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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 --
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