Higher Production and Prices Drive 121% Increase in Operating
Income WILLISTON, N.D., Aug. 11 /PRNewswire-FirstCall/ --
GeoResources, Inc., (NASDAQ:GEOI), today reported second quarter
2006 net income of $854,125, or $0.23 per share, on revenue of
$2,508,311, compared to a second quarter 2005 net income of
$848,044, or $0.23 per share, on revenue of $1,853,399. The second
quarter of 2005 included a gain of $497,743 on the involuntary
conversion of the company's leonardite facility which was damaged
by fire in May 2005. Operating income for the quarter was
$1,007,166 in 2006 versus $456,389 in 2005, a 121% increase.
Earnings before interest, taxes, depreciation, depletion and
amortization (EBITDA) for the second quarter of 2006 was
$1,240,084, compared to $1,170,071 for the second quarter of
2005.(1) (Logo:
http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO ) First
half 2006 net income was $1,381,813, or $0.37 per share, on revenue
of $4,680,834, versus net income of $1,121,399, or $0.30 per share,
on revenue of $3,708,584 in the first half of 2005. Operating
income for the six months increased 104% to $1,593,088. EBITDA for
the first half of 2006 was $2,051,478, compared to $1,687,765 the
first half of 2005. Higher commodity prices, which averaged $58.18
per barrel of oil equivalent (BOE) for the first half of the year,
and increased production were the primary drivers of the improved
results. GeoResources sold a total of 33,527 BOE, or 368 BOE per
day, during the second quarter of 2006, a 14% increase compared to
29,323 BOE, or 322 BOE per day, in the second quarter of 2005. For
the six months ended June 30, 2006, GeoResources sold a total of
67,027 BOE a 20% increase over the 55,842 BOE sold during the first
six months of 2005. Higher production and substantially higher
average oil prices resulted in an increase in oil and gas sales to
$1,950,745 for the quarter and $3,596,894 for the six-months ended
June 30, 2006, a 48% and 45% increase respectively, compared to the
same periods in 2005. GeoResources' subsidiary, Western Star
Drilling Company (WSDC) operations consisted of 37 operating days
in the second quarter and 83 days in the first half of 2006. WSDC
drilled two wells for third parties during the second quarter of
2006, generating drilling revenue of $523,399 compared to $256,890
the second quarter 2005. First half 2006 revenue increased 126% to
$1,041,645 in 2006 compared to $460,643 for same period in 2005.
J.P. Vickers, President of GeoResources, said, "We are pleased with
our results for the first six months of the year. Higher prices and
production have enabled us to retire long-term debt while building
our working capital position to more than $2 million.
Operationally, the successful completion of the Anderson 41-25 #3
in the Leonard Field in Bottineau County, North Dakota and
successful workovers on several shut-in wells have delivered a 20%
increase in our production for the first six months. We plan to
drill two more wells before year-end and we are in the process of
repairing and upgrading the gathering and compression
infrastructure in our Hammond Gas Field in Montana. We expect to
return nine wells in the Hammond Field to production before year
end and we could potentially add seven other wells to the system."
(1) EBITDA is defined as earnings before interest, income taxes,
depreciation and amortization, EBITDA should not be considered as
an alternative to net income (as an indicator of operating
performance) or as an alternative to cash flow (as a measure of
liquidity or ability to service debt obligations) and is not in
accordance with, nor superior to, generally accepted accounting
principles, but provides additional information for evaluating us.
Our measure of EBITDA may not be the same as similar measures
described by other companies. EBITDA is calculated as follows:
Quarter Ended Quarter Ended June 30, 2006 June 30, 2005 Net income
$854,125 $848,044 Add back Interest expense 8,635 23,459 Income tax
158,550 98,000 Depreciation and amortization 218,774 200,568 EBITDA
$1,240,084 $1,170,071 Six Months Six Months Ended Ended June 30,
2006 June 30, 2005 Net Income. $1,381,813 $1,121,399 Add back:
Interest expense 21,580 47,706 Income tax 213,550 129,000
Depreciation and amortization 434,535 389,660 EBITDA $2,051,478
$1,687,765 Information herein contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, which can be identified by words such as "may," "will,"
"expect," "anticipate," "estimate" or "continue," or comparable
words. In addition, all statements other than statements of
historical facts that address activities that the Company expects
or anticipates will or may occur in the future are forward-looking
statements. Readers are encouraged to read the SEC reports of the
Company, particularly its Form 10-KSB for the Fiscal Year Ended
December 31, 2005, for meaningful cautionary language disclosure.
PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements
GEORESOURCES, INC., AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) June 30, December 31, 2006 2005 ASSETS CURRENT ASSETS:
Cash and equivalents $1,535,498 $1,669,882 Trade receivables, net
1,509,823 1,109,202 Inventories 365,133 236,081 Prepaid expenses
135,296 38,738 Total current assets 3,545,750 3,053,903 PROPERTY,
PLANT AND EQUIPMENT, at cost: Oil and gas properties, using the
full cost method of accounting: Properties being amortized
28,489,833 27,842,549 Properties not subject to amortization
170,074 202,257 Drilling rig and equipment 1,580,624 1,607,094
Leonardite plant and equipment 917,300 854,789 Other 799,995
790,100 31,957,826 31,296,789 Less accumulated depreciation,
depletion amortization and impairment (20,077,961) (19,650,972) Net
property, plant and equipment 11,879,865 11,645,817 TOTAL ASSETS
$15,425,615 $14,699,720 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: Accounts payable $880,926 $1,152,532 Accrued
expenses 249,173 293,505 Income taxes payable 118,500 64,000
Current portions of capital lease obligations 34,396 41,549 Current
maturities of long-term debt 200,000 523,941 Total current
liabilities 1,482,995 2,075,527 CAPITAL LEASE OBLIGATIONS, less
current portions -- 13,298 LONG-TERM DEBT, less current maturities
-- 177,638 ASSET RETIREMENT OBLIGATION 2,380,550 2,324,690 DEFERRED
INCOME TAXES 794,000 753,000 Total liabilities 4,657,545 5,344,153
STOCKHOLDERS' EQUITY: Common stock, par value $.01 per share;
authorized 10,000,000 shares; issued and outstanding 3,778,269 and
3,765,269 shares, respectively 37,783 37,653 Additional paid-in
capital 422,441 391,881 Retained earnings 10,307,846 8,926,033
Total stockholders' equity 10,768,070 9,355,567 TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $15,425,615 $14,699,720 See Notes to
Consolidated Financial Statements. GEORESOURCES, INC., AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2006 2005
2006 2005 OPERATING REVENUES: Oil and gas sales $1,950,745
$1,316,713 $3,596,894 $2,475,161 Leonardite sales 34,167 279,796
42,295 772,780 Drilling revenue 523,399 256,890 1,041,645 460,643
2,508,311 1,853,399 4,680,834 3,708,584 OPERATING COSTS AND
EXPENSES: Oil and gas production 692,358 507,258 1,319,874 944,042
Cost of leonardite sold 39,873 272,151 138,061 708,126 Drilling
costs 346,263 247,030 820,598 536,936 Depreciation and depletion
218,774 200,568 434,535 389,660 Selling, general and administrative
203,877 170,003 374,678 348,247 1,501,145 1,397,010 3,087,746
2,927,011 Operating income 1,007,166 456,389 1,593,088 781,573
OTHER INCOME (EXPENSE): Interest expense (8,635) (23,459) (21,580)
(47,706) Interest income 9,127 10,421 13,448 11,564 Gain on
involuntary conversion of Leonardite facility -- 497,743 -- 497,743
Other income, net 5,017 4,950 10,407 7,225 5,509 489,655 2,275
468,826 Income before income taxes 1,012,675 946,044 1,595,363
1,250,399 Income tax expense (158,550) (98,000) (213,550) (129,000)
Net income $854,125 $848,044 $1,381,813 $1,121,399 EARNINGS PER
SHARE: Basic $.23 $.23 $.37 $.30 Diluted $.22 $.22 $.36 $.29 See
Notes to Consolidated Financial Statements.
http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO
http://photoarchive.ap.org/ DATASOURCE: GeoResources, Inc. CONTACT:
Cathy Kruse of GeoResources, Inc., +1-701-572-2020, Web site:
http://www.georesources.net/
Copyright
Georesources (NASDAQ:GEOI)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Georesources (NASDAQ:GEOI)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024