Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

August 15, 2011 18:46 ET

Bucking Horse Energy Inc. Announces Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2011) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its second quarter consolidated financial statements for the six-month period ended June 30, 2011.

All references in this news release are in U.S. dollars unless otherwise stated.

CONSOLIDATED RESULTS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2011:

  • Cash flow from operations was $420,516
  • Earnings before interest, taxes, depreciation and amortization was $3,626,536
  • Total operating revenue was $7,123,276
  • Net loss before taxes was $3,842,254

Bucking Horse's cash generated by operations for the six-month period ended June 30, 2011 amounted to $420,516. Cash flow used in operations amounted to $640,338 for the six months ended June 30, 2010. Earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) for the six-month period ended June 30, 2010 increased to $3,626,536 compared to $7,439,740 for the six-month period ending June 30, 2010. Total operating revenue for the six-month period ended June 30, 2011 was $7,123,276. Net loss increased to $4,276,437. Net loss before taxes for the six-month period ended June 30, 2011 was $3,842,254.

Direct operating expenses for the six-month period ended June 30, 2011 were $5,955,219 ($2,772,797 in non-cash depreciation and depletion costs, $644,308 in State taxes, $5,868 in production royalties, and $2,532,246 in operating expenses).

Other expenses for the six-month period ended June 30, 2011 increased to $5,010,311. General and administration expenses were $952,899 for the six-month period ended June 30, 2011. There was a foreign exchange gain of $424,397 for the six-month period ended June 30, 2011. Interest expense increased to $4,133,544 for the six-month period ended June 30, 2011.

Note (1) EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other items. EBITDA is not a recognized measure under generally accepted accounting principles ("GAAP") and is offered as a commonly used industry metric for comparative purposes only.

Reconciliation of Cash Flow from Operations before Change in Net Working Capital
Six months ended Six months ended
June 30, 2011 June 30, 2010
Net cash flow (used in) provided by operating activities $ 420,516 $ (640,338 )
Less:
Accounts payable and accrued liabilities (723,440 ) 1,141,316
Prepaid expenses - (143,781 )
Accounts receivable 71,938 (1,382,371 )
Income taxes 388,733 830,092
Cash flow (used in) provided by operations before change in net working capital $ 157,747 $ 195,082
Reconciliation of EBITDA to Net Income
Six months ended Six months ended
June 30, 2011 June 30, 2010
EBITDA $ 3,626,536 $ 7,439,740
Less:
Depletion, depreciation and accretion 3,335,246 3,682,185
Interest 4,133,544 3,689,951
Income taxes 434,183 (20,543 )
Net income (loss) $ (4,276,437 ) $ 88,147

Bucking Horse's audited and interim Consolidated Financial Statements and Management Discussion and Analysis are available on SEDAR at www.sedar.com.

Bucking Horse Energy Inc. is a public oil and gas exploration, development and production company listed on the Toronto Stock Exchange with 22,683,513 shares issued. More information about Bucking Horse Energy Inc. can be found on its website.

For further information please visit the Company website at www.buckinghorseenergy.com.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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