Bucking Horse Energy Inc.
TSX : BUC

Bucking Horse Energy Inc.

March 30, 2011 20:15 ET

Bucking Horse Energy Inc. Announces Year-End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2011) - Bucking Horse Energy Inc. ("Bucking Horse" or the "Company") (TSX:BUC) announces the results of its year-end consolidated financial statements for the twelve-month period ended December 31, 2010.

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

CONSOLIDATED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2010:

  • Cash flow from operations was $228,160
     
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) was $11,610,913
     
  • Total operating revenue was $13,852,004
     
  • Net loss before taxes was $3,210,643

Bucking Horse's cash flow from operations for the year ended December 31, 2010 decreased to $228,160. Earnings before interest, taxes, depreciation and amortization ("EBITDA") (1) for the year ended December 31, 2010 increased to $11,610,913. Total operating revenue for the year ended December 31, 2010 was $13,852,004. Net income decreased to a loss of $4,737,320. Net loss before taxes for the year ended December 31, 2010 was $3,210,643.

Direct operating expenses for the year ended December 31, 2010 were $12,456,411 ($5,657,687 in non-cash depreciation and depletion costs, $1,253,995 in State taxes, $2,777 in Canadian production royalties, and $5,541,952 in operating expenses).

Other expenses and income for the year ended December 31, 2010 decreased to a total expense of $4,606,236. General and administration expenses were $831,097 for the year ended December 31, 2010. There was a foreign exchange gain of $466,378 for the year ended December 31, 2010. Interest expense increased to $7,610,464 for the year ended December 31, 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   
    Year ended   Year ended  
    December 31 December 31
    2010   2009  
   
Net cash flow provided by operating activities   $ 228,160   $ 2,844,777  
Less:              
  Accounts payable and accrued liabilities     1,068,130     (2,947,896 )
  Prepaid expenses     144,376     (130,051 )
  Accounts receivable     1,246,365     122,116  
  Income taxes     (1,418,519 )   2,550,507  
   
Cash flow from operations before change              
 in net working capital   $ (812,192 ) $ 3,250,101  
   
   
Reconciliation of EBITDA to Net Income              
      Year ended     Year ended  
      December 31   December 31
      2010     2009  
   
EBITDA   $ 11,610,913   $ 3,889,943  
Less:              
  Depletion, depreciation and accretion     7,212,258     7,581,141  
  Interest     7,609,298     6,903,671  
  Income taxes     1,526,677     734,801  
   
Net income (loss)   $ (4,737,320 ) $ (11,329,670 )

Bucking Horse's 2010 Audited Financial Statements and Management Discussion and Analysis are available on SEDAR at www.sedar.com.

Bucking Horse Energy Inc. is an independent oil and gas exploration and production company focused exclusively on its Warbonnet and Mesa natural gas properties in the prolific Pinedale field, within the Green River Basin of southwestern Wyoming. The Company is 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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