HOUSTON, May 2, 2014 /PRNewswire/ -- Dune Energy, Inc. (OTCBB:DUNR) today announced results for the first quarter of calendar year 2014.
Revenue and Production
Revenue for the first quarter of 2014 totaled $12.0 million as compared with $12.1 million for the first quarter of 2013. Production volumes in the first quarter were 98 Mbbls of oil and 0.39 Bcf of natural gas, or 163 Mboe. This compares with 97 Mbbls of oil and 0.39 Bcf of natural gas, or 162 Mboe for the first quarter of 2013. In the first quarter of 2014, the average sales price per barrel of oil was $101.16 and $5.29 per Mcf for natural gas, as compared with $110.04 per barrel and $3.71 per Mcf, respectively for the first quarter of 2013. Production did not fluctuate in the first quarter of 2014 as compared to the first quarter of 2013. Oil prices decreased 8% and gas prices increased 43% from 2013 levels. During the first quarter of 2014 oil accounted for 60% of the total production volumes on an equivalent basis; however, oil revenue accounted for 83% of the total revenue.
Costs and Expenses
Total lease operating expense (LOE) was $5.5 million for the first quarter of 2014 as compared to $6.8 million for the first quarter of 2013, or $33.74 and $41.97 per Boe produced, respectively. DD&A expense was $2.8 million for the first quarter of 2014, or $17.17 per Boe. G&A expense totaled $2.7 million for the first quarter of 2014 compared to $2.6 million in the first quarter of 2013. Interest and financing expense increased to $2.7 million in the first quarter of 2014 compared to $2.4 million in the first quarter of 2013.
Earnings
Net loss totaled $2.5 million for the first quarter of 2014. This compares with a net loss of $3.2 million in 2013.
Liquidity
At the end of the quarter we had $3.4 million in cash and $11.5 million available under our Senior Secured Revolving Credit Facility. The borrowing base currently is set at $47.5 million of availability and the revolver matures on December 22, 2015. We were in compliance with all covenants at March 31. However, the ratio of Total Debt/EBITDAX covenant changes from less than 5X on March 31 to less than 4X on June 30(th). This reduction may require that we reduce debt, request a waiver or amendment to this covenant or seek another solution in the event that the lower ratio cannot be satisfied.
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FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of Dune Energy, Inc.'s projects and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Dune Energy, Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, changes in product prices and other risks disclosed in Dune's Annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.
Dune Energy, Inc. Consolidated Balance Sheets (Unaudited) ASSETS March 31, 2014 December 31, 2013 -------------- ----------------- Current assets: Cash $3,443,932 $3,251,371 Accounts receivable 8,199,986 7,258,425 Current derivative asset - 7,544 Prepayments and other current assets 5,049,382 1,398,947 Total current assets 16,693,300 11,916,287 ---------- ---------- Oil and gas properties, using successful efforts accounting - proved 302,094,440 293,745,839 Less accumulated depreciation, depletion and amortization (64,718,343) (61,927,723) Net oil and gas properties 237,376,097 231,818,116 ----------- ----------- Property and equipment, net of accumulated depreciation of $248,109 and $227,207 136,830 152,903 Deferred financing costs, net of accumulated amortization of $1,807,251 and $1,586,904 1,615,396 1,835,743 Other assets 3,916,678 3,783,312 5,668,904 5,771,958 --------- --------- TOTAL ASSETS $259,738,301 $249,506,361 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $6,479,354 $10,139,205 Accrued liabilities 10,260,187 9,895,057 Current maturities on long-term debt 2,141,419 994,895 Total current liabilities 18,880,960 21,029,157 Long-term debt 97,968,641 84,180,940 Long-term derivative liability 200,113 - Other long-term liabilities 21,745,222 21,449,651 Total liabilities 138,794,936 126,659,748 ----------- ----------- Commitments and contingencies - - STOCKHOLDERS' EQUITY Preferred stock, $.001 par value, 1,000,000 shares authorized, 250,000 shares undesignated, no shares issued and outstanding - - Common stock, $.001 par value, 4,200,000,000 shares authorized, 73,745,382 and 72,644,643 shares issued 73,746 72,645 Treasury stock, at cost (221,872 and 145,270 shares) (296,492) (223,821) Additional paid-in capital 178,494,918 177,832,574 Accumulated deficit (57,328,807) (54,834,785) Total stockholders' equity 120,943,365 122,846,613 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $259,738,301 $249,506,361 ============ ============
Dune Energy, Inc. Consolidated Statements of Operations (Unaudited) Three months ended March 31, ---------------------------- 2014 2013 ---- ---- Revenues: Oil and gas revenues $11,989,010 $12,121,663 Other revenues - 963,150 Total revenues 11,989,010 13,084,813 ---------- ---------- Operating expenses: Lease operating expense and production taxes 5,513,562 6,861,401 Accretion of asset retirement obligation 546,684 402,732 Depletion, depreciation and amortization 2,801,045 3,167,886 General and administrative expense 2,651,285 2,588,082 Loss on settlement of asset retirement obligation liability - 22,920 Total operating expense 11,512,576 13,043,021 ---------- ---------- Operating income 476,434 41,792 ------- ------ Other income (expense): Other income 460 602 Interest expense (2,720,932) (2,434,979) Loss on derivative instruments (249,984) (817,590) Total other income (expense) (2,970,456) (3,251,967) ---------- ---------- Net loss $(2,494,022) $(3,210,175) =========== =========== Net loss per share: Basic and diluted $(0.03) $(0.05) Weighted average shares outstanding: Basic and diluted 72,949,157 59,041,035
Dune Energy, Inc. Consolidated Statements of Cash Flows (Unaudited) Three months ended March 31, ---------------------------- 2014 2013 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(2,494,022) $(3,210,175) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depletion, depreciation and amortization 2,801,046 3,167,886 Amortization of deferred financing costs 220,347 196,452 Stock-based compensation 663,445 632,305 Loss on settlement of asset retirement obligation liability - 22,920 Accretion of asset retirement obligation 546,684 402,732 Unrealized loss on derivative instruments 207,657 842,288 Changes in: Accounts receivable (931,085) (1,074,692) Prepayments and other assets (3,650,435) 2,098,029 Payments made to settle asset retirement obligations (51,000) (76,125) Accounts payable and accrued liabilities (1,707,133) 5,887,765 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4,394,496) 8,889,385 ---------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Investment in proved and unproved properties (8,348,601) (18,426,091) Purchase of furniture and fixtures (4,829) (130,006) Increase in other assets (133,366) (71,092) NET CASH USED IN INVESTING ACTIVITIES (8,486,796) (18,627,189) ---------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Payments on short-term debt (479,447) (695,803) Increase in long-term debt issuance costs - (5,522) Common stock issuance costs - (75,994) Purchase of treasury stock (72,671) (119,232) Proceeds from short-term debt 1,625,971 - Proceeds from long-term debt 12,000,000 - NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 13,073,853 (896,551) ---------- -------- NET CHANGE IN CASH BALANCE 192,561 (10,634,355) Cash balance at beginning of period 3,251,371 22,793,916 Cash balance at end of period $3,443,932 $12,159,561 ========== =========== SUPPLEMENTAL DISCLOSURES Interest paid $651,289 $562,198 Income taxes paid - - NON-CASH INVESTING AND FINANCIAL DISCLOSURES Accrued interest converted to long-term debt $1,787,702 $1,593,608 Non-cash investment in proved and unproved properties in accounts payable - 789,201
Investor Contact:
Steven J. Craig
Sr. Vice President Investor Relations and Administration
713-229-6300
SOURCE Dune Energy, Inc.