DUNE ENERGY INC 
By HOUSTON, May 2, 2014 /PRNewswire/ -- Dune Energy, Inc. (OTCBB:DUNR) today announced results for the first quarter of calendar year 2014.
Revenue and Production
Revenue for the first quarter of 2014 totaled $12.0 million as compared with $12.1 million for the first quarter of 2013. Production volumes in the first quarter were 98 Mbbls of oil and 0.39 Bcf of natural gas, or 163 Mboe. This compares with 97 Mbbls of oil and 0.39 Bcf of natural gas, or 162 Mboe for the first quarter of 2013. In the first quarter of 2014, the average sales price per barrel of oil was $101.16 and $5.29 per Mcf for natural gas, as compared with $110.04 per barrel and $3.71 per Mcf, respectively for the first quarter of 2013. Production did not fluctuate in the first quarter of 2014 as compared to the first quarter of 2013. Oil prices decreased 8% and gas prices increased 43% from 2013 levels. During the first quarter of 2014 oil accounted for 60% of the total production volumes on an equivalent basis; however, oil revenue accounted for 83% of the total revenue.
Costs and Expenses
Total lease operating expense (LOE) was $5.5 million for the first quarter of 2014 as compared to $6.8 million for the first quarter of 2013, or $33.74 and $41.97 per Boe produced, respectively. DD&A expense was $2.8 million for the first quarter of 2014, or $17.17 per Boe. G&A expense totaled $2.7 million for the first quarter of 2014 compared to $2.6 million in the first quarter of 2013. Interest and financing expense increased to $2.7 million in the first quarter of 2014 compared to $2.4 million in the first quarter of 2013.
Earnings
Net loss totaled $2.5 million for the first quarter of 2014. This compares with a net loss of $3.2 million in 2013.
Liquidity
At the end of the quarter we had $3.4 million in cash and $11.5 million available under our Senior Secured Revolving Credit Facility. The borrowing base currently is set at $47.5 million of availability and the revolver matures on December 22, 2015. We were in compliance with all covenants at March 31. However, the ratio of Total Debt/EBITDAX covenant changes from less than 5X on March 31 to less than 4X on June 30(th). This reduction may require that we reduce debt, request a waiver or amendment to this covenant or seek another solution in the event that the lower ratio cannot be satisfied.
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FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of Dune Energy, Inc.'s projects and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Dune Energy, Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, changes in product prices and other risks disclosed in Dune's Annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.
Dune Energy, Inc.
Consolidated Balance Sheets
(Unaudited)
ASSETS March 31, 2014 December 31, 2013
-------------- -----------------
Current assets:
Cash $3,443,932 $3,251,371
Accounts receivable 8,199,986 7,258,425
Current derivative asset - 7,544
Prepayments and other current assets 5,049,382 1,398,947
Total current assets 16,693,300 11,916,287
---------- ----------
Oil and gas properties, using
successful efforts accounting -
proved 302,094,440 293,745,839
Less accumulated depreciation,
depletion and amortization (64,718,343) (61,927,723)
Net oil and gas properties 237,376,097 231,818,116
----------- -----------
Property and equipment, net of
accumulated depreciation of $248,109
and $227,207 136,830 152,903
Deferred financing costs, net of
accumulated amortization of
$1,807,251 and $1,586,904 1,615,396 1,835,743
Other assets 3,916,678 3,783,312
5,668,904 5,771,958
--------- ---------
TOTAL ASSETS $259,738,301 $249,506,361
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,479,354 $10,139,205
Accrued liabilities 10,260,187 9,895,057
Current maturities on long-term debt 2,141,419 994,895
Total current liabilities 18,880,960 21,029,157
Long-term debt 97,968,641 84,180,940
Long-term derivative liability 200,113 -
Other long-term liabilities 21,745,222 21,449,651
Total liabilities 138,794,936 126,659,748
----------- -----------
Commitments and contingencies - -
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value,
1,000,000 shares authorized, 250,000
shares undesignated, no shares
issued and outstanding - -
Common stock, $.001 par value,
4,200,000,000 shares authorized,
73,745,382 and 72,644,643 shares
issued 73,746 72,645
Treasury stock, at cost (221,872 and
145,270 shares) (296,492) (223,821)
Additional paid-in capital 178,494,918 177,832,574
Accumulated deficit (57,328,807) (54,834,785)
Total stockholders' equity 120,943,365 122,846,613
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $259,738,301 $249,506,361
============ ============
Dune Energy, Inc.
Consolidated Statements of Operations
(Unaudited)
Three months ended March 31,
----------------------------
2014 2013
---- ----
Revenues:
Oil and gas
revenues $11,989,010 $12,121,663
Other revenues - 963,150
Total revenues 11,989,010 13,084,813
---------- ----------
Operating
expenses:
Lease operating
expense and
production taxes 5,513,562 6,861,401
Accretion of
asset retirement
obligation 546,684 402,732
Depletion,
depreciation and
amortization 2,801,045 3,167,886
General and
administrative
expense 2,651,285 2,588,082
Loss on
settlement of
asset retirement
obligation
liability - 22,920
Total operating
expense 11,512,576 13,043,021
---------- ----------
Operating income 476,434 41,792
------- ------
Other income
(expense):
Other income 460 602
Interest expense (2,720,932) (2,434,979)
Loss on
derivative
instruments (249,984) (817,590)
Total other
income (expense) (2,970,456) (3,251,967)
---------- ----------
Net loss $(2,494,022) $(3,210,175)
=========== ===========
Net loss per
share:
Basic and diluted $(0.03) $(0.05)
Weighted average
shares
outstanding:
Basic and diluted 72,949,157 59,041,035
Dune Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Three months ended March 31,
----------------------------
2014 2013
---- ----
CASH FLOWS
FROM
OPERATING
ACTIVITIES
Net loss $(2,494,022) $(3,210,175)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depletion,
depreciation
and
amortization 2,801,046 3,167,886
Amortization
of deferred
financing
costs 220,347 196,452
Stock-based
compensation 663,445 632,305
Loss on
settlement of
asset
retirement
obligation
liability - 22,920
Accretion of
asset
retirement
obligation 546,684 402,732
Unrealized
loss on
derivative
instruments 207,657 842,288
Changes in:
Accounts
receivable (931,085) (1,074,692)
Prepayments
and other
assets (3,650,435) 2,098,029
Payments made
to settle
asset
retirement
obligations (51,000) (76,125)
Accounts
payable and
accrued
liabilities (1,707,133) 5,887,765
NET CASH
PROVIDED BY
(USED IN)
OPERATING
ACTIVITIES (4,394,496) 8,889,385
---------- ---------
CASH FLOWS
FROM
INVESTING
ACTIVITIES
Investment in
proved and
unproved
properties (8,348,601) (18,426,091)
Purchase of
furniture and
fixtures (4,829) (130,006)
Increase in
other assets (133,366) (71,092)
NET CASH USED
IN INVESTING
ACTIVITIES (8,486,796) (18,627,189)
---------- -----------
CASH FLOWS
FROM
FINANCING
ACTIVITIES
Payments on
short-term
debt (479,447) (695,803)
Increase in
long-term
debt issuance
costs - (5,522)
Common stock
issuance
costs - (75,994)
Purchase of
treasury
stock (72,671) (119,232)
Proceeds from
short-term
debt 1,625,971 -
Proceeds from
long-term
debt 12,000,000 -
NET CASH
PROVIDED BY
(USED IN)
FINANCING
ACTIVITIES 13,073,853 (896,551)
---------- --------
NET CHANGE IN
CASH BALANCE 192,561 (10,634,355)
Cash balance
at beginning
of period 3,251,371 22,793,916
Cash balance
at end of
period $3,443,932 $12,159,561
========== ===========
SUPPLEMENTAL
DISCLOSURES
Interest paid $651,289 $562,198
Income taxes
paid - -
NON-CASH
INVESTING AND
FINANCIAL
DISCLOSURES
Accrued
interest
converted to
long-term
debt $1,787,702 $1,593,608
Non-cash
investment in
proved and
unproved
properties in
accounts
payable - 789,201
Investor Contact:
Steven J. Craig
Sr. Vice President Investor Relations and Administration
713-229-6300
SOURCE Dune Energy, Inc.
