Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

November 10, 2010 18:34 ET

Bucking Horse Energy Inc. Announces Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2010) - All references in this news release are in U.S. dollars unless otherwise stated.

Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its third quarter consolidated financial statements for the nine-month period ended September 30, 2010.

CONSOLIDATED RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2010:

  • Cash flow used in operations was $548,519
  • Earnings before interest, taxes, depreciation and amortization was $8,803,666
  • Total operating revenue was $10,767,704
  • Net loss before taxes was $2,381,599

Bucking Horse's cash flow used in operations for the nine-month period ended September 30, 2010 amounted to $548,519. Cash flow generated by operations amounted to $1,542,481 for the nine months ended September 30, 2009. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (1) for the nine-month period ended September 30, 2010 increased to $8,803,666 compared to $1,478,403 for the nine-month period ending September 30, 2009. Total operating revenue for the nine-month period ended September 30, 2010 was $10,767,704. Net loss decreased to $2,206,631. Net loss before taxes for the nine-month period ended September 30, 2010 was $2,381,599.

Direct operating expenses for the nine-month period ended September 30, 2010 were $9,440,204 ($4,372,330 in non-cash depreciation and depletion costs, $992,167 in State taxes, $2,604 in production royalties, and $4,073,103 in operating expenses).

Other expenses for the nine-month period ended September 30, 2010 decreased to $3,709,099. General and administration expenses were $526,337 for the nine-month period ended September 30, 2010. There was a foreign exchange loss of $18,594, for the nine-month period ended September 30, 2010. Interest expense increased to $5,651,361 for the nine-month period ended September 30, 2010.

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  
    Nine months ended     Nine months ended  
    September 30, 2010     September 30, 2009  
           
Net cash flow (used in) provided by operating activities $ (548,519 ) $ 1,542,491  
Less:            
  Accounts payable and accrued liabilities   620,657     2,981,129  
  Prepaid expenses   9     475,054  
  Accounts receivable   (1,618,093 )   (1,458,613 )
  Income taxes   1,229,297     (1,308,800 )
             
Cash flow (used in) provided by operations before change in net working capital $ (316,649 ) $ 2,231,251  
Reconciliation of EBITDA to Net Income  
   
    Nine months ended     Nine months ended  
EBITDA   September 30, 2010     September 30, 2009  
$ 8,803,666   $ 1,478,403  
Less:            
  Depletion, depreciation and accretion   5,553,150     5,072,206  
  Interest   5,632,115     4,985,774  
  Income taxes   (174,968 )   709,539  
               
Net income (loss) $ (2,206,631 ) $ (9,289,116 )

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 22,726,213 shares issued. More information about Bucking Horse Energy Inc. can be found on its 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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