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GeoMet, Inc. Announces Financial and Operating Results for the Quarter Ended September 30, 2009, a Reduction in Proved Natural Gas Reserves at September 30, 2009 and Schedules Conference Call for the Quarter Ended September 30, 2009

Houston, Texas—November 13, 2009-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter ended September30, 2009, proved natural gas reserves of 213 Bcf at September 30, 2009, a reduction of 33% from December 31, 2008 proved natural gas reserves and scheduled its conference call for the quarter ended September30, 2009.

Third Quarter 2009 Financial and Operating Results

For the quarter ended September30, 2009, GeoMet reported a net loss of $48.3 million, or a loss of $1.24 per fully diluted share. Included in the net loss was a $69.1 million, or $1.77 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $3.6 million, or $0.09 per fully diluted share, pre-tax, non-cash, mark-to-market loss on derivative contracts. The Company received net cash payments of $3.2 million from derivative contracts during the current quarter. For the quarter ended September30, 2008, GeoMet reported net income of $17.5 million, or $0.44 per fully diluted share. Included in net income for the quarter ended September30, 2008 was a $21.6 million, or $0.54 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company made net cash payments of $1.4 million on derivative contracts during the prior year quarter.

Adjusted Net Loss for the third quarter of 2009 was $0.6 million as compared to Adjusted Net Income of $4.1 million in the third quarter of 2008. Adjusted Net (Loss) Income is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net (Loss) Income to Net (Loss) Income.

Adjusted EBITDA for the quarter decreased to $3.4 million from $10.3 million in the prior year quarter. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net (Loss) Income.

Gas sales for the quarter were $6.4 million as compared to gas sales of $18.7 million in the third quarter of 2008. The average natural gas price during the quarter was $3.36 per Mcf as compared to the prior year quarter average of $10.26 per Mcf. The average natural gas price, adjusted for realized gains and losses on derivative contracts, was $5.03 per Mcf during the third quarter of 2009 versus $9.49 per Mcf for the same period in 2008.

Average net gas sales volumes for the quarter ended September30, 2009 were 20.7 MMcf per day, a 4% increase from the same quarter in 2008.

Capital expenditures for the quarter ended September30, 2009 were $2.2 million as compared to $22.0 million for the same quarter in the prior year.

Nine Months Ended September 30, 2009 Financial and Operating Results

For the nine months ended September30, 2009, GeoMet reported a net loss of $155.5 million, or a loss of $3.98 per fully diluted share. Included in the net loss was a $236.4 million, or $6.05 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $5.5 million, or $0.14 per fully diluted share, pre-tax, non-cash, mark-to-market loss on derivative contracts. The Company received net cash payments of $8.6 million on derivative contracts during the current period. For the nine months ended September30, 2008, GeoMet reported net income of $12.2 million, or $0.31 per fully diluted share. Included in net income for the nine months ended September30, 2008 was a $0.8 million, or $0.02 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company made net cash payments of $2.0 million on derivative contracts during the prior year period.

Adjusted Net Loss for the nine months ended September 30, 2009 was $2.5 million as compared to Adjusted Net Income of $11.7 million in the prior year period. Adjusted Net (Loss) Income is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net (Loss) Income to Net (Loss) Income.

Adjusted EBITDA for the nine months ended September 30, 2009 decreased to $9.5 million from $31.1 million in the prior year period. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net (Loss) Income.

Gas sales for the nine months ended September 30, 2009 were $22.7 million as compared to gas sales of $55.0 million in the same period in 2008. The average natural gas price during the nine months ended September 30, 2009 was $3.99 per Mcf as compared to the prior year period average of $9.91 per Mcf. The average natural gas price, adjusted for realized gains and losses on derivative contracts, was $5.50 per Mcf during the nine months ended September 30, 2009 versus $9.54 per Mcf for the same period in 2008.

Average net gas sales volumes for the nine months ended September30, 2009 were 20.8 MMcf per day, a 3% increase from the same period in 2008. The increase in net gas sales volumes for the nine months ended September30, 2009 over the same period in 2008 was 6% when the net gas sales volumes for the nine months ended September30, 2008 exclude volumes from an overriding royalty interest that was sold effective July1, 2008.

Capital expenditures for the nine months ended September30, 2009 were $7.7 million as compared to $43.2 million for the same period in the prior year.

Reduction in Proved Natural Gas Reserves at September 30, 2009

Due in large part to continued under-performance in the Gurnee field, GeoMet reduced its proved reserves as of September 30, 2009 to 212.7 Bcf, a decrease of approximately 33% from proved reserves of 319.5 Bcf at December 31, 2008. Proved reserves at September 30, 2009 were also impacted by lower natural gas prices and costs in 2009. The effect of lower natural gas prices was minimized by the Company’s ongoing cost reduction strategy, which was implemented in April 2009. Consequently, approximately  87% (or 88.2 Bcf) of the downward revision was performance related, substantially all in the Gurnee field, and approximately 13% (or 12.9 Bcf) is the result of lower natural gas prices and costs used in the calculation of proved reserves at September 30, 2009. In revising estimated proved natural gas reserves at September 30, 2009, all projected inclines other than those that have been clearly demonstrated by production history have been eliminated.  In addition, based on the revised recovery factors and low natural gas prices, the undeveloped reserves in the Gurnee field were also significantly reduced.

J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “Despite a reduction in our estimated proved natural gas reserves, as well as the lowest gas prices seen since 2002, our bank group has unanimously set our borrowing base at $135 million, a reduction of less than 4% from our prior borrowing base of $140 million. Critical factors in achieving this new borrowing base included the shallow decline of our proved reserves production profile, the significant reductions we have made this year in our cost structure and our strong hedge position.”

3Q 2009 Financial Schedules

Conference Call Information

GeoMet will hold its quarterly conference call to discuss the results for the quarter ended September30, 2009 on November 16, 2009 at 10:30 a.m. Central Time. To participate, dial (888)523-1245 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 4899347. The call will also be broadcast live over the Internet from the Company’s website at www.geometinc.com. A replay of the conference call will be archived on the Company’s website shortly after the end of the call on November 16, 2009.

Forward-Looking Statements Notice

This press release may contain “forward-looking statements” within the meaning of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the SEC. GeoMet undertakes no duty to update or revise these forward-looking statements.

About GeoMet, Inc.

GeoMet, Inc. is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane”) and non-conventional shallow gas. Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. We also control additional coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Virginia, and West Virginia.

For more information please contact Stephen M. Smith at (713)287-2251 (ssmith@geometcbm.com), John Baldissera with BPC Financial at (800)368-1217, or visit our website at www.geometinc.com.