 million. Hardwood board-foot production increased 35.9%, though the average hardwood stumpage price per thousand board feet fell 30.6%.
The division generated $626,000 in rural real estate gains during the quarter, down from about $729,000 a year earlier, with Pardee reporting additional sales pending for the remainder of the year.
Alternative energy provided the strongest revenue growth among Pardee’s operating divisions. Revenue increased 43.6% to $982,000, while first-half revenue rose at the same rate to $1.61 million.
Agriculture produced a significant drag on quarterly results. Pardee completed the sale of two table-grape ranches in California’s San Joaquin Valley during the period, while problems affecting its Portugal almond crop contributed to an impairment and a $2.8 million pretax operating loss, net to Pardee’s interest, according to the shareholder report.
At the consolidated level, Pardee recognized $3.19 million in net gains on asset disposals but also recorded a $5.13 million asset impairment. The company had reported an $8.90 million disposal gain and no impairment in the year-earlier quarter.
For the first six months of 2026, earnings attributable to Pardee shareholders totaled $2.92 million, or $4.46 a share, down from $12.91 million, or $19.73 a share, during the same period last year.
Pardee ended June with $41.52 million in cash and cash equivalents, up from $27.86 million at the end of 2025. Total assets stood at $165.81 million, compared with $171.24 million at year-end, while total liabilities declined to $30.98 million from $33.78 million.
The company paid a quarterly dividend of $1.80 per share, unchanged from the second quarter of 2025.
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