GreenHunter Energy, Inc. : GreenHunter Energy Reports First Quarter 2012 Financial and Operating Results
04/27/2012| 08:05am US/Eastern
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GreenHunter Energy, Inc. (NYSE Amex: GRH), a diversified water
resource management company specializing in the unconventional oil and
natural gas shale resource plays, announced today financial and
operating results for the three months ended March 31, 2012.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2012
Revenues for the three months ended March 31, 2012 were $2.3 million,
compared to zero revenues reported during the first quarter of 2011. The
operating loss for the three months ended March 31, 2012 was $(0.4)
million, compared to an operating loss of $(1.2) million during the
first quarter of 2011. Net loss to common shareholders was $(0.8)
million ($(0.03) loss per common share basic and diluted) for the three
months ended March 31, 2012, compared to a net loss of $(1.5) million
($(0.06) loss per common share basic and diluted) during the first
quarter of 2011. The increase in revenues and decrease in both the
operating loss and loss to common shareholders was due to operating
income generated by our water management products and services which
began in late 2011. This new business segment increased significantly
upon the final closing of the acquisition of Hunter Disposal completed
on February 17, 2012. As of the quarter ended March 31, 2012, we are no
longer a development stage company.
OPERATIONAL RESULTS ON A PRO-FORMA BASIS
On a pro-forma basis (as if the acquisition of Hunter Disposal had
occurred as of the beginning of 2011), revenues for the three months
ended March 31, 2012 increased 490% to $4.6 million, compared to $0.8
million reported during the first quarter of 2011. While the pro-forma
results are not necessarily indicative of what actually would have
occurred, they reflect an increase in total water management revenues
from organic activities including fluids hauling and logistics, new
capacity contracts for produced water disposal and water storage
equipment rentals in the Marcellus, Utica and Eagle Ford Shale regions.
SUBSEQUENT EVENTS AND ACQUISITION PIPELINE
In addition to i) the recently announced decision to begin barging
operations for brine water on the Ohio River in our Appalachian
Division, ii) the subsequent announcement of a lease for an Ohio River
Barge Transloading and Water Storage Facility and iii) the announcement
of receipt of a new Commercial Salt Water Disposal Permit approved by
the Texas Railroad Commission for a new SWD well near the town of Helena
in Karnes County, Texas, management has been very actively building a
significant pipeline of other development projects and acquisition
candidates. Of all the potential deals currently being pursued by
management, some of the more notable transactions include:
Three permitted Class II salt water injection wells in the Cana
Woodford (a.k.a., Arkoma) basin in Oklahoma located within the fast
growing Horizontal Mississippian shale play;
Three permitted Class II salt water injection wells in Appalachia
basin in Ohio and West Virginia within the Utica and Marcellus shale
plays--including five vacuum trucks, an office building and maintenance
garage;
A package of thirteen leased properties in the South Texas' Eagle Ford
Shale play--including a mix of fully-permitted Class II salt water
injection wells and UIC applications in various stages of permitting;
and
Acquisition of an existing fleet of water hauling trucks and trailers
and associated equipment located in the Eagle Ford Shale Play.
MANAGEMENT COMMENTS
Commenting on GreenHunter Energy's First Quarter 2012 financial and
operating results, Mr. Jonathan D. Hoopes, GreenHunter Energy's
President and COO, stated, "We are pleased to announce a good start to
2012. We completed the integration of our existing fleet of fluids
hauling and frac tank rental equipment with our recently acquired Hunter
Disposal operations, and the new business efforts are progressing well.
We continue to identify opportunities to improve operational
efficiencies by increasing equipment utilization of our rolling stock.
Management has developed and is executing on a plan to implement
schedule optimization, and we are actively hiring and safety training
experienced drivers to increase hauling hours in response to new demand
from our growing customer base. We are making good progress with new
capacity contracts with existing and new customers for our existing and
planned new disposal facility locations. Over the next few months, we
hope to expand our fleet of water hauling and storage equipment rolling
stock to match our growing capacity of Class II SWD wells. We are
excited with our prospects, and we look forward to updating our
shareholders as we continue and close our pipeline of transactions."
About GreenHunter Water, LLC (a wholly owned subsidiary or
GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total
Water Management Solutions™ in the oilfield. An understanding that
there is no single solution to E&P fluids management shapes
GreenHunter's technology-agnostic approach to services. In addition to
licensing of and joint ventures with manufacturers of mobile water
treatment systems (Frac-Cycle™),
GreenHunter Water is expanding capacity of salt water disposal
facilities, next-generation modular above-ground storage tanks (MAG
Tank™), advanced hauling and fresh water logistics
services--including 21st Century tracking technologies (RAMCAT™)
that allow Shale producers to optimize the efficiency of their water
resource management and planning while complying with emerging
regulations and reducing cost.
Any statements in this press release about future expectations and
prospects for GreenHunter Energy and its business and other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important factors,
including the substantial capital expenditures required to fund its
operations, the ability of the Company to implement its business plan,
government regulation and competition. GreenHunter Energy undertakes no
obligation to update these forward-looking statements in the future.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended March 31,
2012
2011
REVENUES:
Water disposal revenue
$
739,356
$
-
Transportation revenue
1,122,636
-
Storage rental revenue and other
406,523
-
Total revenues
2,268,515
-
COST OF SERVICES PROVIDED:
Cost of services provided
1,326,574
-
Depreciation expense
192,292
47,588
Selling, general and administrative
1,197,434
1,125,742
Total costs and expenses
2,716,300
1,173,330
OPERATING LOSS
(447,785
)
(1,173,330
)
OTHER INCOME (EXPENSE):
Interest and other income
2
4,851
Interest, accretion and other expense
(205,681
)
(185,224
)
Unrealized gain (loss) on convertible securities
-
51,762
Total other income (expense)
(205,679
)
(128,611
)
Net loss
(653,464
)
(1,301,941
)
Preferred stock dividends
(195,404
)
(172,056
)
Net loss to common stockholders
(848,868
)
(1,473,997
)
Weighted average shares outstanding, basic and diluted
27,059,348
22,861,204
Basic and diluted loss per share:
Net loss per share
$
(0.03
)
$
(0.06
)
SELECTED BALANCE SHEET DATA
March 31, 2012
December 31, 2011
Cash and cash equivalents
$
2,419,784
$
84,823
Total current assets
4,820,893
570,991
Net fixed assets
29,867,526
20,892,668
Total assets
36,380,873
23,166,080
Total current liabilities
17,762,490
14,272,630
Total long-term liabilities
5,824,112
2,076,119
Total stockholders' equity
$
12,766,702
$
6,817,331
SUMMARY PRO-FORMA DATA
For the Three Months Ended March 31,
2012
2011
Total operating revenue
$
4,627,602
$
783,385
Total operating costs and expenses
4,791,448
1,766,809
Operating loss
(163,846
)
(983,424
)
Interest expense and other
(248,304
)
(213,861
)
Net income (loss)
(412,150
)
(1,197,285
)
Dividends on preferred stock
(222,904
)
(227,056
)
Net income (loss) attributable to common stock holders
$
(635,054
)
$
(1,424,341
)
Net income (loss) per share, basic & diluted
$
(0.02
)
$
(0.06
)
GreenHunter Energy, Inc. Jonathan D. Hoopes President &
COO 1048 Texan Trail Grapevine, TX 76051 Tel: (972)
410-1044 jhoopes@greenhunterenergy.com
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