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Dune Energy Reports Fourth Quarter And Full Year 2013 Results


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[STK] OTC-BB:DUNR OTC-PINK:DUNR

[IN] UTI OIL GAS OTC

[SU] ERN

TO BUSINESS, AND ENERGY EDITORS:

Dune Energy Reports Fourth Quarter And Full Year 2013 Results

HOUSTON, March 7, 2014 /PRNewswire/ -- Dune Energy, Inc. (OCTBB:DUNR)

today announced results for the fourth quarter and calendar year 2013

and provided an operational update.

Revenue and Production

Revenue for the fourth quarter totaled $11.0 million and $53.6 million

for the full year 2013. This compares with $12.0 million and $52.0

million for the fourth quarter and full year 2012, respectively. On

an Mcfe basis revenue was $11.83 for 2013 and $9.88 for 2012.

Production volumes in the fourth quarter were 1.0 Bcfe and 4.5 Bcfe

for the full year 2013. This compares with 1.1 Bcfe for the fourth

quarter of 2012, and 5.3 Bcfe for the full year 2012. In 2013, the

average sales price of oil was $105.22 per barrel, and $4.03 per Mcf

for natural gas, as compared with $105.54 per barrel and $3.20 per

Mcf, respectively for 2012. Production declined almost 14% in 2013 as

compared to 2012. Oil prices decreased less than 1% and gas prices

increased 26% from 2012 levels. During 2012 oil accounted for 58% of

the total production volumes on an Mcfe equivalent basis, however oil

revenue accounted for 86% of the total revenue.

Costs and Expenses

Total operating expenses were $24.9 million for 2013 as compared to

$26.0 million for 2012 or $5.51 and $4.93 per Mcfe produced

respectively. This increase on a per Mcfe basis was reflective of

lower production volumes in 2013 in our older fields with high fixed

cost expenses. DD&A expense was $3.6 million for the fourth quarter

and $16.8 million for 2013 or $3.71 per Mcfe. G&A expense totaled

$3.6 million for the fourth quarter and $12.2 million for 2013.

Included in this total is $2.2 million of stock based compensation.

G&A for 2012 was $10.4 million including $1.7 million of stock based

compensation. Interest and financing expense was $2.6 million for the

fourth quarter and $10.1 million for 2013. Under the $200 million

revolving credit facility $22 million was borrowed at year-end 2013

and $2 million in letters of credit were outstanding. At year-end

2013, the Company had $62.2 million outstanding in Floating Rate

Senior Secured Notes due in 2016.

Earnings

Net loss totaled $13.3 million for the fourth quarter of 2013 and

$47.0 million for the full year 2013. This compares with an $7.9

million loss in 2012. In 2013, an impairment of $31.4 million was

recorded as a result of the impact of lower than expected future oil

prices on the economic life of the Garden Island Bay field proved

reserves.

Liquidity

At the end of the year we had $3.3 million in cash and $23.5 million

available under our Credit Facility based on $47.5 million of

availability. The $200 million revolving credit facility was amended

on December 17, 2013 maintaining availability at $47.5 million. The

EBITDAX to Total Debt Covenant was increased to 5.0 to 1.0 for the

quarters ending December 31, 2013 and March 31, 2014. The covenant

will return to the 4.0 to 1.0 ration on June 30, 2014. We were in

compliance with all covenants at year-end 2013.

James A. Watt, President and CEO of the Company stated, "We continue

to carefully manage our expenditures to maximize production volumes

while staying within the covenant restraints of our credit

agreements."

Click here for more information:

http://www.duneenergy.com/news.html?b=1683&1=1

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.

Investor Contact: Steven J. Craig Sr. Vice President Investor

Relations and Administration 713-229-6300

Dune Energy, Inc.

Consolidated Balance Sheets

December 31,

2013 2012

ASSETS

Current assets:

Cash $ 3,251,371 $ 22,793,916

Accounts receivable 7,258,425 6,723,233

Current derivative asset 7,544 765,992

Prepayments and other current assets 1,398,947 5,160,533

Total current assets 11,916,287 35,443,674

Oil and gas properties, using successful efforts accounting - proved 293,745,839 239,233,653

Less accumulated depreciation, depletion, amortization and impairment (61,927,723) (13,806,672)

Net oil and gas properties 231,818,116 225,426,981

Property and equipment, net of accumulated depreciation of $227,207 and $256,380 152,903 71,080

Deferred financing costs, net of accumulated amortization of $1,586,904 and $771,061 1,835,743 2,428,453

Noncurrent derivative asset - 397,886

Other assets 3,783,312 2,692,797

5,771,958 5,590,216

TOTAL ASSETS $ 249,506,361 $ 266,460,871

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 10,139,205 $ 6,987,857

Accrued liabilities 9,895,057 12,529,899

Current maturities of long-term debt 994,895 1,623,541

Total current liabilities 21,029,157 21,141,297

Long-term debt 84,180,940 83,429,862

Other long-term liabilities 21,449,651 13,860,597

Total liabilities 126,659,748 118,431,756

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,

72,644,643 and 59,022,445 shares issued 72,645 59,022

Treasury stock, at cost (145,270 and 1,056 shares) (223,821) (1,914)

Additional paid-in capital 177,832,574 155,824,868

Accumulated deficit (54,834,785) (7,852,861)

Total stockholders' equity 122,846,613 148,029,115

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 249,506,361 $ 266,460,871

Dune Energy, Inc.

Consolidated Statements of Operations

For the Year ended December 31,

2013 2012

Revenues:

Oil and gas revenues $ 53,581,176 $ 51,968,654

Other revenues 1,927,590 173,250

Total revenues 55,508,766 52,141,904

Operating expenses:

Lease operating expense and production taxes 24,916,246 25,960,588

Accretion of asset retirement obligation 1,754,106 1,461,756

Depletion, depreciation and amortization 16,790,444 14,063,052

General and administrative expense 12,231,093 10,390,043

Impairment of oil and gas properties 31,370,000 -

Remediation costs 4,586,000 -

Loss (gain)on settlement of asset retirement obligation liability (427,731) 1,657,999

Total operating expense 91,220,158 53,533,438

Operating loss (35,711,392) (1,391,534)

Other income(expense):

Other income 807 828,151

Interest expense (10,086,691) (9,765,239)

Gain (loss) on derivative instruments (1,184,648) 2,475,761

Total other income(expense) (11,270,532) (6,461,327)

Net loss $ (46,981,924) $ (7,852,861)

Net loss per share:

Basic and diluted $ (0.71) $ (0.20)

Weighted average shares outstanding:

Basic and diluted 66,620,128 40,027,622

Dune Energy, Inc.

Consolidated Statements of Cash Flows

For the Year ended December 31,

2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss $ (46,981,924) $ (7,852,861)

Adjustments to reconcile net loss to net cash used in operating activities:

Depletion, depreciation and amortization 16,790,444 14,063,052

Amortization of deferred financing costs 815,843 751,612

Stock-based compensation 2,254,845 1,721,531

Accretion of asset retirement obligation 1,754,106 1,461,756

Loss (gain)on settlement of asset retirement obligation liability (427,731) 1,657,999

Unrealized loss (gain) on derivative instruments 1,156,334 (1,163,878)

Impairment of oil and gas properties 31,370,000 -

Remediation costs 4,586,000 -

Changes in:

Accounts receivable (727,665) 1,382,414

Prepayments and other assets 3,761,586 (2,604,160)

Payments made to settle asset retirement obligations (1,552,060) (3,590,824)

Accounts payable and accrued liabilities 5,460,584 3,099,902

NET CASH PROVIDED BY OPERATING ACTIVITIES 18,260,362 8,926,543

CASH FLOWS FROM INVESTING ACTIVITIES

Investment in proved and unproved properties (49,476,447) (21,791,346)

Decrease in restricted cash - 17,184

Purchase of furniture and fixtures (150,650) (97,386)

Decrease (increase) in other assets (1,090,515) 313,767

NET CASH USED IN INVESTING ACTIVITIES (50,717,612) (21,557,781)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from short-term debt 1,215,983 2,087,410

Proceeds from long-term debt 13,000,000 12,000,000

Proceeds from sale of common stock 20,000,000 30,000,000

Increase in long-term debt issuance costs (223,133) (198,924)

Increase in common stock issuance costs (233,516) (835,278)

Payments on short-term debt (1,844,629) (5,021,726)

Payments on long-term debt (19,000,000) (23,000,000)

NET CASH PROVIDED BY FINANCING ACTIVITIES 12,914,705 15,031,482

NET CHANGE IN CASH BALANCE (19,542,545) 2,400,244

Cash balance at beginning of period 22,793,916 20,393,672

Cash balance at end of period $ 3,251,371 $ 22,793,916

SUPPLEMENTAL DISCLOSURES

Interest paid $ 2,462,475 $ 2,923,566

Income taxes paid - -

NON-CASH INVESTING AND FINANCIAL DISCLOSURES

Accrued interest converted to long-term debt $ 6,751,077 $ 5,925,871

Non-cash investment in proved and unproved properties in accounts payable - 5,541,969

Revisions to asset retirement obligations 5,034,739 1,700,990

Dune Energy, Inc.

Consolidated Statements of Changes in Stockholders' Equity (Deficit)

Years ended December 31, 2013 and 2012

Additional Total

Common Stock Treasury Stock Paid-In Accumulated Stockholders'

Shares Amount Shares Amount Capital Deficit Equity (Deficit)

Balance at December 31, 2011 38,579,630 $ 38,580 (235) $ (552) $ 124,893,145 $ - $ 124,931,173

Issuance of common stock 18,749,997 18,750 - - 29,981,250 - 30,000,000

Purchase of treasury stock - - (821) (1,362) - - (1,362)

Restricted stock issued 1,716,433 1,716 - - (1,716) - -

Restricted stock cancelled (23,615) (24) - - 24 - -

Stock-based compensation - - - - 1,721,531 - 1,721,531

Common stock issuance costs - - - - (835,278) - (835,278)

Long-term debt issuance costs - - - - 65,912 - 65,912

Net loss - - - - - (7,852,861) (7,852,861)

Balance at December 31, 2012 59,022,445 $ 59,022 (1,056) $ (1,914) $ 155,824,868 $ (7,852,861) $ 148,029,115

Issuance of common stock 12,499,992 12,500 - - 19,987,500 - 20,000,000

Purchase of treasury stock - - (144,214) (221,907) - - (221,907)

Restricted stock issued 1,187,487 1,188 - - (1,188) - -

Restricted stock cancelled (65,281) (65) - - 65 - -

Stock-based compensation - - - - 2,254,845 - 2,254,845

Common stock issuance costs - - - - (233,516) - (233,516)

Net loss - - - - - (46,981,924) (46,981,924)

Balance at December 31, 2013 72,644,643 $ 72,645 (145,270) $ (223,821) $ 177,832,574 $ (54,834,785) $ 122,846,613

SOURCE Dune Energy, Inc.

-0- 03/07/2014

/Web Site: http://www.duneenergy.com

(OTC-BB:DUNR /

OTC-PINK:DUNR) /

CO: Dune Energy, Inc.

ST: Texas

IN: UTI OIL GAS OTC

SU: ERN

PRN

-- LA78690 --

0000 03/07/2014 14:00:00 EDT http://www.prnewswire.com

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