GeoMet, Inc. Announces First Quarter 2007 Results
Houston, Texas – May 10, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced financial and operating results for its first quarter ended March 31, 2007.
For the quarter ended March 31, 2007, GeoMet incurred a net loss of $(1.0) million or $(0.03) per fully diluted share as compared to a profit of $7.2 million, or $0.22 per fully diluted share for the same period in 2006. During both periods, net income or loss was impacted by unrealized gains or losses from the change in the market value of its derivative contracts. In the current quarter, the Company experienced an unrealized loss from such derivative contracts of $4.6 million ($3.2 million after income taxes) as compared to a unrealized gain of $9.1 million ($5.1 million after income taxes) for the same period in 2006.
EBITDA was $1.5 million for the quarter as compared to $15.5 million in the same period of 2006. Adjusted EBITDA for the quarter decreased 7% to $6.2 million compared to $6.6 million for the prior year period, which benefited from 11% higher natural gas price realizations (including the impact of realized hedging gains and losses). EBITDA and Adjusted EBITDA are non-GAAP measures; refer to the reconciliation of net income to EBITDA and of EBITDA to Adjusted EBITDA which is attached.
Net gas sales volumes for the quarter were 19 million cubic feet per day, a 26% increase compared to the first quarter of 2006. Average natural gas prices, adjusted for realized hedging gains or losses, were $7.68 per Mcf during the first quarter 2007 versus $8.64 for the same period in 2006. Excluding the impact of hedging, average natural gas prices during the quarter decreased by $2.13 per Mcf compared to the prior year period to an average of $6.95 per Mcf.
Capital expenditures incurred during the quarter ended March 31, 2007 were $18.0 million compared to $14.1 million for the prior year period.
Conference Call Information
GeoMet will hold its quarterly conference call to discuss first quarter 2007 results on Friday, May 11, 2007 at 10:00 a.m. Central Time. To participate, dial (888) 571-8168 a few minutes before the call begins. Please reference GeoMet Inc. conference ID 8403935. 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 Friday, May 18, 2007. To access the replay, dial (800) 642-1687 and reference conference ID 8403935. 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.
First Quarter 2007 Financial Attachements