Osage Exploration and Development Reports First Quarter 2013 Results
SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, reported financial results and results from operations for the three months ended March 31, 2013.
Strong Production Growth Driven by Nemaha Ridge Project
Osage’s Nemaha Ridge Project delivered strong growth in crude oil and natural gas production during the first quarter of 2013. Companywide, net production for the quarter increased 202% to 21,625 barrels of oil equivalent (“BOE”), or average daily production of 240 BOE, compared to the three months ended March 31, 2012.
First Quarter Financial Highlights
Osage reported adjusted quarterly EBITDA of $1,408,128, 136% higher than the first quarter of 2012, and operating income of $700,141, a 53.6% increase year over year. The increase was primarily due to drilling successes and subsequent higher volumes of oil and natural gas production from the Company’s Nemaha Ridge project in Logan County, Oklahoma.
Osage’s total revenues for the three months ended March 31, 2013 were $2,426,751, an increase of $1,071,232, or 79.0%, compared the three months ended March 31, 2012. Broken out by product, first quarter oil sales were $1,703,526, pipeline sales were $599,192, and natural gas sales were $124,033, reflecting year-over-year increases of 95.1%, 27.5%, and 892.0% respectively.
|Natural gas sales||124,033||5.1||%||12,503||0.9||%||111,530||892.0||%|
“Osage is still in the very earliest stage of executing its plan to deliver strong, sequential growth to our shareholders,” stated Kim Bradford, Chairman and CEO of Osage Exploration and Development. “We exited 2012 with five producing wells in our Nemaha Ridge project. During the first quarter, we increased the number of producing wells to eight while spudding an additional nine wells. We have continued our drilling pace by spudding an additional three wells so far during the second quarter. To date in the second quarter we have put one more well in production, currently have an additional six more flowing back fluids which will soon be in production, have another well fracture treated awaiting flowback, and three more already drilled, awaiting fracture stimulation. We are committed to continuing to drive progress through the drillbit.”
Note With Respect to Non-GAAP Financial Measures
In addition to using GAAP financial results, the Company’s management measures and reports Adjusted EBITDA, a non-GAAP financial measure. The most directly comparable GAAP financial result for this non-GAAP financial measure is Net Income (Loss). Management uses this non-GAAP financial measure to evaluate the Company’s performance and operations and for business planning. In addition, management believes the exclusion or inclusion of certain amounts in calculating this non-GAAP financial measure can provide a useful measure to investors for period-to-period comparisons. This non-GAAP financial measure, however, should be used in addition to, and in conjunction with, the Company’s financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company’s results with other companies’ non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.
Reconciliation of GAAP to Non-GAAP Results
Three Months Ended March 31,
|Net (loss) income||($73,425||)||$||456,026|
|Add back: provision for income taxes||
|Add back: interest expense (income), net||773,566||(234||)|
|Add back: depreciation, depletion and accretion||329,237||123,630|
|Add back: stock-based compensation||378,750||16,500|
Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, and executive offices in Bogotá, Colombia, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the U.S. and Colombia. http://www.osageexploration.com
Safe Harbor Statement
The information in this release includes certain forward-looking statements as defined by the Securities and Exchange Commission that are based on assumptions that in the future may prove not to have been accurate. Those statements and Osage Exploration and Development, Inc. are subject to a number of risks, including production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others.
Osage Exploration and Development, Inc.
Kim Bradford, President and CEO
Jack Zedlitz, VP of Corporate Development
KEYWORDS: United States North America California Oklahoma