GeoMet, Inc. Announces First Quarter 2008 Results
Houston, Texas—May 12, 2008-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced record financial and operating results for the first quarter ended March31, 2008.
First Quarter 2008 Results
For the quarter ended March 31, 2008 GeoMet recorded:
- Record Gas Sales Volumes - Average net gas sales volumes for the quarter were 20.6 MMcf per day, an 8.5% increase from the first quarter of 2007.
- Record Adjusted EBITDA - Adjusted EBITDA for the quarter increased 51.1% to $9.3 million from $6.2 million in the prior year period. EBITDA was $0.4 million for the quarter as compared to $1.5 million for the same period of 2007. Adjusted EBITDA and EBITDA are non-GAAP measures. See the accompanying table for reconciliations of net loss to EBITDA and of EBITDA to Adjusted EBITDA.
- Increased Adjusted Net Income - Adjusted net income for the quarter was $3.3 million, up 57.2% from $2.1 million, in the first quarter of 2007. Adjusted net income is a non-GAAP measure. See the accompanying table for a reconciliation of net loss to adjusted net income.
- Increased Gas Sales – Gas sales for the quarter were $15.6 million, a 31.5% increase from the first quarter in 2007. The average natural gas price, adjusted for realized hedging gains, was $8.79 per Mcf during the first quarter of 2008 versus $7.68 per Mcf for the same period in 2007. Excluding the impact of hedging, the average natural gas price during the quarter was $8.33 per Mcf as compared to the prior year period average of $6.95 per Mcf.
For the quarter ended March31, 2008, GeoMet recorded a net loss of $2.1 million, or $0.05 per fully diluted share, as compared to a net loss of $1.0 million, or $0.03 per fully diluted share, for the same period in 2007. During both periods, the net loss was impacted by unrealized losses from the change in the market value of its natural gas derivative contracts. In the current quarter, the Company experienced an unrealized loss from such natural gas derivative contracts of $8.6 million ($5.5 million after income taxes) as compared to an unrealized loss of $4.6 million ($3.2 million after income taxes) for the same period in 2007.
Capital expenditures for the quarter ended March31, 2008 were $7.5 million, compared to $18.0 million for the same period in the prior year.
J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, commented on the Company’s performance in the first quarter of 2008: “We are pleased with these record quarterly results, particularly in light of reduced capital expenditures over the last few quarters. In this strong natural gas price environment, we have opportunities in all five of our projects to increase capital expenditures which we believe will lead to continued record results. As a result, our Board of Directors has approved a $6 million increase in our 2008 capital spending for lease acquisition, exploration and development activities, an increase of 15%.”
FIrst Quarter 2008 Financial Schedules
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 first quarter of 2008 results on Monday, May 12, 2008 at 10:30 a.m. Central Time. To participate, dial (888)571-8168 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 44840036. 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 Monday, May 12, 2008.
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 or email@example.com or visit our website at www.geometinc.com.