Dune Energy Reports First Quarter 2014 Financial And Operating Results

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 30th.  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.



RELATED LINKS
http://www.duneenergy.com

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