UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 7, 2015
AMERICAN EAGLE ENERGY CORPORATION
(Exact name of registrant as specified in its
charter)
Nevada |
000-50906 |
20-0237026 |
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
2549 W. Main Street, Suite 202, Littleton, Colorado 80120 |
(Address of principal executive offices) (Zip Code) |
|
Registrant’s telephone number, including
area code: (303) 798-5235
|
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
SECTION 2 – FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
On April 7, 2015, we issued a press release announcing our financial
and operating results for the fourth quarter ended December 31, 2014. A copy of the press release is furnished as Exhibit 99.1
to this Current Report and incorporated herein by reference.
The information in this Current Report shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that
section, and is not deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as expressly
set forth by specific reference in such a filing.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
|
Exhibit |
Description of Exhibit |
|
|
|
|
99.1* |
Press release dated April 7, 2015. |
___________________
* Furnished herewith.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 7, 2015 |
AMERICAN EAGLE ENERGY CORPORATION |
|
|
|
By: |
/s/ Bradley M. Colby |
|
|
Bradley M. Colby |
|
|
President and Chief Executive Officer |
Exhibit 99.1
American Eagle Energy Reports Results
for Fourth Quarter 2014 and Provides Liquidity Update
DENVER, CO—April 7, 2015—American
Eagle Energy Corporation (NYSE MKT: AMZG) (“American Eagle” or the “Company”), announces its financial
results for the fourth quarter ended December 31, 2014 and provides an update on its current liquidity. The Company filed its
Annual Report on Form 10-K with the U.S. Securities and Exchange Commission on March 31, 2015.
Highlights
| · | Production
of 238,140 barrels of oil equivalent (“BOE”), or an average of 2,588 BOEPD; |
| o | year-over-year
increase of 38% from 1,879 BOEPD (172,829 BOE) |
| o | sequential
quarterly increase of 18% from 2,193 BOEPD (201,774 BOE) |
| · | Fourth
quarter 2014 oil and gas sales of $14.5 million; |
| o | a
year-over-year increase of 7% |
| o | a
sequential quarterly decrease of 15% |
| · | Adjusted
EBITDA* of $7.9 million; |
| · | Adjusted
Cash Flow* of $3.1 million; |
| · | Adjusted
Loss* of $7.0 million or $0.23 per diluted share; and |
| · | Negative
working capital of $9 million that includes cash of $19 million as of February 28, 2015. |
* Non-GAAP financial measure. Please see
Adjusted EBITDA, Adjusted Cash Flow and Adjusted Net Earnings descriptions and tables later in this earnings release for a reconciliation
of these measures to their nearest comparable GAAP measure.
Fourth Quarter 2014 Financial and Operational
Results
For the quarter ended December 31, 2014,
the Company reports oil and gas sales of $14.5 million, which represents an increase of 7% over the fourth quarter ended December
31, 2013 and a decrease of 15% from the third quarter ended September 30, 2014. The increase in year-over-year sales was driven
by higher production as 54 gross (32.2 net) operated wells were producing in the Bakken and Three Forks formations at the end
of fourth quarter 2014, compared to production from 28 gross (13.7 net) operated wells at the end of December 31, 2013. This was
partially offset by lower realized oil prices. The decrease in sales on a sequential basis was driven by lower realized oil prices,
that were partially offset by higher production from the three gross (1.9 net) operated wells added to production during the quarter.
During the fourth quarter 2014, oil production represented 99% of total oil and gas sales revenue and 99% of total production.
American Eagle’s fourth quarter
2014 realized oil price per barrel prior to the effect of hedges was negatively impacted by lower crude oil prices for West Texas
Intermediate (“WTI”). The Company has an agreement in place that locked in a $10.75 discount to WTI for the Company’s
2014 operated oil production to stabilize realized crude oil prices against the risk of volatile pricing differentials. The agreement
locks in a $10.00 discount to WTI for the Company’s 2015 operated oil production. American Eagle’s fourth quarter
2014 realized oil price per barrel prior to the effect of hedges of $60.97 was lower than the realized oil price of $80.48 during
the fourth quarter 2013 and lower than the realized oil price of $85.66 during the third quarter 2014. The effect of settled hedges
in the normal course of business during the fourth quarter of 2014 added approximately $11.06 per barrel for a realized oil price
of $72.03 per barrel, which was lower than previous quarters.
Adjusted EBITDA for fourth quarter 2014
was $7.9 million, which represented an increase of 3% from $7.6 million reported for the fourth quarter ended December 31, 2013
and a decrease of 13% from $9.1 million reported for the third quarter ended September 30, 2014. Relative to the fourth quarter
ending December 31, 2013, the increase in Adjusted EBITDA was primarily due to higher oil production sales volumes and lower general
and administrative (“G&A”) expenses, partially offset by lower realized oil prices and higher lease operating
expense (“LOE”). Similarly, in comparison to the quarter ending September 30, 2014, the 13% decrease in Adjusted EBITDA
was due primarily to lower realized oil prices and higher LOE, which was partially offset by higher oil production sales volume
and lower G&A expense.
LOE for the quarter ended December 31,
2014 was $25.00 per BOE, which was significantly elevated from previous periods due to year-end adjustments and utilization of
higher cost submersible pumps. Higher production levels helped to reduce per-unit G&A expenses compared to previous periods,
as G&A, excluding stock-based compensation, was $6.70 per BOE during the fourth quarter 2014 compared to $15.07 per BOE for
the prior year and $8.25 per BOE for the prior quarter. Adjusted EBITDA per BOE for the quarter ended December 31, 2014 was $33.13,
as compared to $44.24 for the prior year and $44.92 for the prior quarter.
| |
Three Months Ended | |
| |
Dec. 31, | | |
Sep. 30, | | |
Jun. 30, | | |
Mar. 31, | | |
Dec. 31, | |
| |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2013 | |
Crude Oil Revenues ($000s) | |
$ | 14,364 | | |
$ | 16,939 | | |
$ | 16,225 | | |
$ | 12,267 | | |
$ | 13,272 | |
Natural Gas Revenues ($000s) | |
$ | 62 | | |
$ | 31 | | |
$ | 106 | | |
$ | 72 | | |
$ | 114 | |
Natural Gas Liquids Revenues ($000s) | |
$ | 24 | | |
$ | 121 | | |
$ | 132 | | |
$ | 206 | | |
$ | 115 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Production: | |
| | | |
| | | |
| | | |
| | | |
| | |
Crude Oil (Barrels) | |
| 235,591 | | |
| 197,740 | | |
| 175,509 | | |
| 140,841 | | |
| 164,923 | |
Crude Oil Mix | |
| 99 | % | |
| 98 | % | |
| 96 | % | |
| 95 | % | |
| 95 | % |
Natural Gas (Mcf) | |
| 11,476 | | |
| 1,968 | | |
| 16,977 | | |
| 11,370 | | |
| 20,055 | |
Natural Gas Liquids (Barrels) | |
| 636 | | |
| 3,706 | | |
| 4,183 | | |
| 5,312 | | |
| 4,563 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Net Production (BOE) | |
| 238,140 | | |
| 201,774 | | |
| 182,522 | | |
| 148,048 | | |
| 172,829 | |
Quarter-Over-Quarter Increase | |
| 18 | % | |
| 11 | % | |
| 23 | % | |
| -14 | % | |
| 38 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Daily Production (BOEPD) | |
| 2,588 | | |
| 2,193 | | |
| 2,006 | | |
| 1,645 | | |
| 1,879 | |
Quarter-Over-Quarter Increase | |
| 18 | % | |
| 9 | % | |
| 22 | % | |
| -12 | % | |
| 38 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Sales Prices: | |
| | | |
| | | |
| | | |
| | | |
| | |
Crude Oil Per Barrel | |
$ | 60.97 | | |
$ | 85.66 | | |
$ | 92.45 | | |
$ | 87.10 | | |
$ | 80.48 | |
Effect of Settled Oil Derivatives Per Barrel | |
$ | 11.06 | | |
$ | (3.80 | ) | |
$ | (2.60 | ) | |
$ | 0.82 | | |
$ | 4.16 | |
Crude Oil Net of Settled Derivatives Per Barrel | |
$ | 72.03 | | |
$ | 81.86 | | |
$ | 89.84 | | |
$ | 87.92 | | |
$ | 84.64 | |
Natural Gas Per Mcf | |
$ | 5.36 | | |
$ | 15.52 | | |
$ | 6.25 | | |
$ | 6.37 | | |
$ | 5.67 | |
Natural Gas Liquids Per Barrel | |
$ | 38.38 | | |
$ | 32.85 | | |
$ | 31.44 | | |
$ | 38.82 | | |
$ | 25.27 | |
Realized Price Per BOE | |
$ | 71.62 | | |
$ | 80.98 | | |
$ | 87.69 | | |
$ | 85.52 | | |
$ | 82.10 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Per BOE: | |
| | | |
| | | |
| | | |
| | | |
| | |
Lease Operating Expenses | |
$ | 25.00 | | |
$ | 18.20 | | |
$ | 18.15 | | |
$ | 15.36 | | |
$ | 13.59 | |
Production Taxes | |
$ | 6.90 | | |
$ | 9.66 | | |
$ | 10.34 | | |
$ | 9.32 | | |
$ | 9.28 | |
G&A Expenses, Excluding Stock-Based Compensation | |
$ | 6.69 | | |
$ | 8.25 | | |
$ | 6.67 | | |
$ | 10.56 | | |
$ | 15.07 | |
Total | |
$ | 38.59 | | |
$ | 36.11 | | |
$ | 35.16 | | |
$ | 35.24 | | |
$ | 37.94 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted EBITDA per BOE | |
$ | 33.13 | | |
$ | 44.92 | | |
$ | 52.69 | | |
$ | 50.43 | | |
$ | 44.24 | |
Production Volume Guidance
The Company is maintaining its guidance
that average production for the first quarter ended March 31, 2015 will be approximately 1,900 barrels of oil equivalent per day
(“BOEPD”).
Liquidity
As of December 31, 2014, American Eagle
had $25.9 million in cash, $175.0 million total debt outstanding, comprised solely of the bonds that the Company sold in August
2014, and 30.4 million shares of common stock outstanding. American Eagle ended the fourth quarter of 2014 with $13.6 million
of negative working capital. Current assets consisted primarily of $25.9 million in cash and $9.5 million in receivables. Current
liabilities consisted primarily of $42.4 million in accounts payable and accruals and $6.6 million in accrued interest.
As of February 28 2015, the Company estimates
that it had approximately $9 million of negative working capital. Current assets consisted primarily of approximately $19 million
in cash and approximately $12 million in receivables. Current liabilities consisted primarily of approximately $30 million in
accounts payable and accruals and approximately $9.8 million in accrued interest.
ABOUT AMERICAN EAGLE ENERGY CORPORATION
American Eagle Energy Corporation is an
independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin
of North Dakota, targeting the Bakken and Three Forks shale oil formations. The Company is based in Denver, CO. More information
about American Eagle can be found at www.americaneagleenergy.com or by contacting investor relations at 303-798-5235 or ir@amzgcorp.com.
Company filings with the Securities and Exchange Commission can be obtained free of charge at the SEC’s website at www.sec.gov.
SAFE HARBOR
This press release may contain forward-looking
statements regarding future events and the Company’s future results that are subject to the safe harbors created under the
Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
All statements other than statements of historical facts included in this press release regarding the Company’s financial
position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant
compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms
or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,”
“anticipate,” “possible,” “target,” “plan,” “intend,” “seek,”
“goal,” “will,” “should,” “may” or other words and similar expressions that convey
the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales,
market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent
risks and uncertainties and important factors (many of which are beyond the Company’s control) that could cause actual results
to differ materially from those set forth in the forward-looking statements, including the amount we may invest, the location,
and the scale of the drilling projects in which we intend to participate; our beliefs with respect to the potential value of drilling
projects; our beliefs with regard to the impact of environmental and other regulations on our business; our beliefs with respect
to the strengths of our business model; our assumptions, beliefs, and expectations with respect to future market conditions; our
plans for future capital expenditures; and our capital needs, the adequacy of our capital resources, and potential sources of
capital.
The Company has based these forward-looking
statements on its current expectations and assumptions about future events. While management considers these expectations and
assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other
risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s
control. The Company does not assume any obligations to update any of these forward-looking statements.
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, except for Per Share
Data)
| |
December 31, | | |
December 31, | |
| |
2014 | | |
2013 | |
Current assets: | |
| | | |
| | |
Cash | |
$ | 25,888 | | |
$ | 31,850 | |
Trade receivables | |
| 9,466 | | |
| 17,920 | |
Income tax receivable | |
| 25 | | |
| - | |
Prepaid expenses | |
| 128 | | |
| 68 | |
Current derivative asset | |
| - | | |
| 211 | |
Total current assets | |
| 35,507 | | |
| 50,049 | |
Equipment and leasehold improvements, net of accumulated depreciation and amortization of $490 and $322, respectively | |
| 210 | | |
| 174 | |
Oil and gas properties, full-cost method – subject to amortization, net of accumulated depletion of $35,332 and $12,849, respectively | |
| 226,918 | | |
| 155,145 | |
Oil and gas properties, full-cost method – not subject to amortization | |
| - | | |
| 2,487 | |
Marketable securities | |
| 756 | | |
| 1,050 | |
Other assets | |
| 7,543 | | |
| 7,503 | |
Total assets | |
$ | 270,934 | | |
$ | 216,408 | |
| |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 49,065 | | |
$ | 41,841 | |
Derivative liability | |
| - | | |
| 276 | |
Current portion of notes payable | |
| - | | |
| 3,000 | |
Total current liabilities | |
| 49,065 | | |
| 45,117 | |
Asset retirement obligation | |
| 1,428 | | |
| 1,060 | |
Noncurrent portion of notes payable | |
| 105,000 | | |
| | |
Bonds payable, net of discount of $1,532 and $0, respectively | |
| 173,467 | | |
| - | |
Noncurrent derivative liability | |
| - | | |
| 750 | |
Deferred taxes | |
| - | | |
| 5,386 | |
Total liabilities | |
| 223,960 | | |
| 157,313 | |
Stockholders’ equity: | |
| | | |
| | |
Common stock, $.001 par value, 48,611 shares authorized, 30,449 and 17,712 shares outstanding | |
| 30 | | |
| 18 | |
Additional paid-in capital | |
| 147,275 | | |
| 67,198 | |
Accumulated other comprehensive income (loss) | |
| - | | |
| (6 | ) |
Accumulated deficit | |
| (100,331 | ) | |
| (8,115 | ) |
Total stockholders’ equity | |
| 46,974 | | |
| 59,095 | |
Total liabilities and stockholders’ equity | |
$ | 270,934 | | |
$ | 216,408 | |
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In Thousands, except for Per Share
Data)
| |
For the Three-Month Period | | |
For the Twelve-Month Period | |
| |
Ended December 31, | | |
Ended December 31, | |
| |
2014 | | |
2013 | | |
2014 | | |
2013 | |
Oil and gas sales | |
$ | 14,450 | | |
$ | 13,501 | | |
$ | 60,549 | | |
$ | 43,139 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
Oil and gas production costs | |
| 7,595 | | |
| 3,952 | | |
| 22,069 | | |
| 11,609 | |
General and administrative | |
| 2,042 | | |
| 2,981 | | |
| 7,832 | | |
| 7,361 | |
Depletion, depreciation and amortization | |
| 9,107 | | |
| 4,158 | | |
| 24,604 | | |
| 10,073 | |
Impairment of oil and gas properties, subject to amortization | |
| 81,908 | | |
| 206 | | |
| 81,908 | | |
| 1,732 | |
Total operating expenses | |
| 100,652 | | |
| 11,297 | | |
| 136,413 | | |
| 30,775 | |
Total operating income (loss) | |
| (86,202 | ) | |
| 2,204 | | |
| (75,864 | ) | |
| 12,364 | |
Interest and dividend income | |
| - | | |
| 23 | | |
| 57 | | |
| 81 | |
Interest expense | |
| (5,271 | ) | |
| (3,207 | ) | |
| (15,900 | ) | |
| (5,356 | ) |
Loss on early extinguishment of debt | |
| - | | |
| - | | |
| (11,894 | ) | |
| (3,714 | ) |
Loss on sale of oil & gas properties | |
| - | | |
| - | | |
| (12 | ) | |
| - | |
Change in fair value of marketable securities | |
| (491 | ) | |
| - | | |
| (491 | ) | |
| - | |
Gains on settlement of derivatives | |
| 13,445 | | |
| 687 | | |
| 6,608 | | |
| 803 | |
Change in fair value of derivatives | |
| - | | |
| (39 | ) | |
| - | | |
| (815 | ) |
Total other income (expense) | |
| 7,683 | | |
| (2,536 | ) | |
| (21,632 | ) | |
| (9,001 | ) |
Income (loss) before taxes | |
| (78,519 | ) | |
| (332 | ) | |
| (97,946 | ) | |
| 3,363 | |
Income tax expense (benefit) | |
| 31 | | |
| (130 | ) | |
| (5,280 | ) | |
| 1,769 | |
Net income (loss) | |
$ | (78,550 | ) | |
$ | (462 | ) | |
$ | (92,216 | ) | |
$ | 1,594 | |
| |
| | | |
| | | |
| | | |
| | |
Net income (loss) per common share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (2.58 | ) | |
$ | (0.03 | ) | |
$ | (3.35 | ) | |
$ | 0.11 | |
Diluted | |
$ | (2.58 | ) | |
$ | (0.03 | ) | |
$ | (3.35 | ) | |
$ | 0.11 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of shares outstanding - | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 30,437 | | |
| 17,587 | | |
| 27,513 | | |
| 13,962 | |
Diluted | |
| 30,437 | | |
| 17,587 | | |
| 27,513 | | |
| 14,599 | |
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(In Thousands)
| |
For the Three-Month Period | | |
For the Twelve-Month Period | |
| |
Ended December 31, | | |
Ended December 31, | |
| |
2014 | | |
2013 | | |
2014 | | |
2013 | |
Net income (loss) | |
$ | (78,550 | ) | |
$ | (462 | ) | |
$ | (92,216 | ) | |
$ | 1,594 | |
| |
| | | |
| | | |
| | | |
| | |
Other comprehensive income (loss), net of tax: | |
| | | |
| | | |
| | | |
| | |
Unrealized gains (losses) on securities | |
| 100 | | |
| (16 | ) | |
| (26 | ) | |
| (1 | ) |
Foreign currency translation adjustments | |
| 143 | | |
| 34 | | |
| 32 | | |
| 28 | |
Total other comprehensive income, net of tax | |
| 243 | | |
| 29 | | |
| 6 | | |
| 27 | |
| |
| | | |
| | | |
| | | |
| | |
Comprehensive income (loss) | |
$ | (78,307 | ) | |
$ | (433 | ) | |
$ | (92,210 | ) | |
$ | 1,621 | |
AMERICAN EAGLE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
| |
For the twelve-month periods | |
| |
ended December 31, | |
| |
2014 | | |
2013 | |
| |
| | |
| |
Cash flows provided by operating activities: | |
| | | |
| | |
Net income (loss) | |
$ | (92,216 | ) | |
$ | 1,594 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |
| | | |
| | |
Non-cash transactions: | |
| | | |
| | |
Stock-based compensation | |
| 1,791 | | |
| 1,203 | |
Depletion, depreciation and amortization | |
| 24,604 | | |
| 10,073 | |
Impairment of oil and gas properties | |
| 81,908 | | |
| 1,732 | |
Accretion of discount on asset retirement obligations | |
| 83 | | |
| 49 | |
Amortization of deferred financing costs | |
| 1,556 | | |
| 602 | |
Amortization of debt discount | |
| 113 | | |
| - | |
Provision for deferred income tax expense (benefit) | |
| (5,386 | ) | |
| 1,794 | |
Loss on early extinguishment of debt | |
| 11,894 | | |
| 3,714 | |
Loss on sale of oil and gas properties | |
| (12 | ) | |
| - | |
Change in fair value of marketable securities | |
| 491 | | |
| - | |
Change in fair value of derivatives | |
| (815 | ) | |
| 692 | |
Foreign currency transaction gains (losses) | |
| 11 | | |
| (11 | ) |
Changes in operating assets and liabilities: | |
| | | |
| | |
Prepaid expenses | |
| (60 | ) | |
| 64 | |
Trade receivables | |
| (5,857 | ) | |
| 4,468 | |
Income taxes receivable | |
| (25 | ) | |
| 190 | |
Receivables from related parties | |
| - | | |
| - | |
Deposits | |
| - | | |
| - | |
Accounts payable and accrued liabilities | |
| 8,534 | | |
| 4,247 | |
Income taxes payable | |
| - | | |
| - | |
| |
| | | |
| | |
Net cash provided by operating activities | |
| 26,614 | | |
| 30,411 | |
| |
| | | |
| | |
Cash flows used for investing activities: | |
| | | |
| | |
Proceeds from conveyance of working interests | |
| - | | |
| - | |
Additions to oil and gas properties | |
| (164,265 | ) | |
| (136,267 | ) |
Proceeds from sale of oil and gas properties | |
| 1,824 | | |
| - | |
Additions to equipment and leasehold improvements | |
| (204 | ) | |
| (68 | ) |
| |
| | | |
| | |
Purchases of marketable securities | |
| (222 | ) | |
| - | |
Purchases of certificates of deposit | |
| - | | |
| - | |
Increase (decrease) in amounts due to Carry Agreement Partner | |
| - | | |
| (4,957 | ) |
| |
| | | |
| | |
Net cash used for investing activities | |
| (162,867 | ) | |
| (141,292 | ) |
Cash flows provided by financing activities: | |
| | | |
| | |
Proceeds from issuance of stock | |
| 78,298 | | |
| 38,871 | |
Proceeds from exercise of stock options | |
| - | | |
| - | |
Proceeds from issuance of notes | |
| - | | |
| 105,935 | |
Repayment of notes | |
| (113,465 | ) | |
| (21,131 | ) |
Proceeds from issuance of bonds | |
| 173,353 | | |
| - | |
Payment of other deferred financing costs | |
| (8,025 | ) | |
| - | |
| |
| | | |
| | |
Net cash provided by investing activities | |
| 130,161 | | |
| 123,675 | |
| |
| | | |
| | |
Effect of exchange rate changes on cash | |
| 130 | | |
| (2 | ) |
| |
| | | |
| | |
Net change in cash | |
| (5,962 | ) | |
| 12,792 | |
| |
| | | |
| | |
Cash – beginning of period | |
| 31,850 | | |
| 19,058 | |
| |
| | | |
| | |
Cash – end of period | |
$ | 25,888 | | |
$ | 31,850 | |
Non-GAAP Financial Measures
Adjusted EBITDA
In addition to reporting net income (loss)
as defined under GAAP, American Eagle also presents net earnings before interest income, dividend income, interest expense, income
taxes, depletion, depreciation, and amortization, non-cash expenses related to stock-based compensation, accretion of asset retirement
obligations, impairment of oil and gas properties, loss on early extinguishment of debt, loss on sale of oil and gas properties,
one-time loss (gain) on settlement of derivatives, and change in value of derivatives and marketable securities recognized under
ASC Topic 718 (“Adjusted EBITDA”), which is a non-GAAP performance measure. Adjusted EBITDA consists of net earnings
after adjustment for those items described in the table below. Adjusted EBITDA does not represent, and should not be considered
an alternative to GAAP measurements, such as net income (loss) (its most directly comparable GAAP measure), and the calculations
thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items described below,
American Eagle believes the measure is useful in evaluating its fundamental core operating performance. The Company also believes
that Adjusted EBITDA is useful to investors because similar measures are frequently used by securities analysts, investors, and
other interested parties in their evaluation of companies in similar industries. American Eagle’s management uses Adjusted
EBITDA to manage its business, including in preparing its annual operating budget and financial projections. Management does not
view Adjusted EBITDA in isolation and also uses other measurements, such as net income (loss) and revenues to measure operating
performance. The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented (in
thousands):
| |
Three Months Ended | |
| |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | | |
December 31, | |
| |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2013 | |
| |
| | |
| | |
| | |
| | |
| |
Net income (loss) | |
$ | (78,550 | ) | |
$ | (8,738 | ) | |
$ | (3,900 | ) | |
$ | (1,028 | ) | |
$ | (462 | ) |
Less: Interest and dividend income | |
| - | | |
| (28 | ) | |
| (12 | ) | |
| (16 | ) | |
| (23 | ) |
Add: Interest expense | |
| 5,271 | | |
| 4,163 | | |
| 3,251 | | |
| 3,215 | | |
| 3,207 | |
Add: Income tax expense (benefit) | |
| 31 | | |
| (2,569 | ) | |
| (2,103 | ) | |
| (638 | ) | |
| 130 | |
Add: Depletion, depreciation and amortization | |
| 9,107 | | |
| 6,154 | | |
| 5,707 | | |
| 3,636 | | |
| 4,158 | |
Add: Stock-based compensation | |
| 447 | | |
| 445 | | |
| 445 | | |
| 454 | | |
| 375 | |
Add: Impairment of oil and gas properties | |
| 81,908 | | |
| - | | |
| - | | |
| - | | |
| 206 | |
Add: Accretion of asset retirement obligations | |
| 23 | | |
| 9 | | |
| 30 | | |
| 22 | | |
| 14 | |
Add: Loss on sale of oil & gas properties | |
| - | | |
| 12 | | |
| - | | |
| - | | |
| - | |
Add: Loss on early extinguishment of debt | |
| - | | |
| 11,894 | | |
| - | | |
| - | | |
| - | |
Add: One-time realized loss (gain) on settlement of derivatives | |
| (11,457 | ) | |
| 6,362 | | |
| - | | |
| - | | |
| - | |
Add: Change in fair value of marketable securities | |
| 491 | | |
| - | | |
| - | | |
| - | | |
| - | |
Add: Change in fair value of derivatives | |
| 618 | | |
| (8,641 | ) | |
| 6,200 | | |
| 1,823 | | |
| 40 | |
Adjusted EBITDA | |
$ | 7,889 | | |
$ | 9,063 | | |
$ | 9,618 | | |
$ | 7,468 | | |
$ | 7,645 | |
Adjusted Cash Flow
In addition to reporting net income (loss)
as defined under GAAP, American Eagle also presents cash flow after paying interest expense (“Adjusted Cash Flow”),
which is a non-GAAP performance measure. Adjusted Cash Flow consists of Adjusted EBITDA after adjustment for those items described
in the table below. Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements, such
as net income (loss) (its most directly comparable GAAP measure), and the calculations thereof may not be comparable to similarly
titled measures reported by other companies. By eliminating the items described below, American Eagle believes the measure is
useful in evaluating its fundamental core operating performance. The Company also believes that Adjusted Cash Flow is useful to
investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their
evaluation of companies in similar industries. American Eagle’s management uses Adjusted Cash Flow to manage its business,
including in preparing its annual operating budget and financial projections. Management does not view Adjusted Cash Flow in isolation
and also uses other measurements, such as net income (loss) and revenues to measure operating performance. The following table
provides a reconciliation of Adjusted EBITDA to Adjusted Cash Flow for the periods presented (in thousands, except for per share
data):
| |
Three Months Ended | |
| |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | | |
December 31, | |
| |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2013 | |
| |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA (1) | |
$ | 7,889 | | |
$ | 9,063 | | |
$ | 9,618 | | |
$ | 7,468 | | |
$ | 7,645 | |
Less: Interest expense | |
| (5,271 | ) | |
| (4,163 | ) | |
| (3,251 | ) | |
| (3,215 | ) | |
| (3,207 | ) |
Add: Amortization of deferred financing | |
| 366 | | |
| 426 | | |
| 384 | | |
| 380 | | |
| 45 | |
Add: Amortization of bond discount (non-cash) | |
| 113 | | |
| - | | |
| - | | |
| - | | |
| - | |
Adjusted Cash Flow | |
$ | 3,097 | | |
$ | 5,326 | | |
$ | 6,751 | | |
$ | 4,633 | | |
$ | 4,483 | |
(1) See previous table for reconciliation of net income (loss)
to Adjusted EBITDA.
Adjusted Earnings (Loss)
In addition to reporting net income (loss)
as defined under GAAP, American Eagle also presents net income (loss) before the impairment of oil and gas properties, loss on
early extinguishment of debt, one-time gain or loss on settlement of derivatives, and non-cash expenses related to the change
in fair value of derivatives and marketable securities (“adjusted earnings (loss)”), which is a non-GAAP performance
measure. Adjusted earnings (loss) consists of earnings after adjustment for those items described in the table below. Adjusted
earnings does not represent, and should not be considered an alternative to GAAP measurements, such as net income (loss), and
the calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items
described below, American Eagle believes the measure is useful in evaluating its fundamental core operating performance. The Company
also believes that adjusted earnings is useful to investors because similar measures are frequently used by securities analysts,
investors, and other interested parties in their evaluation of companies in similar industries. American Eagle’s management
uses adjusted earnings to manage its business, including in preparing its annual operating budget and financial projections. Management
does not view adjusted earnings in isolation and also uses other measurements, such as net income (loss) and revenues to measure
operating performance. The following table provides a reconciliation of net income (loss), to adjusted earnings for the periods
presented:
| |
Three Months Ended | |
| |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | | |
December 31, | |
| |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2013 | |
| |
| | |
| | |
| | |
| | |
| |
Net income (loss) | |
$ | (78,550 | ) | |
$ | (8,738 | ) | |
$ | (3,900 | ) | |
$ | (1,028 | ) | |
$ | (462 | ) |
Add: Impairment of oil and gas properties | |
| 81,908 | | |
| - | | |
| - | | |
| - | | |
| 206 | |
Add: Loss on sale of oil and gas properties | |
| - | | |
| 12 | | |
| - | | |
| - | | |
| - | |
Add: Loss on early extinguishment of debt | |
| - | | |
| 11,894 | | |
| - | | |
| - | | |
| - | |
Add: One-time realized loss (gain) on settlement of derivatives | |
| (11,457 | ) | |
| 6,362 | | |
| - | | |
| - | | |
| - | |
Add: Change in fair value of marketable securities | |
| 491 | | |
| - | | |
| - | | |
| - | | |
| - | |
Add: Change in fair value of derivatives | |
| 618 | | |
| (8,641 | ) | |
| 6,200 | | |
| 1,823 | | |
| 40 | |
Adjusted earnings (loss) | |
$ | (6,990 | ) | |
$ | 889 | | |
$ | 2,300 | | |
$ | 795 | | |
$ | (216 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted earnings (loss) per share - basic | |
$ | (0.23 | ) | |
$ | 0.03 | | |
$ | 0.08 | | |
$ | 0.04 | | |
$ | (0.01 | ) |
Adjusted earnings (loss) per share - diluted | |
$ | (0.23 | ) | |
$ | 0.03 | | |
$ | 0.07 | | |
$ | 0.04 | | |
$ | (0.01 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average shares - basic | |
| 30,437 | | |
| 30,448 | | |
| 30,436 | | |
| 18,557 | | |
| 17,587 | |
Weighted average shares - diluted | |
| 30,437 | | |
| 30,922 | | |
| 31,018 | | |
| 19,205 | | |
| 18,287 | |
CORPORATE CONTACT:
Marty Beskow, CFA
Vice President of Capital Markets and
Strategy
American Eagle Energy Corporation
720-330-8378
ir@amzgcorp.com
www.americaneagleenergy.com
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