GreenHunter Resources Provides Third Quarter 2013 Operational Update

Business Wire

GRAPEVINE, Texas--(BUSINESS WIRE)--

GreenHunter Resources, Inc. (NYSE MKT:GRH) (NYSE MKT:GRH.PRC) (the “Company”), a diversified water resource, fluids management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, provided today an update on the Company’s operations including volumes of water handled and disposed during the third quarter of 2013.

Total company-wide volumes of fluids handled increased over 130% as compared to the same period last year. The volume of fluids handled increased to 1,205,000 barrels (BBL) representing a 0.4% increase compared to the three months ending June 30, 2013, even though we were operating two fewer salt water disposal (SWD) wells. One well located in the Eagle Ford was sold and one SWD well located in Oklahoma was shut-in due to a fire caused by a lightning strike.

Appalachia

During the third quarter of 2013, disposal volumes in the Company’s Appalachia region, GreenHunter’s highest margin division, were over 500,000 BBL representing an increase of more than 10% compared to the same period last year and an increase of 18% compared to the three months ending June 30, 2013. Volumes of water handled at the Company’s New Matamoras barge transloading and bulk storage facility increased 29% compared to the prior three month period ending June 30, 2013. Appalachia truck hours increased 40% during the third quarter of 2013 compared to the second quarter of 2013. Transportation billings hours in Appalachia increased 45% during the third quarter of 2013 compared to the second quarter of 2013.

South Texas

Volumes of water disposed in South Texas decreased 21% during the third quarter compared to the three months ending June 30, 2013. As reported on June 11, 2013, the Helena SWD, Karnes County property was sold for a capital gain. Meanwhile, disposal volumes at the company’s Dilley SWD, Frio County facility, which is operating near capacity, increased 3% during the third quarter compared to the second quarter. Demand for the Company’s SWD services in Frio County is robust driving plans to increase pump capacity, onsite storage tank capabilities, and the number of Company-owned and operated trucks.

Oklahoma

Oklahoma disposal volumes decreased approximately 2% during the third quarter of 2013.

                   

Quarterly Volumes of Fluids Handled

 
3Q % 4Q % 1Q % 2Q % 3Q %
2012   2012   2013   2013   2013  
 
Appalachia

455

10

716

57

492

-31

556

13

690

24

Oklahoma

67

-

107

60

267

150

102

-62

95

-7

South Texas

0

 

-

71

 

-

346

 

387

542

 

57

420

 

-23

 
Total

522

 

10

894

 

71

1,105

 

24

1,200

 

9

1,205

 

0

 

Management Comments

Commenting on GreenHunter’s third quarter operations, Jonathan D. Hoopes, Interim-CEO, President and COO of the Company, said, “Considering that we were operating during the third quarter of this year with two fewer SWD wells in our portfolio, we are very pleased with our efficiency improvements and our overall increase in water disposal volumes. The Company’s business activity in the Appalachia Region remains very robust and management is actively pursuing significant new SWD well expansion opportunities with a goal to double daily disposal capacity in this region by mid-year 2014. GreenHunter’s field operating employees have worked tirelessly to keep up with record demand. In addition, GreenHunter’s accounting team has made significant improvements toward a shorter closing schedule under the leadership of our new CFO, Ron McClung, and his team. At present, GreenHunter Water owns and operates twelve UIC Class II commercial disposal wells and the company’s annualized revenue run rate is approaching $40 million, which represents over a 100% increase from 2012 levels. We have high growth plans for the ensuing twelve months where we have identified an ever growing pipeline of new SWD and barge infrastructure development projects. Once complete, these should deliver another year of double-digit revenue growth accompanied with significant improvements in operating income.”

About GreenHunter Resources, Inc.

GreenHunter Resources provides Oilfield Fluid Management Solutions™ in the unconventional shale oil and natural gas plays. Because there is no single solution to E&P fluids management, GreenHunter’s services include fixed-facility and mobile water treatment (Frac-Cycle®), an expanding portfolio of UIC Class II Salt Water Disposal wells with advanced logistics and transport capabilities, proprietary modular above-ground storage systems (MAG Tank™), and cradle-to-grave compliance tracking technologies (RAMCAT). All of these services help oil and gas producers reduce cost and improve operating efficiency.

For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Water’s Appalachia, Eagle Ford, Mississippian Lime and Bakken SWD program, navigate to the video by clicking on “Salt Water Disposal Animation” button on the Operations tab at GreenHunterResources.com or click here.

Additional information about GreenHunter Water may be found at www.GreenHunterWater.com

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for GreenHunter Resources and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Resources undertakes no obligation to update these forward-looking statements in the future.

Contact:
GreenHunter Resources, Inc.
Jonathan D. Hoopes
Interim CEO, President and COO
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044
jhoopes@greenhunterresources.com
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