SAN ANTONIO, May 16, 2012 /PRNewswire/ -- Cross Border Resources, Inc. (OTCQX: XBOR), ("Cross Border" or "the Company"), a San Antonio-based oil and gas exploration and production company, today announced its financial results for the first quarter ended March 31, 2012.
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First Quarter 2012 Financial and Operating Highlights
- Oil and gas revenues increased by 128% year-over-year to $3.6 million, up from $1.6 million in the first quarter of 2011.
- Production volume totaled 41,477 barrels of oil equivalent ("boe"), an increase of 91% compared to 21,772 boe in the first quarter of 2011.
- Average daily production sold during the first quarter of 2012 was 456 barrels of oil equivalent per day ("boepd") compared to 242 boepd for the first quarter of 2011. The daily average sales rate for March 2012 was 750 boepd.
- Adjusted EBITDA increased 277.4% year-over-year to $2.0 million, up from $0.5 million in the first quarter of 2011.
Results of Operations for the Quarter Ended March 31, 2012
Revenues
Oil and gas revenues for the quarter ended March 31, 2012 were $3.6 million as compared to $1.6 million for the quarter ended March 31, 2011. The increase of $2.0 million, or 128%, was primarily due to increased production from wells added year-over-year, and a year-over-year increase in the average prices for crude oil.
Sales volume totaled 41,477 boe for the quarter, an increase of 91% compared to 21,772 boe for the same period of 2011. The increase was primarily driven by increased production from wells added period-over-period. Average daily sales for the quarter were 456 boepd, compared to 242 boepd for the same period of 2011. Cross Border's definition of daily sales represents only what volumes were sold in each respective year and does not account for stored inventory.
During the first three months of 2012, we participated in seven gross (one net) new wells. As of April 30, 2012, three of the seven new wells had been placed on production, while four were awaiting completion. Additionally, three of the four wells that began during 2011 and were awaiting completion at year-end 2011 were successfully completed during the first quarter of 2012.
Cross Border's average realized crude oil sales price for the quarter ended March 31, 2012 was $98.46 per barrel, compared to $89.19 in the same period of 2011. The Company's average realized natural gas sales price for the first quarter of 2012 was $5.86 per 1,000 cubic feet ("mcf"), compared to $6.22 per mcf for the same period of 2011.
Income from Operations
Operating income for the quarter ended March 31, 2012 amounted to $1.4 million as compared to an operating loss of $143,079 for the prior-year quarter. Operating expenses for the quarter ended March 31, 2012 totaled $2.2 million, up 25.5% from $1.7 million in the quarter ended March 31, 2011. The increase, primarily a result of costs related to additional wells brought online year-over-year, was partially offset by a 23.0% decrease in general and administrative expenses.
Net Income
Net income for the quarter ended March 31, 2012 was $658,145 as compared to a net loss of $154,916 for the same period in 2011. Net income per diluted share was $0.04 for the first quarter of 2012.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") totaled $2.0 million, or $0.13 per fully diluted share, an increase of 277.4% compared to adjusted EBITDA of $0.5 million in the first quarter of 2011.
Adjusted EBITDA, a non-GAAP performance measure, is defined as net earnings before interest, income taxes, depreciation, depletion, amortization, abandonment and mark-to-market gains/losses on derivatives. Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements, and Cross Border's calculations thereof may not be comparable to similarly titled measures reported by other companies. Cross Border's management does not view adjusted EBITDA in isolation and also uses other measurements, such as net earnings (loss) and revenues to measure operating performance. A complete reconciliation of EBITDA to GAAP accounting standards can be found in this press release under the financial table "Reconciliation to GAAP."
Liquidity and Capital Resources
As of March 31, 2012, the Company's current assets were $4.1 million and current liabilities were $3.3 million. Cash and cash equivalents totaled $70,412 as of March 31, 2012. The Company's shareholders' equity at March 31, 2012 was $18.2 million. The Company generated $2.1 million from operating activities for the three months ended March 31, 2012, compared to $3.3 million for the same period of 2011. The Company used $5.9 million for investing activities for the quarter ended March 31, 2012, compared to $4.4 million for the same period of 2011. The Company generated $3.3 million from financing activities for the quarter ended March 31, 2012, compared to $0.9 million for the same period of 2011.
About Cross Border Resources
Information about the Company is available on its website, www.xbres.com.
Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.
Contacts:
Investor Relations Contact:
Jon Cunningham
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 107
[email protected]
http://www.redchip.com
Company Contact:
Cross Border Resources, Inc.
Nancy Stephenson
[email protected]
Cross Border Resources, Inc. |
||||||
March 31, |
December 31, |
|||||
2012 |
2011 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
Current Assets: |
||||||
Cash and cash equivalents |
$ |
70,412 |
$ |
472,967 |
||
Accounts receivable - production |
2,905,931 |
1,184,544 |
||||
Prepaid expenses and other current assets |
1,061,393 |
1,808,944 |
||||
Current tax asset |
21,737 |
21,737 |
||||
Total Current Assets |
4,059,473 |
3,488,192 |
||||
Property and Equipment |
||||||
Oil and gas properties (successful efforts method) |
36,288,899 |
30,540,978 |
||||
Less accumulated depletion and depreciation |
(10,415,884) |
(9,870,830) |
||||
Net Property and Equipment |
25,873,015 |
20,670,148 |
||||
Other Assets: |
||||||
Other property and equipment, net of accumulated depreciation of $134,408 and $ 126,473 in 2012 and 2011, respectively |
88,053 |
95,988 |
||||
Deferred bond costs, net of accumulated amortization of $503,854 and $344,300 in 2012 and 2011, respectively |
- |
159,554 |
||||
Deferred bond discount, net of accumulated amortization of $186,560 and $127,483 in 2012 and 2011, respectively |
- |
59,077 |
||||
Deferred financing costs, net of accumulated amortization of $39,739 and $26,355 in 2012 and 2011, respectively |
174,887 |
64,746 |
||||
Intangible assets, net of accumulated amortization of $247,020 and $197,616 in 2012 and 2011, respectively |
1,729,137 |
1,778,541 |
||||
Goodwill |
1,395,807 |
1,395,807 |
||||
Other |
54,324 |
54,324 |
||||
Total Other Assets |
3,442,208 |
3,608,037 |
||||
TOTAL ASSETS |
$ |
33,374,696 |
$ |
27,766,377 |
||
Cross Border Resources, Inc. |
||||||
March 31, |
December 31, |
|||||
2012 |
2011 |
|||||
(Unaudited) |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current Liabilities: |
||||||
Accounts payable - trade |
$ |
1,081,770 |
$ |
103,759 |
||
Accounts payable - revenue distribution |
236,915 |
143,215 |
||||
Interest payable |
63,173 |
112,659 |
||||
Accrued expenses |
614,094 |
418,290 |
||||
Deferred revenues |
- |
32,479 |
||||
Notes payable - current |
764,278 |
764,278 |
||||
Bonds payable – current portion |
- |
570,000 |
||||
Creditors payable – current portion |
300,000 |
186,761 |
||||
Derivative liability – current portion |
248,816 |
56,908 |
||||
Total Current Liabilities |
3,309,046 |
2,388,349 |
||||
Non-Current Liabilities: |
||||||
Asset retirement obligations |
1,191,149 |
1,186,260 |
||||
Deferred income tax liability |
21,737 |
21,737 |
||||
Line of credit |
9,300,000 |
2,381,000 |
||||
Derivative liability, net of current portion |
258,675 |
28,086 |
||||
Bonds payable, net of current portion |
- |
2,825,000 |
||||
Creditors payable, net of current portion |
1,052,783 |
1,352,783 |
||||
Total Non-Current Liabilities |
11,824,344 |
7,794,866 |
||||
TOTAL LIABILITIES |
15,133,390 |
10,183,215 |
||||
STOCKHOLDERS' EQUITY |
||||||
Common stock , $0.001 par value, 36,363,637 shares authorized, 16,151,946 shares issued and outstanding at March 31, 2012 and December 31, 2011 |
16,152 |
16,152 |
||||
Additional paid-in capital |
32,617,689 |
32,617,690 |
||||
Retained earnings (accumulated deficit) |
(14,392,535) |
(15,050,680) |
||||
TOTAL STOCKHOLDERS' EQUITY |
18,241,306 |
17,583,162 |
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
33,374,696 |
$ |
27,766,377 |
||
Cross Border Resources, Inc. (unaudited) |
|||||
2012 |
2011 |
||||
REVENUES AND GAINS: |
|||||
Oil and gas sales |
$ |
3,573,746 |
$ |
1,566,813 |
|
Other |
32,479 |
32,479 |
|||
Total Revenues And Gains |
$ |
3,606,225 |
$ |
1,599,292 |
|
OPERATING EXPENSES: |
|||||
Operating costs |
688,535 |
153,063 |
|||
Production taxes |
160,371 |
105,456 |
|||
Depreciation, depletion, and amortization |
661,469 |
584,290 |
|||
Accretion expense |
4,889 |
26,416 |
|||
General and administrative |
671,070 |
873,146 |
|||
Total Operating Expenses |
2,186,334 |
1,742,371 |
|||
GAIN (LOSS) FROM OPERATIONS |
1,419,891 |
(143,079) |
|||
OTHER INCOME (EXPENSE): |
|||||
Bond issuance amortization |
(159,553) |
(4,664) |
|||
Gain (loss) on derivatives |
(473,913) |
30,266 |
|||
Interest expense |
(131,758) |
(105,156) |
|||
Miscellaneous other income (expense) |
3,478 |
42,019 |
|||
Total Other Income (Expense) |
(761,746) |
(37,535) |
|||
GAIN (LOSS) BEFORE INCOME TAXES |
658,145 |
(180,614) |
|||
Current tax benefit (expense) |
(222,869) |
30,868 |
|||
Deferred tax benefit (expense) |
222,869 |
(5,170) |
|||
Income tax benefit (expense) |
- |
25,698 |
|||
NET INCOME (LOSS) |
$ |
658,145 |
$ |
(154,916) |
|
NET GAIN (LOSS) PER SHARE: |
|||||
Basic and diluted |
$ |
0.04 |
$ |
(0.01) |
|
WEIGHTED AVERAGE SHARES OUTSTANDING: |
|||||
Basic and diluted |
16,151,946 |
12,476,945 |
|||
Cross Border Resources, Inc. (unaudited) |
|||||
Three Months Ended March 31, |
|||||
2012 |
2011 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||
Net income (loss) |
$ |
658,145 |
$ |
(154,916) |
|
Adjustments to reconcile net income (loss) to cash used by operating activities: |
|||||
Depreciation, depletion, amortization |
661,469 |
571,694 |
|||
Accretion |
4,889 |
26,416 |
|||
Share-based compensation |
- |
30,492 |
|||
Amortization of debt discount and deferred financing costs |
218,631 |
17,260 |
|||
Changes in operating assets and liabilities: |
|||||
Accounts receivable |
(1,721,387) |
(104,914) |
|||
Prepaid expenses and other current assets |
698,382 |
3,492,054 |
|||
Accounts payable |
1,022,225 |
(321,381) |
|||
Derivative asset/liability |
422,497 |
- |
|||
Accrued expenses |
195,570 |
(201,175) |
|||
Deferred income tax |
- |
(25,698) |
|||
Deferred revenue |
(32,479) |
(32,479) |
|||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
2,127,942 |
3,297,353 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||
Cash impact of merger, net |
- |
(62,797) |
|||
Capital expenditures - oil and gas properties |
(5,867,736) |
(4,285,954) |
|||
Capital expenditures - other assets |
- |
(45,146) |
|||
NET CASH USED IN INVESTING ACTIVITIES |
(5,867,736) |
(4,393,897) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||
Net borrowings (payments) on line of credit |
6,919,000 |
1,212,500 |
|||
Proceeds from renewing notes |
- |
128,037 |
|||
Repayments of bonds |
(3,395,000) |
(190,000) |
|||
Repayments to creditors |
(186,761) |
(266,760) |
|||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
3,337,239 |
883,777 |
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(402,555) |
(212,767) |
|||
Cash and cash equivalents, beginning of period |
472,967 |
975,123 |
|||
Cash and cash equivalents, end of period |
$ |
70,412 |
$ |
762,356 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|||||
Interest paid |
$ |
101,154 |
$ |
174,341 |
|
Income taxes paid |
$ |
- |
$ |
- |
|
Cross Border Resources, Inc. Summary Operating Statistics (Unaudited) |
|||||
Three Months |
|||||
Ended March 31, |
|||||
2012 |
2011 |
||||
Revenues & Sales |
|||||
Oil & Gas Sales |
$ |
3,573,746 |
$ |
1,566,813 |
|
Gain on Sale of Oil & Gas Properties |
- |
- |
|||
Total revenue |
$ |
3,606,225 |
$ |
1,599,292 |
|
Net Income (Loss) |
$ |
658,145 |
$ |
(154,916) |
|
Net Income Per Share |
|||||
Basic & Diluted |
$ |
0.04 |
$ |
(0.01) |
|
Average Number of Shares Outstanding |
16,151,946 |
12,476,945 |
|||
Basic & Diluted |
|||||
Production Volumes |
|||||
Oil (Bbls) |
32,415 |
13,287 |
|||
Gas (mcf) |
54,370 |
50,911 |
|||
Total Barrels of Oil Equivalent (boe) |
41,477 |
21,772 |
|||
Average Barrels of Oil Equivalent per day (boepd) |
456 |
242 |
|||
Oil (Bbls) |
78.2% |
61.0% |
|||
Gas (mcf) |
21.8% |
39.0% |
|||
Total Barrels of Oil Equivalent (boe) |
100.0% |
100.0% |
|||
Average sales price: |
|||||
Gas ($ per mcf) |
$ |
5.86 |
$ |
6.22 |
|
Oil ($ per bbl) |
$ |
98.46 |
$ |
89.19 |
|
Average cost of production: |
|||||
Average production cost ($/boe) |
$ |
15.62 |
$ |
7.25 |
|
Average production taxes ($/boe) |
$ |
3.86 |
$ |
5.45 |
|
Depletion Expense |
$ |
531,000 |
$ |
545,741 |
|
Depletion Expense ($/boe) |
$ |
12.80 |
$ |
25.07 |
|
Non-GAAP Adjusted EBITDA |
$ |
2,038,311 |
$ |
540,137 |
|
Non GAAP Adjusted EBITDA Per Share |
$ |
0.13 |
$ |
0.04 |
|
Cross Border Resources, Inc. Reconciliation to GAAP (unaudited) |
|||||
Three Months |
|||||
Ended March 31, |
|||||
2012 |
2011 |
||||
Net income (loss) |
$ |
658,145 |
$ |
(154,916) |
|
Interest expense and other |
291,311 |
109,820 |
|||
Income tax expense (benefit) |
- |
(25,698) |
|||
Accretion of asset retirement obligations |
4,889 |
26,416 |
|||
Depreciation, depletion, and amortization |
661,469 |
584,290 |
|||
Stock-based compensation |
- |
30,492 |
|||
Mark-to-market loss on commodity swaps |
422,497 |
(30,267) |
|||
- |
|||||
Adjusted EBITDA |
$ |
2,038,311 |
$ |
540,137 |
|
SOURCE Cross Border Resources, Inc.
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