Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

November 08, 2011 18:27 ET

Bucking Horse Energy Inc. Announces Third Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2011) - 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, 2011.

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

CONSOLIDATED RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2011:

  • Cash flow from operations was $1,402,419
  • Earnings before interest, taxes, depreciation and amortization was $7,154,994
  • Total operating revenue was $11,108,366
  • Net loss before taxes was $4,429,476

Bucking Horse's cash generated by operations for the nine-month period ended September 30, 2011 amounted to $1,402,419. Cash flow used in operations before change in net working capital amounted to $1,387,133 for the nine months ended September 30, 2010. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (1) for the nine-month period ended September 30, 2011 decreased to $7,154,994 compared to $8,455,222 for the nine-month period ending September 30, 2010. Total operating revenue for the nine-month period ended September 30, 2011 was $11,108,366. Net loss increased to $5,365,661. Net loss before taxes for the nine-month period ended September 30, 2011 was $4,429,476.

Direct operating expenses for the nine-month period ended September 30, 2011 were $9,539,030 ($4,521,437 in non-cash depreciation and depletion costs, $1,022,841 in State taxes, and $3,994,752 in operating expenses).

Other expenses for the nine-month period ended September 30, 2011 increased to $5,998,812. General and administration expenses were $522,971 for the nine-month period ended September 30, 2011. There was a foreign exchange loss of $579,159 for the nine-month period ended September 30, 2011. Interest expense increased to $6,199,026 for the nine-month period ended September 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 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
Nine months ended Nine months ended
September 30, 2011 September 30, 2010
Net cash flow (used in) provided by operating
activities $1,402,419 ($548,519)
Less:
Accounts payable and accrued liabilities (954,810) 850,203
Prepaid expenses - (9)
Accounts receivable 108,944 (1,618,093)
Income taxes 830,580 999,751
Cash flow (used in) provided by
operations before change
in net working capital $1,387,133 ($316,667)
Reconciliation of EBITDA to Net Income
Nine months ended Nine months ended
September 30, 2011 September 30, 2010
EBITDA $7,154,994 $8,455,222
Less:
Depletion, depreciation and accretion
5,385,444
5,305,821
Interest 6,199,026 5,638,617
Income taxes 936,185 (174,968)
Net income (loss) ($5,365,661) ($2,314,248)

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 22,657,713 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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