GeoMet, Inc. Announces Fourth Quarter & Year-end 2006 Results
Houston, Texas – March 19, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced financial and operating results for the fourth quarter and the year ended December 31, 2006.
Fourth Quarter 2006
For the quarter ended December 31, 2006, GeoMet’s net income decreased to $3.6 million or $0.09 per fully diluted share, compared to $9.4 million, or $0.34 per fully diluted share, for the same period in 2005. EBITDA, a non-GAAP measure, was $7.4 million for the quarter as compared to $17.1 million in the same period of 2005. Adjusted EBITDA, a non-GAAP measure, for the quarter decreased 30% to $5.1 million compared to $7.3 million for the prior year period. See attached reconciliation of EBITDA and Adjusted EBITDA to net income (loss). Sales volumes for the quarter increased 31% to 1.7 Bcf compared to 1.3 Bcf for the same period in 2005. Average natural gas prices, adjusted for realized hedging gains or losses, were $7.09 per Mcf during the quarter versus $9.27 for the same period in 2005. Excluding the impact of hedging, the average natural gas price realized during the quarter was $6.68 per Mcf versus $13.21 per Mcf in 2005. During the quarter, GeoMet recorded an unrealized gain from the change in the market value of its derivative contracts of $2.3 million compared to a $9.8 million unrealized gain for the same period in 2005. Capital expenditures incurred during the quarter were $19.5 million compared to $9.5 million for the prior year period.
For the year ended December 31, 2006, GeoMet’s net income increased to $17.3 million or $0.48 per fully diluted share, compared to a loss of $1.6 million or $0.06 per fully diluted share for the year ended in 2005. EBITDA, a non-GAAP measure, was $39.1 million for the year ended December 31, 2006, versus $5.7 million in the prior year. Adjusted EBITDA, a non-GAAP measure, of $22.8 million for the year 2006 increased 28% as compared to $17.8 million in 2005. See attached reconciliation of EBITDA and Adjusted EBITDA to net income (loss). Sales volumes for the year increased 36% to 6.2 Bcf compared to 4.6 Bcf in 2005. Average natural gas prices, adjusted for realized hedging gains or losses, were $7.40 per Mcf for 2006 versus $7.43 for 2005. Excluding the impact of hedging, the actual natural gas price realized for the year was $7.22 per Mcf versus $9.06 per Mcf for the year 2005. During 2006, GeoMet recorded an unrealized gain from the change in the market value of its derivative contracts of $16.9 million compared to a $12.1 million unrealized loss for the prior year. In 2006, capital expenditures totaled $81.6 million compared to $59.2 million in 2005.
Conference Call Information
GeoMet will hold its quarterly conference call to discuss fourth quarter and year-end 2006 results on Monday, March 19, 2007 at 3:00 p.m. Central Time. To participate, dial (888) 571-8168 a few minutes before the call begins. Please reference GeoMet Inc. conference ID 3045068. 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 available approximately two hours after the end of the call through Monday, March 26, 2007. To access the replay, dial (800) 642-1687 and reference conference ID 3045068. In addition, the web cast will also be archived on the Company’s website.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane” or “CBM”). 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 development rights, principally in Alabama, British Columbia, Colorado, Louisiana, Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713) 287-2251 or firstname.lastname@example.org or visit our website at www.geometinc.com.
Forward Looking Statements Notice
This press release contains “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 Securities and Exchange Commission. GeoMet undertakes no duty to update or revise these forward looking statements.
Fourth Quarter & Year-end 2006 Financial Attachements