|GreenHunter facility in Ohio|
GRAPEVINE, Texas, May 15, 2015(GLOBE NEWSWIRE) -- GreenHunter Resources, Inc.(NYSE:GRH) (NYSE:GRH.PRC), a diversified water resource, waste management, environmental services, and hydrocarbon marketing company specializing in the unconventional oil and natural gas shale resource plays within the Appalachian Basin, announced today financial and operating results for the three months ended March 31, 2015.
First Quarter Financial and Operational Highlights
- The Company substantially improved operating margins related to water disposal (disposal revenue less disposal expense as a percent of revenue) from 32% in the first quarter of 2014 to 42% in the first quarter of 2015.
- The Company substantially improved operating margins related to internal trucking (internal trucking revenue less internal trucking expense as a percent of revenue) from 12% in the first quarter of 2014 to 25% in the first quarter of 2015.
- The Company decreased selling, general and administrative expense, excluding non-cash stock compensation, from
$2.1 millionin the first quarter of 2014 to $1.7 millionin the first quarter of 2015, a decrease of 19%.
- The Company deployed its first rented MAG Tank in late February for approximately
$25 thousandper month.
March 16, 2015, the Company closed the sale of its last remaining renewable energy asset, the Mesquite Lake Resource Recovery Facility (biomass plant) for the total consideration of $2 millionpurchase price at closing.
- During the first quarter of 2015, the Company paid off a
$2.2 millionbank promissory note that was used to finance the initial purchase of its first three disposal wells back in 2012. The monthly payments were approximately $66 thousand, including principal and interest.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED
- Completed senior secured financing on
April 15, 2015to borrow up to $16 millionof new money for capital projects including the completion of the Mills Hunter Facility pipeline to connect up to six disposal wells to our current offloading facility, essentially doubling the Company's current disposal capacity to approximately 32 thousand barrels per day. Additionally, the funds will be used to acquire up to 10 new DOT rated 407 trucks/trailers to be added to our existing fleet of 37 trucks and the build-out of our barge receiving terminal at our Mills Hunter Facility. Additionally, the development of additional barging terminals along the Ohio River that will be used to receive oil-field wastewater for barging to the Mills Hunter Facility. MARCH 31, 2015
Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.07)compared to ($.08)for the first quarters of 2015 and 2014, respectively. Our loss from continuing operations was $1.4 millionfor the first quarter 2015 compared to a loss of $1.3 millionfor first quarter 2014. Our loss from discontinued operations was ($92) thousand(loss of $.00per common share, basic and diluted) for the first quarter 2015, compared to loss from discontinued operations of ($130) thousand(income of $.00per share, basic and diluted) for the first quarter 2014. Operating revenues from continuing operations were $5.1 millionduring first quarter 2015 compared to $8.5 millionfor first quarter 2014, a decrease of 39%. This decrease was primarily a result of Management's decision to eliminate third party trucking.
ADDITIONAL COMMENTS AND HIGHLIGHTS
GreenHunter Resources'financial and operating results released today, Mr. Kirk J. Trosclair, Executive Vice President and COO, stated, "Our primary focus during the first quarter of 2015 was to continue to streamline operations in Appalachia which resulted in substantially improved operating margins in both water disposal and internal trucking. We leased a MAG Tank to a major oil and gas company and continue to receive new inquiries on new deployment in the region from our existing customer base."
Trosclair continued, "During the first quarter of 2015, we initiated discussions with a number of financial institutions with a goal of securing the appropriate level of funding needed to keep up with the significant growth opportunities for our business in the Appalachia region. On
April 15, 2015, we announced that we entered into a senior secured financing agreement for up to $16 million, which will completely fund our capital expenditure budget for fiscal year 2015."
Trosclair concluded, "The second half of 2015 will be extremely important for GreenHunter Resources. As we deploy this capital to complete new injection wells, build out barge terminal infrastructure, and add to our 407 truck fleet, our revenues, EBITDA and net cash flow from continued operations should dramatically improve."Read the rest of the release by clicking here.
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