Amen Properties Reports Results for Fourth Quarter of 2009
April 08 2010 - 12:00PM
Business Wire
Amen Properties (Pink Sheets: AMEN) today announced financial
results for its fiscal quarter and year ended December 31, 2009.
The Company posted quarterly revenue of $2.3 million and net income
of $401 thousand versus revenue of $1.0 million and net income of
$6 thousand in the fourth quarter of 2008. This improvement in
earnings was driven by a 42% increase in Priority Power revenue
which resulted from a large reengineering project. Priority
delivered full year earnings of $1.4 million in 2009, an increase
of 6% over 2008.
For the full year 2009, Amen reported revenue of $8.6 million
and net income of $451 thousand, versus revenue of $4.5 million and
net income of $550 thousand in 2008. The significant increase in
2009 revenue was caused by the consolidation of SFF Production, in
which the Company purchased a controlling interest at the end of
2008. The decrease in profitability versus 2008 was driven by
decreases in oil and gas prices, depletion expense for SFF
Production and the recognition of a gain of $703 thousand in 2008
related to the liquidation of the Company’s holdings in Santa Fe
Energy Trust. After payment of preferred dividends, the Company
generated a loss per common share of $(0.11) for 2009, compared to
earnings per share of $0.05 in 2008 (diluted).
Amen recognized income of $184 thousand in 2009 from its
minority investment in HPG Acquisition, LLC, an entity which owns
commercial real estate in Midland, Texas. Additionally, the
Company’s corporate overhead decreased over $500 thousand in 2009
as a result of the Company’s decision to delist from NASDAQ and
other cost-cutting measures.
“Despite our negative accounting results caused by significant
depletion expense, our oil and gas investments delivered over $2.3
million in cash flow in 2009, leaving Amen in a very strong
financial position with nearly $6 million in cash and less than $2
million in debt at the end of the year,” said Kris Oliver, Amen’s
Chief Executive Officer. “We expect our oil and gas properties to
continue to drive significant cash flow but little or no accounting
income in the near term until the properties are fully depleted,
after which our NOL will allow us to maximize cash flow by
shielding the earnings from taxes.”
Mr. Oliver also mentioned that Amen accrued a tithing liability
of $48 thousand for 2009 in accordance with its bylaws. Amen
donates 10% of its net income to Christian charities with an
emphasis on benevolence and youth ministry.
The Company’s 2009 fourth quarter report is available for
viewing or download from the company’s web site –
www.amenproperties.com.
About Amen Properties:
Amen is a Christian corporation with a strategic asset – a net
operating loss accumulated during the Company’s “dot com” past
totaling $28 million which can be used to offset tax liabilities
arising from future earnings. Amen seeks to own strong
energy-related assets and businesses with earnings which can be
shielded from taxes via the Company’s NOL. Currently, Amen owns
business and assets which fall into two categories: Energy Services
and Energy Resources.
Energy Services: Priority Power (www.prioritypower.net)
Priority Power is an independent energy management and
consulting services firm whose sole purpose is to act as an
extension of our clients’ staff to mitigate the risk and overcome
the challenges associated with energy supply, information, and
demand management. Priority Power has 1,200 clients representing
over 7.1 billion kilowatt hours and $650 million in annual energy
consumption.
Energy Resources: Oil and Gas Interests
Amen owns royalty and working interests in over 1,200 properties
in twelve states through its ownership of SFF Royalty, LLC (33.3%
ownership) and SFF Production, LLC (79.1% owner), the entities
which own the interests formerly held by Santa Fe Energy Trust.
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