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GeoMet, Inc. Announces Financial and Operating Results for the Quarter and Year Ended December 31, 2009

Houston, Texas—April 1, 2010-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter and year ended December31, 2009.

Fourth Quarter 2009 Financial and Operating Results

For the quarter ended December31, 2009, GeoMet reported a net loss of $11.7 million, or $0.30 per fully diluted share. Included in the net loss for the quarter ended December31, 2009 was a $20.8 million, or $0.53 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $1.5 million, or $0.04 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The non-cash impairment to the Company’s natural gas properties recorded for the quarter ended December 31, 2009 was solely due to the application of the new SEC rules that became effective December 31, 2009. The Company received net cash payments of $2.1 million from derivative contracts during the current quarter. For the quarter ended December31, 2008, GeoMet reported a net loss of $34.6 million, or a loss of $0.89 per fully diluted share. Included in the net loss for the quarter ended December31, 2008 was a $50.7 million, or $1.30 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $4.2 million, or $0.11 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company received net cash payments of $1.5 million on derivative contracts during the prior year quarter.

Adjusted Net Income for the quarter decreased to $0.2 million from $1.4 million in the prior year quarter. Adjusted Net Income is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income (Loss) to Net Loss.

Adjusted EBITDA for the quarter decreased to $4.9 million from $7.6 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.

Gas sales for the quarter were $7.9 million as compared to gas sales of $13.4 million in the fourth quarter of 2008. The average natural gas price during the quarter was $4.26 per Mcf as compared to the prior year quarter average of $7.01 per Mcf. The average natural gas price, adjusted for realized gains and losses on derivative contracts, was $5.37 per Mcf during the fourth quarter of 2009 versus $7.81 per Mcf for the same period in 2008.

Average net gas sales volumes for the quarter ended December31, 2009 were 20.2 MMcf per day, a 2.5% decrease from the same quarter in 2008.

Capital expenditures for the quarter ended December31, 2009 were $1.5 million as compared to $14.6 million for the same quarter in the prior year.

Year-End 2009 Financial and Operating Results

For the year ended December31, 2009, GeoMet reported a net loss of $167.1 million, or a loss of $4.28 per fully diluted share. Included in the net loss for the year ended December31, 2009 was a $257.3 million, or $6.58 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $4.0 million, or $0.10 per fully diluted share, pre-tax, non-cash, mark-to-market loss on derivative contracts. $20.8 million of the non-cash impairment to the Company’s natural gas properties recorded was solely due to the application of the new SEC rules that became effective December 31, 2009. The Company received net cash payments of $10.7 million on derivative contracts during the current period. For the year ended December31, 2008, GeoMet reported a net loss of $22.5 million, or a loss of $0.58 per fully diluted share. Included in the net loss for the year ended December31, 2008 was a $50.7 million, or $1.31 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $5.0 million, or $0.13 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company made net cash payments of $0.5 million on derivative contracts during the prior year period.

Adjusted Net Loss for the year ended December 31, 2009 was $2.3 million as compared to Adjusted Net Income of $13.1 million in 2008. Adjusted Net Income (Loss) is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income (Loss) to Net Loss.

Adjusted EBITDA for the year ended December 31, 2009 decreased to $14.4 million from $38.8 million in 2008. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net Loss.

Gas sales for the year ended December 31, 2009 were $30.6 million as compared to gas sales of $68.3 million in 2008. The average natural gas price during the year ended December 31, 2009 was $4.05 per Mcf as compared to $9.17 per Mcf in 2008. The average natural gas price, adjusted for realized gains and losses on derivative contracts, was $5.47 per Mcf during the year ended December 31, 2009 versus $9.10 per Mcf in 2008.

Average net gas sales volumes for the year ended December31, 2009 were 20.7 MMcf per day, a 1.6% increase from the prior year. The increase in net gas sales volumes per day for the year ended December31, 2009 over the same period in 2008 was 3.8% when the net gas sales volumes for the year ended December31, 2008 exclude volumes from an overriding royalty interest that was sold effective July1, 2008.

Capital expenditures for the year ended December31, 2009 were $9.3 million as compared to $57.8 million in 2008.

J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “Despite the fact that we did not drill any new wells during 2009, gas sales volumes were up year-over-year and down only 2.5% for the quarter as compared to the prior year quarter. Additionally, gas prices declined 56% in 2009 versus 2008 before the impact of hedges. Due to our aggressive hedging and the effectiveness of our cost reduction program, we were able to achieve a positive adjusted net income in the current quarter after incurring adjusted net losses in each of the three previous quarters. The operating leverage created by improvements in our cost structure will allow our future cash flows to grow more rapidly than an underlying increase in gas prices.”

Fourth Quarter and Year Ended December 31, 2009 Financial Schedules

Conference Call Information

GeoMet will hold its quarterly conference call to discuss the results for the quarter and year ended December31, 2009 on April 5, 2010 at 10:30 a.m. Central Time. To participate, dial (888)801-6494 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 6829469. 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 April 5, 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.

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.