GRAPEVINE, Texas, Nov. 16, 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 nine months ended September 30, 2015.
Third Quarter Financial and Operational Highlights and Current Developments
- The Company reported positive adjusted EBITDA of $482 thousand for the third quarter of 2015.
- Injection volumes for the three and nine month period ended September 30, 2015 were 969 thousand and 2.6 million, respectively compared to 1.0 million and 2.9 million for the corresponding year ago period, respectively.
- In late July 2015 GreenHunter announced commencement of two new disposal wells at its Mills Hunter facility located in southeastern Ohio. The initial combined injection rate for these two new wells is approximately 6,000 - 8,000 barrels per day. The increased injection capacity effectively raises the Company’s overall disposal capacity by approximately 50%. There are two additional wells which are in final stages of regulatory approval at this location that are expected to be placed in service over the next ninety days.
- The Company previously ordered eight new Peterbilt trucks and specialized condensate rated DOT 407 trailers. Three of these truck/trailer combinations were completed in the third quarter of 2015 and two were actively working at the end of the quarter. Four additional trucks were in the process of having the trailers installed at quarter end and the remaining truck was still on order, which is expected to be delivered sometime in December 2015. DOT 407 trailers are designed to transport mixed loads of condensate and brine which generate higher margins.
- GreenHunter Resources continues to attract new customers and work with a diverse client base of small, mid, and large cap exploration and production companies. In the third quarter, no one customer represented more than 21 percent of GreenHunter’s total revenue.
- The Company has continued to decrease selling, general and administrative expenses, excluding non-cash stock compensation, from $2.1 million in the third quarter of 2014 to $1.5 million in the third quarter of 2015, a decrease of 29%.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.06) compared to ($.11) for the third quarters of 2015 and 2014, respectively. Our loss from continuing operations was ($1.3) million (a loss of ($.06) per common share, basic and diluted) for the third quarter 2015 compared to a loss of ($2.7) million (a loss of ($.08) per common share, basic and diluted) for second quarter 2014. Our loss from discontinued operations was ($73) thousand (loss of $.00 per common share, basic and diluted) for the third quarter 2015, compared to a loss from discontinued operations of ($1.2) million (loss of ($.03) per share, basic and diluted) for the third quarter 2014. Operating revenues from continuing operations were $4.5 million during the third quarter 2015 compared to $6.3 million for third quarter 2014, a decrease of 28%.
FINANCIAL RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.21) compared to ($.25) for the nine months ended September 30, 2015 and 2014, respectively. Our loss from continuing operations was ($7.1) million (a loss of ($.20) per common share, basic and diluted) for the nine months ended September 30, 2015 compared to a loss of ($9.8) million (a loss of ($.28) per common share, basic and diluted) for the nine months ended September 30, 2014. Our loss from discontinued operations was ($259) thousand (loss of ($.01) per common share, basic and diluted) for the nine months ended September 30, 2015, compared to a gain from discontinued operations of $1.1 million (income of $.03 per share, basic and diluted) for the nine months ended September 30, 2014. Operating revenues from continuing operations were $14.3 million during the nine months ended September 30, 2015 compared to $21.6 million for the nine months ended September 30, 2014.
OPERATIONAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015
Injection volumes for the three month period ended September 30, 2015 were 969 thousand barrels compared to 1.0 million barrels for the corresponding year ago period. Trucking hours for the three month period ended September 30, 2015 were 14 thousand compared to 22 thousand for the corresponding year ago period.
Injection volumes for the nine month period ended September 30, 2015 were 2.6 million barrels compared to 2.9 million barrels for the corresponding year ago period. Injection capacity increased from 15,500 BBLs/Day to over 21,000 BBLs/Day in the third quarter. Trucking hours for the nine-month period ended September 30, 2015 were 45 thousand compared to 53 thousand for the corresponding year ago period.
MANAGEMENT COMMENTS
Kirk Trosclair, Executive Vice President and Chief Operating Officer stated, “During the third quarter of 2015, GreenHunter Resources was successful at significantly increasing its overall injection capacity to over 21,000 barrels of injection volumes per day. We have also worked diligently to grow and expand our diverse client base of exploration and production customers. Despite our success, the operating environment in the energy industry remains very difficult. Industry wide margins and prices have succumbed to the precipitous drop in commodity prices experienced over the past year. We have been diligently working to continue expanding our customer base. While we remain optimistic about the future, we must continue “tightening our belts” during the short run. We are focused on increasing our efficiencies and reducing costs everywhere possible, while at the same time maintaining the highest standards of customer service and value.“
| UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||
| For the Three Months | For the Nine Months | |||||||||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||
| Water disposal revenue | $ | 2,980,793 | $ | 3,424,318 | $ | 9,004,231 | $ | 10,739,288 | ||||||||||||||||||
| Transportation revenue | 1,368,150 | 2,442,863 | 4,557,448 | 8,698,553 | ||||||||||||||||||||||
| Environmental services revenue | 1,845 | 52,756 | 31,211 | 54,755 | ||||||||||||||||||||||
| MAG Tank™ revenue | - | - | 119,587 | 886,142 | ||||||||||||||||||||||
| Skim oil revenue | 86,740 | 197,592 | 224,243 | 718,480 | ||||||||||||||||||||||
| Storage rental revenue and other | 54,025 | 145,417 | 326,124 | 516,576 | ||||||||||||||||||||||
| Total revenues | 4,491,553 | 6,262,946 | 14,262,844 | 21,613,794 | ||||||||||||||||||||||
| COST OF GOODS AND SERVICES PROVIDED: | ||||||||||||||||||||||||||
| Direct cost of goods and services provided | 2,550,332 | 3,541,779 | 8,590,356 | 14,551,747 | ||||||||||||||||||||||
| Depreciation and accretion expense | 864,856 | 725,224 | 2,519,429 | 2,218,366 | ||||||||||||||||||||||
| Selling, general and administrative | 1,745,597 | 3,216,764 | 6,637,395 | 9,987,964 | ||||||||||||||||||||||
| (Gain) loss on sale of assets | (18,106 | ) | (26,000 | ) | (29,586 | ) | 39,198 | |||||||||||||||||||
| Gain on settlements | (2,287 | ) | - | (38,072 | ) | (133,554 | ) | |||||||||||||||||||
| Total costs and expenses | 5,140,392 | 7,457,767 | 17,679,522 | 26,663,721 | ||||||||||||||||||||||
| OPERATING LOSS | (648,839 | ) | (1,194,821 | ) | (3,416,678 | ) | (5,049,927 | ) | ||||||||||||||||||
| OTHER INCOME (EXPENSE ): | ||||||||||||||||||||||||||
| Interest and other income | 4,944 | 4,128 | 10,436 | 88,177 | ||||||||||||||||||||||
| Interest amortization, and other expense | (610,105 | ) | (303,848 | ) | (1,211,189 | ) | (1,111,492 | ) | ||||||||||||||||||
| Total other expense | (605,161 | ) | (299,720 | ) | (1,200,753 | ) | (1,023,315 | ) | ||||||||||||||||||
| Net loss before taxes | (1,254,000 | ) | (1,494,541 | ) | (4,617,431 | ) | (6,073,242 | ) | ||||||||||||||||||
| Income tax expense | - | - | - | - | ||||||||||||||||||||||
| Loss from continuing operations | (1,254,000 | ) | (1,494,541 | ) | (4,617,431 | ) | (6,073,242 | ) | ||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (73,067 | ) | (1,199,051 | ) | (258,793 | ) | 1,100,488 | |||||||||||||||||||
| Net loss | (1,327,067 | ) | (2,693,592 | ) | (4,876,224 | ) | (4,972,754 | ) | ||||||||||||||||||
| Preferred stock dividends | - | (1,234,532 | ) | (2,469,062 | ) | (3,734,531 | ) | |||||||||||||||||||
| Net loss to common stockholders | $ | (1,327,067 | ) | $ | (3,928,124 | ) | $ | (7,345,286 | ) | $ | (8,707,285 | ) | ||||||||||||||
| Weighted average shares outstanding, basic and diluted | 42,288,814 | 35,491,389 | 40,961,727 | 34,783,587 | ||||||||||||||||||||||
| Net loss per share from continuing operations, basic & diluted (includes cumulative dividends in arrears, see note 7) | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.28 | ) | ||||||||||||||
| Net income (loss) per share from discontinued operations, basic & diluted | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.03 | |||||||||||||||
| Net loss per share, basic & diluted (includes cumulative dividends in arrears, see note 7) | $ | (0.06 | ) | $ | (0.11 | ) | $ | (0.21 | ) | $ | (0.25 | ) | ||||||||||||||
| SELECTED BALANCE SHEET DATA (UNAUDITED) | ||||||
| 9/30/2015 | 12/31/2014 | |||||
| Cash and cash equivalents | $ | 478,273 | $ | 396,279 | ||
| Total Current Assets | 6,862,789 | 7,333,425 | ||||
| Net Fixed Assets | 28,171,886 | 27,100,279 | ||||
| Total Assets | $ | 36,294,082 | $ | 34,452,857 | ||
| Total Current Liabilities | 23,596,635 | 17,554,428 | ||||
| Total long-term liabilities | 5,453,546 | 6,948,150 | ||||
| Total Stockholders' equity | 7,243,901 | 9,950,279 | ||||
| Total Liabilities and stockholders' equity | $ | 36,294,082 | $ | 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 September 30, 2015 is as follows:
| Consolidated Continuing Operations | Three Months Ended September 30, | |||||
| 2015 | 2014 | |||||
| Net Loss | $ | (1,254,000 | ) | $ | (1,494,541 | ) |
| Income Tax | - | - | ||||
| Interest and Amortization Expense | 605,161 | 299,720 | ||||
| Depreciation Expense | 864,856 | 725,224 | ||||
| Non-Cash Stock Compensation Expense | 285,957 | 1,110,888 | ||||
| Other Non-Cash Gains | (20,393 | ) | (26,000 | ) | ||
| EBITDA From Consolidated Operations | $ | 481,581 | $ | 615,291 | ||
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
CONTACT: For Further Information Contact: GreenHunter Resources, Inc. Kirk Trosclair Executive Vice President and Chief Operating Officer 1048 Texan Trail Grapevine, TX 76051 Tel: (972) 410-1044 Office: (469) 293-1987 ktrosclair@greenhunterresources.com
