GRAPEVINE, Texas, May 15, 2015 (GLOBE NEWSWIRE) -- GreenHunter Resources, Inc. GRH GRH, a diversified water resource, waste management, environmental services, and hydrocarbon marketing company specializing in the unconventional oil and natural gas shale resource plays within the Appalachian Basin, announced today financial and operating results for the three months ended March 31, 2015.
First Quarter Financial and Operational Highlights
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The Company substantially improved operating margins related to water disposal (disposal revenue less disposal expense as a percent of revenue) from 32% in the first quarter of 2014 to 42% in the first quarter of 2015.
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The Company substantially improved operating margins related to internal trucking (internal trucking revenue less internal trucking expense as a percent of revenue) from 12% in the first quarter of 2014 to 25% in the first quarter of 2015.
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The Company decreased selling, general and administrative expense, excluding non-cash stock compensation, from $2.1 million in the first quarter of 2014 to $1.7 million in the first quarter of 2015, a decrease of 19%.
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The Company deployed its first rented MAG Tank in late February for approximately $25 thousand per month.
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On March 16, 2015, the Company closed the sale of its last remaining renewable energy asset, the Mesquite Lake Resource Recovery Facility (biomass plant) for the total consideration of $2 million purchase price at closing.
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During the first quarter of 2015, the Company paid off a $2.2 million bank promissory note that was used to finance the initial purchase of its first three disposal wells back in 2012. The monthly payments were approximately $66 thousand, including principal and interest.
- Completed senior secured financing on April 15, 2015 to borrow up to $16 million of new money for capital projects including the completion of the Mills Hunter Facility pipeline to connect up to six disposal wells to our current offloading facility, essentially doubling the Company's current disposal capacity to approximately 32 thousand barrels per day. Additionally, the funds will be used to acquire up to 10 new DOT rated 407 trucks/trailers to be added to our existing fleet of 37 trucks and the build-out of our barge receiving terminal at our Mills Hunter Facility. Additionally, the development of additional barging terminals along the Ohio River that will be used to receive oil-field wastewater for barging to the Mills Hunter Facility.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.07) compared to ($.08) for the first quarters of 2015 and 2014, respectively. Our loss from continuing operations was $1.4 million for the first quarter 2015 compared to a loss of $1.3 million for first quarter 2014. Our loss from discontinued operations was ($92) thousand (loss of $.00 per common share, basic and diluted) for the first quarter 2015, compared to loss from discontinued operations of ($130) thousand (income of $.00 per share, basic and diluted) for the first quarter 2014. Operating revenues from continuing operations were $5.1 million during first quarter 2015 compared to $8.5 million for first quarter 2014, a decrease of 39%. This decrease was primarily a result of Management's decision to eliminate third party trucking.
ADDITIONAL COMMENTS AND HIGHLIGHTS
MANAGEMENT COMMENTS
Commenting on GreenHunter Resources' financial and operating results released today, Mr. Kirk J. Trosclair, Executive Vice President and COO, stated, "Our primary focus during the first quarter of 2015 was to continue to streamline operations in Appalachia which resulted in substantially improved operating margins in both water disposal and internal trucking. We leased a MAG Tank to a major oil and gas company and continue to receive new inquiries on new deployment in the region from our existing customer base."
Trosclair continued, "During the first quarter of 2015, we initiated discussions with a number of financial institutions with a goal of securing the appropriate level of funding needed to keep up with the significant growth opportunities for our business in the Appalachia region. On April 15, 2015, we announced that we entered into a senior secured financing agreement for up to $16 million, which will completely fund our capital expenditure budget for fiscal year 2015."
Trosclair concluded, "The second half of 2015 will be extremely important for GreenHunter Resources. As we deploy this capital to complete new injection wells, build out barge terminal infrastructure, and add to our 407 truck fleet, our revenues, EBITDA and net cash flow from continued operations should dramatically improve."
| UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS | ||
| For the Three Months Ended March 31, | ||
| 2015 | 2014 | |
| REVENUES: | ||
| Water disposal revenue | $3,124,111 | $3,683,862 |
| Transportation revenue | 1,661,524 | 3,434,494 |
| Environmental services revenue | 27,573 | -- |
| MAG Tank™ revenue | 125,176 | 800,000 |
| Skim oil revenue | 77,633 | 340,219 |
| Storage rental revenue and other | 131,102 | 219,962 |
| Total revenues | 5,147,119 | 8,478,537 |
| COST OF GOODS AND SERVICES PROVIDED: | ||
| Direct cost of goods and services provided | 3,395,859 | 6,029,635 |
| Depreciation and accretion expense | 820,580 | 763,984 |
| Selling, general and administrative | 2,156,385 | 2,450,519 |
| (Gain) loss on sale of assets | (46,350) | 56,228 |
| Gain on settlements | (34,166) | -- |
| Total costs and expenses | 6,292,308 | 9,300,366 |
| OPERATING LOSS | (1,145,189) | (821,829) |
| OTHER INCOME (EXPENSE): | ||
| Interest and other income | 537 | 10,280 |
| Interest expense | (224,358) | (446,951) |
| Total other expense | (223,821) | (436,671) |
| Net loss before taxes | (1,369,010) | (1,258,500) |
| Income tax expense | -- | -- |
| Loss from continuing operations | (1,369,010) | (1,258,500) |
| Loss from discontinued operations | (91,924) | (129,694) |
| Net loss | (1,460,934) | (1,388,194) |
| Preferred stock dividends | (1,234,532) | (1,249,999) |
| Net loss to common stockholders | $ (2,695,466) | $ (2,638,193) |
| Weighted average shares outstanding, basic and diluted | 39,037,010 | 33,796,389 |
| Net loss per share from continuing operations, basic & diluted | $ (0.07) | $ (0.08) |
| Net income (loss) per share from discontinued operations, basic & diluted | $0.00 | $0.00 |
| Net loss per share, basic & diluted | $ (0.07) | $ (0.08) |
| SELECTED BALANCE SHEET DATA (UNAUDITED) | ||||||
| Pro Forma | ||||||
| March 31, 2015 | March 31, 2015 | December 31, 2014 | ||||
| Cash and cash equivalents | $421,297 | $10,176,780 | $396,279 | |||
| Total current assets | 5,758,460 | 15,513,943 | 7,333,425 | |||
| Net fixed assets | 24,638,013 | 24,638,013 | 27,100,279 | |||
| Total assets | $30,457,409 | $41,316,527 | $34,452,857 | |||
| Total current liabilities | 13,761,942 | 12,750,275 | 17,554,428 | |||
| Total long-term liabilities | 6,444,012 | 18,360,679 | 6,948,150 | |||
| Total stockholders' equity | 10,251,455 | 10,205,573 | 9,950,279 | |||
| Total liabilities and stockholders' equity | $16,695,467 | $28,566,252 | $16,898,429 | |||
The reconciliation of adjusted EBITDA from continuing operations as compared to GreenHunter Resources' GAAP loss from continuing operations for the first quarter ended March 31, 2015 is as follows:
| 2015 | 2014 | |
| Net Loss | $ (1,369,010) | $ (1,258,500) |
| Income Tax | — | — |
| Interest and Amortization Expense | 224,358 | 446,951 |
| Depreciation Expense | 820,580 | 763,984 |
| Non-Cash Stock Compensation Expense | 420,368 | 369,415 |
| Other Non-Cash Gains | (34,166) | — |
| EBITDA From Consolidated Operations | $62,130 | $321,850 |
About GreenHunter Resources, Inc.
GreenHunter Resources, Inc., through its wholly-owned subsidiaries, GreenHunter Water, LLC, GreenHunter Environmental Solutions, LLC, and GreenHunter Hydrocarbons, LLC, provides Total Water Management Solutions™/Oilfield Fluid Management Solutions™ in the oilfield and its shale plays of the Appalachian Basin. GreenHunter Water continues to expand its services package by increasing down-hole injection capacity with Class II salt water disposal wells and facilities, with the launch of next-generation modular above-ground frac water storage tanks (MAG Tank™), and with advanced water hauling – including a growing fleet of DOT rated 407 trucks, for hauling condensates and water with the presence of condensates. GreenHunter Water has also spearheaded the movement to barge brine water, as barging is a safer and more cost-effective mode of transport than trucking or rail.
GreenHunter Environmental Solutions, LLC offers onsite environmental solutions at the well pad and facilities, with a service package that includes tank and rig cleaning, liquid and solid waste removal/remediation, solidification, and spill response. An understanding that an interconnected suite of services is key to E&P waste stream management shapes GreenHunter Resources' comprehensive end-to-end approach to services.
GreenHunter Hydrocarbons, LLC offers transportation of hydrocarbons (oil, condensate, and NGLs) and will soon offer storage, processing, and marketing of hydrocarbons (oil, condensate, and NGLs) in the Appalachian region, leveraging off of our existing asset base and infrastructure, which includes up to six different barge terminal locations, presently owned or leased by GreenHunter Resources.
For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Water's Appalachia SWD program, navigate to the video by clicking on "Salt Water Disposal Animation" button on the Operations tab at GreenHunterEnergy.com or click 1.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com
Forward-Looking Statements
Any statements in this press release about future expectations and prospects for GreenHunter Resources and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Resources undertakes no obligation to update these forward-looking statements in the future.
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