GeoResources, Inc., (NASDAQ:GEOI), today announced financial
results for the fourth quarter and year ended December 31, 2007.
Both oil and natural gas sales increased substantially in the
fourth quarter. Natural gas sales increased to 765 MMcf from 110
MMcf in the fourth quarter of 2006, an increase of 595%. Oil sales
for the fourth quarter increased to 176 MBbls from 50 MBbls in the
prior year�s period, an increase of 252%. For the year ended
December 31, 2007, natural gas sales totaled 1,648 MMcf or 185%
greater than the 577 MMcf sold during 2006. Oil sales for 2007
increased 113% to 392 MBbls from 184 MBbls for 2006. The
significant increases in production in the fourth quarter and for
the year ended December 31, 2007 over the same periods of 2006 are
a direct result of the previously announced merger, which occurred
in April 2007, acquisitions and drilling activities, offset by
natural production declines. Total revenues for the fourth quarter
increased 428% to $19,077,000, versus $3,615,000 for the same
period in 2006. Total revenues for the year ended December 31, 2007
increased 139% to $40,115,000 versus $16,805,000 for the prior
year. The average realized price of natural gas was $6.12 per Mcf
for the fourth quarter of 2007 less than 1% more than fourth
quarter of 2006. The average realized price of oil for the fourth
quarter of 2007 was $77.97 per barrel or 49% more than the fourth
quarter in the prior year. The average realized price of natural
gas was $6.19 per Mcf for the year ended December 31, 2007 or 9%
less than 2006. The average realized price of oil was $67.20 per
barrel for the year ended December 31, 2007 or 23% more than 2006.
Based upon the report of Cawley, Gillespie & Associates, Inc.,
an independent petroleum-engineering firm, 2007 year-end proved
reserves were estimated at 29,810 MMcf of natural gas and 10,744
MBbls of crude oil, or an increase of 534%, calculated on a barrel
of oil equivalent basis. At year end 2007, proved reserves were
approximately 68% crude oil and 85% developed and the Company�s
reserve to production ratio was approximately 13.6 years At
December 31, 2006, proved reserves totaled 4,218 MMcf of natural
gas and 1,777 MBbls of crude oil. The Company consummated a reverse
merger (�Merger�) in April 2007. In accordance with generally
accepted accounting principles, for financial reporting purposes,
the Company�s financial statements for 2007 and 2006 represent
those of Southern Bay Oil & Gas LP (�Southern Bay�), the
largest party to the Merger, with GeoResources� and other net
assets included in the Merger treated as an acquisition on the
closing date of the Merger. Accordingly, management advises that
2007 earnings and related information contained in this release are
not directly comparable to corresponding periods in 2006 for
several reasons including: (1) Southern Bay was not a taxable
entity, therefore no income tax expense was reported in 2006; (2)
Southern Bay�s operating results in 2006 included significant
non-recurring income; (3) the Company consummated a significant
producing property acquisition in the fourth quarter of 2007; and
(4) during 2007, the Company incurred significant non-recurring
charges related to the Merger and the fourth quarter producing
property acquisition. Accordingly, management urges interested
parties to read the Company�s Annual Report on Form 10-KSB for the
year ended December 31, 2007, as filed with the U. S. Securities
and Exchange Commission. Subject to the above comments, the Company
is reporting the results of operations for the fourth quarter and
year ended December 31, 2007 and corresponding periods in the prior
year. Net income before tax for the fourth quarter of 2007 was
$4,212,000 which compares to a fourth quarter 2006 loss of
$408,000. For the full year 2007, the Company reported net income
before income tax of $7,950,000 as compared to $4,280,000 for the
similar period in 2006. Pursuant to generally accepted accounting
principles, in 2007 the Company recognized a charge related to
deferred income tax expense of $2,214,000 and other administrative
costs of $1,349,000 which management believes are non-recurring.
Accordingly, reported net income for the 2007 was $3,069,000 or
$0.25 per share, compared to net income of $4,247,000 for 2006. Net
income for the fourth quarter of 2007 was $2,120,000 or $.14 per
share and the Company incurred a net loss for the fourth quarter of
2006 of $441,000 or $.09 per share. In connection with the Merger
and related changes in operations, during the year ended December
31, 2007, Company incurred certain significant charges which it
believes are largely non-recurring. Such costs totaled
approximately $3,563,000 and included a deferred tax accrual of
$2,214,000, non-cash equity based compensation of $524,000,
professional fees totaling $467,000 and other miscellaneous costs
totaling $358,000. Earnings before interest, income taxes,
depreciation, depletion and amortization, and exploration expense
(�EBITDAX�) increased 792% to approximately $8,818,000 for the
fourth quarter compared to $989,000 in the prior year�s fourth
quarter. EBITDAX for 2007 increased 106% to $17,525,000, compared
to $8,507,000 for 2006. The following tables reconcile reported net
income to EBITDAX for the periods indicated: EBITDAX (1) � Three
Months Ended December 31, � 2007 � 2006 � � � Net income (loss) $
2,119, 911 $ (440,548 ) Add back: Interest expense 1,535,518
113,977 Income tax (2) 2,092,324 32,535 Depreciation, depletion and
amortization 2,917,332 1,208,746 Exploration expense � 153,125 � �
73,976 � � EBITDAX $ 8,818,210 � $ 988,686 � � � Year Ended
December 31, 2007 � 2006 � � Net income $ 3,069,377 $ 4,247,104 Add
back: Interest expense 1,915,941 288,051 Income tax (2) 4,880,399
32,535 Depreciation, depletion and amortization 7,506,575 3,381,602
Exploration Expense � 153,125 � � 557,784 � � EBITDAX $ 17,525,417
� $ 8,507,076 � � (1) EBITDAX is defined as earnings before
interest, income taxes, depreciation, depletion and amortization,
and exploration expense, EBITDAX 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 evaluation of
our operating performance. � 2) Includes deferred income tax
expense of $1,269,043 and $3,407,928 recognized in the fourth
quarter of 2006 and for 2007, respectively. The effect of Southern
Bay becoming a taxable entity gave rise to a nonrecurring deferred
tax of $2,214,118, which, as required under generally accepted
accounting principles, was charged to expense. About GeoResources,
Inc. GeoResources, Inc. is an independent oil and gas company
engaged in the acquisition and development of oil and gas reserves
through an active and diversified program which includes purchases
of reserves, re-engineering, and development and exploration
activities, currently focused in the Southwest and Gulf Coast,
Williston Basin and Rocky Mountains. In April 2007, the Company
completed the merger with Southern Bay and Chandler Energy, LLC.
The Company conducts its exploration development and production
operations through wholly owned subsidiaries. Activities in the
Southern Region are conducted through Southern Bay Energy, LLC,
located in Houston, Texas and in the Northern Region operations are
conducted through G3 Energy LLC, located in Denver, Colorado. For
more information, visit our website at www.georesourcesinc.com.
Forward-Looking Statements 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. 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, readers are encouraged to read our Annual
Report on Form 10-KSB for the year ended December 31, 2007, and any
and all other documents filed with the SEC regarding information
about GeoResources for meaningful cautionary language in respect of
the forward-looking statements herein. Interested persons are able
to obtain free copies of filings containing information about
GeoResources, without charge, at the SEC�s Internet site
(http://www.sec.gov). GEORESOURCES, INC. and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME � � � � � Three Months Ended
December 31, Year Ended December 31, 2007 2006 2007 2006
(unaudited) (unaudited) Revenue: Oil and gas revenues $ 18,407,573
$ 3,290,882 $ 36,517,997 $ 13,978,337 Partnership management fees
256,055 12,579 968,790 259,768 Property operating income 169,294
309,723 1,251,387 1,076,283 Gain (loss) on sale of property and
equipment 63,798 - 48,580 335,294 Partnership income (loss)
(144,787 ) (25,760 ) 184,416 90,859 Interest and other � 325,820 �
� 27,095 � � 1,144,223 � 1,064,530 � Total revenue 19,077,753
3,614,519 40,115,393 16,805,071 � Expenses: Lease operating expense
5,134,904 1,358,810 10,818,003 4,251,766 Severance taxes 1,472,616
234,204 2,880,115 1,065,964 Re-engineering and workovers 1,357,300
53,944 2,091,726 384,421 Exploration 153,125 73,976 153,125 557,784
General and administrative expense 2,007,581 821,668 6,513,200
2,804,512 Impairment of oil and gas properties - 184,250 - 184,250
Depreciation, depletion, and amortization 2,917,332 1,208,746
7,506,575 3,381,602 Hedge ineffectiveness 287,142 (27,043 ) 286,932
(392,918 ) Interest � 1,535,518 � � 113,977 � � 1,915,941 � 288,051
� Total expense � 14,865,518 � � 4,022,532 � � 32,165,617 �
12,525,432 � � Income before income taxes 4,212,235 (408,013 )
7,949,776 4,279,639 � Income taxes: Current 823,281 - 1,472,471 -
Deferred � 1,269,043 � � 32,535 � � 3,407,928 � 32,535 � �
2,092,324 � � 32,535 � � 4,880,399 � 32,535 � � Net income $
2,119,911 � $ (440,548 ) $ 3,069,377 $ 4,247,104 � � Net income per
share (basic and diluted) $ 0.14 � $ (0.09 ) $ 0.25 $ 0.87 � � �
Weighted average shares outstanding (basic and diluted) �
14,703,383 � � 4,858,000 � � 12,404,771 � 4,858,000 � GEORESOURCES,
INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS � � � December
31, 2007 � 2006 � ASSETS Current assets: Cash $ 24,430,181 $
6,216,822 Accounts receivable: Oil and gas revenues 20,365,111
7,201,902 Joint interest billings and other 3,913,461 2,294,237
Affiliated partnerships 3,360,017 1,742,174 Notes receivable
600,000 - Prepaid expenses and other � 1,430,445 � � 352,515 �
Total current assets � 54,099,215 � � 17,807,650 � � Oil and gas
properties, successful efforts method: Proved properties
187,640,420 34,204,118 Unproved properties 5,139,309 1,643,041
Office and other equipment 995,365 292,297 Land � 96,462 � � 96,462
� 193,871,556 36,235,918 Less accumulated depreciation, depletion
and amortization � (12,430,174 ) � (5,007,095 ) Net property and
equipment � 181,441,382 � � 31,228,823 � Other assets: Equity in
oil and gas limited partnerships 1,880,361 1,517,430 Notes
receivable and other � 2,937,312 � � 113,123 � $ 240,358,270 � $
50,667,026 � LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $ 11,374,221 $ 5,225,291 Accounts
payable to affiliated partnerships 4,271,238 2,201,141 Revenues and
royalties payable 19,833,732 7,347,702 Drilling advances 882,367
2,120,770 Accrued expenses 3,839,087 915,445 Derivative financial
instruments � 6,527,360 � � 1,685,938 � Total current liabilities
46,728,005 19,496,287 Long-term debt 96,000,000 5,000,000 Deferred
income taxes 6,476,433 32,535 Asset retirement obligations
7,826,856 2,478,205 Derivative financial instruments 15,295,948 -
Stockholders' equity: Common stock, par value $.01 per share;
authorized 100,000,000 shares; issued and outstanding: 14,703,383
shares in 2007 and 4,858,000 shares in 2006 � 147,034 48,580
Additional paid-in capital 79,689,720 16,848,643 Accumulated other
comprehensive income (loss) (19,310,316 ) (1,679,388 ) Retained
earnings � 7,504,590 � � 8,442,164 � Total stockholders' equity �
68,031,028 � � 23,659,999 � $ 240,358,270 � $ 50,667,026 �
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