|By Marketwired .||
|March 31, 2014 09:15 AM EDT||
SAN ANTONIO, TX and DENVER, CO and KANSAS CITY, MO -- (Marketwired) -- 03/31/14 -- EnerJex Resources, Inc. (OTCQB: ENRJ) ("EnerJex" or the "Company") announced today that it has filed its SEC Form 10-K detailing the Company's results of operations for 2013. These results include the impact of EnerJex's merger with Black Raven Energy, Inc. for the fourth quarter of 2013.
Financial and Operational Highlights:
- Record production of 44,307 net barrels of oil equivalent (85% oil), a 59% increase compared to the prior year.
- Record revenue of $3.7 million, a 62% increase compared to the prior year.
Record net income attributed to EnerJex, adjusted to exclude the effect of derivative contracts or oil hedges ("Adjusted Net Income"), of $0.9 million, a 2,214% increase compared to the prior year.
- Record earnings attributed to EnerJex before interest, income tax, depreciation and amortization, adjusted to exclude the effect of derivative contracts or oil hedges ("Adjusted EBITDA"), of $1.8 million, a 324% increase compared to the prior year.
- Record production of 120,634 barrels of oil equivalent (95% oil), a 25% increase compared to the prior year.
- Record revenue of $10.9 million, a 29% increase compared to the prior year.
- Record Adjusted Net Income of $2.0 million, a 600% increase compared to the prior year.
- Record Adjusted EBITDA of $4.7 million, a 109% increase compared to the prior year.
- Drilled 48 oil wells, recompleted 4 oil wells, and drilled 45 secondary recovery water injection wells with a 100% success rate.
Reserve Report Highlights:
- Record total proved reserves of 5.8 million barrels of oil equivalent ("MMBoe"), a 98% increase compared to the prior year.
- Record proved, probable, and possible (3P) reserves of 17.2 MMBoe, a 488% increase compared to the prior year.
- Record proved PV-10 value (present value of pre-tax future net cash flow discounted at 10% per annum) of $102.4 million, a 68% increase compared to the prior year.
- Record 3P PV-10 value of $184.2 million, a 203% increase compared to the prior year.
- EnerJex's 2013 3P reserve estimates are based on an average net price of $88.28 per barrel of oil and $3.45 per thousand cubic feet of natural gas. Based on NYMEX strip pricing as of March 10, 2014, the PV-10 value of the 3P reserves attributed to the Company's Niobrara assets, which account for the majority of its 3P natural gas reserves, would increase by $22.6 million or 52% from $43.5 million to $66.1 million.
EnerJex's Board of Directors continues to investigate multiple opportunities to both unlock value and accelerate growth in an accretive manner on behalf of shareholders, including but not limited to mergers, acquisitions, joint ventures, and non-dilutive financings. There can be no assurance of the results or timing associated with this process.
EnerJex's CEO, Robert Watson, Jr., commented, "This was an exciting and transformational year for the Company as we continued to focus intensely on growing production, cash flow, and reserves in a manner that is accretive for stockholders on a per-share basis. Following its merger with Black Raven Energy, EnerJex has a multi-year drilling inventory of low-risk oil and natural gas prospects and a sizeable lease position of approximately 100,000 acres focused in the Denver-Julesburg Basin."
About EnerJex Resources, Inc.
EnerJex Resources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering approximately 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex's operations are focused in five distinct projects where the company produces oil and natural gas from shallow reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg ("DJ") Basin, EnerJex also has significant exposure to emerging oil resource plays that are being pursued by numerous competitors on trend with the Company's properties. EnerJex's headquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com.
Information on Reserves and PV-10 Value
EnerJex's reserve reports for the years ended December 31, 2013 and 2012 were prepared by MHA Petroleum Consultants, Inc. Future cash inflows relating to the Company's reserves were computed for the years ended December 31, 2013 and 2012 using the twelve month average price for oil and natural gas (the "benchmark prices") adjusted for sales contracts and price differentials. Benchmark prices are held constant in accordance with SEC guidelines for the life of the wells. PV-10 value is a non-GAAP measure and is different than the Standardized Measure of Discounted Future Net Cash Flows ("Standardized Measure"), which measure will be presented in EnerJex's upcoming Form 10-K, in that PV-10 value is a pre-tax number, while the Standardized Measure includes the effect of estimated future income taxes.
The Company's 100% working interest in its Adena Field Project is subject to a 30% reversionary working interest that will be assigned to an unrelated third party, subject to the terms and conditions of such agreement, after payout of all acquisition, operating, development, and financing costs including interest. The payout balance associated with this reversionary interest was estimated to be approximately $28 million as of December 31, 2013. The impact of this reversionary interest was not included in EnerJex's year end 2013 proved reserve estimates because the timing associated with the reversion is expected to occur more than ten years from the date of this report and the PV-10 value associated with such interest is minimal. The reversionary interest was not evaluated in the Company's probable and possible reserve estimates. EnerJex's Adena Field Project accounted for approximately 29% of the PV-10 value associated with its proved reserves and 35% of the PV-10 value associated with its 3P reserves in its year end 2013 reserve report.
EnerJex's estimate of proved, probable and possible reserves is provided in this release because management believes it is useful information that is widely used by the investment community in the valuation, comparison and analysis of companies. However, the SEC prohibits companies from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give EnerJex's current expectations or forecasts of future events. The statements in this press release regarding the completion of drilling for and commencement of operations at new wells, successful production at newly drilled wells, expected increases in overall production, the acquisition of operating assets and related agreements, any implied or perceived benefits from any current or future transaction, and any other effects resulting from any of those matters, are forward-looking statements. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of EnerJex to meet its loan covenants under the debt facility that is expected to fund the costs of the new wells and to obtain financing from other sources for continued drilling; the costs of operations; delays, and any other difficulties related to producing oil; the ability of EnerJex to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; EnerJex's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; the ability to manage and continue growth; and the ability of management to successfully integrate Black Raven. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K filed with the SEC. EnerJex undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. EnerJex's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although EnerJex believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
In addition to revenue and net income determined in accordance with GAAP, we have provided a reconciliation of our EBITDA, Adjusted EBITDA, and Adjusted Net Income in this release. These are non-GAAP financial measures that we use as supplemental measures of our performance. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should be considered as alternatives to revenue, net income, operating income or any other performance measure derived in accordance with GAAP. It should not be assumed that these non-GAAP financial measures are comparable to similarly named figures disclosed by other companies. We define EBITDA, Adjusted EBITDA, and Adjusted Net Income as net income attributed to EnerJex before the effects of the items listed in the tables below.
YEAR ENDING --------------------------------- 12/31/2013 12/31/2012 ---------------- ---------------- Net Income Attributed to EnerJex $ 1,290,453 $ 345,992 ---------------- ---------------- Interest $ 772,471 $ 302,357 ---------------- ---------------- Depreciation, Depletion, Amortization $ 1,856,660 $ 1,633,467 ---------------- ---------------- Taxes $ 0 $ 0 ================ ================ EBITDA $ 3,919,584 $ 2,281,816 ---------------- ---------------- Derivative Loss (Gain) $ 740,456 $ (55,708) ---------------- ---------------- Adjusted Net Income Attributed to EnerJex $ 2,030,909 $ 290,284 ================ ================ Adjusted EBITDA $ 4,660,040 $ 2,226,108 ---------------- ---------------- QUARTER ENDING ---------------------------------- 12/31/2013 12/31/2012 ---------------- ---------------- Net Income Attributed to EnerJex $ 1,173,734 $ (65,809) ---------------- ---------------- Interest $ 379,267 $ 43,828 ---------------- ---------------- Depreciation, Depletion, Amortization $ 509,084 $ 343,133 ---------------- ---------------- Taxes $ 0 $ 0 ================ ================ EBITDA $ 2,062,085 $ 321,152 ---------------- ---------------- Derivative Loss (Gain) $ (252,100) $ 105,645 ---------------- ---------------- Adjusted Net Income Attributed to EnerJex $ 921,634 $ 39,836 ================ ================ Adjusted EBITDA $ 1,809,985 $ 426,797 ---------------- ----------------
EnerJex Resources, Inc.
Robert Watson, Jr., CEO
Phone: (210) 451-5545
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Dec. 18, 2014 05:45 PM EST Reads: 762
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 04:00 PM EST Reads: 1,050
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 02:30 PM EST Reads: 749
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Dec. 18, 2014 02:00 PM EST Reads: 814
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
Dec. 18, 2014 12:00 PM EST Reads: 973
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 11:30 AM EST Reads: 837
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Dec. 18, 2014 11:00 AM EST Reads: 2,094
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Dec. 18, 2014 10:30 AM EST Reads: 2,228
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Dec. 18, 2014 10:30 AM EST Reads: 1,779
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Dec. 18, 2014 10:30 AM EST Reads: 1,828
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Dec. 18, 2014 10:15 AM EST Reads: 2,059
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Dec. 18, 2014 10:00 AM EST Reads: 1,871
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 18, 2014 10:00 AM EST Reads: 1,818
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
Dec. 18, 2014 10:00 AM EST Reads: 1,624