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GeoMet, Inc. Announces Financial and Operating Results for the Quarter Ended September 30, 2010

Houston, Texas— November 10, 2010-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter ended September 30, 2010.

J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “Our Adjusted EBITDA for the nine months ended September 30, 2010 was up approximately 50% from the prior year period and our Adjusted Net Income was $2.6 million, up $5.1 million from a loss in the prior year period. We are pleased that our 2010 financial results continue to reflect positively on the actions we have taken since the first quarter of 2009: materially reducing our operating and administrative costs, hedging prudently to mitigate our risk to further declines in natural gas prices, aligning our capital expenditures with our internal cash flows and settling long standing litigation which opened up approximately 80 new drilling locations in Virginia. In September, we closed a $40 million offering of convertible redeemable preferred stock which allowed us to reduce bank debt by $37.2 million in connection with a new three year bank credit facility. We believe the foundation is in place to resume our growth strategy.”

Third Quarter 2010 Financial and Operating Results

For the quarter ended September 30, 2010, GeoMet reported net income available to common stockholders of $4.2 million. Earnings per share were $0.11 per basic share and $0.10 per diluted share. Included in net income available to common stockholders was a $5.1 million, or $0.11 per fully diluted share, pre-tax, non-cash, mark-to-market gain on natural gas derivative contracts. Also included in net income available to common stockholders was a $1.6 million, or $0.04 per fully diluted share, unrealized gain from the change in fair value of the derivative liability associated with our Series A Convertible Redeemable Preferred Stock. The Company received net cash payments of $1.8 million from the settlement of natural gas derivative contracts during the current quarter.

For the quarter ended September 30, 2009, GeoMet reported a net loss available to common stockholders of $48.3 million. Loss per share was $1.24 per basic and diluted share. Included in the net loss available to common stockholders for the quarter ended September 30, 2009 was a $69.1 million, or $1.77 per fully diluted share, pre-tax, non-cash impairment to the Company’s gas properties and a $3.6 million, or $0.09 per fully diluted share, pre-tax, non-cash, mark-to-market loss on natural gas derivative contracts. The Company received net cash payments of $3.2 million from the settlement of natural gas derivative contracts during the prior year quarter.

Adjusted Net Income for the quarter was $0.4 million as compared to Adjusted Net Loss of $0.6 million in the prior year quarter. Adjusted Net Income (Loss) is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income (Loss) to Net Income (Loss) Available to Common Stockholders.

Adjusted EBITDA for the quarter increased to $5.1 million from $3.4 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 Income (Loss) Available to Common Stockholders.

Gas sales for the quarter were $8.2 million as compared to gas sales of $6.4 million in the third quarter of 2009. The average natural gas price during the quarter was $4.47 per Mcf as compared to $3.36 per Mcf in the prior year quarter. The average natural gas price, adjusted for realized gains on natural gas derivative contracts, was $5.45 per Mcf during the third quarter of 2010 versus $5.03 per Mcf for the same period in 2009.

Average net gas sales volumes for the quarter ended September 30, 2010 were 20,057 Mcf per day, a 3% decrease from the same quarter in 2009. The decrease in production was largely due to shutting in certain uneconomic wells and production declines of four other wells due to operational issues at our Gurnee field in the Cahaba Basin in Alabama. The resulting decrease in production at Gurnee was approximately 778 Mcf per day. This decrease in production was partially offset by an increase of approximately 336 Mcf per day in our Pond Creek field in the Central Appalachian Basin in Virginia and West Virginia.

Capital expenditures for the quarter ended September 30, 2010 were $3.6 million as compared to $2.2 million for the same quarter in the prior year.

Nine Months Ended September 30, 2010 Financial and Operating Results

For the nine months ended September 30, 2010, GeoMet reported net income available to common stockholders of $8.5 million. Earnings per share were $0.22 per basic share and $0.21 per diluted share. Included in net income available to common stockholders was a $9.8 million, or $0.24 per fully diluted share, pre-tax, non-cash, mark-to-market gain on natural gas derivative contracts. Also included in net income available to common stockholders was a $1.6 million, or $0.04 per fully diluted share, unrealized gain from the change in fair value of the derivative liability associated with our Series A Convertible Redeemable Preferred Stock. Net income available to common stockholders for the period was reduced by $1.4 million, or $0.03 per fully diluted share, from a non-recurring charge relating to a terminated financing transaction and a terminated effort to sell certain gas properties. The Company received net cash payments of $5.5 million from the settlement of natural gas derivative contracts during the current period.

For the nine months ended September 30, 2009, GeoMet reported a net loss available to common stockholders of $155.5 million. Loss per share was $3.98 per basic and diluted share. Included in the net loss available to common stockholders for the nine months ended September 30, 2009 was a $236.4 million, or $6.05 per fully diluted share, pre-tax, non-cash impairment to the Company’s gas properties and a $5.5 million, or $0.14 per fully diluted share, pre-tax, non-cash, mark-to-market loss on natural gas derivative contracts. The Company received net cash payments of $8.6 million from the settlement of natural gas derivative contracts during the prior year period.

Adjusted Net Income for the nine months ended September 30, 2010 was $2.6 million as compared to Adjusted Net Loss of $2.5 million in the prior year period. Adjusted Net Income (Loss) is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income (Loss) to Net Income (Loss) Available to Common Stockholders.

Adjusted EBITDA for the nine months ended September 30, 2010 increased to $14.1 million from $9.5 million in the prior year period. Adjusted EBITDA for the period was reduced by $1.4 million, or $0.03 per fully diluted share, from a non-recurring charge related to a terminated financing transaction and a terminated effort to sell certain gas properties. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net Income (Loss) Available to Common Stockholders.

Gas sales for the nine months ended September 30, 2010 were $25.8 million as compared to gas sales of $22.7 million in the third quarter of 2009. The average natural gas price during the nine months ended September 30, 2010 was $4.70 per Mcf as compared to $3.99 per Mcf in the prior year period. The average natural gas price, adjusted for realized gains on natural gas derivative contracts, was $5.70 per Mcf during the nine months ended September 30, 2010 versus $5.50 per Mcf for the same period in 2009.

Average net gas sales volumes for the nine months ended September 30, 2010 were 20,109 Mcf per day, a 4% decrease from the same period in 2009. The decrease in production was largely due to shutting in certain uneconomic wells and production declines of four other wells due to operational issues at our Gurnee field in the Cahaba Basin in Alabama. The resulting decrease in production at Gurnee was approximately 823 Mcf per day. This decrease in production was partially offset by an increase of approximately 154 Mcf per day in our Pond Creek field in the Central Appalachian Basin in Virginia and West Virginia.

Capital expenditures for the nine months ended September 30, 2010 were $8.4 million as compared to $7.7 million for the same period in 2009.

Financial Schedules for the Quarter Ended September 30, 2010

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.

Conference Call Information

GeoMet will hold its quarterly conference call to discuss the results for the quarter ended September 30, 2010 on November 11, 2010 at 10:30 a.m. Central Time. To participate, dial (877) 719-9789 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 2185432. 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 available for replay through November 24, 2010. The replay dial in number is (888) 203-1112 Pass code 2185432.

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.