GeoMet Announces Financial and Operating Results for the Quarter ended March 31, 2014
Houston, Texas—May 13, 2014—GeoMet, Inc. (OTCQB: GMET; NASDAQ: GMETP) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter ended March 31, 2014.
Financial and Operating Results
As a result of meeting all of the relevant criteria established under GAAP, we have classified all of our remaining productive assets as Assets held for sale and all related liabilities as Liabilities held for sale, both in the Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2014. Additionally, the related operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2014 and 2013.
For the quarter ended March 31, 2014, GeoMet reported net income of $0.8 million. Included in net income was a $1.2 million loss on natural gas derivatives. For the quarter ended March 31, 2013, GeoMet reported a net loss of $5.8 million. Included in the net loss was a $5.5 million loss on natural gas derivatives.
For the quarter ended March 31, 2014, GeoMet reported net loss available to common stockholders of $0.4 million, or $0.01 per fully diluted share. Included in net income available to common stockholders for the quarter ended March 31, 2014 were non-cash charges of $0.6 million for accretion of preferred stock and $0.6 million for paid-in-kind (“PIK”) dividends paid on preferred stock. For the quarter ended March 31, 2013, GeoMet reported a net loss available to common stockholders of $7.3 million, or $0.18 per fully diluted share. Included in the net loss available to common stockholders for the quarter ended March 31, 2013 were charges of $0.5 million for accretion of preferred stock and $1.1 million for PIK dividends paid on preferred stock.
Revenues for the quarter ended March 31, 2014 were $9.7 million, as compared to $10.9 million for the prior year quarter. The average natural gas price for the quarter ended March 31, 2014 was $5.05 per Mcf as compared to the prior year quarter average of $3.50 per Mcf.
Average net gas sales volumes for the quarter ended March 31, 2014 were 21.3 MMcf per day, a 38% decrease from the same quarter in 2013 of which 29% resulted from the June 2013 sale of our Alabama assets and 9% resulted from decreased production related to our horizontal Pinnate wells in our remaining properties.
First Quarter 2014 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 Securities & Exchange Commission (“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.
As of March 31, 2014 GeoMet was engaged in the production of natural gas from coal seams (“coalbed methane”). Its core area of operations was the Central Appalachian Basin of Virginia and West Virginia.
For more information please contact Tony Oviedo, Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Controller, at (713) 287-2262 or firstname.lastname@example.org.