GeoResources, Inc., (NASDAQ:GEOI), today announced its financial
and operating results for the three and six months ended June 30,
2010. The following tables summarize the results of operations as
compared to similar periods in 2009.
Three Months Ended June 30,
(In thousands, except Earnings per
share)
2010 2009 Total revenue $ 26,406 $ 19,861 Net income
$ 4,443 $ 3,499 Earnings per share (basic) $ 0.23 $ 0.22 EBITDAX
(See below) $ 17,652 $ 12,429 Six Months Ended June
30,
(In thousands, except Earnings per
share)
2010 2009 Total revenue $ 52,982 $ 34,426 Net income
$ 10,517 $ 3,976 Earnings per share (basic) $ 0.53 $ 0.24 EBITDAX
(See below) $ 35,570 $ 18,998
PercentIncrease(Decrease)
Three Months EndedJune 30,
2010 2009 Gas Production (MMcf) 20% 1,300 1,087 Oil
Production (MBbls) 20% 255 212 Barrel of oil equivalent (MBOE) 20%
472 393 Average Price Gas before Hedge Settlements (per Mcf) 16% $
3.76 $ 3.24 Average Price Oil before Hedge Settlements (per Bbl)
35% $ 71.83 $ 53.40 Average Price Gas after Hedge Settlements (per
Mcf)
24%
$ 4.90 $ 3.95 Average Price Oil after Hedge Settlements (per Bbl)
19% $ 70.48 $ 59.28
PercentIncrease(Decrease)
Six Months EndedJune 30,
2010 2009 Gas Production (MMcf) 47% 2,580 1,752 Oil
Production (MBbls) 30% 504 389 Barrel of oil equivalent (MBOE) 37%
934 681 Average Price Gas before Hedge Settlements (per Mcf) 25% $
4.29 $ 3.43 Average Price Oil before Hedge Settlements (per Bbl)
59% $ 73.01 $ 45.88 Average Price Gas after Hedge Settlements (per
Mcf) 31% $ 5.25 $ 4.01 Average Price Oil after Hedge Settlements
(per Bbl) 24% $ 70.55 $ 56.87
Our 2010 reported earnings are net of a $2.7 million non-cash
charge for impairments. The majority of the non-cash charge was a
direct result of natural gas price reductions. Forward gas prices
used in the calculation of impairments, declined by 16% over the
next 18 months and oil prices declined 7% over the same time frame
as compared to the year-end prices.
EBITDAX (see definition below) increased 42% to approximately
$17.7 million for the second quarter of 2010 compared to $12.4
million for the second quarter of 2009. EBITDAX for the first six
months of 2010 totaled $35.6 million compared to $19.0 million in
the prior year’s first half, representing an increase of 87%.
The following tables reconcile reported net income to EBITDAX
for the periods indicated (in thousands):
Three Months Ended June 30, 2010 2009 EBITDAX (1)
Net income $ 4 ,443 $ 3,499 Add back: Interest
expense 1,285 1,144 Income taxes: Current 912 202 Deferred 1,973
2,014 Depreciation, depletion and amortization 5,962 4,725 Hedge
and derivative contracts (78 ) 32 Non-cash compensation 273 397
Exploration and impairments 2,882 416
EBITDAX $ 17,652 $ 12,429 Six Months
Ended June 30, 2010 2009 Net income $ 10,517 $ 3,976
Add back: Interest expense 2,558 1,963 Income taxes : Current 1,865
(532 ) Deferred 4,797 3,108 Depreciation, depletion and
amortization 12,313 9,193 Hedge and derivative contracts (320 ) 133
Non-cash compensation 494 661 Exploration and impairments
3,346 496 EBITDAX $ 35,570
$ 18,998 (1) As used herein, EBITDAX is
calculated as earnings before interest, income taxes, depreciation,
depletion and amortization, and exploration expense and further
excludes non-cash compensation, impairments and hedge
ineffectiveness and income or loss on derivative contracts. 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.
See attached financial statements for additional details related
to our results of operations, cash flows and financial
position.
Comments
Frank A. Lodzinski, CEO and President, commented, “Our results
for the second quarter and year-to-date periods ending June 30,
2010 reflect our significant year over year growth. Comparatively,
we benefited from both increased production and from improved oil
and gas prices. In addition, on unit-of-production basis, we have
lowered our overall operating expenses by 18%. Reduced expenses are
a result of our re-engineering and development drilling activities.
We always focus on our costs but with service costs increasing in
the industry, controlling and reducing expenses where feasible
takes on additional importance. Our increased production was a
direct result of our successful drilling programs in the Bakken
Shale and Austin Chalk and strategic acquisitions we have made in
these core areas.”
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 primarily focused in three core areas – the Southwest,
Gulf Coast, and the Williston Basin. 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 our 10-K as
amended by our 10-K/A for the year ended December 31, 2009 and the
other SEC reports of the Company 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 SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share amounts)
June 30, December 31, 2010 2009 ASSETS (unaudited)
Current assets: Cash $ 15,899 $ 12,660 Accounts
receivable: Oil and gas revenues 16,261 14,860 Joint interest
billings and other 4,149 13,734 Affiliated partnerships 1,062 933
Notes receivable 120 120 Derivative financial instruments 4,703 764
Income taxes receivable 327 2,077 Prepaid expenses and other
2,659 2,297 Total current assets 45,180
47,445 Oil and gas properties,
successful efforts method: Proved properties 302,331 285,363
Unproved properties 19,314 10,281 Office and other equipment 956
828 Land 96 96 322,697 296,568
Less accumulated depreciation, depletion and amortization
(60,495 ) (48,182 ) Net property and equipment
262,202 248,386 Equity in oil and gas
limited partnerships 2,673 3,532 Derivative financial
instruments 2,284 1,360 Deferred financing costs and other
3,819 3,574 $ 316,158 $
304,297
GEORESOURCES, INC and
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands,
except share and per share amounts) June 30,
December 31, 2010 2009 (unaudited) LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable $ 5,337
$ 6,452 Accounts payable to affiliated partnerships 3,389 8,361
Revenue and royalties payable 11,441 13,928 Drilling advances 53
390 Accrued expenses 1,862 1,574 Derivative financial instruments
1,522 4,794 Total current liabilities
23,604 35,499 Long-term debt 69,000 69,000
Deferred income taxes 24,522 15,778 Asset retirement
obligations 6,353 6,110 Derivative financial instruments 804
3,233 Stockholders' equity:
Common stock, par value $0.01 per
share; authorized 100,000,000 shares; issued and outstanding:
19,723,916 in 2010 and 19,705,362 in 2009
197
197
Additional paid-in capital 147,552 146,966 Accumulated other
comprehensive income 2,807 (3,288 ) Retained earnings 41,319
30,802 Total stockholders' equity 191,875
174,677 $ 316,158 $ 304,297
GEORESOURCES, INC. and SUBSIDIARIESCONSOLIDATED
STATEMENTS OF INCOME(In thousands, except share and per share
amounts)(unaudited) Three Months Ended
June 30, Six Months Ended June 30, 2010 2009 2010 2009
Revenue: Oil and gas revenues $ 24,343 $ 16,829 $ 49,072 $ 29,129
Partnership management fees 140 398 299 696 Property operating
income 393 456 784 914 Gain on sale of property and equipment - 89
145 1,488 Partnership income 488 1,455 1,342 1,460 Interest and
other 1,042 634 1,340 739
Total revenue 26,406 19,861 52,982 34,426
Expenses: Lease operating expense 5,193 4,417 10,217 8,807
Severance taxes 1,540 1,167 3,323 1,961 Re-engineering and
workovers 255 315 508 1,296 Exploration expense 139 288 603 368
Impairment of oil and gas properties 2,743 128 2,743 128 General
and administrative expense 2,039 1,930 3,858 4,025 Depreciation,
depletion and amortization 5,962 4,725 12,313 9,193 Hedge
ineffectiveness (61 ) 26 (316 ) 75 (Gain) / Loss on derivative
contracts (17 ) 6 (4 ) 58 Interest 1,285 1,144
2,558 1,963 Total expense 19,078
14,146 35,803 27,874 Income before income taxes 7,328 5,715
17,179 6,552 Income tax expense (benefit): Current 912 202
1,865 (532 ) Deferred 1,973 2,014 4,797
3,108 2,885 2,216 6,662 2,576
Net income $ 4,443 $ 3,499 $ 10,517 $
3,976 Net income per share (basic) $ 0.23 $
0.22 $ 0.53 $ 0.24 Net income per share
(diluted) $ 0.22 $ 0.22 $ 0.52 $ 0.24
Weighted average shares outstanding: Basic 19,723,916
16,241,717 19,716,722 16,241,717
Diluted 20,113,189 16,241,717
20,073,598 16,241,717
GEORESOURCES,
INC. and SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)(unaudited) Six Months Ended
June 30, Cash flows from operating activities: 2010 2009 Net income
$ 10,517 $ 3,976
Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation, depletion and amortization 12,313 9,193 Proved
property impairments 2,743 128 Gain on sale of property and
equipment (145 ) (1,488 ) Accretion of asset retirement obligations
200 177 Unrealized gain on derivative contracts (205 ) (119 )
Amortization of loss on canceled hedge contract - 243 Hedge
ineffectiveness (gain) loss (316 ) 75 Partnership income (1,342 )
(1,460 ) Partnership distributions 2,201 1,284 Deferred income
taxes 4,797 3,108 Non-cash compensation 494 661 Changes in assets
and liabilities: Decrease (increase) in accounts receivable 9,805
(7,070 ) (Increase) decrease in prepaid expense and other (607 )
1,077 Decrease in accounts payable and accrued expense
(8,623 ) (5,855 ) Net cash (used in) provided by operating
activities 31,832 3,930 Cash flows from investing
activities: Proceeds from sale of property and equipment 425 1,991
Additions to property and
equipment, net of cost recoveries of $18,529,000 in 2010 and none
in 2009
(29,110 ) (70,218 ) Net cash used in investing
activities (28,685 ) (68,227 ) Cash flows from financing
activities: Proceeds from stock options exercised 92 - Issuance of
long-term debt - 58,000 Net cash
provided by financing activities 92 58,000 Net
increase (decrease) in cash and cash equivalents 3,239
(6,297 ) Cash and cash equivalents at
beginning of period 12,660 13,967 Cash and cash
equivalents at end of period $ 15,899 $ 7,670
Supplementary information: Interest paid $ 2,025 $ 1,650 Income
taxes paid $ 115 $ 478
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