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GMX Resources Inc. Message Board

  • pocilujko pocilujko Mar 3, 2011 1:49 AM Flag

    Why the miss on earnings:

    http://finance.yahoo.com/news/GMX-RESOURCES-INC-Announces-pz-1932454851.html?x=0&.v=1

    It is right in the press Release; but GMXR didn't calculated it for you:

    "•As detailed below, non-GAAP net income available to common shareholders per share was $(0.06) "

    What wasn't highlighted was:
    " 2010 non-GAAP EPS was impacted by additional DD&A recognized in fourth quarter of 2010 due to previously announced revisions of Cotton Valley estimated proved reserves. DD&A for our oil and natural gas properties was $2.25 per Mcfe and $1.88 per Mcfe for the three months and year ended December 31, 2010 compared to $1.77 per Mcfe and $1.76 per Mcfe for the respective periods in 2009."

    Note that the DD&A expense was $2.25 per MCFE for the 4th Quarter because GMXR wrote off the Cotton Valley Reserves.
    Note if you took the Year to date $1.88 per MCF X 4 Quarters= $7,52- $2.25 = $5.27 / 3 quarters = $1.76 per MCFE for the 1st Three Quarter.

    The 4th quarter took a hit from the Reserve writedown.
    $2.25 - $1.76 = $0.49 per MCFE.

    Production for the 4th Quarter was(in the Press Release) 5,314,000 MCFE X $0.49 = $2.603,860 Higher DD&A because of writedown.

    $2,603,860 / 28,279,607 Diluted shares(in Press Release) = $0.09 per share.

    GMXR Non GAAP loss of ($0.06) + the $0.09 + a Positive $0.03 Earnings per share.


    Very Best of Luck.
    ED

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