SAN ANTONIO, May 16, 2012 /PRNewswire/ -- Cross Border
Resources, Inc. (OTCQX: XBOR), ("Cross Border" or "the Company"), a
San Antonio-based oil and gas
exploration and production company, today announced its financial
results for the first quarter ended March
31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20110523/AQ07208LOGO
)
First Quarter 2012 Financial and Operating Highlights
- Oil and gas revenues increased by 128% year-over-year to
$3.6 million, up from $1.6 million in the first quarter of 2011.
- Production volume totaled 41,477 barrels of oil equivalent
("boe"), an increase of 91% compared to 21,772 boe in the first
quarter of 2011.
- Average daily production sold during the first quarter of 2012
was 456 barrels of oil equivalent per day ("boepd") compared to 242
boepd for the first quarter of 2011. The daily average sales rate
for March 2012 was 750 boepd.
- Adjusted EBITDA increased 277.4% year-over-year to $2.0 million, up from $0.5
million in the first quarter of 2011.
Results of Operations for the Quarter Ended March 31, 2012
Revenues
Oil and gas revenues for the quarter ended March 31, 2012 were $3.6
million as compared to $1.6
million for the quarter ended March
31, 2011. The increase of $2.0
million, or 128%, was primarily due to increased production
from wells added year-over-year, and a year-over-year increase in
the average prices for crude oil.
Sales volume totaled 41,477 boe for the quarter, an increase of
91% compared to 21,772 boe for the same period of 2011. The
increase was primarily driven by increased production from wells
added period-over-period. Average daily sales for the quarter were
456 boepd, compared to 242 boepd for the same period of 2011. Cross
Border's definition of daily sales represents only what volumes
were sold in each respective year and does not account for stored
inventory.
During the first three months of 2012, we participated in seven
gross (one net) new wells. As of April
30, 2012, three of the seven new wells had been placed on
production, while four were awaiting completion. Additionally,
three of the four wells that began during 2011 and were awaiting
completion at year-end 2011 were successfully completed during the
first quarter of 2012.
Cross Border's average realized crude oil sales price for the
quarter ended March 31, 2012 was
$98.46 per barrel, compared to
$89.19 in the same period of 2011.
The Company's average realized natural gas sales price for the
first quarter of 2012 was $5.86 per
1,000 cubic feet ("mcf"), compared to $6.22 per mcf for the same period of 2011.
Income from Operations
Operating income for the quarter ended March 31, 2012 amounted to $1.4 million as compared to an operating loss of
$143,079 for the prior-year quarter.
Operating expenses for the quarter ended March 31, 2012 totaled $2.2 million, up 25.5% from $1.7 million in the quarter ended March 31, 2011. The increase, primarily a result
of costs related to additional wells brought online year-over-year,
was partially offset by a 23.0% decrease in general and
administrative expenses.
Net Income
Net income for the quarter ended March
31, 2012 was $658,145 as
compared to a net loss of $154,916
for the same period in 2011. Net income per diluted share was
$0.04 for the first quarter of 2012.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and
amortization ("EBITDA") totaled $2.0
million, or $0.13 per fully
diluted share, an increase of 277.4% compared to adjusted EBITDA of
$0.5 million in the first quarter of
2011.
Adjusted EBITDA, a non-GAAP performance measure, is defined as
net earnings before interest, income taxes, depreciation,
depletion, amortization, abandonment and mark-to-market
gains/losses on derivatives. Adjusted EBITDA does not represent,
and should not be considered an alternative to GAAP measurements,
and Cross Border's calculations thereof may not be comparable to
similarly titled measures reported by other companies. Cross
Border's management does not view adjusted EBITDA in isolation and
also uses other measurements, such as net earnings (loss) and
revenues to measure operating performance. A complete
reconciliation of EBITDA to GAAP accounting standards can be found
in this press release under the financial table "Reconciliation to
GAAP."
Liquidity and Capital Resources
As of March 31, 2012, the
Company's current assets were $4.1
million and current liabilities were $3.3 million. Cash and cash equivalents totaled
$70,412 as of March 31, 2012. The Company's shareholders'
equity at March 31, 2012 was
$18.2 million. The Company generated
$2.1 million from operating
activities for the three months ended March
31, 2012, compared to $3.3
million for the same period of 2011. The Company used
$5.9 million for investing activities
for the quarter ended March 31, 2012,
compared to $4.4 million for the same
period of 2011. The Company generated $3.3
million from financing activities for the quarter ended
March 31, 2012, compared to
$0.9 million for the same period of
2011.
About Cross Border Resources
Information about the Company is available on its website,
www.xbres.com.
Forward-Looking Statements
This news release contains forward-looking statements that are
not historical facts and are subject to risks and uncertainties.
Forward-looking statements are based on current facts and analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determined, and assumptions
of management. Forward-looking statements are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "aims",
"potential", "goal", "objective", "prospective", and similar
expressions or that events or conditions "will", "would", "may",
"can", "could" or "should" occur. Information concerning oil or
natural gas reserve estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what
might be found to be present when and if a project is actually
developed.
Actual results may differ materially from those currently
anticipated due to a number of factors beyond the reasonable
control of the Company. It is important to note that actual
outcomes and the Company's actual results could differ materially
from those in such forward-looking statements. Factors that could
cause actual results to differ materially include misinterpretation
of data, inaccurate estimates of oil and natural gas reserves, the
uncertainty of the requirements demanded by environmental agencies,
the Company's ability to raise financing for operations, breach by
parties with whom the Company has contracted, inability to maintain
qualified employees or consultants because of compensation or other
issues, competition for equipment, inability to obtain drilling
permits, potential delays or obstacles in drilling operations and
interpreting data, the likelihood that no commercial quantities of
oil or gas are found or recoverable, and our ability to participate
in the exploration of, and successful completion of development
programs on all aforementioned prospects and leases. Additional
information risks for the Company can be found in the Company's
filings with the U.S. Securities and Exchange Commission.
Contacts:
Investor Relations Contact:
Jon Cunningham
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 107
jon@redchip.com
http://www.redchip.com
Company Contact:
Cross Border Resources, Inc.
Nancy Stephenson
nancy@xbres.com
|
|
|
|
|
|
Cross
Border Resources, Inc.
Condensed Balance Sheets
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
70,412
|
|
$
|
472,967
|
|
Accounts receivable - production
|
|
|
2,905,931
|
|
|
1,184,544
|
|
Prepaid expenses and other current assets
|
|
|
1,061,393
|
|
|
1,808,944
|
|
Current tax asset
|
|
|
21,737
|
|
|
21,737
|
|
Total Current Assets
|
|
|
4,059,473
|
|
|
3,488,192
|
|
|
|
|
|
|
|
|
Property and Equipment
|
|
|
|
|
|
|
|
Oil and gas properties (successful
efforts method)
|
|
|
36,288,899
|
|
|
30,540,978
|
|
Less accumulated depletion and
depreciation
|
|
|
(10,415,884)
|
|
|
(9,870,830)
|
|
Net Property and Equipment
|
|
|
25,873,015
|
|
|
20,670,148
|
|
|
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
|
|
|
Other property and equipment, net of
accumulated depreciation of
$134,408 and $
126,473 in 2012 and 2011, respectively
|
|
|
88,053
|
|
|
95,988
|
|
Deferred bond costs, net of accumulated
amortization of $503,854 and
$344,300 in 2012 and
2011, respectively
|
|
|
-
|
|
|
159,554
|
|
Deferred bond discount, net of
accumulated amortization of $186,560 and
$127,483 in 2012 and
2011, respectively
|
|
|
-
|
|
|
59,077
|
|
Deferred financing costs, net of
accumulated amortization of $39,739 and
$26,355 in 2012 and
2011, respectively
|
|
|
174,887
|
|
|
64,746
|
|
Intangible assets, net of accumulated
amortization of $247,020 and
$197,616 in 2012 and
2011, respectively
|
|
|
1,729,137
|
|
|
1,778,541
|
|
Goodwill
|
|
|
1,395,807
|
|
|
1,395,807
|
|
Other
|
|
|
54,324
|
|
|
54,324
|
|
Total Other
Assets
|
|
|
3,442,208
|
|
|
3,608,037
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
33,374,696
|
|
$
|
27,766,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross
Border Resources, Inc.
Condensed Balance Sheets
|
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|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
(Unaudited)
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts payable - trade
|
|
$
|
1,081,770
|
|
$
|
103,759
|
|
Accounts payable - revenue distribution
|
|
|
236,915
|
|
|
143,215
|
|
Interest payable
|
|
|
63,173
|
|
|
112,659
|
|
Accrued expenses
|
|
|
614,094
|
|
|
418,290
|
|
Deferred revenues
|
|
|
-
|
|
|
32,479
|
|
Notes payable - current
|
|
|
764,278
|
|
|
764,278
|
|
Bonds payable – current portion
|
|
|
-
|
|
|
570,000
|
|
Creditors payable – current portion
|
|
|
300,000
|
|
|
186,761
|
|
Derivative liability – current portion
|
|
|
248,816
|
|
|
56,908
|
|
Total Current Liabilities
|
|
|
3,309,046
|
|
|
2,388,349
|
|
|
|
|
|
|
|
|
Non-Current Liabilities:
|
|
|
|
|
|
|
|
Asset retirement obligations
|
|
|
1,191,149
|
|
|
1,186,260
|
|
Deferred income tax liability
|
|
|
21,737
|
|
|
21,737
|
|
Line of credit
|
|
|
9,300,000
|
|
|
2,381,000
|
|
Derivative liability, net of current
portion
|
|
|
258,675
|
|
|
28,086
|
|
Bonds payable, net of current portion
|
|
|
-
|
|
|
2,825,000
|
|
Creditors payable, net of current portion
|
|
|
1,052,783
|
|
|
1,352,783
|
|
Total Non-Current Liabilities
|
|
|
11,824,344
|
|
|
7,794,866
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
15,133,390
|
|
|
10,183,215
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Common stock , $0.001 par value, 36,363,637 shares
authorized,
16,151,946 shares issued and outstanding
at March 31, 2012 and
December 31, 2011
|
|
|
16,152
|
|
|
16,152
|
|
Additional paid-in capital
|
|
|
32,617,689
|
|
|
32,617,690
|
|
Retained earnings (accumulated deficit)
|
|
|
(14,392,535)
|
|
|
(15,050,680)
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
|
|
18,241,306
|
|
|
17,583,162
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
33,374,696
|
|
$
|
27,766,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross
Border Resources, Inc.
Condensed Statements of Operations
For the years ended March 31, 2012 and 2011
(unaudited)
|
|
|
|
|
|
|
2012
|
|
2011
|
|
REVENUES
AND GAINS:
|
|
|
|
|
|
|
Oil and gas sales
|
$
|
3,573,746
|
|
$
|
1,566,813
|
|
Other
|
|
32,479
|
|
|
32,479
|
|
Total
Revenues And Gains
|
$
|
3,606,225
|
|
$
|
1,599,292
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Operating costs
|
|
688,535
|
|
|
153,063
|
|
Production taxes
|
|
160,371
|
|
|
105,456
|
|
Depreciation, depletion, and
amortization
|
|
661,469
|
|
|
584,290
|
|
Accretion expense
|
|
4,889
|
|
|
26,416
|
|
General and administrative
|
|
671,070
|
|
|
873,146
|
|
Total
Operating Expenses
|
|
2,186,334
|
|
|
1,742,371
|
|
|
|
|
|
|
|
GAIN
(LOSS) FROM OPERATIONS
|
|
1,419,891
|
|
|
(143,079)
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE):
|
|
|
|
|
|
|
Bond issuance amortization
|
|
(159,553)
|
|
|
(4,664)
|
|
Gain (loss) on derivatives
|
|
(473,913)
|
|
|
30,266
|
|
Interest expense
|
|
(131,758)
|
|
|
(105,156)
|
|
Miscellaneous other income
(expense)
|
|
3,478
|
|
|
42,019
|
|
Total
Other Income (Expense)
|
|
(761,746)
|
|
|
(37,535)
|
|
|
|
|
|
|
|
GAIN
(LOSS) BEFORE INCOME TAXES
|
|
658,145
|
|
|
(180,614)
|
|
|
|
|
|
|
|
Current
tax benefit (expense)
|
|
(222,869)
|
|
|
30,868
|
|
Deferred
tax benefit (expense)
|
|
222,869
|
|
|
(5,170)
|
|
Income tax benefit (expense)
|
|
-
|
|
|
25,698
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
|
658,145
|
|
$
|
(154,916)
|
|
|
|
|
|
|
|
NET GAIN
(LOSS) PER SHARE:
|
|
|
|
|
|
|
Basic and diluted
|
$
|
0.04
|
|
$
|
(0.01)
|
|
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
Basic and diluted
|
|
16,151,946
|
|
|
12,476,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross
Border Resources, Inc.
Condensed Statements of Cash Flows
For the years ended March 31, 2012 and 2011
(unaudited)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2012
|
|
2011
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
658,145
|
|
$
|
(154,916)
|
|
Adjustments to reconcile net income (loss) to cash
used by operating activities:
|
|
|
|
|
|
|
Depreciation, depletion, amortization
|
|
661,469
|
|
|
571,694
|
|
Accretion
|
|
4,889
|
|
|
26,416
|
|
Share-based compensation
|
|
-
|
|
|
30,492
|
|
Amortization of debt discount and deferred financing
costs
|
|
218,631
|
|
|
17,260
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
(1,721,387)
|
|
|
(104,914)
|
|
Prepaid expenses and other current assets
|
|
698,382
|
|
|
3,492,054
|
|
Accounts payable
|
|
1,022,225
|
|
|
(321,381)
|
|
Derivative asset/liability
|
|
422,497
|
|
|
-
|
|
Accrued expenses
|
|
195,570
|
|
|
(201,175)
|
|
Deferred income tax
|
|
-
|
|
|
(25,698)
|
|
Deferred revenue
|
|
(32,479)
|
|
|
(32,479)
|
|
NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
2,127,942
|
|
|
3,297,353
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Cash
impact of merger, net
|
|
-
|
|
|
(62,797)
|
|
Capital
expenditures - oil and gas properties
|
|
(5,867,736)
|
|
|
(4,285,954)
|
|
Capital
expenditures - other assets
|
|
-
|
|
|
(45,146)
|
|
NET CASH
USED IN INVESTING ACTIVITIES
|
|
(5,867,736)
|
|
|
(4,393,897)
|
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Net
borrowings (payments) on line of credit
|
|
6,919,000
|
|
|
1,212,500
|
|
Proceeds
from renewing notes
|
|
-
|
|
|
128,037
|
|
Repayments
of bonds
|
|
(3,395,000)
|
|
|
(190,000)
|
|
Repayments
to creditors
|
|
(186,761)
|
|
|
(266,760)
|
|
NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
3,337,239
|
|
|
883,777
|
|
|
|
|
|
|
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(402,555)
|
|
|
(212,767)
|
|
Cash and
cash equivalents, beginning of period
|
|
472,967
|
|
|
975,123
|
|
Cash and
cash equivalents, end of period
|
$
|
70,412
|
|
$
|
762,356
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
|
|
|
|
|
|
|
Interest paid
|
$
|
101,154
|
|
$
|
174,341
|
|
Income taxes paid
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Cross
Border Resources, Inc.
Summary
Operating Statistics
(Unaudited)
|
|
|
|
|
Three
Months
|
|
Ended
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Revenues & Sales
|
|
|
|
|
|
|
Oil &
Gas Sales
|
$
|
3,573,746
|
|
$
|
1,566,813
|
|
Gain on
Sale of Oil & Gas Properties
|
|
-
|
|
|
-
|
|
Total
revenue
|
$
|
3,606,225
|
|
$
|
1,599,292
|
|
Net Income
(Loss)
|
$
|
658,145
|
|
$
|
(154,916)
|
|
|
|
|
|
|
|
Net
Income Per Share
|
|
|
|
|
|
|
Basic
& Diluted
|
$
|
0.04
|
|
$
|
(0.01)
|
|
Average
Number of Shares Outstanding
|
|
16,151,946
|
|
|
12,476,945
|
|
Basic
& Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Volumes
|
|
|
|
|
|
|
Oil
(Bbls)
|
|
32,415
|
|
|
13,287
|
|
Gas
(mcf)
|
|
54,370
|
|
|
50,911
|
|
Total Barrels of Oil Equivalent (boe)
|
|
41,477
|
|
|
21,772
|
|
|
|
|
|
|
|
Average
Barrels of Oil Equivalent per day (boepd)
|
|
456
|
|
|
242
|
|
|
|
|
|
|
|
Oil
(Bbls)
|
|
78.2%
|
|
|
61.0%
|
|
Gas
(mcf)
|
|
21.8%
|
|
|
39.0%
|
|
Total Barrels of Oil Equivalent (boe)
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
Average
sales price:
|
|
|
|
|
|
|
Gas
($ per mcf)
|
$
|
5.86
|
|
$
|
6.22
|
|
Oil
($ per bbl)
|
$
|
98.46
|
|
$
|
89.19
|
|
Average
cost of production:
|
|
|
|
|
|
|
Average production cost ($/boe)
|
$
|
15.62
|
|
$
|
7.25
|
|
Average production taxes ($/boe)
|
$
|
3.86
|
|
$
|
5.45
|
|
|
|
|
|
|
|
Depletion
Expense
|
$
|
531,000
|
|
$
|
545,741
|
|
Depletion
Expense ($/boe)
|
$
|
12.80
|
|
$
|
25.07
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted EBITDA
|
$
|
2,038,311
|
|
$
|
540,137
|
|
Non GAAP
Adjusted EBITDA Per Share
Basic & Diluted
|
$
|
0.13
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
Cross
Border Resources, Inc.
Reconciliation to GAAP
(unaudited)
|
|
|
|
Three
Months
|
|
Ended
March 31,
|
|
2012
|
|
2011
|
|
Net income
(loss)
|
$
|
658,145
|
|
$
|
(154,916)
|
|
Interest
expense and other
|
|
291,311
|
|
|
109,820
|
|
Income tax
expense (benefit)
|
|
-
|
|
|
(25,698)
|
|
Accretion
of asset retirement obligations
|
|
4,889
|
|
|
26,416
|
|
Depreciation, depletion, and amortization
|
|
661,469
|
|
|
584,290
|
|
Stock-based compensation
|
|
-
|
|
|
30,492
|
|
Mark-to-market loss on commodity swaps
|
|
422,497
|
|
|
(30,267)
|
|
|
|
|
|
-
|
|
Adjusted EBITDA
|
$
|
2,038,311
|
|
$
|
540,137
|
|
|
|
|
|
|
SOURCE Cross Border Resources, Inc.
