SOURCE: NYTEX Energy Holdings, Inc.

NYTEX Energy Holdings, Inc.

November 29, 2011 08:00 ET

NYTEX Energy Holdings, Inc. Announces 3rd Quarter Unaudited Results

Reports Record Revenue of $23.6 Million and $64.1 Million for the Three Months and Nine Months Ended September 30, 2011

DALLAS, TX--(Marketwire - Nov 29, 2011) - NYTEX Energy Holdings, Inc. ("NYTEX") (OTCQB: NYTE) (OTCBB: NYTE), a Dallas-based energy holding company comprising two wholly owned subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX Petroleum, Inc., today announced its unaudited financial results for the three and nine month periods ended September 30, 2011.

Revenue for the three and nine months ended September 30, 2011 were $23.61 million and $64.06 million, respectively, compared to revenue of $440,509 and $682,379, respectively, from acquisition of FDF in November 2010.

Consolidated adjusted EBITDA for the three and nine month periods was $2.42 million and $5.45 million, respectively, compared to $(1.83 million) and $(2.86 million), respectively. The Company reported a net loss of $(1.46 million), or $(0.06) per share, for the three months ended September 30, 2011, compared to a net loss of $(2.04 million), or $(0.10) per share, for the prior year three month period, and a net loss of $(6.87 million), or $(0.27) per share, for the nine months ended September 30, 2011, compared to a net loss of $(2.61 million), or $(0.13) per share, for the prior year nine-month period.

Michael Galvis, NYTEX President and CEO, commented, "We are extremely pleased to have exceeded our initial projection of revenue of $23.4 million and EBITDA of $2.2 million for the third quarter of 2011 with record quarterly revenues of $23.6 million and EBITDA of $2.4 million. Our 2011 results to date reflect the strength of our FDF subsidiary, which was acquired in November 2010. We believe our FDF subsidiary offers the potential to drive continued revenue growth as shale oil plays in North America continue to rely on our products and services to operate their growing portfolio of active rigs."

Galvis continued, "Given the strength of today's oil market, the increase of discoverable technically recoverable shale oil resources, and our already strong operational results, we believe we are in a strong position to achieve ongoing top and bottom-line growth."

He concluded, "We have achieved a point in our business where we have firmly defined our two operating subsidiaries and believe we can strongly benefit from current and future market conditions due to our diversification of our operating portfolio."

4th Quarter & 2011 Year-End Revenue & EBITDA Guidance

The Company has revised its 4th quarter and 2011 year-end revenue guidance of $24.1 million and $88 million to $21.7 million and $85.8 million, respectively. The Company has also updated its initial EBITDA projections of $3.5 million for the 4th quarter of 2011 and $8.8 million for the 2011 year-end, to $2.4 million and $7.8 million, respectively. The downward revisions are primarily due to a decrease in drilling fluid sales and downward pricing pressure in the pneumatic transportation business within the South Texas region. The Company noted that these revised projections are due to short-term factors that they do not expect to face in the year ahead.

About NYTEX Energy Holdings, Inc.

NYTEX Energy Holdings, Inc. is a Dallas-based energy holding company consisting of two wholly-owned subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX Petroleum, Inc. FDF is a thirty-four year old full-service provider of drilling, completion and specialized fluids and specialty additives; technical and environmental support services; industrial cleaning services; equipment rentals; and transportation, handling and storage of fluids and dry products for the oil and gas industry. Headquartered in Crowley, LA, and delivering its products and services from 22 facilities in five states, FDF is a market leader in the transportation of oil and gas well fracturing proppants and a major supplier of liquid drilling and completion fluids in the United States. Within the transportation segment of the oilfield service industry, FDF's fleet is one of the largest. FDF's warehouses, storage capacity, transloading facilities and 13 rail spurs provide proximity access to prominent oil and gas shale plays in several states. NYTEX Petroleum, Inc. is an exploration and production company focusing on early stage development of minor oil and gas resource plays. For more information please go to: www.nytexenergyholdings.com and www.fdfltd.com.

This press release includes "forward-looking statements," which may include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words "will," "intends," "expects," "outlook," "forecast," "estimates," "anticipates," "projects," "plans," "believes," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. The company's ability to achieve the financial targets described in this press release is subject to numerous factors and contingencies, many of which are beyond the company's control. These include local and national economic, credit and capital market conditions, including prevailing interest rates; legal and regulatory developments, including changes to tax rates, applicable securities regulations or accounting standards, and ability to obtain necessary licenses and permits; and geopolitical conditions, including the occurrence of acts of war or terrorist incidents, and weather or natural disasters. Any of these factors or others not named herein could cause the company's actual results to differ materially from those expressed as forward-looking statements. In addition, other risk factors that could cause actual results to differ materially from the forward-looking statements contained in this release include those that are discussed in the company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no, and expressly disclaims any, obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

This release reflects the use of a non-GAAP performance measure, adjusted EBITDA. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for adjusted EBITDA is net income.

Adjusted EBITDA is defined by the company as net earnings less interest income plus interest expense, taxes, and depreciation and amortization, and further adjusted for other charges and adjustments including impairments, gains or losses resulting from the sale of assets or resolution of commercial disputes, changes in fair value attributable to derivative liabilities, and the accretion of preferred stock liability. We present adjusted EBITDA because we consider it an important supplemental measure of our operations and financial performance. We believe that adjusted EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Adjusted EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with U.S. GAAP. We may provide guidance on adjusted EBITDA and are unable to reconcile forecasted adjusted EBITDA to a U.S. GAAP financial measure because a forecast of other charges and adjustments is unknown, not practical, and could not be accomplished without unreasonable effort.

Unaudited Consolidated Non-GAAP Income Statement
Three Months Ended September 30, Nine Months Ended September 30,
2011 2010 2011 2010
Financial Results
Revenues - Oilfield Services $ 23,425,811 $ - $ 63,455,383 $ -
Revenues - Oil and Gas 181,470 440,509 603,186 682,379
Total revenues 23,607,281 440,509 64,058,569 682,379
Total operating expenses 23,470,735 1,453,335 66,175,896 1,932,811
Total other expense 2,290,567 1,030,074 6,176,772 1,363,928
Loss before income taxes $ (2,154,021 ) $ (2,042,900 ) $ (8,294,099 ) $ (2,614,360 )
Income tax benefit 693,321 - 1,426,806 -
Net loss $ (1,460,700 ) $ (2,042,900 ) $ (6,867,293 ) $ (2,614,360 )
Loss per share - basic and diluted $ (0.06 ) $ (0.10 ) $ (0.27 ) $ (0.13 )
Weighted average shares outstanding - basic and diluted 26,940,633 19,728,928 26,481,719 19,394,022
Operating Results
Adjusted EBITDA - Oilfield Services $ 3,022,057 (2) $ 8,581,380 (2)
Adjusted EBITDA - Oil and Gas 94,488 (2) (83,597 ) (2)
Adjusted EBITDA - Corporate and Intersegment Eliminations (701,288 ) (2) (3,049,867 ) (2)
Consolidated Adjusted EBITDA(1) $ 2,415,257 $ (1,825,836 ) $ 5,447,916 $ (2,861,831 )
Three Months Ended September 30, Nine Months Ended September 30,
2011 2010 2011 2010
Reconciliation of Adjusted EBITDA to GAAP Net Income (Loss):
Net income (loss) $ (1,460,700 ) $ (2,042,900 ) $ (6,867,293 ) $ (2,614,360 )
Income tax benefit (693,321 ) - (1,426,806 ) -
Interest expense 1,375,513 83,043 3,722,126 176,504
DD&A 2,236,113 22,050 6,597,544 42,927
Change in fair value of derivative liabilities 8,699 - (355,387 ) -
Accretion of preferred stock liability 943,181 - 2,829,545 -
Loss on litigation - - 965,065 -
(Gain) loss on sale of asset 5,772 111,971 (16,878 ) (466,902 )
Consolidated Adjusted EBITDA $ 2,415,257 $ (1,825,836 ) $ 5,447,916 $ (2,861,831 )

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