Attached files
| file | filename |
|---|---|
| 8-K - BLACK RIDGE OIL & GAS - Sow Good Inc. | brog_8k-081214.htm |
| EX-99.2 - POWERPOINT SLIDES - Sow Good Inc. | brog_8k-ex9902.htm |
Exhibit 99.1
Black Ridge Oil & Gas Announces Second Quarter 2014
Financial and Operational Results
Record Production of 715 BOEPD, Record Quarterly Oil and Gas Sales of $5.6 Million, and
Record Adjusted EBITDA of $3.6 Million
Record Setting Results Lead to Strongest Operational Quarter in Black Ridge Oil & Gas History
MINNETONKA, MN – August 12, 2014 – Black Ridge Oil & Gas, Inc. (“the Company”) (OTCQB: ANFC), a growth-oriented exploration and production (E&P) company focused on non-operated Bakken and Three Forks properties, today announced financial and operating results for the quarter ended June 30, 2014.
Second Quarter 2014 Highlights
| · | Record quarterly production averaged 715 barrels of oil equivalent per day (“Boe/d”), representing 153% growth compared to the second quarter of 2013, and 36% growth compared to the first quarter of 2014; |
| · | Adjusted EBITDA increased to a record $3.6 million, representing a 194% increase compared to $1.2 million for the second quarter of 2013, and a 52% increase compared to the first quarter of 2014; |
| · | Record oil and gas sales, excluding the effect of derivatives, totaled $5.6 million, representing 158% growth compared to the second quarter of 2013; |
| · | Reduced G&A expenses to $9.75/Boe compared to $22.80/Boe in the second quarter of 2013, representing a 57% decrease; |
| · | Participated in the completion of 19 gross (0.77 net) wells, resulting in a total of 207 gross (6.28 net) producing wells as of June 30, 2014, representing an increase of 123%, on a net well basis, compared to the second quarter of 2013; |
| · | As of June 30, 2014, the Company was participating in an additional 47 gross (1.64 net) wells that were preparing to drill, drilling, awaiting completion or completing. |
Management Comment
“The second quarter of 2014 was our strongest in the history of the Company. Our disciplined focus on identifying and developing acreage in the core of the Williston Basin resulted in robust production growth, particularly from our Stockyard Creek prospect,” commented Black Ridge’s Chief Executive Officer Ken DeCubellis. “Across the basin, we see operating partners hone in on best practices for completion design, leading to stronger well economics. As we look to the remainder of 2014 and into 2015, we are excited about the quality of wells in our development pipeline, highlighted by a five gross (0.63 net) well Mandaree prospect in the prolific Antelope area of McKenzie County that we expect to begin producing in the fourth quarter of 2014.”
| 1 |
Second Quarter 2014 Operating and Financial Results
The following table presents selected operating and financial data for the periods indicated.
| Three Months Ended | ||||||||||||
| June 30, | ||||||||||||
| 2014 | 2013 | % Change | ||||||||||
| Net Production: | ||||||||||||
| Oil (Bbl) | 58,812 | 23,663 | 149 | |||||||||
| Natural Gas (Mcf) | 37,482 | 12,465 | 201 | |||||||||
| Barrel of Oil Equivalent (Boe) | 65,059 | 25,741 | 153 | |||||||||
| Average Daily Production (Boe/d) | 715 | 283 | 153 | |||||||||
| Average Sales Prices: | ||||||||||||
| Oil (per Bbl) | $ | 91.27 | $ | 88.02 | 4 | |||||||
| Effect of oil hedges on average price (per Bbl) | $ | (4.47 | ) | $ | – | |||||||
| Oil net of hedging (per Bbl) | $ | 86.80 | $ | 88.02 | (1 | ) | ||||||
| Natural Gas (per Mcf) | $ | 4.97 | $ | 5.48 | (9 | ) | ||||||
| Effect of natural gas hedges on average price (per Mcf) | $ | – | $ | – | ||||||||
| Natural gas net of hedging (per Mcf) | $ | 4.97 | $ | 5.48 | (9 | ) | ||||||
| Per Boe including settled derivatives | $ | 81.33 | $ | 83.56 | (3 | ) | ||||||
| Operating Expenses (per Boe): | ||||||||||||
| Production Expenses | $ | 9.15 | $ | 10.47 | (13 | ) | ||||||
| Production Taxes | $ | 9.09 | $ | 9.03 | 1 | |||||||
| G&A Expense | $ | 9.75 | $ | 22.08 | (57 | ) | ||||||
| Depletion, Depreciation, Amortization and Accretion | $ | 32.97 | $ | 34.04 | (3 | ) | ||||||
Second Quarter 2014 Operational Results
Production for the second quarter of 2014 totaled 65.1 thousand barrels of oil equivalent (“MBoe”), averaging a record 715 Boe/d, representing 153% growth over the second quarter of 2013 and 36% growth over the first quarter of 2014 on a Boe/d basis.
Throughout the second quarter of 2014, the Company participated in the completion of 19 gross (0.77 net) wells compared to 8 gross (0.23 net) wells in the second quarter of 2013. Well additions were driven by development in the Stockyard Creek prospect.
As of June 30, 2014, the Company had participated in a total of 207 gross (6.28 net) producing wells compared to 81 gross (2.82 net) wells in the second quarter of 2013, representing an increase of 123% on a net well basis.
In addition to the 6.28 net producing wells, the Company owned working interests in 47 gross (1.64 net) wells that were preparing to drill, drilling, awaiting completion, or completing as of June 30, 2014.
The Company controlled approximately 10,000 net mineral acres prospective for the Bakken and Three Forks formations in North Dakota and eastern Montana as of June 30, 2014.
| 2 |
Second Quarter 2014 Financial Results
Oil and gas sales, which exclude the effect of derivatives, totaled $5.6 million for the second quarter of 2014, representing 158% growth over the second quarter of 2013 and 38% growth over the first quarter of 2014. The increase over the second quarter of 2013 was driven primarily by the 153% growth in production.
For the second quarter of 2014, the Company realized a loss on settled derivatives of $0.3 million. The company realized a non-cash mark-to-market loss on unsettled derivatives of $0.9 million. The Company had no derivatives in place for the second quarter of 2013.
For the second quarter of 2014, the Company’s realized oil price was $91.27 per barrel of oil before the effect of settled derivatives. The Company’s realized price was 11% per barrel below the NYMEX WTI benchmark in the second quarter of 2014. For the second quarter of 2014, the Company’s realized price for natural gas, including natural gas liquids, was $4.97 per MCF, a 9% decrease compared to $5.48 per MCF in the second quarter of 2013. The realized price on a per BOE basis, including settled derivatives, was $81.33, a decrease of 3% compared to the second quarter of 2013 and a decrease of 2% compared to the first quarter of 2014.
Production expenses increased to $596 thousand in the second quarter of 2014 compared to $269 thousand in the second quarter of 2013, driven primarily by the Company’s production growth. On a per unit basis, this equated to a 13% decrease in production expenses to $9.15/Boe in the second quarter of 2014 from $10.47/Boe in the second quarter of 2013.
Production taxes increased to $592 thousand in the second quarter of 2014 from $233 thousand in the second quarter of 2013, driven primarily by increased production. For the second quarter of 2014, production taxes averaged 10.7% of oil and gas sales compared to 10.8% for the second quarter of 2013.
General and administrative (“G&A”) expenses increased to $634 thousand for the second quarter of 2014 from $587 thousand for the second quarter of 2013. On a per Boe basis, G&A expenses averaged $9.75/Boe for the second quarter of 2014, representing a 57% decrease from $22.80/Boe in the second quarter of 2013 and a decrease of 40% from $16.33/Boe in the first quarter of 2014. The decrease in G&A expenses per Boe is due to production gains exceeding increases in G&A expenses.
Depletion, depreciation, amortization, and accretion (“DD&A”) totaled $2.1 million in the second quarter of 2014, an increase of 145% as compared to $0.9 million in the second quarter of 2013. Depletion expense, the largest component of DD&A, was $32.76/Boe in the second quarter of 2014, representing a decrease of 3% as compared to $33.75/Boe in the second quarter of 2013.
Interest expense in the second quarter of 2014 totaled $1.3 million as compared to $0.6 million in the second quarter of 2013, primarily driven by increased borrowings as the Company financed acquisitions and well development.
Income tax benefit in the second quarter of 2014 was $306 thousand, an increase of 229% as compared to $93 thousand in the second quarter of 2013, and an increase of 8% compared to $284 thousand in the first quarter of 2014. The increase was primarily driven by the Company’s loss before provision for income taxes.
The Company reported net loss attributable to common stockholders of $543 thousand, or $(0.01) per basic and diluted common share for the second quarter of 2014 as compared to net loss of $297 thousand, or ($0.01) per basic and diluted common share for the second quarter of 2013.
The Company recorded adjusted EBITDA of $3.6 million in the second quarter of 2014, an increase of 194% compared to adjusted EBITDA of $1.2 million in the second quarter of 2013 and an increase of 52% compared to $2.4 million in the first quarter of 2014. Adjusted EBITDA is a non-GAAP financial measure. Please refer to the reconciliation in this release for additional information about this measure.
| 3 |
Liquidity Position
The Company ended the second quarter of 2014 with $44.1 million drawn on its Senior and Subordinate Credit Facilities. As of June 30, 2014, total availability under the two facilities was $55 million. The Company expects a redetermination of the Senior Credit Facility borrowing base in August 2014. The Company expects to fund future development through operating cash flow and additional borrowings from the existing credit facilities.
Well Update
Producing Wells: The following table sets forth Bakken and Three Forks wells in which Black Ridge holds a participating interest that were completed or acquired during the quarter ending June 30, 2014.
| Well | Operator | Location | WI(1) |
| Dorothy 3-27HST | SM Energy | Divide, ND | 12.2% |
| Matilda Bay 2-15H | Slawson | Williams, ND | 10.0% |
| E Rennerfeldt 1-13H | Slawson | Williams, ND | 8.2% |
| E Rennerfeldt 2-13H | Slawson | Williams, ND | 8.2% |
| Inga Federal 41X-29C | XTO | Dunn, ND | 7.9% |
| Inga Federal 41X-29D | XTO | Dunn, ND | 7.9% |
| Inga Federal 41X-29H | XTO | Dunn, ND | 7.9% |
| Vincent Trust 16-21HS | SM Energy | Divide, ND | 3.1% |
| Margaret 5-8 #3TFH-R | Statoil | McKenzie, ND | 2.0% |
| Margaret 5-8 #5TFH | Statoil | McKenzie, ND | 2.0% |
| CCU Burner 41-26MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Burner 41-26TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Corral Creek 11-28TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Four Aces 14-21TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU North Coast 11-25TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Red River 24-9MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Red River 34-9MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Red River 34-9TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU William 44-20MBH | Burlington Resources | Dunn, ND | 0.8% |
| (1) | The working interests are based on Black Ridge’s internal records and may be subject to change by operators' third-party legal counsel in preparing final division order title opinions for each well. |
| 4 |
“Drilling” Wells: The following table sets forth Bakken and Three Forks wells in which Black Ridge holds a participating interest that are either preparing to drill, drilling, awaiting completion or completing as of June 30, 2014.
| Well | Operator | Location | WI(1) |
| Mandaree 110-05H | EOG | McKenzie, ND | 12.5% |
| Mandaree 134-05H | EOG | McKenzie, ND | 12.5% |
| Mandaree 135-05H | EOG | McKenzie, ND | 12.5% |
| Mandaree 17-05H | EOG | McKenzie, ND | 12.5% |
| Mandaree 28-05H | EOG | McKenzie, ND | 12.5% |
| Bootleg 4-14-15TFH | Slawson | Williams, ND | 11.3% |
| Bootleg 5-14-15TFH | Slawson | Williams, ND | 11.3% |
| Bootleg 6-14-15TFH | Slawson | Williams, ND | 11.3% |
| Bootleg 7-14-15TFH | Slawson | Williams, ND | 11.3% |
| Matilda Bay 1-15H | Slawson | Williams, ND | 10.0% |
| Wallace 1-6H | Continental | Williams, ND | 8.5% |
| Ironbank 4-14-13TFH | Slawson | Williams, ND | 5.4% |
| Ironbank 5-14-13TFH | Slawson | Williams, ND | 5.4% |
| Gladys 1-20H | Continental | Williams, ND | 2.0% |
| CCU Corral Creek 11-28MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Corral Creek 21-28TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Corral Creek 31-28MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Corral Creek 31-28TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Four Aces 24-21MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Four Aces 24-21TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Four Aces 34-21MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Four Aces 34-21TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Olympian 11-2MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Olympian 11-2TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Olympian 21-2TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Olympian 44-35MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Olympian 44-35TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Powell 41-29MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Powell 41-29TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 1-8-7TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 2-8-7MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 3-8-7MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 3-8-7TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 5-8-7MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 5-8-7TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 6-8-7MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 7-8-7MBH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 7-8-7TFH | Burlington Resources | Dunn, ND | 0.8% |
| CCU Pullman 8-8-7TFH | Burlington Resources | Dunn, ND | 0.8% |
| Jersey 23-6H1 | Continental | Mountrail, ND | 0.8% |
| Jersey 24-6H3 | Continental | Mountrail, ND | 0.8% |
| Jersey 25-6H | Continental | Mountrail, ND | 0.8% |
| Jersey 26-6H2 | Continental | Mountrail, ND | 0.8% |
| Jersey 27-6H1 | Continental | Mountrail, ND | 0.8% |
| Jersey 28-6H3 | Continental | Mountrail, ND | 0.8% |
| Jersey 29-6XH | Continental | Mountrail, ND | 0.8% |
| Bock Federal 44-7PH | Whiting | Stark, ND | 0.6% |
| (1) | The working interests are based on Black Ridge’s internal records and may be subject to change by operators' third-party legal counsel in preparing final division order title opinions for each well. |
| 5 |
Non-GAAP Financial Measures
In addition to reporting net income (loss) as defined under GAAP, we also present Adjusted Net Income (Loss) and Adjusted EBITDA. We define Adjusted Net Income (Loss) as net income, excluding net losses on the mark-to-market of derivatives, net of tax. We define Adjusted EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) accretion of abandonment liability, (v) losses on the mark-to-market of derivatives, and (vi) non-cash expenses relating to share based payments recognized under ASC Topic 718. We believe the use of non-GAAP financial measures provides useful information to investors regarding our current financial performance; however, Adjusted Net Income (Loss) and Adjusted EBITDA do not represent, and should not be considered alternatives to GAAP measurements. We believe these measures are useful in evaluating our fundamental core operating performance. Specifically, we believe the non-GAAP Adjusted Net Income (Loss) and Adjusted EBITDA results provide useful information to both management and investors by excluding certain income and expenses that our management believes are not indicative of our core operating results. Although we use Adjusted Net Income (Loss) and Adjusted EBITDA to manage our business, including the preparation of our annual operating budget and financial projections, we believe that non-GAAP financial measures have limitations and do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. A reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to Net Income, GAAP, is included below:
BLACK RIDGE OIL & GAS, INC.
RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net Income (Loss) | $ | (543,360 | ) | $ | (297,300 | ) | $ | (924,920 | ) | $ | 16,513 | |||||
| Add back: | ||||||||||||||||
| Loss on mark-to-market of derivatives, net of tax (a) | 555,124 | – | 690,159 | – | ||||||||||||
| Adjusted Net Income (Loss) | $ | 11,764 | $ | (297,300 | ) | $ | (234,761 | ) | $ | 16,513 | ||||||
| Weighted average common shares outstanding - basic | 47,979,990 | 47,979,990 | 47,979,990 | 47,979,990 | ||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,979,990 | 47,979,990 | 47,979,990 | 48,540,032 | ||||||||||||
| Net income (loss) per common share - basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.00 | |||||
| Subtract: | ||||||||||||||||
| Change due to loss on mark-to- market of derivatives, net of tax | 0.01 | – | 0.01 | – | ||||||||||||
| Adjusted Net Income (loss) per common share - basic | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | ||||||
| Net income (loss) per common share - fully diluted | (0.01 | ) | (0.01 | ) | (0.02 | ) | $ | 0.00 | ||||||||
| Subtract: | ||||||||||||||||
| Change due to loss on mark-to- market of derivatives, net of tax | 0.01 | – | 0.01 | – | ||||||||||||
| Adjusted Net Income (Loss) per common share - fully diluted | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | ||||||
(a)Adjusted to reflect tax expense, computed based on our effective tax rate of approximately 37%, of $326,000 and $405,000 for the three and six months ended June 30, 2014, respectively.
| 6 |
BLACK RIDGE OIL & GAS, INC.
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net Income (loss) | $ | (543,360 | ) | $ | (297,300 | ) | $ | (924,920 | ) | $ | 16,513 | |||||
| Add Back: | ||||||||||||||||
| Interest Expense, net, excluding amortization of warrant based financing costs | 1,136,603 | 520,284 | 2,065,981 | 743,056 | ||||||||||||
| Income Tax Provision | (305,715 | ) | (92,913 | ) | (589,738 | ) | (526,701 | ) | ||||||||
| Depreciation, Depletion, and Amortization | 2,139,733 | 874,474 | 3,734,590 | 1,580,010 | ||||||||||||
| Accretion of Abandonment Liability | 5,148 | 1,811 | 9,653 | 2,963 | ||||||||||||
| Share Based Compensation | 301,241 | 223,145 | 599,003 | 395,598 | ||||||||||||
| Loss on mark-to market of derivatives | 881,124 | – | 1,095,159 | – | ||||||||||||
| Adjusted EBITDA | $ | 3,614,774 | $ | 1,229,501 | $ | 5,989,728 | $ | 2,211,439 | ||||||||
Financial and Statistical Data Tables
Following are the financial highlights for the comparative three and six month period ended June 30, 2014 and 2013. The following information is based on GAAP reported earnings, with additional required disclosures included in the Company's Form 10-Q:
| 7 |
BLACK RIDGE OIL & GAS, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
| June 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 84,415 | $ | 1,150,347 | ||||
| Accounts receivable | 4,740,795 | 1,905,467 | ||||||
| Advances to operators | 2,560,046 | 1,214,662 | ||||||
| Prepaid expenses | 41,954 | 26,142 | ||||||
| Total current assets | 7,427,210 | 4,296,618 | ||||||
| Property and equipment: | ||||||||
| Oil and natural gas properties, full cost method of accounting: | ||||||||
| Proved properties | 91,749,159 | 79,361,432 | ||||||
| Unproved properties | 2,855,106 | 2,798,795 | ||||||
| Other property and equipment | 126,613 | 115,482 | ||||||
| Total property and equipment | 94,730,878 | 82,275,709 | ||||||
| Less, accumulated depreciation, amortization, depletion and allowance for impairment | (13,248,024 | ) | (9,513,434 | ) | ||||
| Total property and equipment, net | 81,482,854 | 72,762,275 | ||||||
| Debt issuance costs, net | 682,358 | 772,883 | ||||||
| Total assets | $ | 89,592,422 | $ | 77,831,776 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,543,446 | $ | 8,453,709 | ||||
| Accrued expenses | 62,853 | 4,813 | ||||||
| Current portion of derivative instruments | 940,926 | 139,065 | ||||||
| Total current liabilities | 9,547,225 | 8,597,587 | ||||||
| Derivative instruments | 367,909 | 74,611 | ||||||
| Asset retirement obligations | 211,030 | 160,665 | ||||||
| Revolving credit facilities and long term debt, net of discounts of $2,475,252 and $2,645,582, respectively | 42,249,343 | 30,556,301 | ||||||
| Deferred tax liability | 3,444,107 | 4,033,845 | ||||||
| Total liabilities | 55,819,614 | 43,423,009 | ||||||
| Commitments and contingencies (See note 15) | – | – | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding | – | – | ||||||
| Common stock, $0.001 par value, 500,000,000 shares authorized, 47,979,990 shares issued and outstanding | 47,980 | 47,980 | ||||||
| Additional paid-in capital | 33,361,756 | 33,072,795 | ||||||
| Retained earnings | 363,072 | 1,287,992 | ||||||
| Total stockholders' equity | 33,772,808 | 34,408,767 | ||||||
| Total liabilities and stockholders' equity | $ | 89,592,422 | $ | 77,831,776 | ||||
| 8 |
BLACK RIDGE OIL & GAS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Oil and gas sales | $ | 5,553,997 | $ | 2,151,001 | $ | 9,584,417 | $ | 4,062,300 | ||||||||
| Loss on settled derivatives | (262,719 | ) | – | (378,882 | ) | – | ||||||||||
| Loss on the mark-to-market of derivatives | (881,124 | ) | – | (1,095,159 | ) | – | ||||||||||
| Total revenues | 4,410,154 | 2,151,001 | 8,110,376 | 4,062,300 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Production expenses | 595,591 | 269,461 | 1,103,054 | 538,267 | ||||||||||||
| Production taxes | 591,525 | 232,528 | 996,832 | 451,870 | ||||||||||||
| General and administrative | 634,109 | 586,860 | 1,404,882 | 1,190,438 | ||||||||||||
| Depletion of oil and gas properties | 2,131,545 | 868,663 | 3,718,477 | 1,568,388 | ||||||||||||
| Accretion of discount on asset retirement obligations | 5,148 | 1,811 | 9,653 | 2,963 | ||||||||||||
| Depreciation and amortization | 8,188 | 5,811 | 16,113 | 11,622 | ||||||||||||
| Total operating expenses | 3,966,106 | 1,965,134 | 7,249,011 | 3,763,548 | ||||||||||||
| Net operating income (loss) | 444,048 | 185,867 | 861,365 | 298,752 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | – | 73 | – | 193 | ||||||||||||
| Interest (expense) | (1,293,123 | ) | (576,153 | ) | (2,376,023 | ) | (809,133 | ) | ||||||||
| Total other income (expense) | (1,293,123 | ) | (576,080 | ) | (2,376,023 | ) | (808,940 | ) | ||||||||
| Loss before provision for income taxes | (849,075 | ) | (390,213 | ) | (1,514,658 | ) | (510,188 | ) | ||||||||
| Provision for income taxes | 305,715 | 92,913 | 589,738 | 526,701 | ||||||||||||
| Net income (loss) | $ | (543,360 | ) | $ | (297,300 | ) | $ | (924,920 | ) | $ | 16,513 | |||||
| Weighted average common shares outstanding - basic | 47,979,990 | 47,979,990 | 47,979,990 | 47,979,990 | ||||||||||||
| Weighted average common shares outstanding - fully diluted | 47,979,990 | 47,979,990 | 47,979,990 | 48,540,032 | ||||||||||||
| Net income (loss) per common share - basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.00 | |||||
| Net income (loss) per common share - fully diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.00 | |||||
| 9 |
BLACK RIDGE OIL & GAS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Six Months | ||||||||
| Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | (924,920 | ) | $ | 16,513 | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depletion of oil and gas properties | 3,718,477 | 1,568,388 | ||||||
| Depreciation and amortization | 16,113 | 11,622 | ||||||
| Amortization of debt issuance costs | 145,307 | 399,654 | ||||||
| Accretion of discount on asset retirement obligations | 9,653 | 2,963 | ||||||
| Loss on the mark-to-market of derivatives | 1,095,159 | – | ||||||
| Accrued payment in kind interest applied to long term debt | 472,712 | – | ||||||
| Amortization of original issue discount on debt | 60,288 | – | ||||||
| Amortization of debt discounts, warrants | 310,042 | – | ||||||
| Common stock warrants granted as financing costs | – | 65,884 | ||||||
| Common stock options issued to employees and directors | 288,961 | 329,714 | ||||||
| Deferred income taxes | (589,738 | ) | (526,701 | ) | ||||
| Decrease (increase) in current assets: | ||||||||
| Accounts receivable | (2,835,328 | ) | (911,092 | ) | ||||
| Prepaid expenses | (15,812 | ) | 17,798 | |||||
| Increase (decrease) in current liabilities: | ||||||||
| Accounts payable | 203,177 | (14,833 | ) | |||||
| Accrued expenses | 58,040 | 52,517 | ||||||
| Net cash provided by operating activities | 2,012,131 | 1,012,427 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Proceeds from sale or swap of oil and gas properties | 1,360,920 | 343,486 | ||||||
| Purchases of oil and gas properties and development capital expenditures | (11,731,981 | ) | (2,675,398 | ) | ||||
| Advances to operators | (3,491,089 | ) | (615,370 | ) | ||||
| Purchases of other property and equipment | (11,131 | ) | – | |||||
| Net cash used in investing activities | (13,873,281 | ) | (2,947,282 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Advances from revolving credit facilities and long term debt | 18,700,000 | 4,300,000 | ||||||
| Repayments on revolving credit facilities | (7,850,000 | ) | (2,185,006 | ) | ||||
| Debt issuance costs | (54,782 | ) | (25,000 | ) | ||||
| Net cash provided by financing activities | 10,795,218 | 2,089,994 | ||||||
| NET CHANGE IN CASH | (1,065,932 | ) | 155,139 | |||||
| CASH AT BEGINNING OF PERIOD | 1,150,347 | 1,417,340 | ||||||
| CASH AT END OF PERIOD | $ | 84,415 | $ | 1,572,479 | ||||
| SUPPLEMENTAL INFORMATION: | ||||||||
| Interest paid | $ | 1,457,540 | $ | 275,920 | ||||
| Income taxes paid | $ | – | $ | – | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Net change in accounts payable for purchase of oil and gas properties | $ | (98,778 | ) | $ | 2,198,196 | |||
| Advances to operators received in swap for oil and gas properties | $ | – | $ | (1,200,000 | ) | |||
| Advances to operators applied to development of oil and gas properties | $ | 2,131,043 | $ | 1,592,306 | ||||
| Capitalized asset retirement costs, net of revision in estimate | $ | 40,712 | $ | 2,494 | ||||
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Cautionary Statement as to Forward-Looking Statements
Certain statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. These statements may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Black Ridge Oil & Gas current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, volatility in commodity prices for crude oil and natural gas, environmental risks, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital or have access to debt financing, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, increases in operator costs, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices and other risks inherent in the Company's businesses that are detailed in the Company's Securities and Exchange Commission ("SEC") filings. Readers are encouraged to review these risks in the Company's SEC filings.
Upcoming Conference Presentation Schedule
Black Ridge Oil & Gas plans to present at the following energy conferences and investor events:
EnerCom’s The Oil & Gas Conference® 19
August 19, 2014 at 2:20 PM MDT / 3:20 PM CDT
Denver, CO
Following the presentation, a webcast will be available on the Company’s website at www.blackridgeoil.com or at http://www.oilandgas360.com/togc-webcast/anfc/.
IPAA OGIS
September 22, 2014 at 3:10 PM PDT / 5:10 PM CDT
San Francisco, CA
About Black Ridge Oil & Gas
Black Ridge Oil & Gas is a growth-oriented oil and gas exploration and production company based in Minnetonka, Minnesota. Black Ridge's focus is exclusive to the Williston Basin Bakken and Three Forks trend in North Dakota and Montana. Black Ridge Oil & Gas controls approximately 10,000 net acres prospective for Bakken and/or Three Forks development. For additional information, visit the Company's website at www.blackridgeoil.com.
To receive timely information on Black Ridge Oil & Gas when it hits the newswire, sign up for Black Ridge's email news alert system today at http://ir.stockpr.com/blackridgeoil/email-alerts.
Contact:
Brenda Blume
Director of Investor and Public Relations
952-582-4303
brenda.blume@blackridgeoil.com
Ken DeCubellis
Chief Executive Officer
952-426-1241
ken.decubellis@blackridgeoil.com
Source: Black Ridge Oil & Gas, Inc.
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