GeoMet, Inc. Announces Financial and Operating Results for the Quarter Ended March 31, 2010
Houston, Texas—April 29, 2010-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter ended March 31, 2010.
J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “We are pleased that the Company achieved Adjusted Net Income of $1.3 million for the quarter as compared to an Adjusted Net Loss in the prior year quarter despite both lower gas sales volumes and lower realized gas prices. These operating results reflect the significant improvement in our cost structure as compared to the prior year.”
First Quarter 2010 Financial and Operating Results
For the quarter ended March31, 2010, GeoMet reported net income of $6.0 million, or $0.15 per fully diluted share. Included in net income for the quarter ended March31, 2010 was a $7.6 million, or $0.19 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 from derivative contracts during the current quarter. For the quarter ended March31, 2009, GeoMet reported a net loss of $87.7 million, or a loss of $2.25 per fully diluted share. Included in the net loss for the quarter ended March31, 2009 was a $139.7 million, or $3.59 per fully diluted share, pre-tax, non-cash impairment to the Company’s natural gas properties and a $0.2 million, or $0.01 per fully diluted share, pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company received net cash payments of $2.7 million on derivative contracts during the prior year quarter.
Adjusted Net Income for the quarter was $1.3 million as compared to Adjusted Net Loss of $1.0 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).
Adjusted EBITDA for the quarter increased to $5.7 million from $3.3 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 Income (Loss).
Gas sales for the quarter were $9.9 million as compared to gas sales of $9.5 million in the first quarter of 2009. The average natural gas price during the quarter was $5.43 per Mcf as compared to the prior year quarter average of $5.01 per Mcf. The average natural gas price, adjusted for realized gains on derivative contracts, was $6.23 per Mcf during the first quarter of 2010 versus $6.45 per Mcf for the same period in 2009.
Average net gas sales volumes for the quarter ended March31, 2010 were 20.2 MMcf per day, a 3.5% decrease from the same quarter in 2009.
Capital expenditures for the quarter ended March31, 2010 were $1.7 million as compared to $3.3 million for the same quarter in the prior year.
Financial Schedules for the Quarter Ended March 31, 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 March31, 2010 on April 29, 2010 at 10:30 a.m. Central Time. To participate, dial (888)289-0459 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 8084060. 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 29, 2010.
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 (email@example.com), John Baldissera with BPC Financial at (800)368-1217, or visit our website at www.geometinc.com.