American Eagle Energy Corporation (NYSE MKT: AMZG) ("American Eagle" or the
"Company"), announces operational update and financial results for the first
quarter ended March 31, 2014. The Company intends to file its Quarterly Report
on Form 10-Q with the U.S. Securities and Exchange Commission on or before
Thursday, May 15, 2014.
Highlights
-- Closed separate transactions to bring the Company's average working
interest in the total Spyglass area to 68% and the proved Spyglass area
to 67% resulting in a total of 45,600 net acres in the Spyglass area;
-- Added seven (3.0 net) operated wells to production that included a mix
of Bakken and Three Forks wells in central and eastern Spyglass and a
step-out well in western Spyglass;
-- April net production averaged approximately 2,250 barrels of oil
equivalent per day ("BOEPD");
-- American Eagle reports first quarter 2014 oil production of 148,048
barrels of oil equivalent ("BOE"), or an average of 1,645 BOEPD. First
quarter production was up 69% from 972 BOEPD (87,471 BOE) year-over-year
for the quarter ended March 31, 2013 ("YOY") but down 12% from 1,879
BOEPD (172,829 BOE) quarter-over-quarter for the period ended December
31, 2013 ("QOQ") due to severe cold weather;
-- Quarterly oil and gas sales of $12.5 million, up 64% YOY and down 7%
QOQ;
-- Adjusted EBITDA* of $7.4 million;
-- Adjusted Cash Flow* of $4.6 million or $0.24 per diluted share; and
-- Adjusted Net Income* of $0.8 million or $0.04 per diluted share.
* Non-GAAP financial measure. Please see Adjusted EBITDA, Adjusted Cash Flow and
Adjusted Net Income descriptions and tables later in this earnings release for a
reconciliation of these measures to their nearest comparable GAAP measure.
Management Comments
Brad Colby, President and CEO of American Eagle, said, "Despite the extremely
cold winter in North Dakota, our operations team continued to move forward and
successfully drilled, completed and brought onto production approximately seven
(3.0 net) operated wells (four Bakken and three Three Forks) during the quarter.
Our new wells added to production a number of Bakken wells which continued to
successfully de-risk and delineate our Spyglass Bakken well locations and should
be additive to future reserve reports. We also tested the far western Spyglass
acreage with an American Eagle operated well that our JV partner financed. While
the initial results on the test well were below other operated wells, we are
still evaluating performance and have seen recent improvements in production
rates. We are currently producing approximately 2,250 BOEPD and are completing
wells that should be additive to second quarter results. The remainder of our
2014 development plan continues to focus on higher working interest wells in
central and eastern Spyglass."
First Quarter 2014 Financial and Operational Results
For the quarter ended March 31, 2014, the Company had oil and gas sales of $12.5
million, which represented an increase of 64% from $7.6 million when compared to
the first quarter ended March 31, 2013 and a decrease of 7% from $13.5 million
when compared to the fourth quarter ended December 31, 2013. This increase in
revenue on a YOY basis is due primarily to production from 35 gross (16.3 net)
operated wells in the Spyglass area producing in the Three Forks and Bakken
formations during the first quarter 2014, compared to production from 13 gross
(3.3 net) operated wells at the end of March 31, 2013 and 28 gross (13.7 net)
operated wells as of December 31, 2013. The decrease in revenue on a QOQ basis
is due primarily to the impact of severe cold weather in North Dakota. Oil
represented 98% of revenue and 95% of production during the first quarter 2014.
Adjusted EBITDA for first quarter 2014 was $7.4 million, up 52% from $4.9
million for the first quarter ended March 31, 2013 but down 2% from $7.6 million
for the fourth quarter ended December 31, 2013. The increase in Adjusted EBITDA
on a YOY basis is due primarily to higher revenues from increased production
which increased 69% YOY and a 1% increase in realized oil price when including
the positive effect of hedges during the quarter, which was partially offset by
higher lease operating expenses ("LOE") per BOE and a higher differential when
comparing realized oil price to benchmark oil prices such as West Texas
Intermediate ("WTI"). The modest 2% decrease in Adjusted EBITDA on a QOQ basis
is due primarily to a 12% decrease in average daily oil equivalent production
and higher LOE per BOE, which was partially offset by higher realized oil prices
and lower general and administrative expenses per BOE.
American Eagle added seven gross (3.0 net) operated wells to production during
the quarter ended March 31, 2014. American Eagle's first quarter 2014 realized
oil price per barrel prior to the effect of hedges was positively impacted by a
lower differential discount of about $11.57 relative to WTI due to an agreement
that locks in a $10.75 discount to WTI for all 2014 operated oil production and
compares with a differential discount of approximately $17.04 during the fourth
quarter 2013. Lease operating expenses for the quarter ended March 31, 2014 were
$15.36 per BOE, which were higher than normal due to weather conditions and
increased workovers. The higher production and revenue helped to reduce per unit
general and administrative expenses ("G&A") on a YOY and QOQ basis, as G&A,
excluding stock-based compensation, was $10.56 per BOE during the first quarter
2014 compared to $12.23 per BOE the previous year and $15.07 per BOE the
previous quarter. Adjusted EBITDA per BOE for the quarter ended March 31, 2014
was $50.29, compared to $56.13 per BOE for the first quarter ended March 31,
2013 and $44.16 per BOE for the fourth quarter ended December 31, 2013.
-------------------------------------------------
Three Months Ended
-------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2014 2013 2013 2013 2013
-------------------------------------------------
Crude Oil Revenues ($000s) $ 12,267 $ 13,272 $ 11,585 $ 10,366 $ 7,628
Natural Gas Revenues
($000s) $ 72 $ 114 $ 26 $ 4 $ 1
Natural Gas Liquids
Revenues ($000s) $ 206 $ 115 $ 28 $ 0 $ 0
Net Production:
Crude Oil (Barrels) 140,841 164,923 123,343 117,000 87,440
Crude Oil Mix 95% 95% 98% 100% 100%
Natural Gas (Mcf) 11,370 20,055 6,333 981 187
Natural Gas Liquids
(Barrels) 5,312 4,563 944 0 0
Total Net Production (BOE) 148,048 172,829 125,343 117,164 87,471
Quarter-Over-Quarter
Increase -14% 38% 7% 34% 44%
Average Daily Production
(BOEPD) 1,645 1,879 1,362 1,288 972
Quarter-Over-Quarter
Increase -12% 38% 6% 32% 47%
Average Sales Prices:
Crude Oil Per Barrel $ 87.10 $ 80.48 $ 93.92 $ 88.60 $ 87.23
Effect of Settled Oil
Derivatives Per Barrel $ 0.82 $ 4.16 $ 0.94 $ 0.00 $ 0.00
-------------------------------------------------
Crude Oil Net of Settled
Derivatives Per Barrel $ 87.92 $ 84.64 $ 94.86 $ 88.60 $ 87.23
Natural Gas Per Mcf $ 6.37 $ 5.67 $ 4.09 $ 4.39 $ 5.70
Natural Gas Liquids Per
Barrel $ 38.83 $ 25.27 $ 29.67 $ 0.00 $ 0.00
Realized Price Per BOE $ 85.52 $ 82.10 $ 93.78 $ 88.51 $ 87.21
Average Per BOE:
Lease Operating Expenses $ 15.36 $ 13.59 $ 14.09 $ 15.31 $ 9.27
Production Taxes $ 9.32 $ 9.28 $ 10.28 $ 9.89 $ 9.58
G&A Expenses, Excluding
Stock-Based Compensation $ 10.56 $ 15.07 $ 12.04 $ 8.31 $ 12.23
-------------------------------------------------
Total $ 35.24 $ 37.94 $ 36.41 $ 33.51 $ 31.08
-------------------------------------------------
Adjusted EBITDA per BOE $ 50.29 $ 44.16 $ 57.36 $ 54.99 $ 56.13
Well Development Activity
Since the Company's March 26, 2014 operations update, it has continued to drill
and complete wells successfully. In that update, American Eagle released
preliminary results on wells that had not yet produced for a full 30 days. The
first full 30 days of production on these wells is listed below:
----------------------------------------------------------------------------
30-Day Lateral Infill
IP Rate Length Approximate Number
Well Formation BOEPD(1) Feet DSU(2 ) Acres in DSU(2)
----------------------------------------------------------------------------
1st well
in DSU,
Tangedal 13-31- 1st Three
164-101 (30 & 31) Three Forks 363 5,784 800 Forks
----------------------------------------------------------------------------
4th well
in DSU,
Janice 2-3- 1st
163-101 (3 & 10) Bakken 276 9,473 1,280 Bakken
----------------------------------------------------------------------------
1 IP Rate BOEPD is calculated taking the cumulative production from each
well divided by the number of days each well has been on production. Results
above are based on the first 30 days of production.
2 Drill spacing unit ("DSU")
The initial results from the Tangedal 13-31 Three Forks well seem to confirm and
expand the good quality area of the reservoir in the north central portion of
the Spyglass acreage as was previously established by the offset wells, Lynda
15-32 to the east and the Stanley 8-1E to the south. The Janice 2-3
well-established, good Middle Bakken production in a DSU in the middle of the
eastern Spyglass acreage.
Since the Company's March 26, 2014 operations update, there are five additional
operated wells that have produced an average of 30 days. The operated wells are
listed below from the most easterly well listed first and moving to the west
with the most westerly well listed last:
----------------------------------------------------------------------------
30-Day Lateral Infill
IP Rate Length Approximate Number
Well Formation BOEPD(1) Feet DSU(2 ) Acres in DSU(2)
----------------------------------------------------------------------------
4th well
Harvard State in DSU,
16-36S-163-101 Bakken 190 9,924 1,280 2nd
(1 & 12) Bakken
----------------------------------------------------------------------------
3rd well
Uncompahgre in DSU,
State 14-36- Bakken 233 5,885 800 1st
164-101 (25 & 36) Bakken
----------------------------------------------------------------------------
4thwell
Blackwatch 2-2N- in DSU,
164-101 (26 & 35) Bakken 194 6,023 800 2nd
Carry Bakken
----------------------------------------------------------------------------
2nd well
Taylor 16-1E- in DSU,
163-101 (5 & 6) Bakken 358 9,915 1,280 1st
Farm-Out Bakken
----------------------------------------------------------------------------
1st well
Haugen 15-12- in DSU,
163-103 (1 & 12) Three Forks 91 9,677 1,280 1st Three
Farm-Out Forks
----------------------------------------------------------------------------
1 IP Rate BOEPD is calculated taking the cumulative production from each
well divided by the number of days each well has been on production. Results
above are based on the first 30 days of production.
2 Drill spacing unit ("DSU")
The Taylor 16-1E well is a Bakken well and part of the Farm-Out well program
with the JV partner that is in the central portion of the Spyglass acreage in
the same DSU as the Stanley (Three Forks) well and exhibits similarly strong
production results as the other wells in the surrounding area.
The Haugen 15-12 step-out well is a Three Forks completion and part of the
Farm-Out well program with the JV partner. It is designed to test the far
western edge of the Spyglass area close to the Montana border. The Haugen 15-12
produced an average of 91 BOEPD during the first 20 days of production with an
apparent water-cut in excess of 90%. The well has shown some chemical emulsion
problems that have resulted in fluctuating oil rates ranging from 60 to 192
barrels of oil per day. Although the initial results are disappointing, the
Company is still evaluating the improving production trend observed over the
last 10 days and will incorporate the production results over the next 30 to 60
days into the interpretation of the prospectivity of the Three Forks zone as we
approach the western edge of our acreage position.
In addition to the wells listed above, the Company has one operated well that is
producing but has not yet produced for 30 cumulative days, four operated wells
that are in various stages of completion, one operated well that is awaiting
completion, and two wells that are being drilled. Below is a list of operated
wells that have spud but have not yet produced for 30 cumulative days:
----------------------------------------------------------------------------
Infill
Lateral Approximate Number
Well Formation Status Length DSU1 Acres in DSU1
----------------------------------------------------------------------------
5th well
Braelynne 2-2N Producing in DSU,
164-101 (26 & 35) (< 30 Short 800 3rd
Carry Bakken days) Bakken
----------------------------------------------------------------------------
1st well
Ella 3-15- in DSU,
163-102 (15 & 22) Three Forks Completing Long 1,280 1st Three
Farm-Out Forks
----------------------------------------------------------------------------
2nd well
La Plata State in DSU,
2-16- Three Forks Completing Long 1,280 2nd Three
163-101 (16 & 21) Forks
Carry
----------------------------------------------------------------------------
1st well
in DSU,
Shelly 3-2N- Three Forks Completing Short 800 1st Three
164-102 (26 & 35) Forks
----------------------------------------------------------------------------
4th well
in DSU,
Warren 4-2- Bakken Completing Long 1,280 1st
163-101 (2 & 11) Bakken
----------------------------------------------------------------------------
3rd well
Awaiting in DSU,
Murielle 9-1E- Three Forks Completion Long 1,280 2nd Three
163-101 (5 & 6) Forks
----------------------------------------------------------------------------
5th well
in DSU,
Richard 2-13N- Three Forks Drilling Long 1,280 3rd
163-101 (1 & 12) Bakken
----------------------------------------------------------------------------
1st well
in DSU,
George 3-1- Three Forks Drilling Long 1,280 1st Three
163-102 (1 & 12) Forks
----------------------------------------------------------------------------
1 Drill spacing unit ("DSU")
American Eagle plans to announce results of the wells once it has achieved
approximately 30 days of cumulative production. The Company anticipates
releasing results for wells in an operations update that will likely be after
the end of June 2014, but before announcing second quarter 2014 operational
results in August.
Operated Well Development Guidance
American Eagle currently has two rigs drilling in its Spyglass area. Thus far
during the second quarter, the Company has spud two gross operated wells, is in
the process of completing four gross operated wells and anticipates drilling and
completing an additional two gross operated wells. At the current pace of
development, American Eagle estimates that approximately six gross operated
wells will be spud, completed and brought onto production each quarter.
For the remainder of 2014, American Eagle plans to drill a mix of Three Forks
and Middle Bakken wells, with a weighting towards Three Forks wells. The Company
will focus on developing wells with high working interests and giving effect for
the increased working interests now expects to drill and complete a total of 24
gross (16 net) operated wells during 2014 for approximately $97 million.
American Eagle also plans to participate in the development of non-operated
wells in its Spyglass area and spend approximately $3 million to participate in
less than one non-operated well. The Company's total well development budget for
2014 is approximately $100 million.
2014 Production Volume Guidance
American Eagle has reaffirmed its production volume guidance to exit 2014 at
over 3,000 BOEPD. As weather in the Williston Basin has recently improved,
production volumes are expected to return to normal levels during second quarter
2014 with the added benefit of higher working interests that now average 68% in
the Spyglass area following the acquisitions completed in March 2014. The
Company estimates that its current production is approximately 2,250 BOEPD.
American Eagle anticipates significant QOQ production volume growth during the
third and fourth quarters of 2014 and overall is comfortable with consensus
estimates for 2014 production volumes.
Liquidity and Shares Outstanding
As of March 31, 2014, American Eagle had approximately $50.1 million in cash,
$108.0 million total debt outstanding and 30.4 million shares of common stock
outstanding. American Eagle believes that its cash on hand, cash flow from
operations, and anticipated additional availability under the $200 million
credit facility driven by increased proved producing reserves should adequately
fund its two-rig drilling program to drill 16 net operated wells per year in
2014 and well development at a similar pace in 2015.
Conference Call
American Eagle will host a conference call on Wednesday, May 14, 2014 at 10:00
a.m. Eastern Time (8:00 a.m. Mountain Time) to discuss financial and operational
results for the quarter.
----------------------------------------------------------------------------
American Eagle Energy Corporation 1Q 2014 Financial and Operational Results
Conference Call
----------------------------------------------------------------------------
Date: Wednesday, May 14, 2014
----------------------------------------------------------------------------
Time: 10:00 a.m. Eastern Time
9:00 a.m. Central Time
8:00 a.m. Mountain Time
7:00 a.m. Pacific Time
----------------------------------------------------------------------------
Webcast: Live and rebroadcast over the Internet at American Eagle
website
----------------------------------------------------------------------------
Website: www.americaneagleenergy.com
----------------------------------------------------------------------------
Telephone 877-407-9171 (toll-free) and 201-493-6757 (international)
Dial-In:
----------------------------------------------------------------------------
Telephone Available through Wednesday, May 21, 2014
Replay: 877-660-6853 (toll-free) and 201-612-7415 (international)
Passcode: 13572777
----------------------------------------------------------------------------
ABOUT AMERICAN EAGLE ENERGY CORPORATION
American Eagle Energy Corporation is an independent exploration and production
operator that is focused on acquiring acreage and developing wells in the
Williston Basin of North Dakota, targeting the Bakken and Three Forks shale oil
formations. The Company is based in Denver, CO. More information about American
Eagle can be found at www.americaneagleenergy.com or by contacting investor
relations at 303-798-5235 or ir@amzgcorp.com. Company filings with the
Securities and Exchange Commission can be obtained free of charge at the SEC's
website at www.sec.gov.
SAFE HARBOR
This press release may contain forward-looking statements regarding future
events and the Company's future results that are subject to the safe harbors
created under the Securities Act of 1933 (the "Securities Act") and the
Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than
statements of historical facts included in this press release regarding the
Company's financial position, business strategy, plans and objectives of
management for future operations, industry conditions, and indebtedness covenant
compliance are forward-looking statements. When used in this report,
forward-looking statements are generally accompanied by terms or phrases such as
"estimate," "project," "predict," "believe," "expect," "anticipate," "possible,"
"target," "plan," "intend," "seek," "goal," "will," "should," "may" or other
words and similar expressions that convey the uncertainty of future events or
outcomes. Items contemplating or making assumptions about, actual or potential
future sales, market size, collaborations, and trends or operating results also
constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties and
important factors (many of which are beyond the Company's control) that could
cause actual results to differ materially from those set forth in the
forward-looking statements, including the amount we may invest, the location,
and the scale of the drilling projects in which we intend to participate; our
beliefs with respect to the potential value of drilling projects; our beliefs
with regard to the impact of environmental and other regulations on our
business; our beliefs with respect to the strengths of our business model; our
assumptions, beliefs, and expectations with respect to future market conditions;
our plans for future capital expenditures; and our capital needs, the adequacy
of our capital resources, and potential sources of capital.
The Company has based these forward-looking statements on its current
expectations and assumptions about future events. While management considers
these expectations and assumptions to be reasonable, they are inherently subject
to significant business, economic, competitive, regulatory, and other risks,
contingencies, and uncertainties, most of which are difficult to predict and
many of which are beyond the Company's control. The Company does not assume any
obligations to update any of these forward-looking statements.
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2014 2013
--------------- ---------------
Current assets:
Cash $ 50,081,532 $ 31,850,161
Trade receivables 8,955,900 17,919,518
Income tax receivable 25,000 -
Prepaid expenses 213,858 68,194
--------------- ---------------
Total current assets 59,276,290 49,837,873
Equipment and leasehold improvements, net
of accumulated depreciation and
amortization of $356,524 and $322,437,
respectively 221,598 173,516
Oil and gas properties, full-cost method -
subject to amortization, net of
accumulated depletion of $16,312,547 and
$12,849,063, respectively 237,324,350 155,145,039
Oil and gas properties, full-cost method -
not subject to amortization 2,487,322 2,487,158
Marketable securities 1,016,024 1,049,944
Other assets 7,123,972 7,503,612
--------------- ---------------
Total assets $ 307,449,556 $ 216,197,142
=============== ===============
Current liabilities:
Accounts payable $ 53,830,430 $ 41,842,068
Current derivative liability 1,260,380 64,737
Current portion of long-term debt 4,800,000 3,000,000
--------------- ---------------
Total current liabilities 59,890,810 44,906,805
Asset retirement obligation 1,293,720 1,059,689
Noncurrent portion of long-term debt 103,200,000 105,000,000
Noncurrent derivative liability 1,377,331 749,872
Deferred taxes 4,755,465 5,385,954
--------------- ---------------
Total liabilities 170,517,326 157,102,320
Stockholders' equity:
Common stock, $.001 par value,
48,611,111 shares authorized,
30,370,537 and 17,712,151 shares
outstanding 30,371 17,712
Additional paid-in capital 145,937,382 67,197,521
Accumulated other comprehensive income
(loss) 107,588 (5,747)
Accumulated deficit (9,143,111) (8,114,664)
--------------- ---------------
Total stockholders' equity 136,932,230 59,094,822
--------------- ---------------
Total liabilities and stockholders' equity $ 307,449,556 $ 216,197,142
=============== ===============
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three-Month Periods
Ended March 31,
----------------------------------
2014 2013
--------------- ----------------
Oil and gas revenues $ 12,545,479 $ 7,628,707
Operating expenses:
Oil and gas production costs 3,652,876 1,648,534
General and administrative expenses 2,017,538 1,307,333
Depreciation, depletion and
amortization 3,635,919 1,274,923
Impairment of oil and gas properties - 1,525,027
--------------- ----------------
Total operating expenses 9,306,333 5,755,817
--------------- ----------------
1,872,890
Total operating income 3,239,146
Other income (expense)
Interest income 641 3,156
15,797 17,240
Dividend income
(3,214,952) (418,340)
Interest expense
115,648
Realized gains on derivatives -
(1,823,102) (27,507)
Unrealized loss on derivatives
--------------- ----------------
(4,905,968) (425,451)
Total other income (expense)
--------------- ----------------
Income (loss) before taxes (1,666,822) 1,447,439
(638,375)
Income tax expense (benefit) 1,092,092
--------------- ----------------
Net income (loss) $ (1,028,447) $ 355,347
=============== ================
Net income (loss) per common share:
Basic $ (0.06) $ 0.03
=============== ================
Diluted $ (0.06) $ 0.03
=============== ================
Weighted average number of shares
outstanding:
Basic 18,556,695 12,472,642
=============== ================
Diluted 18,556,695 12,889,584
=============== ================
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three-Month Periods
Ended March 31,
--------------------------------
2014 2013
--------------------------------
Cash flows from operating activities:
Net income (loss) $ (1,028,447) $ 355,347
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Non-cash transactions:
Stock-based compensation 454,026 237,348
Depreciation, depletion and 1,274,923
amortization 3,635,919
Accretion of discount on asset
retirement obligation 21,906 2,631
Amortization of deferred financing
costs 379,640 45,231
Provision for deferred income tax
expense (benefit) (630,489) 1,091,636
Impairment of oil and gas properties - 1,525,027
Unrealized loss on derivatives 1,823,102 27,507
Changes in operating assets and
liabilities:
Income taxes receivable (25,000) -
Trade receivables 4,374,671 5,510,325
Prepaid expense (145,785) (67,381)
Accounts payable (1,475,176) 481,359
--------------------------------
10,483,953
Net cash from operating activities 7,384,367
--------------------------------
Cash flows used for investing activities: (67,349,728) (13,923,555)
Additions to oil and gas properties
Additions to equipment and leasehold
improvements (82,169) (3,453)
Purchases of equity securities (8,940) -
Decrease in amounts due to Carry Agreement
partner - (2,450,723)
--------------------------------
Net cash used for investing activities (67,440,837) (16,377,731)
--------------------------------
Cash flows from financing activities:
Proceeds from issuance of stock 78,298,494 4,000,000
Proceeds from issuance of long-term debt - 2,000,000
Repayment of long-term debt - (970,803)
--------------------------------
Net cash from financing activities 78,298,494 5,029,197
--------------------------------
Effect of exchange rate changes on cash (10,653) (83,425)
--------------------------------
Net change in cash 18,231,371 (948,006)
Cash - beginning of period 31,850,161 19,057,727
--------------------------------
Cash - end of period $ 50,081,532 $ 18,109,721
================================
For the Three-Month Periods
Ended March 31,
-------------------------------
2014
2013
--------------- -------------
Net income (loss) $(1,028,447) $ 355,347
Other comprehensive income (loss):
Unrealized gains (losses) on securities,
net of tax (42,860) (1,587)
Foreign currency translation adjustments 156,195 (99,958)
----------- ------------
Comprehensive income (loss) $ (915,112) $ 253,802
============ =============
Non-GAAP Financial Measures
Adjusted EBITDA
In addition to reporting net income (loss) as defined under GAAP, American Eagle
also presents net earnings before interest income, dividend income, interest
expense, income taxes, depletion, depreciation, and amortization, non-cash
expenses related to stock-based compensation, impairment of oil and gas
properties, loss on early extinguishment of debt, and unrealized loss (gain)
from mark-to-market on derivatives recognized under ASC Topic 718 ("Adjusted
EBITDA"), which is a non-GAAP performance measure. Adjusted EBITDA consists of
net earnings after adjustment for those items described in the table below.
Adjusted EBITDA does not represent, and should not be considered an alternative
to GAAP measurements, such as net income (loss) (its most directly comparable
GAAP measure), and the calculations thereof may not be comparable to similarly
titled measures reported by other companies. By eliminating the items described
below, American Eagle believes the measure is useful in evaluating its
fundamental core operating performance. The Company also believes that Adjusted
EBITDA is useful to investors because similar measures are frequently used by
securities analysts, investors, and other interested parties in their evaluation
of companies in similar industries. American Eagle's management uses Adjusted
EBITDA to manage its business, including in preparing its annual operating
budget and financial projections. Management does not view Adjusted EBITDA in
isolation and also uses other measurements, such as net income (loss) and
revenues to measure operating performance. The following table provides a
reconciliation of net income (loss) to Adjusted EBITDA for the periods
presented:
------------------------------------------------------------
Three Months Ended
------------------------------------------------------------
December September
March 31, 31, 30, June 30, March 31,
2014 2013 2013 2013 2013
------------------------------------------------------------
Net income
(loss) ($1,028,447) ($462,160) ($936,237) $2,637,484 $ 355,347
Less: Interest
income (641) (6,964) (1,700) (1,472) (3,156)
Less: Dividend
income (15,797) (16,523) (16,697) (16,982) (17,240)
Add: Interest
expense 3,214,952 3,207,039 1,315,865 414,797 418,340
Add: Income tax
expense
(benefit) (638,375) 130,056 (646,123) 1,192,691 1,092,092
Add: Depletion,
depreciation
and
amortization 3,635,919 4,158,124 2,524,039 2,116,378 1,274,923
Add: Stock-
based
compensation 454,026 375,756 302,842 287,172 237,348
Add: Impairment
of oil and gas
properties - 206,508 - - 1,525,027
Add: Loss on
early
extinguishment
of debt - - 3,713,972 - -
Add: Unrealized
(gain) loss on
derivatives 1,823,102 39,569 934,287 (186,754) 27,507
------------------------------------------------------------
Adjusted EBITDA $ 7,444,739 $ 7,631,405 $ 7,190,248 $6,443,314 $4,910,188
============================================================
Adjusted Cash Flow
In addition to reporting net income (loss) as defined under GAAP, American Eagle
also presents cash flow after paying interest expense ("Adjusted Cash Flow"),
which is a non-GAAP performance measure. Adjusted Cash Flow consists of Adjusted
EBITDA after adjustment for those items described in the table below. Adjusted
EBITDA does not represent, and should not be considered an alternative to GAAP
measurements, such as net income (loss) (its most directly comparable GAAP
measure), and the calculations thereof may not be comparable to similarly titled
measures reported by other companies. By eliminating the items described below,
American Eagle believes the measure is useful in evaluating its fundamental core
operating performance. The Company also believes that Adjusted Cash Flow is
useful to investors because similar measures are frequently used by securities
analysts, investors, and other interested parties in their evaluation of
companies in similar industries. American Eagle's management uses Adjusted Cash
Flow to manage its business, including in preparing its annual operating budget
and financial projections. Management does not view Adjusted Cash Flow in
isolation and also uses other measurements, such as net income (loss) and
revenues to measure operating performance. The following table provides a
reconciliation of Adjusted EBITDA to Adjusted Cash Flow for the periods
presented:
---------------------------------------------------------------
Three Months Ended
---------------------------------------------------------------
December September
March 31, 31, 30, June 30, March 31,
2014 2013 2013 2013 2013
---------------------------------------------------------------
Adjusted
EBITDA (1) $ 7,444,739 $ 7,631,405 $ 7,190,248 $ 6,443,314 $ 4,910,188
Less:
Interest
expense (3,214,952) (3,207,039) (1,315,865) (414,797) (418,340)
Add:
Amortization
of deferred
financing 379,640 327,922 161,758 66,944 45,231
Adjusted Cash
Flow $ 4,609,427 $ 4,752,288 $ 6,036,141 $ 6,095,461 $ 4,537,079
Adjusted Cash
Flow per
share -
basic $ 0.25 $ 0.34 $ 0.46 $ 0.49 $ 0.36
Adjusted Cash
Flow per
share -
diluted $ 0.24 $ 0.33 $ 0.44 $ 0.47 $ 0.35
Weighted
average
shares -
basic 18,556,695 13,961,688 13,223,608 12,517,087 12,472,642
Weighted
average
shares -
diluted 19,205,118 14,598,836 13,732,595 12,992,218 12,889,584
(1) See previous table for reconciliation of net income (loss) to Adjusted
EBITDA.
Adjusted Income
In addition to reporting net income (loss) as defined under GAAP, American Eagle
also presents net earnings before the impairment of oil and gas properties, loss
on early extinguishment of debt, and the effect of unrealized loss (gain) from
mark-to-market on derivatives ("adjusted income (loss)"), which is a non-GAAP
performance measure. Adjusted income (loss) consists of net earnings after
adjustment for those items described in the table below. Adjusted income (loss)
does not represent, and should not be considered an alternative to GAAP
measurements, such as net income (loss), and the calculations thereof may not be
comparable to similarly titled measures reported by other companies. By
eliminating the items described below, American Eagle believes the measure is
useful in evaluating its fundamental core operating performance. The Company
also believes that adjusted income (loss) is useful to investors because similar
measures are frequently used by securities analysts, investors, and other
interested parties in their evaluation of companies in similar industries.
American Eagle's management uses adjusted income (loss) to manage its business,
including in preparing its annual operating budget and financial projections.
Management does not view adjusted income (loss) in isolation and also uses other
measurements, such as net income (loss) and revenues to measure operating
performance. The following table provides a reconciliation of net income (loss),
to adjusted income (loss) for the periods presented:
-----------------------------------------------------------------
Three Months Ended
-----------------------------------------------------------------
December
March 31, 31, September 30, June 30, March 31,
2014 2013 2013 2013 2013
-----------------------------------------------------------------
Net income
(loss) ($1,028,447) ($462,160) ($936,237) $ 2,637,484 $ 355,347
Add:
Impairment
of oil and
gas
properties - 206,508 - - 1,525,027
Add: Loss
on early
extinguish
ment of
debt - - 3,713,972 - -
Add:
Unrealized
lossed on
derivative
s 1,823,102 39,569 934,287 (186,754) 27,507
-----------------------------------------------------------------
Adjusted
Income /
(Loss) $ 794,655 ($216,083) $ 3,712,022 $ 2,450,730 $ 1,907,881
=================================================================
Adjusted
Income per
share -
basic $ 0.04 ($0.02) $ 0.28 $ 0.20 $ 0.15
Adjusted
Income per
share -
diluted $ 0.04 ($0.01) $ 0.27 $ 0.19 $ 0.15
Weighted
average
shares -
basic 18,556,695 13,961,688 13,223,608 12,517,087 12,472,642
Weighted
average
shares -
diluted 19,205,118 14,598,836 13,732,595 12,992,218 12,889,584
FOR FURTHER INFORMATION PLEASE CONTACT:
CORPORATE CONTACT:
Marty Beskow, CFA
Vice President of Capital Markets and Strategy
American Eagle Energy Corporation
720-330-8378
ir@amzgcorp.com
www.americaneagleenergy.com
Americas Petrogas Inc. (TSXV:BOE)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Americas Petrogas Inc. (TSXV:BOE)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
