DENVER, Nov. 14, 2012 /PRNewswire/ -- Gasco Energy,
Inc. (NYSE MKT: GSX) ("Gasco" or the "Company") today announced
financial and operating results for the third quarter ended
September 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 concurrent with
the March 22, 2012 closing of the
joint venture. Q3-12 is the second full reporting period in
which Gasco's Uinta Basin net production reflects this conveyance
under the terms of the Gasco-operated joint venture. Due
to the 50% interest conveyance, operational and financial results
for the three-month and nine-month periods ended September 30, 2012 are not similarly comparable
to the same periods ended September 30,
2011.
Q3-12 Financial
Results
Oil and gas sales for the third quarter ended September 30, 2012 were $1.8 million, as compared to $4.6 million for the same period in 2011.
Natural gas sales comprised 80% of total oil and gas sales
for Q3-12. 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 37% decrease in the average price received for the
Company's natural gas sales, offset in part by an 11% increase in
prices received for oil volumes. Oil and gas sales for Q3-12
represent 13% growth over the $1.6
million oil and gas sales posted during Q2-12.
Gasco's average realized gas price was $2.81 per thousand cubic feet of natural gas
(Mcf) for Q3-12, compared to $4.49
per Mcf in the prior-year period, excluding the effect of
hedges. During June 2012, the
Company monetized its remaining commodity hedge contract, and the
Company currently does not have any commodity hedges in
place.
The average realized oil price for Q3-12 was $83.14 per barrel, as compared to $74.87 per barrel for the prior-year
period. Gasco does not hedge its crude oil volumes.
For Q3-12, Gasco reported a net loss of $3.2 million, or $0.02 per share, as compared to a net loss of
$1.3 million, or $0.01 per share in Q3-11. Included in the
Q3-12 results are a non-cash gain of $0.7
million attributed to derivatives and a $1.0 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 $2.9
million, or $0.02 per share
for Q3-12. 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 September 30, 2012, Gasco's
total assets were $62.6 million, its
stockholders' equity was $26.5
million, and cash and investments were $5.6 million.
The Company had long-term debt of $45.0
million as of September 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 has
been unable to obtain a replacement credit facility on acceptable
terms and is no longer actively in discussions to obtain a
replacement credit facility.
Net cash provided by operating activities during Q3-12 was
$1.2 million, as compared to net cash
provided by operating activities of $1.3
million in the comparable 2011 reporting period. Net
cash used in investing activities during Q3-12 was $0.8 million, as compared to net cash used in
investing activities in the prior-year period of $1.3 million. During March 2012, Gasco repaid $10.5 million in borrowings in connection with
the maturing of its revolving credit facility.
Q3-12 Unit Cost and Expense Comparisons
Total lease operating expense (LOE) for Q3-12 was $1.0 million, as compared to $2.1 million in the prior-year period. On a
per-unit basis, Q3-12 LOE was $1.80
per thousand cubic feet of natural gas equivalent (Mcfe), as
compared to $2.24 per Mcfe in the
prior-year period. The 20% decrease in LOE per Mcfe is
primarily attributable to the conveyance of a 50% interest in
certain of the Company's properties in the Uinta Basin Transaction
which closed during March 2012 and to
a decrease in workover expenses because of fewer projects during
the third quarter of 2012.
Transportation and processing expense was $0.3 million during Q3-12, or $0.60 per Mcfe, as compared to $0.4 million during the prior-year period, or
$0.48 per Mcfe. The 26%
decrease in these expenses during Q3-12 reflects lower
transportation and processing costs related to the 41% decrease in
gas production due to the conveyance and to normal production
declines and the 37% decrease in natural gas prices.
Depletion, depreciation and amortization (DD&A) was
$0.5 million for Q3-12, as compared
to $0.9 million for Q3-11. On a
per-unit basis, DD&A for Q3-12 was $0.97 per Mcfe, as compared to $1.02 per Mcfe in the prior-year period.
The Company reported general and administrative expense
(G&A) of $1.2 million for Q3-12,
versus $1.0 million in the prior-year
period. On a per-unit basis, total G&A for Q3-12 was
$2.13 per Mcfe, as compared to
$1.10 per Mcfe for the same period in
2011. G&A expense for Q3-12 includes $79,100 of non-cash, stock-based compensation
expense, or, on a per-unit basis, $0.15 per Mcfe, as compared to the prior-period
total of $75,200, or $0.08 per Mcfe. The increase in G&A
expense is primarily due to legal and consulting expenses
associated with the Uinta Basin transaction.
Gasco
Energy, Inc.
|
Q3-12
|
Q2-12
|
Q3-11
|
%
Change
|
Unit
Cost Analysis
|
Sequential
|
Y-o-Y
|
Sales
Volumes in Barrels of Oil Equivalent (BOE)
|
542,092
|
588,196
|
930,332
|
-8%
|
-42%
|
Average
Price Received Gas ($ Mcf)
|
$
2.81
|
$
2.26
|
$
4.49
|
24%
|
-37%
|
Average
Price Received Oil ($ Bbl)
|
83.14
|
78.57
|
74.87
|
6%
|
11%
|
LOE
Components
|
-
|
-
|
-
|
-
|
-
|
Direct Operating Expenses ($ /
Mcfe)
|
1.29
|
1.46
|
1.14
|
-12%
|
13%
|
Workover Expense ($ / Mcfe)
|
0.41
|
0.40
|
0.87
|
2%
|
-53%
|
Production Tax ($ / Mcfe)
|
0.10
|
0.10
|
0.23
|
0%
|
-57%
|
Total
Lease Operating Expense ($ / Mcfe)
|
1.80
|
1.96
|
2.24
|
-8%
|
-20%
|
Transportation Expense ($ / Mcfe)
|
0.60
|
0.88
|
0.48
|
-32%
|
25%
|
DD&A Expense ($ / Mcfe)
|
0.97
|
1.10
|
1.02
|
-12%
|
-5%
|
G&A
Expense ($ / Mcfe)
|
1.98
|
1.76
|
1.02
|
13%
|
94%
|
Non-cash Stock-based Compensation
Expense ($ / Mcfe)
|
$
0.15
|
$
0.13
|
$
0.08
|
15%
|
88%
|
Nine-Month Period 2012
Oil and gas sales for the first nine months of 2012 were
$6.6 million, as compared to
$14.6 million for the same period in
2011. The decrease in oil and gas sales during the first nine
months of 2012, as compared to the prior-year period, is primarily
attributed to the Uinta Basin transaction and to a 39% decrease in
the average price received for natural gas sales, offset in part by
a 5% increase in prices received for oil volumes.
The average prices received for the first nine months of 2012
were $2.63 per Mcf and $84.84 per barrel of oil, as compared to
$4.34 per Mcf and $81.06 per barrel in the same period in 2011.
For first nine months of 2012, Gasco reported a net loss of
$13.4 million, or $0.08 per share, as compared to a net loss of
$2.8 million, or $0.02 per share in the prior-year period.
Included in the first nine months of 2012 results are a non-cash
gain on sale of assets of $2.6
million, a non-cash gain of $2.5
million attributed to derivatives and $9.1 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 $9.4
million, or $0.06 per share
for the nine-month period ended September
30, 2012. Net loss excluding the effect of non-cash
items is a non-GAAP financial measure. Please see the
reconciliation to the non-GAAP measures at the end of this news
release.
Net cash used in operating activities for the first nine months
of 2012 was $2.2 million as compared
to net cash provided by operating activities of $3.2 million for the same period in 2011.
The Company invested approximately $4.5
million during the first nine months of 2012 in oil and gas
activities. Net cash provided by investing activities during
the first nine months 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 nine months of 2012, as compared to net cash provided by
financing activities of $10.4 million
during the prior-year period.
Third Quarter and Nine Month-Period 2012 Production
Estimated cumulative net production for Q3-12 was 542 million
cubic feet of natural gas equivalent (MMcfe), as compared to 930
MMcfe in the prior-year period. Estimated cumulative net
production for the first nine months of 2012 was 2,021 MMcfe, as
compared to prior-year period net production of 2,997 MMcfe.
Included in the first nine months 2012 equivalent calculation is
18,398 barrels of liquid hydrocarbons, as compared to the
prior-year period's liquids volumes of 28,902 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.
Teleconference Call
A conference call with investors, analysts and other interested
parties is scheduled for 11:00 a.m.
EST on Thursday, November 15,
2012 to discuss Q3-12 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 Q3-12 Financial and Operating Results Conference
Call
|
Date:
|
Thursday,
November 15, 2012
|
Time:
|
11:00 a.m.
EST
10:00 a.m.
CST
9:00 a.m.
MST
8:00 a.m.
PST
|
Call:
|
(866)
392-4171 (US/Canada) and (706) 634-6345 (International),
Passcode /
Conference ID #: 65021597
|
Webcast/Internet:
|
Live and
rebroadcast over the Internet:
http://us.meeting-stream.com/gascoenergyinc_111512
|
Replay:
|
Available
through Thursday, November 22, 2012 at (855) 859-2056
(US/Canada) and (404) 537-3406 (International) using
passcode # 65021597 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.
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, expectations with respect to its
liquidity, capital 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 current expectations and forecasts about
future events. In addition, forward-looking statements generally
can be identified by the use of forward-looking terminology such as
"may," "will," "should," "would," "could," "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 or otherwise expressed by us are to the knowledge and in
the judgment of management, believed to be reasonable when made,
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 and may be affected
by inaccurate assumptions, 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 Gasco's
ability to maintain adequate cash flow from operations or obtain
adequate financing to fund its operations and meet working capital
needs and its related ability to continue as a going concern; the
ability to pursue strategic restricting, refinancing or other
transactions; the ability to remain in compliance with the terms
and conditions of our outstanding convertible senior notes and
warrants; the ability to maintain relationships with suppliers and
customers; volatility and recent declines in Gasco's stock price;
overall demand for natural gas and oil in the United States; 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; changes in general economic conditions in
the United States; Gasco's ability
to manage interest rate and commodity price exposure; 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 and (2) Gasco's
other reports and registration statements filed from time to time
with the SEC, including the Quarterly Report on Form 10-Q for the
quarter ended September 30, 2012.
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 third quarter ended September
30, 2012 filed with the SEC on November 14, 2012.
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$5,589,156
|
|
$
1,965,967
|
Accounts receivable
|
|
|
|
|
|
Joint interest
billings
|
|
|
1,635,481
|
|
810,482
|
Revenue
|
|
|
650,981
|
|
1,483,382
|
Inventory
|
|
|
1,912,825
|
|
1,911,362
|
Note receivable
|
|
|
-
|
|
500,000
|
Derivative instruments
|
|
|
-
|
|
865,358
|
Prepaid expenses
|
|
|
41,779
|
|
152,045
|
Total
|
|
|
9,830,222
|
|
7,688,596
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, at
cost
|
|
|
|
|
|
Oil and gas properties (full cost method)
|
|
|
|
|
|
Proved properties
|
|
|
256,691,510
|
|
268,793,463
|
Unproved
properties
|
|
|
37,641,327
|
|
36,938,162
|
Wells in progress
|
|
|
-
|
|
1,938,691
|
Facilities and equipment
|
|
|
1,471,761
|
|
1,502,921
|
Furniture, fixtures and other
|
|
|
503,983
|
|
167,737
|
Total
|
|
|
296,308,581
|
|
309,340,974
|
Less accumulated depletion, depreciation,
amortization and impairment
|
|
|
(245,028,008)
|
|
(234,132,806)
|
Total
|
|
|
51,280,573
|
|
75,208,168
|
|
|
|
|
|
|
NONCURRENT ASSETS
|
|
|
|
|
|
Deposit
|
|
|
556,638
|
|
639,500
|
Deferred financing costs
|
|
|
914,220
|
|
1,117,972
|
Total
|
|
|
1,470,858
|
|
1,757,472
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$ 62,581,653
|
|
$ 84,654,236
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(continued)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts payable
|
|
|
$
757,946
|
|
$
2,649,772
|
Revenue payable
|
|
|
2,581,578
|
|
2,043,240
|
Advances from joint interest owners
|
|
|
47,667
|
|
98,512
|
Current portion of long-term debt
|
|
|
-
|
|
8,544,969
|
Accrued interest
|
|
|
1,207,616
|
|
586,556
|
Accrued expenses
|
|
|
227,765
|
|
355,224
|
Total
|
|
|
4,822,572
|
|
14,278,273
|
|
|
|
|
|
|
NONCURRENT LIABILITIES
|
|
|
|
|
|
5.5% Convertible Senior Notes due 2015, net of
unamortized discount of $19,622,007 as of September 30,
2012 and $22,574,687 as of
December 31, 2011
|
|
|
25,545,992
|
|
22,593,313
|
Deferred income from sale of assets
|
|
|
2,513,790
|
|
2,665,629
|
Asset retirement obligation
|
|
|
797,216
|
|
1,226,796
|
Derivative instruments
|
|
|
2,117,500
|
|
4,235,000
|
Deferred rent
|
|
|
287,813
|
|
-
|
Total
|
|
|
31,262,311
|
|
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
September 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 September
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
|
|
|
262,566,279
|
|
262,344,286
|
Accumulated deficit
|
|
|
(235,956,378)
|
|
(222,575,765)
|
Less cost of treasury stock of 73,700 common shares
|
|
|
(130,295)
|
|
(130,295)
|
Total
|
|
|
26,496,770
|
|
39,655,225
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$ 62,581,653
|
|
$ 84,654,236
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$
1,450,782
|
|
$
3,946,424
|
Oil
|
|
|
357,843
|
|
630,703
|
Total
|
|
|
1,808,625
|
|
4,577,127
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
Lease operating
|
|
|
975,520
|
|
2,082,081
|
Transportation and processing
|
|
|
326,861
|
|
444,561
|
Depletion, depreciation, amortization and
accretion
|
|
|
524,995
|
|
950,396
|
Impairment
|
|
|
1,016,000
|
|
92,020
|
General and administrative
|
|
|
1,154,063
|
|
1,025,694
|
Total
|
|
|
3,997,439
|
|
4,594,752
|
|
|
|
|
|
|
OPERATING LOSS
|
|
|
(2,188,814)
|
|
(17,625)
|
|
|
|
|
|
|
OTHER
(EXPENSE) INCOME
|
|
|
|
|
|
Interest expense
|
|
|
(1,752,716)
|
|
(1,641,245)
|
Derivative gains
|
|
|
720,000
|
|
334,845
|
Amortization of deferred income from sale of
assets
|
|
|
50,613
|
|
50,613
|
Interest income
|
|
|
7
|
|
6,879
|
Total
|
|
|
(982,096)
|
|
(1,248,908)
|
|
|
|
|
|
|
NET
LOSS
|
|
|
$ (3,170,910)
|
|
$ (1,266,533)
|
|
|
|
|
|
|
NET
LOSS PER COMMON SHARE – BASIC AND DILUTED
|
|
|
$ (0.02)
|
|
$ (0.01)
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
-
|
|
|
|
|
|
BASIC AND
DILUTED
|
|
|
169,324,481
|
|
155,119,848
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$
5,031,824
|
|
$
12,259,029
|
Oil
|
|
|
1,560,941
|
|
2,342,674
|
Total
|
|
|
6,592,765
|
|
14,601,703
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
Lease operating
|
|
|
3,815,987
|
|
5,131,247
|
Transportation and processing
|
|
|
1,502,224
|
|
2,147,660
|
Depletion, depreciation, amortization and
accretion
|
|
|
2,023,261
|
|
2,785,964
|
Impairment
|
|
|
9,071,000
|
|
92,020
|
General and administrative
|
|
|
3,671,664
|
|
3,097,199
|
Total
|
|
|
20,084,136
|
|
13,254,090
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME
|
|
|
(13,491,371)
|
|
1,347,613
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
Interest expense
|
|
|
(5,141,430)
|
|
(5,057,015)
|
Gain on sale of assets
|
|
|
2,567,574
|
|
-
|
Derivative gains
|
|
|
2,508,090
|
|
708,081
|
Amortization of deferred income from sale of
assets
|
|
|
151,839
|
|
151,839
|
Interest income
|
|
|
24,685
|
|
20,641
|
Total
|
|
|
110,758
|
|
(4,176,454)
|
|
|
|
|
|
|
NET
LOSS
|
|
|
$(13,380,613)
|
|
$ (2,828,841)
|
|
|
|
|
|
|
NET
LOSS PER COMMON SHARE – BASIC AND DILUTED
|
|
|
$
(0.08)
|
|
$
(0.02)
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
-
|
|
|
|
|
|
BASIC AND
DILUTED
|
|
|
168,814,549
|
|
139,380,515
|
|
|
|
|
|
|
GASCO
ENERGY, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited)
|
|
|
|
Nine
Months Ended
|
|
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
Net
loss
|
|
|
$(13,380,613)
|
|
$
(2,828,841)
|
Adjustment to reconcile net loss to net cash (used in) provided
by operating activities:
|
|
|
|
|
|
Depletion, depreciation, amortization, accretion and
impairment expense
|
|
|
11,094,261
|
|
2,785,964
|
Stock-based compensation
|
|
|
215,947
|
|
251,391
|
Change in fair value of derivative
instruments
|
|
|
(1,252,142)
|
|
(281,081)
|
Gain on sale of assets
|
|
|
(2,567,574)
|
|
-
|
Amortization of debt discount, deferred expenses and
other
|
|
|
3,013,155
|
|
2,428,654
|
Payment of deposit
|
|
|
(38,138)
|
|
-
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
13,338
|
|
930,880
|
Inventory
|
|
|
(1,463)
|
|
(89,435)
|
Note receivable
|
|
|
500,000
|
|
-
|
Prepaid expenses
|
|
|
110,266
|
|
90,774
|
Accounts payable
|
|
|
(1,111,826)
|
|
(624,478)
|
Revenue payable
|
|
|
538,338
|
|
676,882
|
Accrued interest
|
|
|
621,060
|
|
626,560
|
Accrued expenses
|
|
|
(142)
|
|
(760,190)
|
Net cash (used in) provided by operating
activities
|
|
|
(2,245,533)
|
|
3,207,080
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
Cash paid for furniture, fixtures and
other
|
|
|
(205,774)
|
|
(887)
|
Cash paid for acquisitions, development and
exploration
|
|
|
(4,522,011)
|
|
(5,055,490)
|
Proceeds from sale of assets
|
|
|
19,192,321
|
|
-
|
Decrease in advances from joint interest
owners
|
|
|
(50,845)
|
|
(1,062,672)
|
Net cash provided by (used in) investing
activities
|
|
|
14,413,691
|
|
(6,119,049)
|
|
|
|
|
|
|
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
|
|
|
-
|
|
10,000,000
|
Cash paid for stock offerings and debt issuance
costs
|
|
|
-
|
|
(1,583,727)
|
Net cash (used in) provided by financing
activities
|
|
|
(8,544,969)
|
|
10,416,273
|
|
|
|
|
|
|
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
3,623,189
|
|
7,504,304
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS:
|
|
|
|
|
|
BEGINNING OF
PERIOD
|
|
|
1,965,967
|
|
1,994,542
|
END OF PERIOD
|
|
|
$ 5,589,156
|
|
$ 9,498,846
|
|
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 net income or loss, 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 nine months
ended September 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
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss as presented
|
|
|
|
$
(3,170,910)
|
|
$
(13,380,613)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: non
cash derivative gain
|
|
|
$
(720,000)
|
|
$
(2,508,090)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain
on sale of assets
|
|
|
-
|
|
$
(2,567,574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back:
property impairment
|
|
$
1,016,000
|
|
$
9,071,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss excluding certain non-cash items
|
|
$
(2,874,910)
|
|
$
(9,385,277)
|
|
SOURCE Gasco Energy, Inc.