DENVER, Feb. 14, 2011 /PRNewswire/ -- EARTHSTONE ENERGY, INC. reported net earnings of $74,000, $.04 per diluted share, on revenue of $2.0 million for the third quarter of fiscal 2011 compared to net earnings of $296,000, $.17 per diluted share, on revenue of $2.0 million for the same period of fiscal 2010. For the nine months ending December 31, 2010, the Company reported net earnings of $1,176,000, $.69 per diluted share, on revenue of $5.7 million compared to net earnings of $816,000, $.47 per diluted share, on revenue of $5.5 million for the same period in 2009. Net income for the quarter decreased primarily due to adjustments to the provision for income taxes relative to last year. However, EBITDA for the nine months of fiscal 2011 increased by 15% from $2.0 million to $2.3 million. Other factors that affected net income and EBITDA can be found in the Company's latest Form 10-Q.
"We are pleased to now be listed on Nasdaq Capital Markets and file our first Form 10-Q since being listed," commented Ray Singleton, President of Earthstone. "The Company continues to pursue its strategy of drilling non-operated horizontal Bakken wells along with the acquisition of producing properties in the Montana and North Dakota portions of the Williston basin."
OPERATIONS
During the third quarter, Earthstone participated in three wells in the horizontal Bakken play of North Dakota. These wells include the Mondak Federal 24X-12, the Fossum 15-35H and the Ceynar 29-32H.
The Mondak Federal 24X-12 is a horizontal Bakken well located in the Mondak field, McKenzie County, ND. The well has been drilled and completed. While the well is currently flowing back hydraulic stimulation fluid, the well is still on confidential status and an initial production rate has not been determined. However, there are strong indications that the well is flowing over 600 barrels of oil per day. XTO Energy, Inc., Fort Worth, TX, is the operator of the well and Earthstone has a 2.7813% working interest. The well is expected to be on production by the end of January 2011.
The Fossum 15-35H, located in the Indian Hill Field, McKenzie County, ND, has been drilled, completed and is producing. The well is still on confidential status and an initial production rate has not been determined. However, in January, the well produced over 10,000 barrels of oil. SM Energy, Inc., Denver, CO, is the operator of the well and Earthstone has a 0.2679% working interest.
The Ceynar 29-32H, located in the Banks Field, McKenzie County, ND, has been drilled horizontally and the well is in the final stages of completion. The well is still on confidential status and an initial production rate has not been determined. However, as this completion process is being finalized, the well has been flowing between 200 to 400 barrels of oil per day. Zenergy, Inc., Tulsa, OK, is the operator of the well. Earthstone has a 0.132% working interest in the well which is expected to be on production by mid-February 2011.
ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is an independent oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area. Earthstone is currently traded on NASDAQ Capital Markets under the symbol ESTE. Information on Earthstone can be found at its web site: http://www.earthstoneenergy.com/
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as "should," "may," "will," "anticipate," "expect," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding the future importance of newly drilled or recompleted wells. Factors that could cause actual results to differ materially include price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed for March 31, 2009. The Company disclaims any obligation to update forward-looking statements.
FINANCIAL HIGHLIGHTS Nine Months Ended Three Months Ended December 31, December 31, ------------ ------------ 2010 2009 2010 2009 ---- ---- ---- ---- Revenue $5,748,000 $5,526,000 $1,987,000 $2,029,000 ---------- ---------- ---------- ---------- Sales volume Oil (barrels) 69,214 80,215 21,865 28,606 Gas (mcf) 122,543 197,192 50,653 77,866 Total production expense $2,265,000 $2,143,000 $874,000 $738,000 ---------- ---------- -------- -------- Gross profit $3,483,000 $3,383,000 $1,113,000 $1,291,000 ========== ========== ========== ========== Average sales price Oil (per barrel) $69.87 $60.14 $73.96 $64.43 Gas (per mcf) $6.88 $3.36 $6.50 $2.23 Average per BOE* Production expense $25.27 $18.95 $29.65 $17.75 Net income $1,176,000 $816,000 $74,000 $296,000 ========== ======== ======= ======== Basic net income per share $0.69 $0.47 $0.04 $0.17 Diluted net income per share $0.69 $0.47 $0.04 $0.17 Weighted avg. number of shares outstanding, basic 1,699,877 1,734,269 1,697,097 1,723,458 Weighted avg. number of shares outstanding, diluted 1,699,877 1,734,269 1,697,067 1,723,458 *Barrel of oil equivalent
Earthstone Energy, Inc.
CONTACT: Ray Singleton of Earthstone Energy, Inc., +1-303-296-3076, ext.
102
Web Site: http://www.earthstoneenergy.com/
