GRAPEVINE, Texas, Aug. 14, 2015 (GLOBE NEWSWIRE) -- GreenHunter Resources, Inc. (NYSE MKT: GRH) (NYSE MKT:GRH.PC), 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 and six months ended June 30, 2015.
Second Quarter Financial and Operational Highlights and Current Developments
- On July 27, 2015 the GreenHunter announced production commencement of two new disposal wells at its Mills Hunter facility located in southeastern Ohio. The initial combined injection rate for the two wells is approximately 6,000 - 8,000 barrels per day. The increased injection capacity effectively raises GreenHunter's overall disposal capacity by approximately 50%.
- In late July, 2015, the Company took delivery of two new Peterbilt trucks, and on August 12, 2015 received delivery notification of (4) four additional similar trucks which are now being rigged up with new Department of Transportation ("DOT") 407 rated trailers, which allows the company to haul Oilfield Waste and Condensate. The Company has 2 additional trucks and DOT 407 rated trailers on order, which are expected to be delivered by September 2015.
- The Company substantially improved operating margins related to water disposal (disposal revenue less disposal expense as a percent of revenue) from 38% in the second quarter of 2014 to 49% in the second quarter of 2015.
- The Company substantially improved operating margins related to internal trucking (internal trucking revenue less internal trucking expense as a percent of revenue) from 18% in the second quarter of 2014 to 40% in the second quarter of 2015.
- The Company decreased selling, general and administrative expense, excluding non-cash stock compensation, from $2.1 million in the second quarter of 2014 to $1.6 million in the second quarter of 2015, a decrease of 21%.
- The Company has had positive adjusted EBITDA for both the first and second quarters of 2015 with a reported $316 thousand for the second quarter of 2015.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.08) compared to ($.13) for the second quarters of 2015 and 2014, respectively. Our loss from continuing operations was ($2.0) million (a loss of ($.08) per common share, basic and diluted) for the second quarter 2015 compared to a loss of ($3.3) million (a loss of ($.13) per common share, basic and diluted) for second quarter 2014. Our loss from discontinued operations was ($80) thousand (loss of $.00 per common share, basic and diluted) for the second quarter 2015, compared to a gain from discontinued operations of $2.4 million (income of $.07 per share, basic and diluted) for the second quarter 2014, due to the sale of certain assets held for sale. Operating revenues from continuing operations were $4.6 million during the second quarter 2015 compared to $6.9 million for second quarter 2014, a decrease of 33%.
OPERATIONAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.15) compared to ($.14) for the six months ended June 30, 2015 and 2014, respectively. Our loss from continuing operations was ($3.4) million (a loss of ($.15) per common share, basic and diluted) for the six months ended June 30, 2015 compared to a loss of ($4.6) million (a loss of ($.21) per common share, basic and diluted) for the six months ended June 30, 2014. Our loss from discontinued operations was ($186) thousand (loss of $.00 per common share, basic and diluted) for the six months ended June 30, 2015, compared to a gain from discontinued operations of $2.3 million (income of $.07 per share, basic and diluted) for the six months ended June 30, 2014. Operating revenues from continuing operations were $9.7 million during the six months ended June 30, 2015 compared to $15.4 million for the six months ended June 30, 2014.
ADDITIONAL COMMENTS AND HIGHLIGHTS
- Completed senior secured financing on April 15, 2015 for $16 million. The initial tranche of $13 million of this credit facility was made available May 1, 2015 to fund new projects, including the completion of the Mills Hunter Facility and associated pipeline to connect up to six disposal wells to our current offloading facility. This expansion essentially doubled the Company's current disposal capacity to approximately 32 thousand barrels per day. Also, the addition of 8 new trucks and 11 new DOT rated 407 trailers are being added to our existing fleet of 37 trucks. The build-out of our barge receiving terminal at our Mills Hunter Facility and the development of new barging terminals along the Ohio River will be used to receive oil-field wastewater for barging to the Mills Hunter Facility. There remains an option available to the Company to borrow up to an additional $3 million on this credit facility.
- During the second quarter of 2015, the Company completely paid off approximately $1.6 million of indebtedness that was previously used for MAG TankTM design, development, and construction.
MANAGEMENT COMMENTS
Kirk Trosclair, Executive Vice President and Chief Operating Officer stated, "While we made excellent progress during the second quarter with our growth objectives, several factors which caused a delay included: (i) timing of funding, (ii) permitting and facility reviews and (iii) remobilization of construction crews. All of these issues contributed to the delay in timing of our previously planned expansion project at the Mills Hunter facility. These new facility operations were originally planned to commence during the second quarter of 2015 but this was delayed until the third quarter. However, we are extremely pleased with the high volume capacity of these two new wells which commenced operations during late July 2015 at Mills Hunter. We continue to work diligently towards the completion of the project adding an additional four injection wells over the next couple of months. As we continue to deploy capital for infrastructure investments, our injection capacities have surpassed 21,000 barrels per day. At the same time we have significantly reduced our operating cost per barrel without dramatically increasing variable cost, such as fixed overhead and labor. Although our industry is being dealt a severe blow due to current low commodity prices, our team remains confident that we have the best geographic footprint in the Appalachia region, which provides our customers numerous cost effective solutions for water management services."
| UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Water disposal revenue | $ | 2,899,330 | $ | 3,618,936 | $ | 6,023,438 | $ | 7,302,798 | ||||||||
| Transportation revenue | 1,527,776 | 2,821,196 | 3,189,299 | 6,255,690 | ||||||||||||
| Environmental services revenue | 1,794 | 14,172 | 29,366 | 14,172 | ||||||||||||
| MAG Tank™ revenue | 0 | 86,142 | 119,587 | 886,142 | ||||||||||||
| Skim oil revenue | 59,870 | 180,669 | 137,502 | 520,888 | ||||||||||||
| Storage rental revenue and other | 135,408 | 151,197 | 272,099 | 371,159 | ||||||||||||
| Total revenues | 4,624,178 | 6,872,312 | 9,771,291 | 15,350,849 | ||||||||||||
| COST OF GOODS AND SERVICES PROVIDED: | ||||||||||||||||
| Direct cost of goods and services provided | 2,644,165 | 4,980,333 | 6,040,023 | 11,009,968 | ||||||||||||
| Depreciation and accretion expense | 833,992 | 729,158 | 1,654,574 | 1,493,142 | ||||||||||||
| Selling, general and administrative | 2,735,413 | 4,320,681 | 4,891,799 | 6,771,200 | ||||||||||||
| (Gain) loss on sale of assets | 34,870 | 8,970 | (11,480 | ) | 65,198 | |||||||||||
| Gain on settlements | (1,621 | ) | (133,554 | ) | (35,786 | ) | (133,554 | ) | ||||||||
| Total costs and expenses | 6,246,819 | 9,905,588 | 12,539,130 | 19,205,954 | ||||||||||||
| OPERATING LOSS | (1,622,641 | ) | (3,033,276 | ) | (2,767,839 | ) | (3,855,105 | ) | ||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest and other income | 4,956 | 73,769 | 5,491 | 84,049 | ||||||||||||
| Interest amortization, and other expense | (390,218 | ) | (360,693 | ) | (601,083 | ) | (807,644 | ) | ||||||||
| Total other expense | (385,262 | ) | (286,924 | ) | (595,592 | ) | (723,595 | ) | ||||||||
| Net loss before taxes | (2,007,903 | ) | (3,320,200 | ) | (3,363,431 | ) | (4,578,700 | ) | ||||||||
| Income tax expense | 0 | 0 | 0 | 0 | ||||||||||||
| Loss from continuing operations | (2,007,903 | ) | (3,320,200 | ) | (3,363,431 | ) | (4,578,700 | ) | ||||||||
| Income (loss) from discontinued operations, net of taxes | (80,314 | ) | 2,429,233 | (185,726 | ) | 2,299,539 | ||||||||||
| Net loss | (2,088,217 | ) | (890,967 | ) | (3,549,157 | ) | (2,279,161 | ) | ||||||||
| Preferred stock dividends | (1,234,532 | ) | (1,250,000 | ) | (2,469,062 | ) | (2,499,999 | ) | ||||||||
| Net loss to common stockholders | $ | (3,322,749 | ) | $ | (2,140,967 | ) | $ | (6,018,219 | ) | $ | (4,779,160 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 41,523,625 | 35,044,356 | 40,278,852 | 34,423,820 | ||||||||||||
| Net loss per share from continuing operations, basic & diluted | (0.08 | ) | (0.13 | ) | (0.15 | ) | (0.21 | ) | ||||||||
| Net income (loss) per share from discontinued operations, basic & diluted | 0.00 | 0.07 | 0.00 | 0.07 | ||||||||||||
| Net loss per share, basic & diluted | (0.08 | ) | (0.06 | ) | (0.15 | ) | (0.14 | ) | ||||||||
| SELECTED BALANCE SHEET DATA (UNAUDITED) | ||||||
| 6/30/2015 | 12/31/2014 | |||||
| Cash and cash equivalents | $ | 2,032,569 | $ | 396,279 | ||
| Total Current Assets | 8,557,525 | 7,333,425 | ||||
| Net Fixed Assets | 26,802,449 | 27,100,279 | ||||
| Total Assets | $ | 36,451,142 | $ | 34,452,857 | ||
| Total Current Liabilities | 10,808,358 | 17,554,428 | ||||
| Total long-term liabilities | 17,259,729 | 6,948,150 | ||||
| Total Stockholders' equity | 8,383,055 | 9,950,279 | ||||
| Total Liabilities and stockholders' equity | $ | 36,451,142 | $ | 34,452,857 | ||
The reconciliation of adjusted EBITDA from continuing operations as compared to GreenHunter Resources GAAP loss from continuing operations for the second quarter ended June 30, 2015 is as follows:
| Consolidated Continuing Operations | Three Months Ended June 30, | |||||
| 2015 | 2014 | |||||
| Net Loss | $ | (2,007,903 | ) | $ | (3,320,200 | ) |
| Income Tax | - | - | ||||
| Interest and Amortization Expense | 390,218 | 360,693 | ||||
| Depreciation Expense | 833,992 | 729,158 | ||||
| Non-Cash Stock Compensation Expense | 1,101,401 | 2,259,671 | ||||
| Other Non-Cash Gains | (1,621 | ) | (133,554 | ) | ||
| EBITDA From Consolidated Operations | $ | 316,087 | $ | (104,232 | ) | |
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 here.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com
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