August 2, 2010

RAM Energy Resources Reports Second Quarter 2010 Results

  • RAM Reports 2Q 2010 Net Income of $2.7 Million, or $0.03 per share
  • 2Q 2010 Free Cash Flow of $7.2 Million, or $0.09 Per Share

TULSA, Okla., Aug 02, 2010 (BUSINESS WIRE) -- RAM Energy Resources, Inc. (Nasdaq: RAME) today announced second quarter 2010 earnings and financial highlights.

RAM Reports 2Q 2010 Net Income of $2.7 Million

For the quarter ended June 30, 2010, RAM reported net income of $2.7 million, or $0.03 per share, based on 78.4 million diluted weighted average shares outstanding compared to a loss of $13.3 million, or $0.18 a share, on 74.7 million shares outstanding in the year-ago quarter. Adjusted net income for the second quarter was $889,000, or $0.01 per share. The calculation of adjusted net income excludes the after tax impact of unrealized, non-cash, mark-to-market (MTM) gains associated with oil and natural gas derivatives covering future periods and non-cash legal reserve valuation changes. Adjusted net income in the last year's second quarter totaled $1.5 million, or $0.02 per share, after excluding the tax affected impact of unrealized MTM losses.

Modified EBITDA and Free Cash Flow

Modified EBITDA (a non-GAAP measure) was $12.5 million for the second quarter, compared with $20.3 million in last year's quarter which was aided by realized derivative gains of $10.7 million. Similarly, free cash flow (a non-GAAP measure) was $7.2 million, or $0.09 per share, for this year's second quarter compared to $16.9 million, or $0.23 per share, in last year's second quarter.

Commodity Prices and Revenues

Second quarter production totaled 549 thousand barrel of oil equivalents (BOE), down 3% sequentially from first quarter 2010 production of 566 thousand BOE, principally the result of a shortage of fracturing and stimulation crews and equipment which delayed initiation of production from wells drilled in South Texas, combined with natural production declines and weather related disruptions. Second quarter 2010 production was down 16% compared to the 652 thousand BOE in the second quarter 2009.

The company's realized price for oil increased 35% to an average of $75.57 per barrel in the second quarter of 2010 compared with last year's second quarter average realized price of $55.98 per barrel. Similarly, the company's realized price for natural gas rose 28% to an average of $3.92 per thousand cubic feet (Mcf) compared to an average of $3.06 per Mcf in the second quarter of 2009. In addition, the price of NGLs grew 44%, averaging $36.04 per barrel for this year's second quarter. The positive impact from the 38% increase in total average price per BOE in the second quarter of 2010 more than offset the decline in production, allowing oil and gas revenue for the second quarter to grow to $27.2 million, compared to $23.5 million in the year ago second quarter.

Net derivative activity was relatively modest, resulting in a net $1.7 million gain in the second quarter 2010 and was comprised of realized losses from contract settlements and premium costs of $707,000 and unrealized MTM gains of $2.4 million. As a result, total revenues for the quarter rose to $29.0 million compared to total revenues of $10.4 million in last year's second quarter. Net derivative activity in last year's second quarter totaled a net $13.1 million loss, as the combination of $10.7 million of realized gains was more than offset by unrealized losses of $23.8 million. These net derivative losses effectively offset a substantial portion of the 2009 quarter's oil and gas revenue of $23.5 million, reducing total revenues to $10.4 million.

Costs and Expenses

Production expenses were $8.7 million in the second quarter of 2010, 5% below the $9.1 million in the previous year's quarter. Production taxes were $1.5 million in this year's second quarter, up 57% compared to production taxes of $927,000 in the same quarter last year, primarily due to higher hydrocarbon prices during 2010 and due to retroactive severance tax refunds granted during the year-ago quarter. General and administrative expenses of $4.0 million were 7% higher than those expenses in last year's second quarter of $3.7 million principally due to higher employee-related costs. The company continues to focus on the containment of administrative costs despite a higher level of oilfield activity and capital budget in the current year.

Long-Term Debt and Liquidity

As of June 30, 2010, RAM's outstanding borrowings under its credit facility totaled $245.0 million, of which term debt was $112.5 million and $132.5 million was drawn on its revolver, which is currently subject to a $175.0 million borrowing base. Outstanding borrowings at June 30 last year totaled $255.4 million.

Interest expense for the second quarter 2010 was $5.7 million compared to $3.6 million in the year-ago quarter. Similarly, the blended interest rate on borrowings was 8.2% in the second quarter compared to the blended rate in last year's quarter of 5.7%. The increase in interest expense and higher blended interest rate is due to the company entering into an amendment to its credit facility in June 2009 which increased the interest rate of its term and revolver debt in exchange for increased financial flexibility.

Six Month 2010 Results

Six month production totaled 1.1 million BOE, down 15% from production in the first half of 2009 of 1.3 million BOE, resulting primarily from weather-related interruptions in both the first and second quarters of 2010, natural production declines and a shortage of fracturing and stimulation crews and equipment which delayed bringing South Texas wells online. Net income for the six months ended June 30, 2010 was $5.1 million, or $0.07 per share compared to a loss of $42.6 million, or $0.56 per share in the year-ago period. Free cash flow (a non-GAAP measure) for the first half of 2010 was $18.5 million, or $0.24 per share, compared to $25.0 million, or $0.33 per share, for the same period last year.

Free cash flow funded capital expenditures of $18.7 million made during the first six months of the year. Similarly, modified EBITDA (a non-GAAP measure) was $28.2 million for the first half of 2010 compared to $32.1 million for the same period last year.

Modified EBITDA Revision to Range of $55 - $58 Million

Weather-related production interruptions combined with the delays in bringing South Texas production online in a timely manner as a result of a shortage of crews and equipment to provide fracture and stimulation services in the first half of the year has contributed to a revision in production expectations to a range of 2.2 - 2.3 million BOE for the year from prior expectations of a range of 2.5 - 2.6 million BOE. Because of these reduced expectations for volumes and the company's outlook for hydrocarbon prices and cost of operations for the second half of the current year, RAM is also reducing its guidance for modified EBITDA to a range of $55 - $58 million for the 2010 year from the previously disclosed range of $65 - $68 million.

RAM to Webcast Second Quarter 2010 Conference Call

The company's teleconference call to review second quarter results will be broadcast live on a listen-only basis over the internet on Tuesday, August 3 at 8:30 a.m. Eastern Daylight Time. Interested parties may access the webcast by visiting the RAM Energy Resources, Inc. website at www.ramenergy.com. From the home page, select the Investor Relations tab and then click on the microphone icon. The teleconference may be accessed by dialing 866-543-6407 (domestic) or 617-213-8898 (international) and providing the call identifier "11568958" to the operator. The webcast will be available for replay on the company's website following the call's completion. An audio replay will be available until August 9, 2010 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and using pass code "65608926."

Forward-Looking Statements

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address targets for production, costs, EBITDA, free cash flow, realized prices of oil and gas, the impact of oil and gas derivatives, drilling activities, borrowing availability, and events or developments that the company expects or believes are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, exploitation and exploration successes, actions taken and to be taken by the government as a result of political and economic conditions, continued availability of capital and financing, and general economic, market or business conditions as well as other risk factors described from time to time in the company's filings with the SEC. The company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

About RAM Energy

RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and natural gas properties and the marketing of crude oil and natural gas. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.

RAM Energy Resources, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)

 
   

Three months ended June 30,

 

Six months ended June 30,

 

 

2010

 

2009

 

2010

 

2009

REVENUES AND OTHER OPERATING INCOME:                
Oil and natural gas sales                
Oil   $

19,120

 

 

$

16,206

 

 

$

38,608

 

 

$

27,464

 
Natural gas    

4,818

     

4,907

 

 

 

11,247

 

 

 

10,957

 
NGLs    

3,280

 

 

 

2,387

 

 

 

7,211

 

 

 

4,135

 
Total oil and natural gas sales    

27,218

 

 

 

23,500

 

 

 

57,066

 

 

 

42,556

 
Realized gains (losses) on derivatives    

(707

)

 

 

10,671

 

 

 

(1,605

)

 

 

18,549

 
Unrealized gains (losses) on derivatives    

2,419

 

 

 

(23,795

)

 

 

4,354

 

 

 

(24,802

)
Other    

38

 

 

 

43

 

 

 

74

 

 

 

128

 
Total revenues and other operating income    

28,968

 

 

 

10,419

 

 

 

59,889

 

 

 

36,431

 
                 
OPERATING EXPENSES:                
Oil and natural gas production taxes    

1,453

 

 

 

927

 

 

 

3,047

 

 

 

1,799

 
Oil and natural gas production expenses    

8,662

 

 

 

9,119

 

 

 

16,582

 

 

 

19,204

 
Depreciation and amortization    

6,891

 

 

 

8,186

 

 

 

13,605

 

 

 

16,468

 
Accretion expense    

454

 

 

 

532

 

 

 

836

 

 

 

936

 
Impairment    

-

 

 

 

-

 

 

 

-

 

 

 

47,613

 
Share-based compensation    

785

 

 

 

552

 

 

 

1,471

 

 

 

1,093

 

General and administrative, overhead and other expenses, net of operator's overhead fees

   

3,992

 

 

 

3,745

 

 

 

7,762

 

 

 

8,090

 
Total operating expenses    

22,237

 

 

 

23,061

 

 

 

43,303

 

 

 

95,203

 
Operating income (loss)    

6,731

 

 

 

(12,642

)

 

 

16,586

 

 

 

(58,772

)
                 
OTHER INCOME (EXPENSE):                
Interest expense    

(5,714

)

 

 

(3,601

)

 

 

(11,349

)

 

 

(7,209

)
Interest income    

2

 

 

 

9

 

 

 

4

 

 

 

29

 
Other income (expense)    

570

 

 

 

(106

)

 

 

561

 

 

 

(539

)
EARNINGS (LOSS) BEFORE INCOME TAXES    

1,589

 

 

 

(16,340

)

 

 

5,802

 

 

 

(66,491

)
INCOME TAX PROVISION (BENEFIT)    

(1,140

)

 

 

(3,055

)

 

 

655

 

 

 

(23,848

)
Net earnings (loss)   $

2,729

 

 

$

(13,285

)

 

$

5,147

 

 

$

(42,643

)
                 
BASIC EARNINGS (LOSS) PER SHARE   $

0.03

 

 

$

(0.18

)

 

$

0.07

 

 

$

(0.56

)
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING    

78,446,305

 

 

 

74,696,028

 

 

 

78,222,925

 

 

 

75,986,262

 
                 
DILUTED EARNINGS (LOSS) PER SHARE   $

0.03

 

 

$

(0.18

)

 

$

0.07

 

 

$

(0.56

)
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING    

78,446,305

 

 

 

74,696,028

 

 

 

78,222,925

 

 

 

75,986,262

 

 

RAM Energy Resources, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

 
   

June 30,

 

December 31,

   

2010

 

2009

 

 

(unaudited)

 

 

ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents   $

18

 

 

$

129

 
Accounts receivable:        
Oil and natural gas sales, net of allowance of $50 ($50 at December 31, 2009)    

10,189

 

 

 

12,585

 
Joint interest operations, net of allowance of $596 ($641 at December 31, 2009)    

477

 

 

 

1,303

 
Other, net of allowance of $48 ($48 at December 31, 2009)    

425

 

 

 

193

 
Derivative assets    

124

 

 

 

-

 
Prepaid expenses    

1,502

 

 

 

1,970

 
Deferred tax asset    

3,923

 

 

 

3,531

 
Inventory    

3,733

 

 

 

3,900

 
Other current assets    

4

 

 

 

27

 
Total current assets    

20,395

 

 

 

23,638

 
PROPERTIES AND EQUIPMENT, AT COST:        
Proved oil and natural gas properties and equipment, using full cost accounting    

720,561

 

 

 

702,502

 
Other property and equipment    

9,587

 

 

 

9,337

 
     

730,148

 

 

 

711,839

 
Less accumulated depreciation, amortization and impairment    

(476,033

)

 

 

(462,541

)
Total properties and equipment    

254,115

 

 

 

249,298

 
OTHER ASSETS:        
Deferred tax asset    

30,913

 

 

 

31,573

 
Derivative assets    

910

 

 

 

-

 
Deferred loan costs, net of accumulated amortization of $3,967 ($2,924 at December 31, 2009)    

3,653

 

 

 

4,697

 
Other    

1,958

 

 

 

1,956

 
Total assets   $

311,944

 

 

$

311,162

 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)        
CURRENT LIABILITIES:        
Accounts payable:        
Trade   $

17,804

 

 

$

15,697

 
Oil and natural gas proceeds due others    

9,483

 

 

 

10,113

 
Other    

181

 

 

 

636

 
Accrued liabilities:        
Compensation    

1,984

 

 

 

2,664

 
Interest    

2,609

 

 

 

2,933

 
Income taxes    

477

 

 

 

655

 
Other    

10

 

 

 

10

 
Derivative liabilities    

-

 

 

 

4,471

 
Asset retirement obligations    

846

 

 

 

711

 
Long-term debt due within one year    

122

 

 

 

126

 
Total current liabilities    

33,516

 

 

 

38,016

 
DERIVATIVE LIABILITIES    

-

 

 

 

358

 
LONG-TERM DEBT    

245,135

 

 

 

246,041

 
ASSET RETIREMENT OBLIGATIONS    

27,182

 

 

 

26,363

 
OTHER LONG-TERM LIABILITIES    

10

 

 

 

10

 
COMMITMENTS AND CONTINGENCIES    

350

 

 

 

900

 
         
STOCKHOLDERS' EQUITY (DEFICIT):        

Common stock, $0.0001 par value, 100,000,000 shares authorized, 82,572,829 and 80,748,674, shares issued, 78,614,211 and 76,951,883 shares outstanding at June 30, 2010 and December 31, 2009, respectively

   

8

 

 

 

8

 
Additional paid-in capital    

224,435

 

 

 

222,979

 
Treasury stock - 3,958,618 shares (3,796,791 shares at December 31,2009) at cost    

(6,515

)

 

 

(6,189

)
Accumulated deficit    

(212,177

)

 

 

(217,324

)
Stockholders' equity (deficit)    

5,751

 

 

 

(526

)
Total liabilities and stockholders' equity (deficit)   $

311,944

 

 

$

311,162

 

 

RAM Energy Resources, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

 
   

Six months ended June 30,

 

 

2010

 

2009

OPERATING ACTIVITIES:        
Net income (loss)   $

5,147

 

 

$

(42,643

)
Adjustments to reconcile net income (loss) to net cash provided by operating activities-        
Depreciation and amortization    

13,605

 

 

 

16,468

 
Amortization of deferred loan costs and Senior Notes discount    

1,044

 

 

 

641

 
Non-cash interest    

1,543

 

 

 

-

 
Accretion expense    

836

 

 

 

936

 
Impairment    

-

 

 

 

47,613

 
Unrealized (gain) loss on derivatives and premium amortization    

(2,997

)

 

 

25,633

 
Deferred income tax provision (benefit)    

268

 

 

 

(23,911

)
Other expense (income)    

(550

)

 

 

448

 
Share-based compensation    

1,471

 

 

 

1,093

 
(Gain) loss on disposal of other property, equipment and subsidiary    

(41

)

 

 

96

 
Changes in operating assets and liabilities        
Accounts receivable    

3,237

 

 

 

444

 
Prepaid expenses, inventory and other assets    

657

 

 

 

144

 
Derivative premiums    

(2,866

)

 

 

(1,414

)
Accounts payable and proceeds due others    

1,028

 

 

 

(6,200

)
Accrued liabilities and other    

(1,004

)

 

 

(18,046

)
Restricted cash    

-

 

 

 

16,000

 
Income taxes payable    

(177

)

 

 

(207

)
Asset retirement obligations    

-

 

 

 

(181

)
Total adjustments    

16,054

 

 

 

59,557

 
Net cash provided by operating activities    

21,201

 

 

 

16,914

 
INVESTING ACTIVITIES:        
Payments for oil and natural gas properties and equipment    

(18,666

)

 

 

(17,746

)
Proceeds from sales of oil and natural gas properties    

478

 

 

 

213

 
Payments for other property and equipment    

(358

)

 

 

(363

)
Proceeds from sales of other property and equipment    

4

 

 

 

433

 
Net cash used in investing activities     (18,542 )     (17,463 )
FINANCING ACTIVITIES:        
Payments on long-term debt    

(24,576

)

 

 

(13,081

)
Proceeds from borrowings on long-term debt    

22,132

 

 

 

18,000

 
Payments for deferred loan costs    

-

 

 

 

(2,324

)
Stock repurchased    

(326

)

 

 

(6

)
Net cash (used in) provided by financing activities    

(2,770

)

 

 

2,589

 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    

(111

)

 

 

2,040

 
CASH AND CASH EQUIVALENTS, beginning of period    

129

 

 

 

164

 
CASH AND CASH EQUIVALENTS, end of period   $

18

 

 

$

2,204

 
SUPPLEMENTAL CASH FLOW INFORMATION:        
Cash paid for income taxes   $

565

 

 

$

270

 
Cash paid for interest   $

9,107

 

 

$

6,788

 
DISCLOSURE OF NON CASH INVESTING AND FINANCING ACTIVITIES:        
Asset retirement obligations   $

118

 

 

$

984

 
Payment-in-kind interest   $

1,543

 

 

$

43

 
 

RAM Energy Resources, Inc.
Production by Area

 
   

 

 

Mature

 

Mature

 

 

 

 

Developing Fields

 

Oil Fields*

 

Natural Gas Fields

   
Three Months Ended June 30, 2010  

South Texas

 

Barnett Shale

 

Appalachia

 

Various

 

Various

 

Total

Aggregate Net Production                        
Oil (MBbls)  

9

 

 

1

 

 

-

 

 

214

 

 

29

 

 

253

 

NGLs (MBbls)  

25

 

 

28

 

 

-

 

 

16

 

 

22

 

 

91

 
Natural Gas (MMcf)  

443

 

 

164

 

 

14

 

 

60

 

 

549

 

 

1,230

 
MBoe  

107

 

 

57

 

 

2

 

 

240

 

 

143

 

 

549

 
                         
Three Months Ended June 30, 2009                        
Aggregate Net Production                        
Oil (MBbls)  

14

 

 

2

 

 

1

 

 

242

 

 

31

 

 

290

 
NGLs (MBbls)  

28

 

 

27

 

 

-

 

 

22

 

 

19

 

 

96

 
Natural Gas (MMcf)  

502

 

 

171

 

 

22

 

 

277

 

 

631

 

 

1,603

 
MBoe  

125

 

 

57

 

 

4

 

 

310

 

 

156

 

 

652

 
                         
Change in MBoe  

(18

)

 

(0

)

 

(2

)

 

(70

)

 

(13

)

 

(103

)
Percentage Change in MBoe  

-14.4

%

 

0.0

%

 

-50.0

%

 

-22.6

%

 

-8.3

%

 

-15.8

%
 
   

 

 

 

 

 

 

Mature

 

Mature

 

 

 

 

Developing Fields

 

Oil Fields*

 

Natural Gas Fields

 

 

Six Months Ended June 30, 2010

 

South Texas

 

Barnett Shale

 

Appalachia

 

Various

 

Various

 

Total

Aggregate Net Production                        
Oil (MBbls)  

22

 

 

3

 

 

-

 

 

432

 

 

53

 

 

510

 
NGLs (MBbls)  

60

 

 

59

 

 

-

 

 

29

 

 

41

 

 

189

 
Natural Gas (MMcf)  

984

 

 

336

 

 

28

 

 

116

 

 

1,035

 

 

2,499

 
MBoe  

246

 

 

118

 

 

4

 

 

480

 

 

267

 

 

1,115

 
                         

Six Months Ended June 30, 2009

                       
Aggregate Net Production                        
Oil (MBbls)  

33

 

 

4

 

 

1

 

 

493

 

 

49

 

 

580

 
NGLs (MBbls)  

56

 

 

62

 

 

-

 

 

42

 

 

39

 

 

199

 
Natural Gas (MMcf)  

1,022

 

 

409

 

 

45

 

 

395

 

 

1,299

 

 

3,170

 
MBoe  

260

 

 

134

 

 

8

 

 

601

 

 

305

 

 

1,308

 
                         
Change in MBoe  

(14

)

 

(16

)

 

(4

)

 

(121

)

 

(38

)

 

(193

)
Percentage Change in MBoe  

-5.4

%

 

-11.9

%

 

-50.0

%

 

-20.1

%

 

-12.5

%

 

-14.8

%
 

*Includes Electra/Burkburnett, Allen/Fitts and Layton fields.

 

RAM Energy Resources, Inc.
Production and Prices Summary

 
   

Three Months Ended

 

Six Months Ended

 

 

June 30, 2010

 

June 30, 2010

                 
Production volumes:                
Oil (MBbls)      

253

 

 

 

 

 

510

   
NGLs (MBbls)      

91

 

 

 

 

 

189

   
Natural gas (MMcf)      

1,230

 

 

 

 

 

2,499

   
Total (Mboe)      

549

 

 

 

 

 

1,115

   
                 
Average sale prices received:                
Oil (per Bbl)    

$

75.57

 

 

 

 

$

75.70

   
NGLs (per Bbl)    

$

36.04

 

 

 

 

$

38.15

   
Natural gas (per Mcf)    

$

3.92

 

 

 

 

$

4.50

   
Total per Boe    

$

49.58

 

 

 

 

$

51.18

   
                 
Cash effect of derivative contracts:                
Oil (per Bbl)    

$

(3.73

)

 

 

 

$

(3.79

)

 
NGLs (per Bbl)    

$

0.00

 

 

 

 

$

0.00

   
Natural gas (per Mcf)    

$

0.19

 

 

 

 

$

0.13

   
Total per Boe    

$

(1.29

)

 

 

 

$

(1.44

)

 
                 

Average prices computed after cash effect of settlement of derivative contracts:

               
Oil (per Bbl)    

$

71.84

 

 

 

 

$

71.91

   
NGLs (per Bbl)    

$

36.04

 

 

 

 

$

38.15

   
Natural gas (per Mcf)    

$

4.11

 

 

 

 

$

4.63

   
Total per Boe    

$

48.29

 

 

 

 

$

49.74

   
                 
Cash expenses (per Boe):                
Oil and natural gas production taxes    

$

2.65

 

 

 

 

$

2.73

   
Oil and natural gas production expenses    

$

15.78

 

 

 

 

$

14.87

   
General and administrative    

$

7.27

 

 

 

 

$

6.96

   
Interest    

$

8.67

 

 

 

 

$

8.17

   
Taxes    

$

0.91

 

 

 

 

$

0.51

   
Total per Boe    

$

35.28

 

 

 

 

$

33.24

   
                 
Cash Flow per Boe    

$

13.01

 

 

 

 

$

16.50

   

RAM Energy Resources, Inc.
Modified EBITDA, Free Cash Flow and Adjusted Net Income
(non-GAAP measures)
(unaudited)

Non-GAAP Financial Measures

Modified EBITDA, a non-GAAP measure, is determined by adding the following to net income (loss): interest expense, income taxes, depreciation, amortization, accretion, share-based compensation, impairment charges, unrealized gains or losses on derivatives and legal settlement changes. Free cash flow is also a non-GAAP measure representing Modified EBITDA after adjustments for the cash portion of interest and income taxes. Adjusted net income is a non-GAAP measure which excludes the income tax affected impact of unrealized derivative gains or losses, MTM settlement charges and impairment charges on GAAP income. These non-GAAP measures are presented because management believes it is a useful adjunct to cash provided by operating activities under accounting principles generally accepted in the United States (GAAP). These non-GAAP measures are widely accepted as financial indicators of an oil and gas company's ability to generate cash used to internally fund exploration and development activities and fund debt service costs. These non-GAAP measures are not a measure of financial performance under GAAP and should not be considered as an alternative to cash provided (used) by operating, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity.

000s, except per share amounts
   

3 Mos Ended

 

3 Mos Ended

 

 

 

6 Mos Ended

 

6 Mos Ended

 

 

6/30/2010

 

6/30/2009

 

 

 

6/30/2010

 

6/30/2009

                     
Modified EBITDA:                    
Net income (loss)  

$

2,729

 

 

$

(13,285

)

 

 

 

$

5,147

 

 

$

(42,643

)

Plus: Interest expense  

$

4,414

 

 

$

3,216

 

 

 

 

$

8,762

 

 

$

6,525

 
Plus: PIK interest  

$

778

 

 

$

43

 

 

 

 

$

1,543

 

 

$

43

 
Plus: Amortization of deferred loan costs  

$

522

 

 

$

342

 

 

 

 

$

1,044

 

 

$

641

 
Plus: Depreciation, amortization and accretion  

$

7,345

 

 

$

8,718

 

 

 

 

$

14,441

 

 

$

17,404

 
Plus: Share-based compensation  

$

785

 

 

$

552

 

 

 

 

$

1,471

 

 

$

1,093

 
Plus: Income tax provision (benefit)   $

(1,140

)

 

$

(3,055

)

 

 

 

$

655

 

 

$

(23,848

)
Plus: Legal settlement changes  

$

(550

)

 

$

-

 

 

 

 

$

(550

)

 

$

448

 
Plus: Impairment charges  

$

-

 

 

$

-

 

 

 

 

$

-

 

 

$

47,613

 
Less: Unrealized (gain) loss on derivatives  

$

(2,419

)

 

$

23,795

 

 

 

 

$

(4,354

)

 

$

24,802

 
                     
Modified EBITDA  

$

12,464

 

 

$

20,326

 

 

 

 

$

28,159

 

 

$

32,078

 
                     
Less:                    
                     
Cash paid for interest  

$

4,760

 

 

$

3,338

 

 

 

 

$

9,107

 

 

$

6,788

 
Cash paid for income tax  

$

501

 

 

$

121

 

 

 

 

$

565

 

 

$

270

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow  

$

7,203

 

 

$

16,867

 

 

 

 

$

18,487

 

 

$

25,020

 
                     
Weighted average shares outstanding - basic    

78,446

 

 

 

74,696

 

 

 

 

 

78,223

 

 

 

75,986

 
Weighted average shares outstanding - diluted    

78,446

 

 

 

74,696

 

 

 

 

 

78,223

 

 

 

75,986

 
                     
Free cash flow per share - basic  

$

0.09

 

 

$

0.23

 

 

 

 

$

0.24

 

 

$

0.33

 
Free cash flow per share - diluted  

$

0.09

 

 

$

0.23

 

 

 

 

$

0.24

 

 

$

0.33

 
                     
Adjusted net income: (1)                    
Net income (loss)  

$

2,729

 

 

$

(13,285

)

 

 

 

$

5,147

 

 

$

(42,643

)

                     
Plus: Tax affected impairment charge  

$

-

 

 

$

-

 

 

 

 

$

-

 

 

$

30,327

 
                     
Plus: Tax affected legal changes  

$

(341

)

 

$

-

 

 

 

 

$

(341

)

 

$

278

 
                     
Plus: Tax affected unrealized (gain)loss on derivatives  

$

(1,499

)

 

$

14,753

 

 

 

 

$

(2,699

)

 

$

15,377

 
                     
Adjusted net income  

$

889

 

 

$

1,468

 

 

 

 

$

2,107

 

 

$

3,339

 
                     
Weighted average shares outstanding - basic    

78,446

 

 

 

74,696

 

 

 

 

 

78,223

 

 

 

75,986

 
Weighted average shares outstanding - diluted    

78,446

 

 

 

74,696

 

 

 

 

 

78,223

 

 

 

75,986

 
                     
Adjusted net income per share - basic  

$

0.01

 

 

$

0.02

 

 

 

 

$

0.03

 

 

$

0.04

 
Adjusted net income per share - diluted  

$

0.01

 

 

$

0.02

 

 

 

 

$

0.03

 

 

$

0.04

 
 

(1) Comparability between years is partially compromised due to the differing tax rates associated with each period.

SOURCE: RAM Energy Resources, Inc.

RAM Energy Resources, Inc.
Robert E. Phaneuf, 918-632-0680
Vice President - Corporate Development


Close window | Back to top

Copyright 2017 Halcón Resources Corporation