Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

August 13, 2012 15:00 ET

Bucking Horse Energy Inc. Announces Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2012) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its second quarter unaudited interim condensed consolidated financial statements for the six-month period ended June 30, 2012.

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

CONSOLIDATED RESULTS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2012:

  • Cash flow used in operations was $211,516
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) was $5,221,968
  • Total operating revenue was $6,448,576
  • Net loss before taxes was $5,283,780

Bucking Horse's cash flow used in operations for the six-month period ended June 30, 2012 increased to $211,516 from an inflow of $420,516 in June 30, 2011. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (1) for the six-month period ended June 30, 2012 increased to $4,044,154. Total operating revenue for the six-month period ended June 30, 2012 was $6,488,576. Net loss for the period increased to $5,221,968. Net loss before taxes for the six-month period ended June 30, 2012 was $5,283,780.

Direct operating expenses for the six-month period ended June 30, 2012 were $8,027,002 ($4,395,163 in non-cash depreciation and depletion costs, $552,693 in State resource taxes, and $3,079,146 in operating expenses).

Other expenses and income for the six-month period ended June 30, 2012 decreased to a total expense of $3,705,354. General and administration expenses were $612,305 for the six-month period ended June 30, 2012. There was a foreign exchange gain of $36,864 for the six-month period ended June 30, 2012. Interest expense increased to $4,267,329 for the six-month period ended June 30, 2012.

Note (1) EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other items. EBITDA is not a recognized measure under International Financial Reporting Standards ("IFRS") 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, June 30,
2012 2011
Net cash flow provided by (used in) operating activities $(211,516) $420,516
Less:
Accounts payable and accrued liabilities 1,617,765 (516,473)
State resource taxes (214,207) (206,967)
Accounts receivable (75,058) 71,938
Income taxes 889,895 388,733
Cash flow from operations before change in net working capital
$2,006,879 $157,747
Reconciliation of EBITDA to Net Income
Six months ended Six months ended
June 30, June 30,
2012 2011
EBITDA $4,044,154 $3,626,536
Less:
Depletion, depreciation and accretion 5,060,605 3,335,246
Interest 4,267,329 4,133,544
Income taxes (61,812) 434,183
Net income (loss) $(5,221,968) $(4,276,437)

Bucking Horse's 2011 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 22,604,213 shares issued. More information about Bucking Horse Energy Inc. can be found on our website.

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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