DENVER, CO--(Marketwired - Jun 13, 2013) - EARTHSTONE ENERGY, INC. (
"It was a difficult year when we compare our results of operations year over year. Not surprising when we consider that this was a year of refocus and reinvestment in ourselves," commented Ray Singleton, President of Earthstone Energy. "As a result of the sale of our Colorado properties in the fourth fiscal quarter of 2012, this year's production has lagged, when compared to the prior year. However, with the redeployment of the capital from the Colorado sale into North Dakota, the recent positive contribution of our new Bakken properties has stabilized production levels. Certainly declining oil prices, coupled with increased depletion expense, have impacted us negatively. As expected, our G&A costs increased as we continue towards and reposition our staff to assume operations in Nebraska.
Contrasting these results, there are a number of bright spots. First, the impact of our Bakken strategy is finally becoming visible when comparing the unaudited results of our fourth quarter versus the trailing third quarter. With both oil production and prices increasing 4% and 11%, respectively, our revenues have increased nearly 20%. This has yielded over a 75% increase in net income over the prior quarter. With our increased activity in the horizontal Bakken play in North Dakota, our capital deployment on drilling, completion and acquisitions increased by $4.6 million (59%) this year. This led to a 119% increase in BOE reserves. New well completions, undertaken during the spring, are now being reported by our partners in the Bakken which are expected to add to our oil production this fiscal year. And, Nebraska! We are certainly intrigued by what we see there. With operations there to commence by mid-summer we are excited by what we may discover."
Singleton further stated, "Looking forward, we expect to see a continuation of last year's level of efforts, expenditures and growth. We have seen a new batch of drilling proposals as our partners begin to execute on their 2013 capital budgets. The timing of drilling operations is at the discretion of the respective operators, and we cannot foresee what the remainder of the fiscal year holds. However, in the Banks field, we believe that we will encounter the same level of activity we experienced last year. As in the past, we intend to continue to participate in new wells proposed by other companies that "pool" or "space" our leasehold rights within spacing units they operate."
"Our goal is to grow. We have seen our strategy yield an increase in our reserves and believe that production increases are soon to follow. We believe that our previous decisions have positioned us to capitalize on the opportunities that we are now seeing. We are optimistic that our current efforts will continue to position us in areas that will have a significant, positive impact on our continued growth."
ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is a growth-oriented independent oil and gas exploration and production company with primary operations in the Williston Basin and south Texas. Earthstone is currently traded on NYSE MKT under the symbol ESTE. Information on Earthstone can be found at its web site: www.earthstoneenergy.com
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements, which can be identified by words such as: "should", "may", "intend", "will", "anticipate", "plan", "expect", "estimate", "continue", "believe,", or other comparable words. Forward-looking statements also include comments regarding reserve additions, production increases, success of drilling projects, assumptions regarding future success or the success of certain strategies. Factors that could cause actual results to differ materially include price volatility of oil and gas, economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone Energy's filings with the Securities and Exchange Commission particularly the Company's Annual Report on Form 10-K filed for the year ended March 31, 2012. The Company disclaims any obligation to update forward-looking statements.
|Year Ended March 31|
|Basic net income per share||$||1.03||$||1.92|
|Diluted net income per share||$||1.03||$||1.92|
|Weighted avg. number of shares outstanding,|
|Weighted avg. number of shares outstanding,|