SOURCE: GeoMet, Inc.

GeoMet, Inc.

August 15, 2014 08:30 ET

GeoMet Announces Financial and Operating Results for the Quarter and Six Months Ended June 30, 2014

HOUSTON, TX--(Marketwired - Aug 15, 2014) - GeoMet, Inc. (OTCQB: GMET) (NASDAQ: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and six months ended June 30, 2014.

Financial and Operating Results
On May 12, 2014, we closed the sale of substantially all of our remaining assets (the "Asset Sale"). As a result of the Asset Sale, we have classified all of the assets related to our gas properties as Assets related to discontinued operations and all related liabilities as Liabilities related to discontinued operations, both in the Condensed Consolidated Balance Sheet (Unaudited) as of June 30, 2014. Additionally, the related operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the quarter and six months ended June 30, 2014 and 2013.

Quarter Ended June 30, 2014
For the quarter ended June 30, 2014, GeoMet reported net income available to common stockholders of $57.7 million, or $1.42 per fully diluted share. Included in net income available to common stockholders for the quarter ended June 30, 2014 were non-cash charges of $0.7 million for accretion of preferred stock and $0.6 million for paid-in-kind ("PIK") dividends paid on preferred stock. For the quarter ended June 30, 2013, GeoMet reported a net income available to common stockholders of $40.5 million, or $1.00 per fully diluted share. Included in net income available to common stockholders for the quarter ended June 30, 2013 were charges of $0.5 million for accretion of preferred stock and $1.4 million for PIK dividends paid on preferred stock.

For the quarter ended June 30, 2014, GeoMet reported income from discontinued operations of $60.3 million, net of tax of $0.7 million, or $1.49 per fully diluted share. Included in income from discontinued operations was a $61.8 million gain resulting from the Asset Sale. For the quarter ended June 30, 2013, GeoMet reported income from discontinued operations of $43.8 million, net of tax of $0, or $1.08 per fully diluted share. Included in income from discontinued operations was a $37.1 million gain resulting from the June 2013 sale of our Alabama assets.

Six Months Ended June 30, 2014
For the six months ended June 30, 2014, GeoMet reported net income available to common stockholders of $57.3 million, or $1.41 per fully diluted share. Included in net income available to common stockholders for the six months ended June 30, 2014 were non-cash charges of $1.3 million for accretion of preferred stock and $1.2 million for PIK dividends paid on preferred stock. For the six months ended June 30, 2013, GeoMet reported a net income available to common stockholders of $33.1 million, or $0.82 per fully diluted share. Included in net income available to common stockholders for the six months ended June 30, 2013 were charges of $1.0 million for accretion of preferred stock and $2.4 million for PIK dividends paid on preferred stock.

For the six months ended June 30, 2014, GeoMet reported income from discontinued operations of $62.3 million, net of tax of $0.7 million, or $1.54 per fully diluted share. Included in income from discontinued operations was a $61.8 million gain resulting from the Asset Sale. For the six months ended June 30, 2013, GeoMet reported income from discontinued operations of $39.2 million, net of tax of $0, or $0.97 per fully diluted share. Included in income from discontinued operations was a $37.1 million gain resulting from the June 2013 sale of our Alabama assets.

Forward-Looking Statements Notice
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words "believe," "expects," "anticipates," "intends," "estimates," "projects," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such words, are forward-looking statements. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are volatility of future natural gas prices, our estimate of the sufficiency of our existing capital sources and our ability to raise additional capital to fund cash requirements for future operations. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the Securities and Exchange Commission ("SEC"). Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company's web site at http://www.geometinc.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. GeoMet undertakes no duty to update or revise these forward-looking statements.

About GeoMet, Inc.
Through the closing of the Asset Sale, GeoMet was engaged in the production of natural gas from coal seams ("coalbed methane"). Prior to the Asset Sale, our core area of operations were the Central Appalachian Basin of Virginia and West Virginia.

   
   
GEOMET, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  
   
      Quarter Ended June 30,       Six Months Ended June 30,  
      2014       2013       2014       2013  
Expenses:                                        
  Depreciation, depletion and amortization     $ --       $ 34,639       $ 113,817       $ 69,011  
  General and administrative       917,519         1,408,521         1,947,123         2,406,754  
  Lease termination costs       427,722         --         427,722         --  
  Restructuring costs       --         17,396         --         87,584  
Total operating expenses       1,345,241         1,460,556         2,488,662         2,563,349  
                                         
Other expense       (1,669 )       (6,697 )       (20,203 )       (35,345 )
                                         
Income tax expense       6,250         6,250         12,500         12,500  
                                         
Discontinued operations       60,327,228         43,843,152         62,344,289         39,225,929  
                                         
Net income     $ 58,974,068       $ 42,369,649       $ 59,822,924       $ 36,614,735  
                                         
Accretion of Preferred Stock       (705,165 )       (532,836 )       (1,349,909 )       (1,026,373 )
Paid in-kind dividends on Preferred Stock       (552,915 )       (1,367,488 )       (1,152,790 )       (2,443,173 )
Cash dividends paid on Preferred Stock       (490 )       (568 )       (1,058 )       (1,201 )
                                         
Net income available to common stockholders     $ 57,715,498       $ 40,468,757       $ 57,319,167       $ 33,143,988  
                                         
Net income per common share--basic and diluted:                                        
Continuing operations     $ (0.07 )     $ (0.08 )     $ (0.13 )     $ (0.15 )
Discontinued operations       1.49         1.08         1.54         0.97  
Total     $ 1.42       $ 1.00       $ 1.41       $ 0.82  
                                         
Weighted average number of common shares:                                        
Basic and diluted       40,515,020         40,477,411         40,514,561         40,467,149  
                                         
                                         
   
   
GEOMET, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)  
   
       
    June 30,
2014
    December 31, 2013  
ASSETS                
                 
Current Assets:                
  Cash and cash equivalents   $ 24,978,808     $ 8,108,272  
  Assets related to discontinued operations     2,833,774       --  
  Other current assets     137,715       3,593,547  
Total current assets     27,950,297       11,701,819  
Property and equipment--net     --       42,329,051  
Other noncurrent assets     --       769,384  
TOTAL ASSETS   $ 27,950,297     $ 54,800,254  
                 
LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                
                 
Current Liabilities:                
  Liabilities related to discontinued operations   $ 2,298,769     $ --  
  Current portion of long-term debt     --       71,550,000  
  Derivative liability--natural gas contracts     --       834,151  
  Asset retirement obligations     669,817       265,470  
  Income taxes payable     709,719       --  
  Other current liabilities     289,024       8,271,695  
Total current liabilities     3,967,329       80,921,316  
Asset retirement obligations     --       8,915,407  
Derivative liability--natural gas contracts     --       709,571  
Other long-term accrued liabilities     --       113,434  
TOTAL LIABILITIES     3,967,329       90,659,728  
Series A Convertible Redeemable Preferred Stock     45,907,692       43,404,993  
Stockholders' deficit     (21,924,724 )     (79,264,467 )
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT   $ 27,950,297     $ 54,800,254  
                 
                 
   
   
GEOMET, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
   
    Six Months Ended June 30, 2014     Six Months Ended June 30, 2013  
                 
Net cash (used in) provided by operating activities   $ (7,020,576 )   $ 6,346,181  
                 
Net cash provided by investing activities     95,442,170       60,258,020  
                 
Net cash used in financing activities     (71,551,058 )     (62,305,020 )
                 
Increase in cash and cash equivalents     16,870,536       4,299,181  
                 
Cash and cash equivalents at beginning of period     8,108,272       7,234,225  
                 
Cash and cash equivalents at end of period   $ 24,978,808     $ 11,533,406  
                 
                 

Contact Information

  • For more information please contact
    Tony Oviedo
    Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Controller
    (713) 287-2262
    Email Contact