DENVER, July 31, 2012 /PRNewswire/ -- Gasco Energy, Inc.
(NYSE MKT: GSX) ("Gasco" or the "Company") today announced
financial and operating results for the second quarter ended
June 30, 2012.
Note Regarding Uinta Basin Joint Venture
During Q1-12, Gasco conveyed a 50% interest in certain of its Uinta
Basin properties to its joint venture partner ("the Uinta Basin
transaction") concurrent with the March 22,
2012 closing of the joint venture. Q2-12 is the first
full reporting period in which Gasco's Uinta Basin financial
results reflect this conveyance under the terms of the
Gasco-operated joint venture. Prior-period results do not
reflect the conveyance of the joint venture partner's
interest.
Q2-12 Financial Results
Oil and gas sales for the second quarter ended June 30, 2012 were $1.6
million, as compared to $5.8
million for the same period in 2011. The
year-over-year decrease in oil and gas sales is primarily
attributed to the sale of a portion of the Company's interest in
its properties in the Uinta Basin transaction, a 49% decrease in
the average price received for the Company's natural gas sales and
an 11% decrease in prices received for oil volumes.
Gasco's average realized gas price was $2.26 per thousand cubic feet of natural gas
(Mcf) for Q2-12, excluding the effect of hedges, compared to
$4.47 per Mcf in the prior-year
period, also excluding the effect of hedges. During
June 2012, the Company monetized its
remaining commodity hedge contract for net proceeds of $678,000. Prior to the monetization, the
Company's risk management activities caused its average realized
gas price to increase by approximately $0.52 per Mcf during Q2-12. Including the
impact of hedges, the Company's average price received for its
natural gas production during Q2-12 was approximately $2.78 per Mcf as compared to $4.48 per Mcf in the prior-year period.
The average realized oil price for Q2-12 was $78.57 per barrel, as compared to $88.80 per barrel for the prior-year
period. Gasco does not hedge its crude oil volumes.
For Q2-12, Gasco reported a net loss of $5.2 million, or $0.03 per share, as compared to breakeven results
of $0.0 million, or $0.00 per share in Q2-11. Included in the
Q2-12 results is a non-cash gain of $1.1
million attributed to derivatives and a $3.8 million expense item related to an
impairment of the carrying value of oil and gas properties.
Excluding the effect of the above-stated non-cash items, Gasco
would have posted a net loss of $2.5
million, or $0.01 per share
for Q2-12. Net loss excluding the effect of non-cash items is
a non-GAAP financial measure. Management believes net income
or loss excluding the effect of certain non-cash items such as
derivative gains or losses and impairment expense is a useful
metric to investors to show income before the impact of certain
non-cash items, and it provides a measure of the Company's cash
available to fund its business and operations. For further
disclosure, please reference the reconciliation to non-GAAP
measures at the end of this news release.
As of June 30, 2012, Gasco's total
assets were $64.0 million, its
stockholders' equity was $29.6
million, and cash and investments were $5.1 million.
The Company had long-term debt of $45.0
million as of June 30, 2012,
consisting of its 5.5% convertible senior notes due 2015. On
June 29, 2012, the Company's
$250 million revolving credit
facility matured and was repaid in full. Gasco is discussing
alternative borrowing arrangements with other lenders and while the
Company currently believes that it will be able to find a
replacement lender, there can be no assurance that the Company will
be able to obtain adequate alternative financing on acceptable
terms or at all.
Net cash used in operating activities during Q2-12 was
$3.0 million, as compared to net cash
provided by operating activities of $1.0
million in the comparable 2011 reporting period. Net
cash provided by investing activities during Q2-12 was $0.1 million, as compared to net cash used in
investing activities in the prior-year period of $2.1 million. During March 2012, Gasco repaid $10.5 million in borrowings in connection with
the maturing of its revolving credit facility.
Q2-12 Unit Cost and Expense Comparisons
Total lease operating expense (LOE) for Q2-12 was $1.2 million, as compared to $1.7 million in the prior-year period. On a
per-unit basis, Q2-12 LOE was $1.96
per thousand cubic feet of natural gas equivalent (Mcfe), as
compared to $1.54 per Mcfe in the
prior-year period. The 27% increase in LOE per Mcfe is
primarily attributable to an increase in operating expenses
($0.51 per Mcfe higher) partially
offset by lower production taxes ($0.09 per Mcfe lower) due to decreased severance
taxes during Q2-12.
Transportation and processing expense was $0.5 million during Q2-12, or $0.88 per Mcfe, as compared to $0.9 million during the prior-year period, or
$0.81 per Mcfe. The 44%
decrease in these expenses during Q2-12 reflects lower
transportation and processing costs related to the 45% decrease in
gas production due to the conveyance and to normal production
declines.
Depletion, depreciation and amortization (DD&A) was
$0.6 million for Q2-12, as compared
to $1.0 million for Q2-11. On a
per-unit basis, DD&A for Q2-12 was $1.10 per Mcfe, as compared to $0.89 per Mcfe in the prior-year period.
The Company reported general and administrative expense
(G&A) of $1.1 million for Q2-12,
versus $0.9 million in the prior-year
period. On a per-unit basis, total G&A for Q2-12 was
$1.76 per Mcfe, as compared to
$0.85 per Mcfe for the same period in
2011. G&A expense for Q2-12 includes $76,856 of non-cash, stock-based compensation
expense, or, on a per-unit basis, $0.13 per Mcfe, as compared to the prior-period
total of $6,278, or $0.00 per Mcfe. The increase in G&A
expense is primarily due to legal and consulting expenses
associated with the Uinta Basin transaction and to an increase in
stock-based compensation due to the issuance of certain stock
options and restricted stock during June
2012.
Gasco
Energy
|
Q2-12
|
Q2-11
|
%
Change
|
Unit
Cost Analysis
|
Production in Natural Gas Equivalent
(Mcfe)
|
588,196
|
1,108,191
|
-47%
|
Average
Price Received Gas ($ / Mcf)
|
$
2.26
|
$
4.47
|
-49%
|
Average
Price Received Oil ($ / Bbl)
|
78.57
|
88.80
|
-11%
|
LOE
Components
|
-
|
-
|
-
|
Direct Operating Expenses ($ /
Mcfe)
|
1.46
|
1.09
|
34%
|
Workover Expense ($ / Mcfe)
|
0.40
|
0.27
|
48%
|
Production Tax ($ / Mcfe)
|
0.10
|
0.19
|
-47%
|
Total
Lease Operating Expense ($ / Mcfe)
|
1.96
|
1.54
|
27%
|
Transportation Expense ($ / Mcfe)
|
0.88
|
0.81
|
9%
|
DD&A Expense ($ / Mcfe)
|
1.10
|
0.89
|
24%
|
G&A
Expense ($ / Mcfe)
|
1.76
|
0.85
|
107%
|
Non-cash Stock-based Compensation
Expense ($ / Mcfe)
|
$
0.13
|
$
0.00
|
-%
|
First Half 2012 Period
Oil and gas sales for the first half of 2012 were $4.8 million, as compared to $10.0 million for the same period in 2011.
The decrease in oil and gas sales during the first half 2012, as
compared to the prior-year period, is primarily attributed to the
Uinta Basin transaction and to a 40% decrease in the average price
received for natural gas sales, offset in part by a 2% increase in
prices received for oil volumes.
The average prices received for the first half of 2012 were
$2.57 per Mcf and $85.36 per barrel of oil, as compared to
$4.28 per Mcf and $83.60 per barrel in the 2011 first-half
reporting period.
For first half of 2012, Gasco reported a net loss of
$10.2 million, or $0.06 per share, as compared to a net loss of
$1.6 million, or $0.01 per share in the prior year period.
Included in the first half 2012 results are a non-cash gain of
$0.5 million attributed to
derivatives and $8.1 million related
to an impairment of the carrying value of oil and gas
properties.
Excluding the effect of the above-stated non-cash items, Gasco
would have posted a net loss of $5.2
million, or $0.03 per share
for the six-month period ended June
30, 2012. Net loss excluding the effect of non-cash
items is a non-GAAP financial measure.
Net cash used in operating activities for the first half of 2012
was $3.5 million as compared to net
cash provided by operating activities of $1.9 million for the same period in 2011.
The Company invested approximately $3.8
million during the first half of 2012 in oil and gas
activities. Net cash provided by investing activities during
the first half of 2012 included $19.2
million in cash proceeds from the sale of certain of the
Company's Uinta Basin assets as part of the previously announced
Uinta Basin joint venture. Net cash used in financing
activities was $8.5 million in the
first half of 2012, as compared to net cash provided by financing
activities of $7.0 million during the
prior-year period.
Quarterly and First Half 2012 Production
Estimated cumulative net production for Q2-12 was 588 million cubic
feet of natural gas equivalent (MMcfe), as compared to 1,108 MMcfe
in the prior-year period. Estimated cumulative net production
for the first half of 2012 was 1,479 MMcfe, as compared to
first-half 2011 net production of 2,067 MMcfe. Included in the
first half 2012 equivalent calculation is 14,094 barrels of liquid
hydrocarbons, as compared to the prior-year period's liquids
volumes of 20,478 barrels. Net production changes are
attributed to the Uinta Basin transaction and to normal production
declines in existing wells, which are partially offset by new
producing wells and to the recompletions and workovers of existing
wells.
Risk Management
The Company's results of operations and operating cash flows are
affected by changes in market prices for oil and natural gas.
Gasco has used commodity derivative instruments to provide a
measure of stability to its cash flows in an environment of
commodity price volatility and to manage its exposure to commodity
price risk. However, these derivative instruments could limit
the prices Gasco could actually realize and therefore may reduce
oil and natural gas revenues in the future. During
June 2012, the Company monetized its
outstanding commodity derivatives for net proceeds of approximately
$678,000. Gasco intends to
enter into future derivatives when it becomes beneficial for the
Company to do so.
Teleconference Call
A conference call with investors, analysts and other interested
parties is scheduled for 11:00 a.m.
EDT on Wednesday, August 1,
2012 to discuss Q2-12 financial and operating results.
You are invited to participate in the call which will be broadcast
live over the Internet and via teleconference.
Gasco
Energy Q2-12 Financial and Operating Results Conference
Call
|
Date:
|
Wednesday,
August 1, 2012
|
Time:
|
11:00 a.m.
EDT
10:00 a.m.
CDT
9:00 a.m.
MDT
8:00 a.m.
PDT
|
Call:
|
(866)
392-4171 (US/Canada) and (706) 634-6345 (International),
Passcode /
Conference ID #: 99618031
|
Webcast/Internet:
|
Live and
rebroadcast over the Internet:
https://us.reg.meeting-stream.com/gascoenergyinc_080112/
|
Replay:
|
Available
through Wednesday, August 8, 2012 at (855) 859-2056
(US/Canada) and (404) 537-3406 (International) using
passcode #99618031 and for 30 days at
http://www.gascoenergy.com
|
About Gasco Energy
Denver-based Gasco Energy, Inc. is
a natural gas and petroleum exploitation, development and
production company engaged in locating and developing hydrocarbon
resources, primarily in the Rocky Mountain region and in
California's San Joaquin
Basin. Gasco's principal business is the acquisition of
leasehold interests in petroleum and natural gas rights, either
directly or indirectly, and the exploitation and development of
properties subject to these leases. Gasco focuses its
drilling efforts in the Riverbend Project located in the Uinta
Basin of northeastern Utah,
targeting the oil-bearing Green River Formation and the natural
gas-prone Wasatch, Mesaverde,
Blackhawk, Mancos, Dakota and Morrison formations. To learn more,
visit http://www.gascoenergy.com.
Contact for Gasco Energy, Inc.: Investor Relations:
303-483-0044
Forward-looking Statements
Certain statements set forth in this press release relate to
management's future plans, objectives and expectations. Such
statements are forward-looking within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
other than statements of historical facts included in this press
release, including, without limitation, statements regarding
Gasco's future financial position, potential resources, business
strategy, budgets, projected costs and plans and objectives of
management for future operations, are forward-looking statements.
These statements express, or are based on, management's
expectations about future events. In addition, forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "should,"
"expect," "intend," "project," "estimate," "anticipate," "plan,"
"believe," "foresee," or "continue" or the negative thereof or
similar terminology.
Although any forward-looking statements contained in this press
release are to the knowledge or in the judgment of the officers and
directors of Gasco, believed to be reasonable under the
circumstances, there can be no assurances that any of these
expectations will prove correct or that any of the actions that are
planned will be taken. Forward-looking statements involve
assumptions which may be inaccurate, and known and unknown risks
and uncertainties (some of which are beyond Gasco's control), that
may cause Gasco's actual performance and financial results in
future periods to differ materially from any projection, estimate
or forecasted result. Some of the key factors that may cause
actual results to vary from those Gasco expects include the
inherent uncertainties in interpreting engineering and reserve or
production data; operating hazards; delays or cancellations of
drilling operations because of weather and other natural and
economic forces; fluctuations in oil and natural gas prices;
competition from other companies with greater resources;
environmental and other government regulations, including new or
proposed legislation; defects in title to properties; increases in
Gasco's cost of borrowing or inability or unavailability of capital
resources or cash flow from operations to fund capital
expenditures; pipeline constraints; overall demand for natural gas
and oil in the United States;
changes in general economic conditions in the United States; Gasco's ability to manage
interest rate and commodity price exposure; changes in Gasco's
borrowing arrangements; the condition of credit and capital markets
in the United States; and other
risks described in (1) Part I, "Item 1A–Risk Factors," "Item
7–Management's Discussion and Analysis of Financial Condition and
Results of Operations," "Item 7A–Quantitative and Qualitative
Disclosure About Market Risk" and elsewhere in Gasco's Annual
Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on
March 28, 2012, and (2) Gasco's other
reports and registration statements filed from time to time with
the SEC.
Any of these factors could cause Gasco's actual results to
differ materially from the results implied by these or any other
forward-looking statements made by Gasco or on its behalf.
Gasco cannot assure you that its future results will meet its
expectations. When you consider these forward-looking
statements, you should keep in mind these factors. All
subsequent written and oral forward-looking statements attributable
to Gasco, or persons acting on its behalf, are expressly qualified
in their entirety by these factors. Gasco's forward-looking
statements speak only as of the date made. Gasco assumes no
duty to update or revise its forward-looking statements based on
changes in internal estimates or expectations or otherwise.
[Financial and Operational Tables Accompany this News
Release]
The notes accompanying the financial statements are an integral
part of the consolidated financial statements and can be found in
Gasco's Filing on Form 10-Q for the second quarter ended
June 30, 2012 filed with the SEC on
July 31, 2012.
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
5,135,729
|
|
$
1,965,967
|
Accounts receivable
|
|
|
|
|
|
Joint interest
billings
|
|
|
2,113,859
|
|
810,482
|
Revenue
|
|
|
596,568
|
|
1,483,382
|
Inventory
|
|
|
1,903,388
|
|
1,911,362
|
Note receivable
|
|
|
500,000
|
|
500,000
|
Derivative instruments
|
|
|
-
|
|
865,358
|
Prepaid expenses
|
|
|
73,699
|
|
152,045
|
Total
|
|
|
10,323,243
|
|
7,688,596
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, at
cost
|
|
|
|
|
|
Oil
and gas properties (full cost method)
|
|
|
|
|
|
Proved properties
|
|
|
255,738,109
|
|
268,793,463
|
Unproved
properties
|
|
|
37,915,582
|
|
36,938,162
|
Wells in progress
|
|
|
-
|
|
1,938,691
|
Facilities and equipment
|
|
|
1,464,475
|
|
1,502,921
|
Furniture, fixtures and other
|
|
|
494,781
|
|
167,737
|
Total
|
|
|
295,612,947
|
|
309,340,974
|
Less accumulated depletion, depreciation, amortization and
impairment
|
|
|
(243,462,407)
|
|
(234,132,806)
|
Total
|
|
|
52,150,540
|
|
75,208,168
|
|
|
|
|
|
|
NONCURRENT ASSETS
|
|
|
|
|
|
Deposit
|
|
|
564,638
|
|
639,500
|
Deferred financing costs
|
|
|
983,793
|
|
1,117,972
|
Total
|
|
|
1,548,431
|
|
1,757,472
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$ 64,022,214
|
|
$ 84,654,236
|
|
|
|
|
|
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(continued)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts payable
|
|
|
$
815,905
|
|
$
2,649,772
|
Revenue payable
|
|
|
1,734,445
|
|
2,043,240
|
Advances from joint interest owners
|
|
|
96,733
|
|
98,512
|
Current portion of long-term debt
|
|
|
-
|
|
8,544,969
|
Accrued interest
|
|
|
586,556
|
|
586,556
|
Accrued expenses
|
|
|
251,816
|
|
355,224
|
Total
|
|
|
3,485,455
|
|
14,278,273
|
|
|
|
|
|
|
NONCURRENT LIABILITIES
|
|
|
|
|
|
5.5% Convertible Senior Notes due 2015, net of
unamortized
discount of $20,684,318 as of June 30, 2012 and
$22,574,687
as of December 31, 2011
|
|
|
24,483,682
|
|
22,593,313
|
Deferred income from sale of assets
|
|
|
2,564,403
|
|
2,665,629
|
Asset retirement
obligation
|
|
|
779,197
|
|
1,226,796
|
Derivative instruments
|
|
|
2,837,500
|
|
4,235,000
|
Deferred rent
|
|
|
281,390
|
|
-
|
Total
|
|
|
30,946,172
|
|
30,720,738
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Series B Convertible Preferred stock - $0.001 par
value; 20,000 shares authorized; zero shares outstanding
|
|
|
-
|
|
-
|
Series C Convertible Preferred stock - $0.001 par
value; 2,000,000 shares authorized; 182,065 shares outstanding as of June 30,
2012 and 191,000 shares outstanding as of December 31,
2011
|
|
|
182
|
|
191
|
Common stock - $0.0001 par value; 600,000,000 shares
authorized; 169,823,681 shares issued and 169,749,981
outstanding as of June 30,
2012 and 168,084,515 shares issued and 168,010,815
outstanding as of December 31, 2011
|
|
|
16,982
|
|
16,808
|
Additional paid-in capital
|
|
|
262,489,186
|
|
262,344,286
|
Accumulated deficit
|
|
|
(232,785,468)
|
|
(222,575,765)
|
Less cost of treasury stock of 73,700 common shares
|
|
|
(130,295)
|
|
(130,295)
|
Total
|
|
|
29,590,587
|
|
39,655,225
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$ 64,022,214
|
|
$ 84,654,236
|
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
June
30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$
1,273,178
|
|
$
4,609,574
|
Oil
|
|
|
330,695
|
|
1,145,897
|
Total
|
|
|
1,603,873
|
|
5,755,471
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
Lease operating
|
|
|
1,152,462
|
|
1,707,734
|
Transportation and processing
|
|
|
518,394
|
|
901,384
|
Depletion, depreciation, amortization and
accretion
|
|
|
648,239
|
|
985,744
|
Impairment
|
|
|
3,755,000
|
|
-
|
General and administrative
|
|
|
1,112,620
|
|
945,342
|
Total
|
|
|
7,186,715
|
|
4,540,204
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME
|
|
|
(5,582,842)
|
|
1,215,267
|
|
|
|
|
|
|
OTHER
(EXPENSE) INCOME
|
|
|
|
|
|
Interest
expense
|
|
|
(1,659,945)
|
|
(1,551,875)
|
Derivative
gains
|
|
|
2,024,957
|
|
309,283
|
Amortization of deferred income from sale of
assets
|
|
|
50,613
|
|
50,613
|
Interest
income
|
|
|
15,658
|
|
6,881
|
Total
|
|
|
431,283
|
|
(1,185,098)
|
|
|
|
|
|
|
NET
(LOSS) INCOME
|
|
|
$ (5,151,559)
|
|
$ 30,169
|
|
|
|
|
|
|
NET
(LOSS) INCOME PER COMMON SHARE –
|
|
|
|
|
|
BASIC
|
|
|
$ (0.03)
|
|
$
0.00
|
DILUTED
|
|
|
$ (0.03)
|
|
$
0.00
|
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
June
30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$
3,581,042
|
|
$
8,312,605
|
Oil
|
|
|
1,203,098
|
|
1,711,971
|
Total
|
|
|
4,784,140
|
|
10,024,576
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
Lease operating
|
|
|
2,840,463
|
|
3,049,166
|
Transportation and processing
|
|
|
1,175,366
|
|
1,703,099
|
Depletion, depreciation, amortization and
accretion
|
|
|
1,498,266
|
|
1,835,568
|
Impairment
|
|
|
8,055,000
|
|
-
|
General and administrative
|
|
|
2,517,602
|
|
2,071,505
|
Total
|
|
|
16,086,697
|
|
8,659,338
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME
|
|
|
(11,302,557)
|
|
1,365,238
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
Interest
expense
|
|
|
(3,388,714)
|
|
(3,415,770)
|
Gain on
sale of assets
|
|
|
2,567,574
|
|
-
|
Derivative
gains
|
|
|
1,788,090
|
|
373,236
|
Amortization of deferred income from sale of
assets
|
|
|
101,226
|
|
101,226
|
Interest
income
|
|
|
24,678
|
|
13,762
|
Total
|
|
|
1,092,854
|
|
(2,927,546)
|
|
|
|
|
|
|
NET
LOSS
|
|
|
$ (10,209,703)
|
|
$ (1,562,308)
|
|
|
|
|
|
|
NET
LOSS PER COMMON SHARE – BASIC AND DILUTED
|
|
|
$
(0.06)
|
|
$
(0.01)
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited)
|
|
|
|
Six
Months Ended
|
|
|
|
June
30,
|
|
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
Net
loss
|
|
|
$(10,209,703)
|
|
$
(1,562,308)
|
Adjustment to reconcile net loss to net cash (used in) provided
by operating activities:
|
|
|
|
|
|
Depletion,
depreciation, amortization, accretion and impairment
expense
|
|
|
9,553,266
|
|
1,835,568
|
Stock-based
compensation
|
|
|
136,861
|
|
176,178
|
Change in fair value
of derivative instruments
|
|
|
(532,142)
|
|
36,384
|
Gain on sale of assets
|
|
|
(2,567,574)
|
|
-
|
Amortization of debt discount, deferred expenses and
other
|
|
|
1,925,462
|
|
1,491,531
|
Payment of deposit
|
|
|
(46,138)
|
|
-
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
|
(410,627)
|
|
(59,013)
|
Inventory
|
|
|
7,974
|
|
(33,881)
|
Prepaid expenses
|
|
|
78,346
|
|
47,876
|
Accounts payable
|
|
|
(1,119,867)
|
|
(691,520)
|
Revenue payable
|
|
|
(308,795)
|
|
1,298,342
|
Accrued expenses
|
|
|
25,785
|
|
(615,442)
|
Net cash (used in) provided by operating activities
|
|
|
(3,467,152)
|
|
1,923,715
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
Cash paid for furniture, fixtures and
other
|
|
|
(196,572)
|
|
(892)
|
Cash paid for acquisitions, development and
exploration
|
|
|
(3,812,087)
|
|
(3,817,400)
|
Proceeds from sale of assets
|
|
|
19,192,321
|
|
-
|
Decrease in advances from joint interest
owners
|
|
|
(1,779)
|
|
(1,032,248)
|
Net cash provided by (used in) investing activities
|
|
|
15,181,883
|
|
(4,850,540)
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
Borrowings under line of credit
|
|
|
2,000,000
|
|
2,000,000
|
Repayment of borrowings
|
|
|
(10,544,969)
|
|
-
|
Proceeds from issuance of common stock and
warrants
|
|
|
-
|
|
6,000,000
|
Cash paid for stock offerings and debt issuance
costs
|
|
|
-
|
|
(942,346)
|
Net cash (used in) provided by financing
activities
|
|
|
(8,544,969)
|
|
7,057,654
|
|
|
|
|
|
|
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
3,169,762
|
|
4,130,829
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS:
|
|
|
|
|
|
BEGINNING OF
PERIOD
|
|
|
1,965,967
|
|
1,994,542
|
END OF PERIOD
|
|
|
$ 5,135,729
|
|
$ 6,125,371
|
|
Management believes net income or loss excluding the effect of
certain non-cash items such as derivative gains or losses,
impairment expense and gain related to sale of assets is a useful
metric to investors to show income before the impact of certain
non-cash items, and it provides a measure of the Company's cash
available to fund its business and operations. Investors
should not consider this measure, or other non-GAAP measures, in
isolation or as a substitute for operating income or loss, cash
flow from operations determined under GAAP or any other measure for
determining the Company's operating performance that is calculated
in accordance with GAAP. In addition, because it is not a GAAP
measure, it may not necessarily be comparable to similarly titled
measures employed by other companies. A reconciliation of net
loss excluding the effect of certain non-cash items for the three
months and six months ended June 30,
2012 is provided in the table below:
|
|
|
|
|
Reconciliation of Net Loss to Non-GAAP Net Loss
Excluding Certain Non-cash Items
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
June
30, 2012
|
|
June
30, 2012
|
|
|
|
|
|
Net loss
as presented
|
$
(5,151,559)
|
|
$
(10,209,703)
|
|
|
|
|
|
|
Less: non
cash derivative gain
|
$
(1,055,429)
|
|
$
(532,142)
|
|
|
|
|
|
|
Less: gain
on sale of assets
|
-
|
|
$
(2,567,574)
|
|
|
|
|
|
|
Add back:
property impairment
|
$
3,755,000
|
|
$
8,055,000
|
|
|
|
|
|
Net loss
excluding certain non-cash items
|
$
(2,451,988)
|
|
$
(5,254,419)
|
|
|
|
|
|
SOURCE Gasco Energy, Inc.