GreenHunter Energy Reports First Quarter 2012 Financial and Operating Results
27 Apr 2012 - ACQUIREMEDIA
GRAPEVINE, Texas--(BUSINESS WIRE)--Apr. 27, 2012-- GreenHunter Energy, Inc. (NYSE Amex: GRH), a diversified water resource management company specializing in the unconventional oil and natural gas shale resource plays, announced today financial and operating results for the three months ended March 31, 2012.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2012
Revenues for the three months ended March 31, 2012 were $2.3 million, compared to zero revenues reported during the first quarter of 2011. The operating loss for the three months ended March 31, 2012 was $(0.4) million, compared to an operating loss of $(1.2) million during the first quarter of 2011. Net loss to common shareholders was $(0.8) million ($(0.03) loss per common share basic and diluted) for the three months ended March 31, 2012, compared to a net loss of $(1.5) million ($(0.06) loss per common share basic and diluted) during the first quarter of 2011. The increase in revenues and decrease in both the operating loss and loss to common shareholders was due to operating income generated by our water management products and services which began in late 2011. This new business segment increased significantly upon the final closing of the acquisition of Hunter Disposal completed on February 17, 2012. As of the quarter ended March 31, 2012, we are no longer a development stage company.
OPERATIONAL RESULTS ON A PRO-FORMA BASIS
On a pro-forma basis (as if the acquisition of Hunter Disposal had occurred as of the beginning of 2011), revenues for the three months ended March 31, 2012 increased 490% to $4.6 million, compared to $0.8 million reported during the first quarter of 2011. While the pro-forma results are not necessarily indicative of what actually would have occurred, they reflect an increase in total water management revenues from organic activities including fluids hauling and logistics, new capacity contracts for produced water disposal and water storage equipment rentals in the Marcellus, Utica and Eagle Ford Shale regions.
SUBSEQUENT EVENTS AND ACQUISITION PIPELINE
In addition to i) the recently announced decision to begin barging operations for brine water on the Ohio River in our Appalachian Division, ii) the subsequent announcement of a lease for an Ohio River Barge Transloading and Water Storage Facility and iii) the announcement of receipt of a new Commercial Salt Water Disposal Permit approved by the Texas Railroad Commission for a new SWD well near the town of Helena in Karnes County, Texas, management has been very actively building a significant pipeline of other development projects and acquisition candidates. Of all the potential deals currently being pursued by management, some of the more notable transactions include:
Three permitted Class II salt water injection wells in the Cana Woodford (a.k.a., Arkoma) basin in Oklahoma located within the fast growing Horizontal Mississippian shale play; Three permitted Class II salt water injection wells in Appalachia basin in Ohio and West Virginia within the Utica and Marcellus shale plays—including five vacuum trucks, an office building and maintenance garage; A package of thirteen leased properties in the South Texas’ Eagle Ford Shale play—including a mix of fully-permitted Class II salt water injection wells and UIC applications in various stages of permitting; and Acquisition of an existing fleet of water hauling trucks and trailers and associated equipment located in the Eagle Ford Shale Play. MANAGEMENT COMMENTS
Commenting on GreenHunter Energy’s First Quarter 2012 financial and operating results, Mr. Jonathan D. Hoopes, GreenHunter Energy’s President and COO, stated, "We are pleased to announce a good start to 2012. We completed the integration of our existing fleet of fluids hauling and frac tank rental equipment with our recently acquired Hunter Disposal operations, and the new business efforts are progressing well. We continue to identify opportunities to improve operational efficiencies by increasing equipment utilization of our rolling stock. Management has developed and is executing on a plan to implement schedule optimization, and we are actively hiring and safety training experienced drivers to increase hauling hours in response to new demand from our growing customer base. We are making good progress with new capacity contracts with existing and new customers for our existing and planned new disposal facility locations. Over the next few months, we hope to expand our fleet of water hauling and storage equipment rolling stock to match our growing capacity of Class II SWD wells. We are excited with our prospects, and we look forward to updating our shareholders as we continue and close our pipeline of transactions."
About GreenHunter Water, LLC (a wholly owned subsidiary or GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total Water Management Solutions™ in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunter’s technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-Cycle™), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank™), advanced hauling and fresh water logistics services—including 21st Century tracking technologies (RAMCAT™) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com |
