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GeoMet Announces Financial and Operating Results for the Quarter and Year Ended December 31, 2013

Houston, Texas—April 1, 2014—GeoMet, Inc. (OTCQ: GMET; NASDAQ: GMETP) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter and year ended December 31, 2013.

Financial and Operating Results

On June 14, 2013, the Company closed the sale of all of its coal bed methane properties located in the state of Alabama (the “Asset Sale”). The Asset Sale resulted in a $36.9 million gain. The properties sold represented approximately 29% of GeoMet’s total production. As such, the current year results are not comparable to the prior year as presented below.

Fourth Quarter 2013 Financial and Operating Results

For the quarter ended December 31, 2013, GeoMet reported a net loss of $2.1 million. Included in the net loss was a $1.1 million loss on natural gas derivatives. For the quarter ended December 31, 2012, GeoMet reported a net loss of $8.7 million. Included in the net loss was a $12.3 million impairment to the Company’s gas properties and a $0.8 million asset impairment, offset by a $4.1 million gain on natural gas derivatives.

For the quarter ended December 31, 2013, GeoMet reported net loss available to common stockholders of $4.3 million, or $0.11 per fully diluted share. Included in net income available to common stockholders for the quarter ended December 31, 2013 were non-cash charges of $0.6 million for accretion of preferred stock and $1.6 million for paid-in-kind (“PIK”) dividends paid on preferred stock. For the quarter ended December 31, 2012, GeoMet reported a net loss available to common stockholders of $10.4 million, or $0.26 per fully diluted share. Included in the net loss available to common stockholders for the quarter ended December 31, 2012 were charges of $0.5 million for accretion of preferred stock and $1.2 million for PIK dividends on preferred stock.

Revenues for the quarter ended December 31, 2013 were $7.8 million, as compared to $11.7 million for the prior year quarter. The average natural gas price for the quarter ended December 31, 2013 was $3.71 per Mcf as compared to the prior year quarter average of $3.50 per Mcf.

Average net gas sales volumes for the quarter ended December 31, 2013 were 22.7 MMcf per day, a 37% decrease from the same quarter in 2012 of which 29% resulted from the Asset Sale and 8% resulted from decreased production related to our horizontal Pinnate wells in our remaining properties.


Year ended December 31, 2013 Financial and Operating Results

For the year ended December 31, 2013, GeoMet reported net income of $35.3 million. Included in net income was a $36.9 million non-recurring gain on the sale of our Alabama properties offset by a $1.8 million loss on natural gas derivatives. For the year ended December 31, 2012, GeoMet reported a net loss of $150.0 million. Included in the net loss was a $95.7 million impairment of gas properties, a $44.0 million write off of our deferred tax asset, a $1.4 million write off of debt issuance costs, a $1.1 million charge for restructuring costs, a $0.8 million asset impairment and a $0.7 million loss on the 2012 disposal of our Canadian operations.

For the year ended December 31, 2013, GeoMet reported net income available to common stockholders of $27.8 million, or $0.42 per fully diluted share. Included in net income available to common stockholders for the year ended December 31, 2013 were non-cash charges of $2.3 million for accretion of preferred stock and $5.3 million for PIK dividends paid on preferred stock. For the year ended December 31, 2012, GeoMet reported a net loss available to common stockholders of $155.8 million, or $3.88 per fully diluted share. Included in the net loss available to common stockholders for the year ended December 31, 2012 were charges of $1.9 million for accretion of preferred stock and $3.9 million for PIK dividends on preferred stock.

Revenues for the year ended December 31, 2013 were $38.2 million, as compared to $39.4 million for the prior year period. The average natural gas price for the year ended December 31, 2013 was $3.74 per Mcf as compared to the prior year period average of $2.83 per Mcf.

Average net gas sales volumes for the year ended December 31, 2013 were 27.9 MMcf per day, a 26% decrease from the same period in 2012 of which 18% resulted from the Asset Sale and 8% resulted from decreased production related to our horizontal Pinnate wells in our remaining properties.

Fourth Quarter and Year End 2013 Financial and Operating Statements


Forward-Looking Statements Notice

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words “believe,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions or variations on such words, are forward-looking statements. 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 volatility of future natural gas prices, 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 natural gas reserves, reductions in the borrowing base under our credit agreement made by our lenders, the sale of all or substantially all of our assets, 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. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company’s web site at http://www.geometinc.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. GeoMet undertakes no duty to update or revise these forward-looking statements.


About GeoMet, Inc.

GeoMet, Inc. is engaged in the production of natural gas from coal seams (“coalbed methane”). Our core area of operations is the Central Appalachian Basin of Virginia and West Virginia. We also control additional coalbed methane and oil and gas development rights, principally in Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713) 287-2251 (ssmith@geometcbm.com) or visit our website at www.geometinc.com.