SYS-CON MEDIA Authors: Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

News Feed Item

Emerald Oil Reports First Quarter 2014 Financial and Operational Results; Increases and Updates 2014 Guidance

DENVER, CO--(Marketwired - May 05, 2014) - Emerald Oil, Inc. (NYSE MKT: EOX) ("Emerald" or the "Company") today announced financial and operational results for the quarter ended March 31, 2014 and increased and updated guidance for 2014.

Highlights

  • First quarter of 2014 production of 225,905 BOE, an average of approximately 2,511 BOEPD, an increase of 3% compared to the fourth quarter of 2013 and 136% compared to the first quarter of 2013;
  • Reduction of per unit LOE costs during the first quarter of 2014 to approximately $11.59 per BOE, a decrease of 33% compared to the fourth quarter of 2013;
  • First quarter of 2014 Adjusted EBITDA of $9.0 million;
  • Adjusted net income attributable to common shareholders of $2.5 million or $0.04 per share (basic) for the first quarter of 2014 and net loss attributable to common shareholders of $1.7 million or $0.02 per share loss (basic);
  • Increased 2014 drilling and completion CAPEX guidance by $68 millon to $250 million which accounts for the addition of a fourth operated rig late in the third quarter of 2014;
  • Increased 2014 average production guidance to 3,700 BOEPD and 2014 exit rate guidance to 4,900 BOEPD;
  • Raised Low Rider operating area type curve assumption to 600 MBOE EUR and increased Low Rider operating area downspacing assumptions to 12 wells per drilling spacing unit;
  • Reduced Low Rider operating area well cost assumptions to $9.5 million per well

McAndrew Rudisill, Emerald's Chief Executive Officer, stated, "Despite extreme weather during the first quarter of 2014, our operations team delivered strong production growth while significantly reducing per unit operating costs quarter over quarter. The recent addition of a third drilling rig and second frac spread allowed Emerald to both initiate drilling operations in Easy Rider and to work through the backlog of wells waiting on completion in Low Rider. The third drilling rig and second frac spread position Emerald for a year of strong production growth. Accordingly, we are increasing 2014 production guidance to account for the completion acceleration and the continued strong performance of our wells in Low Rider. Adding a fourth rig to our operated program late in the third quarter of 2014 will allow us to accelerate converting undeveloped leasehold position to production, cash flow and reserves of which we will begin seeing the results in the first quarter of 2015. We are well positioned to fund the increase to our 2014 capital budget because of our recent convertible debt offering. Assuming we maintain a four rig program during 2015, we anticipate our drilling and completion budget will range between $350 - $375 million and allow us to drill approximately 38 net wells."

First Quarter 2014 Production

For the first quarter of 2014, Emerald's total production volumes on a BOE basis increased 136% as compared to the first quarter of 2013. During the first quarter of 2014, Emerald realized an $81.96 average price per Bbl of oil (including settled derivatives) compared to an $84.21 average price per Bbl of oil during the first quarter of 2013. For detailed well performance data see Emerald's corporate presentation (available on its website, www.emeraldoil.com).

                                                   Quarter Ended March 31,  
                                                 ---------------------------
                                                      2014          2013    
Sales Volume (Total)                                                        
Oil (Bbls)                                             213,978        89,112
Gas (Mcf)                                               71,561        40,195
                                                 ------------- -------------
Sales volumes (Boe)                                    225,905        95,811
                                                                            
Average Daily Sales                                                         
Oil (Bbls)                                               2,378           990
Gas (Mcf)                                                  795           447
                                                 ------------- -------------
Sales volumes (Boe)                                      2,511         1,065
                                                                            
Average Sales Prices                                                        
Oil, Net of Settled Derivatives (Bbls)           $       83.56 $       88.04
Gas (Mcf)                                                 8.86          5.55
Barrel of Oil Equivalent with Settled                                       
 Derivatives (Boe)                               $       81.96 $       84.21
                                                                            
                                                                            
2014 Guidance                                                               
                                                             Boe/d*         
                                                   -------------------------
                                                     Previous      Updated  
                                                   ------------ ------------
2Q 2014 Average                                           3,250        3,500
3Q 2014 Average                                           4,000        4,200
4Q 2014 Average                                           4,150        4,600
                                                                            
2014 Average                                              3,550        3,700
2014 Exit Rate                                            4,250        4,900
                                                                            
                                                                            

*Production guidance based on a 600 Mboe EUR for Low Rider and a 550 Mboe EUR for Easy Rider.

                                                  2014 Capital Expenditures 
                                                            ($mm)           
                                                 ---------------------------
                                                    Previous      Updated   
                                                 ------------- -------------
2014 Drilling and Completion Budget *                   $182.0        $250.0
2014 Land Budget**                                      $125.0        $150.0
Estimated Well Cost                                      $10.0          $9.5
                                                                            
Net Operated Well Count                                   18.2          25.5

*Approximately $56.0 mm of the total amount has been spent YTD
**Approximately $88.4 mm of the total amount has been spent YTD

Financial Results

Revenues from sales of oil and natural gas for the first quarter of 2014 were $19.1 million compared to $8.2 million for the first quarter of 2013. The increase is primarily due to higher production as a result of the Company's well completions and its acquisition of certain properties in its Low Rider operating area. Crude oil revenue accounted for approximately 97% of oil and natural gas sales recorded during the first quarter of 2014.

Production expenses for the first quarter of 2014 were $2.6 million, or $11.59 per BOE, a 7% increase per BOE over the first quarter of 2013 and a decrease of 33% over the fourth quarter of 2013. The Company attributes the decrease in LOE for the sequential quarters to a reduction in normal well maintenance, the majority of which consisted of replacing diesel compression and generation equipment with natural gas powered equipment, and careful monitoring of weather related effects on surface equipment.

General and administrative ("G&A") expenses for the first quarter of 2014 were $8.5 million compared to $5.4 million for the first quarter of 2013. Share-based compensation expenses are included in the employee compensation and related expenses, totaling $3.7 million in the first quarter of 2014 compared to $1.3 million in the first quarter of 2013. The increase in G&A expense is attributed primarily to the hiring of new personnel as the Company continues to expand operations. 

Adjusted EBITDA was $9.0 million for the first quarter of 2014, as compared to $2.2 million for the first quarter of 2013, reflecting a 309% increase. Adjusted Net Income was $2.5 million for the first quarter of 2014, as compared to $1.1 million for the first quarter of 2013, reflecting a 127% increase. Adjusted EBITDA and Adjusted Net Income are non-GAAP financial measures. For additional information please refer to the reconciliation of these measures at the end of this news release.

Semi-Annual Credit Facility Redetermination

Effective May 1, 2014, the Company and its lending syndicate completed the semi-annual borrowing base redetermination of its revolving credit facility. Emerald and its lenders entered into an amendment which increases the Company's borrowing base to $100 million from the previous $75 million. The facility is currently undrawn. Emerald expects the next borrowing base redetermination will take place in October of 2014.

Hedging Activity

In conjunction with its credit facility redetermination, the Company increased the hedging parameters available under the Credit Agreement, changing the notional volumes to 60% of anticipated production from proved reserves. The Company is now hedged at the maximum allowed until its scheduled October 2014 redetermination. The Company has the following outstanding commodity derivative contracts as of March 31, 2014, pro forma for additional swap contracts executed subsequent to quarter end:

Settlement Period                                  Oil (Bbls)   Fixed Price 
------------------------------------------------- ------------ -------------
Oil Swaps                                                                   
April 1, 2014 - December 31, 2014                       74,818 $       91.00
April 1, 2014 - December 31, 2014                       22,000         90.05
April 1, 2014 - December 31, 2014                       54,000         94.30
April 1, 2014 - December 31, 2014                       24,800         94.18
April 1, 2014 - December 31, 2014                      226,080         97.38
May 1, 2014 - December 31, 2014                        471,000         96.83
                                                  ------------ -------------
2014 Total/Average                                     872,698 $       96.07
                                                  ------------ -------------
                                                                            
January 1, 2015 - February 28, 2015                     13,876 $       91.00
January 1, 2015 - February 28, 2015                      5,000         90.05
January 1, 2015 - February 28, 2015                     10,000         94.30
January 1, 2015 - February 28, 2015                      8,100         94.18
January 1, 2015 - March 31, 2015                        30,000         93.50
January 1, 2015 - March 31, 2015                        15,000         93.63
January 1, 2015 - March 31, 2015                        15,000         94.25
                                                  ------------ -------------
2015 Total/Average                                      96,976 $       93.24
                                                  ------------ -------------

White Deer Energy Share and Warrant Registration

In accordance with certain registration rights connected with previous offerings, the Company is planning to file a shelf registration statement registering the shares of the Company's common stock and the shares of common stock issuable upon exercise of the warrants held by White Deer Energy. White Deer is a long-term shareholder in Emerald and is increasing its funds liquidity by placing its shares in a standard prime brokerage account.

Conference Call

Emerald will host a conference call on Tuesday, May 6, 2014 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to discuss financial and operational results for the quarter and year end.

----------------------------------------------------------------------------
 Emerald Oil, Inc. Q1 2014 Financial and Operational Results Conference Call
----------------------------------------------------------------------------
Date:                     Tuesday, May 6, 2014                              
----------------------------------------------------------------------------
Time:                     9:00 a.m. Eastern Time                            
                          8:00 a.m. Central Time                            
                          7:00 a.m. Mountain Time                           
                          6:00 a.m. Pacific Time                            
----------------------------------------------------------------------------
Webcast:                  Live and rebroadcast over the Internet at the     
                          Emerald Oil website                               
----------------------------------------------------------------------------
Website:                  www.emeraldoil.com                                
----------------------------------------------------------------------------
Telephone Dial-In:        877-407-8831 (toll-free) and 201-493-6736         
                          (international)                                   
                                                                            
                                                                            
----------------------------------------------------------------------------
Telephone Replay:         Available through Tuesday, May 13, 2014           
                                                                            
                          877-660-6853 (toll-free) and 201-612-7415         
                          (international)                                   
                          Passcode: 413333                                  
----------------------------------------------------------------------------

About Emerald

Emerald is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations and Pronghorn sand oil formation. Emerald is based in Denver, Colorado. More information about Emerald can be found at www.emeraldoil.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of the securities laws. All statements other than statements of historical facts included herein may constitute forward-looking statements. Forward-looking statements in this document may include statements regarding the Company's expectations regarding the Company's operational, exploration and development plans; expectations regarding the nature and amount of the Company's reserves; and expectations regarding production, revenues, cash flows and recoveries. When used in this press release, the words "will," "potential," "believe," "estimate," "intend," "expect," "may," "should," "anticipate," "could," "plan," "predict," "project," "profile," "model," or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and natural gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission.

                             EMERALD OIL, INC.                              
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                (Unaudited)                                 
                                                                            
                                                 March 31,     December 31, 
                                                    2014           2013     
                                               -------------  ------------- 
ASSETS                                                                      
CURRENT ASSETS                                                              
  Cash and Cash Equivalents                    $ 195,962,712  $ 144,255,438 
  Restricted Cash                                  6,000,000     15,000,512 
  Accounts Receivable - Oil and Natural Gas                                 
   Sales                                           8,811,512      8,715,821 
  Accounts Receivable - Joint Interest                                      
   Partners                                       30,846,505     31,523,204 
  Other Receivables                                  245,754        577,409 
  Prepaid Expenses and Other Current Assets          358,627        206,299 
                                               -------------  ------------- 
      Total Current Assets                       242,225,110    200,278,683 
PROPERTY AND EQUIPMENT                                                      
  Oil and Natural Gas Properties, Full Cost                                 
   Method, at cost:                                                         
    Proved Oil and Natural Gas Properties        301,018,391    211,015,067 
    Unproved Oil and Natural Gas Properties      117,014,820     57,015,315 
    Equipment and Facilities                       3,509,922      1,837,744 
  Other Property and Equipment                     1,279,887        890,811 
                                               -------------  ------------- 
    Total Property and Equipment                 422,823,020    270,758,937 
  Less - Accumulated Depreciation, Depletion                                
   and Amortization                              (54,519,514)   (48,176,522)
                                               -------------  ------------- 
      Total Property and Equipment, Net          368,303,506    222,582,415 
Restricted Cash                                    4,000,000      6,000,000 
Fair Value of Commodity Derivatives                        -         68,396 
Debt Issuance Costs, Net of Amortization           5,803,472        475,157 
Deposits on Acquisitions                             362,770        125,368 
Other Non-Current Assets                             227,207        357,644 
                                               -------------  ------------- 
      Total Assets                             $ 620,922,065  $ 429,887,663 
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES                                                         
  Accounts Payable                             $  79,263,138  $  63,168,422 
  Fair Value of Commodity Derivatives              1,098,474        921,401 
  Accrued Expenses                                12,149,221     11,821,729 
  Advances from Joint Interest Partners            3,138,800      2,205,538 
                                               -------------  ------------- 
      Total Current Liabilities                   95,649,633     78,117,090 
LONG-TERM LIABILITIES                                                       
  Convertible Senior Notes                       172,500,000              - 
  Asset Retirement Obligations                     1,083,597        692,137 
  Warrant Liability                               15,899,000     15,703,000 
  Other Non-Current Liabilities                       51,123         56,327 
                                               -------------  ------------- 
      Total Liabilities                          285,183,353     94,568,554 
                                                                            
COMMITMENTS AND CONTINGENCIES                                               
                                                                            
Preferred Stock - Par Value $.001; 20,000,000                               
 Shares Authorized;                                                         
  Series B Voting Preferred Stock - 5,114,633                               
   issued and outstanding at March 31, 2014                                 
   and December 31, 2013. Liquidation                                       
   preference value of $5,115 as of March 31,                               
   2014 and December 31, 2013.                         5,000          5,000 
                                                                            
STOCKHOLDERS' EQUITY                                                        
  Common Stock, Par Value $.001; 500,000,000                                
   Shares Authorized, 66,283,464 and                                        
   65,840,370 Shares Issued and Outstanding,                                
   respectively                                       66,283         65,840 
  Additional Paid-In Capital                     418,371,593    416,301,344 
  Accumulated Deficit                            (82,704,164)   (81,053,075)
                                               -------------  ------------- 
      Total Stockholders' Equity                 335,733,712    335,314,109 
                                               -------------  ------------- 
      Total Liabilities and Stockholders'                                   
       Equity                                  $ 620,922,065  $ 429,887,663 
                                               =============  ============= 
                                                                            
                                                                            
                             EMERALD OIL, INC.                              
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                                                                            
                                               Three Months Ended March 31, 
                                               ---------------------------- 
                                                    2014           2013     
                                               -------------  ------------- 
REVENUES                                                                    
  Oil Sales                                    $  18,434,808  $   7,993,902 
  Natural Gas Sales                                  634,064        223,079 
  Net Losses on Commodity Derivatives               (798,853)      (767,604)
                                               -------------  ------------- 
    Total Revenues                                18,270,019      7,449,377 
                                               -------------  ------------- 
OPERATING EXPENSES                                                          
  Production Expenses                              2,617,244      1,039,532 
  Production Taxes                                 2,088,736        701,856 
  General and Administrative Expenses              8,492,004      5,388,813 
  Depletion of Oil and Natural Gas Properties      6,277,232      3,156,978 
  Depreciation and Amortization                       65,760         22,995 
  Accretion of Discount on Asset Retirement                                 
   Obligations                                        15,720          6,212 
                                               -------------  ------------- 
Total Operating Expenses                          19,556,696     10,316,386 
                                               -------------  ------------- 
                                                                            
LOSS FROM OPERATIONS                              (1,286,677)    (2,867,009)
                                                                            
OTHER INCOME (EXPENSE)                                                      
  Interest Expense                                  (172,086)      (179,490)
  Warrant Revaluation Expense                       (196,000)    (3,439,000)
  Other Income                                         3,676            676 
                                               -------------  ------------- 
    Total Other Expense, Net                        (364,410)    (3,617,814)
                                               -------------  ------------- 
                                                                            
LOSS BEFORE INCOME TAXES                          (1,651,087)    (6,484,823)
                                                                            
INCOME TAX PROVISION                                       -              - 
                                               -------------  ------------- 
                                                                            
NET LOSS                                          (1,651,087)    (6,484,823)
Less: Preferred Stock Dividends and Deemed                                  
 Dividends                                                 -       (616,438)
                                               -------------  ------------- 
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS      (1,651,087) $  (7,101,261)
                                               =============  ============= 
                                                                            
Net Loss Per Common Share - Basic and Diluted  $       (0.02) $       (0.28)
                                               =============  ============= 
                                                                            
Weighted Average Shares Outstanding - Basic                                 
 and Diluted                                      66,171,875     25,692,532 
                                               =============  ============= 
                                                                            
                                                                            
                             EMERALD OIL, INC.                              
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                (Unaudited)                                 
                                                                            
                                               Three Months Ended March 31, 
                                               ---------------------------- 
                                                    2014           2013     
                                               -------------  ------------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net Loss                                       $  (1,651,087) $  (6,484,823)
Adjustments to Reconcile Net Loss to Net Cash                               
 Provided By Operating Activities:                                          
Depletion of Oil and Natural Gas Properties        6,277,232      3,156,978 
Depreciation and Amortization                         65,760         22,995 
Amortization of Debt Issuance Costs                   60,433         22,203 
Accretion of Discount on Asset Retirement                                   
 Obligations                                          15,720          6,212 
Net Losses on Commodity Derivatives                  798,853        767,604 
Net Cash Settlements Paid on Commodity                                      
 Derivatives                                        (553,383)      (149,208)
Warrant Revaluation Expense                          196,000      3,439,000 
Share-Based Compensation Expense                   3,695,303      1,307,986 
Changes in Assets and Liabilities:                                          
(Increase) Decrease in Trade Receivables - Oil                              
 and Natural Gas Revenues                            (95,691)     1,330,271 
(Increase) Decrease in Accounts Receivable -                                
 Joint Interest Partners                             676,699     (7,023,135)
Decrease in Other Receivables                        331,655        903,198 
(Increase) in Prepaid Expenses and Other                                    
 Current Assets                                     (152,328)       (25,813)
(Decrease) in Other Non-Current Assets               130,437         85,675 
Increase in Accounts Payable                       1,437,236        531,714 
Increase (Decrease) in Accrued Expenses           (1,933,484)       407,417 
Increase in Other Non-Current Liabilities             (5,204)             - 
Increases in Advances from Joint Interest                                   
 Partners                                            933,262      1,414,686 
Increase in Deposits Received for Assets                                    
 Available for Sale                                        -        664,862 
                                               -------------  ------------- 
Net Cash Provided By Operating Activities         10,227,413        377,822 
                                               -------------  ------------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
Purchases of Other Property and Equipment           (389,076)       (73,480)
Restricted Cash Released                          11,000,512              - 
Payments of Restricted Cash                       (2,648,721)               
Increase in Deposits for Acquisitions               (237,402)             - 
Use of Prepaid Drilling Costs                              -         98,155 
Proceeds from Sale of Oil and Natural Gas                                   
 Properties, Net of Transaction Costs                238,069      9,673,953 
Investment in Oil and Natural Gas Properties    (133,570,168)   (22,718,360)
                                               -------------  ------------- 
Net Cash Used For Investing Activities          (125,606,786)   (13,019,732)
                                               -------------  ------------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
Proceeds from Issuance of Preferred Stock, Net                              
 of Transaction Costs                                      -     47,183,994 
Proceeds from Issuance of Convertible Senior                                
 Notes, Net of Transaction Costs                 167,111,252              - 
Advances on Revolving Credit Facility and Term                              
 Loan                                             35,000,000              - 
Payments on Revolving Credit Facility            (35,000,000)    (8,323,650)
Preferred Stock Dividends and Deemed Dividends             -       (616,438)
Cash Paid for Finance Costs                          (24,605)             - 
                                               -------------  ------------- 
Net Cash Provided by Financing Activities        167,086,647     38,243,906 
                                               -------------  ------------- 
NET INCREASE IN CASH AND CASH EQUIVALENTS         51,707,274     26,601,996 
CASH AND CASH EQUIVALENTS - BEGINNING OF                                    
 PERIOD                                          144,255,438     10,192,379 
                                               -------------  ------------- 
CASH AND CASH EQUIVALENTS - END OF PERIOD      $ 195,962,712  $  35,794,375 
                                               =============  ============= 
Supplemental Disclosure of Cash Flow                                        
 Information                                                                
Cash Paid During the Period for Interest       $           -  $     163,663 
                                               =============  ============= 
Cash Paid During the Period for Income Taxes   $           -  $           - 
                                               =============  ============= 
Non-Cash Financing and Investing Activities:                                
Oil and Natural Gas Properties Included in                                  
 Account Payable                               $  74,798,660  $  31,784,701 
                                               =============  ============= 
Stock-Based Compensation Capitalized to Oil                                 
 and Natural Gas Properties                    $     660,969  $      99,552 
                                               =============  ============= 
Asset Retirement Obligation Costs and                                       
 Liabilities                                   $     375,740  $      47,141 
                                               =============  ============= 
Common Stock Issued for Oil and Natural Gas                                 
 Properties                                    $           -  $   6,736,935 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            

In addition to reporting net income (loss) as defined under GAAP, we also present net earnings before interest, income taxes, depletion, depreciation, and amortization, accretion of discount on asset retirement obligations, impairment of oil and natural gas properties, net gain on acquisition of business, net gain on sale of oil and natural gas properties, net gain (loss) from mark-to-market on commodity derivatives, less cash settlements received (paid) and non-cash expenses relating to share based payments recognized under ASC Topic 718 ("Adjusted EBITDA"), which is a non-GAAP performance measure. Adjusted EBITDA consists of net earnings after adjustment for those items described in the table below. Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements, such as net income (loss) (its most directly comparable GAAP measure), and our calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items described below, we believe the measure is useful in evaluating its fundamental core operating performance. We also believe that Adjusted EBITDA is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in similar industries. Our management uses Adjusted EBITDA to manage our business, including in preparing our annual operating budget and financial projections. Our management does not view Adjusted EBITDA in isolation and also uses other measurements, such as net income (loss) and revenues to measure operating performance. The following table provides a reconciliation of net loss to Adjusted EBITDA for the periods presented:

                                               Three Months Ended March 31, 
                                               ---------------------------- 
                                                    2014           2013     
                                               -------------  ------------- 
Net loss                                       $  (1,651,087) $  (6,484,823)
Less: Preferred stock dividends and deemed                                  
 dividends                                                 -       (616,438)
                                               -------------  ------------- 
Net loss attributable to common stockholders      (1,651,087)    (7,101,261)
Add: Interest expense                                172,086        179,490 
  Accretion of discount on asset retirement                                 
   obligations                                        15,720          6,212 
  Depletion, depreciation and amortization         6,342,992      3,179,973 
  Stock-based compensation                         3,695,303      1,307,986 
  Warrant revaluation expense                        196,000      3,439,000 
  Preferred stock dividends                                -        616,438 
  Net losses on commodity derivatives                798,853        767,604 
Less: Net cash settlements paid on commodity                                
 derivatives                                        (553,383)      (149,208)
                                               -------------  ------------- 
Adjusted EBITDA                                $   9,016,484  $   2,246,234 
                                               =============  ============= 
                                                                            

In addition to reporting net income (loss) as defined under GAAP, Emerald also presents net earnings before the effect of any unrealized gain (loss) from mark-to-market on commodity derivatives, mark-to-market on Emerald's warrant liability ("adjusted income (loss)"), and share based compensation expense, which is a non-GAAP performance measure. Adjusted income (loss) consists of net earnings after adjustment for those items described in the table below. Adjusted income (loss) does not represent, and should not be considered an alternative to GAAP measurements, such as net income (loss), and Emerald's calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items described below, Emerald believes the measure is useful in evaluating Emerald's fundamental core operating performance. The Company also believes that adjusted income (loss) is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in similar industries. Emerald's management uses adjusted income to manage Emerald's business, including in preparing Emerald's annual operating budget and financial projections. Emerald's management does not view adjusted income (loss) in isolation and also uses other measurements, such as net income (loss) and revenues to measure operating performance. The following table provides a reconciliation of net income (loss), to adjusted income (loss) for the periods presented:

                                                    Three Months Ended      
                                                         March 31,          
                                               ---------------------------- 
                                                    2014           2013     
                                               -------------  ------------- 
Net loss                                       $  (1,651,087) $  (6,484,823)
Less: Preferred stock dividends and deemed                                  
 dividends                                                 -       (616,438)
                                               -------------  ------------- 
Net loss attributable to common stockholders      (1,651,087)    (7,101,261)
Net losses on commodity derivatives                  798,853        767,604 
Net cash settlements paid on commodity                                      
 derivatives                                        (553,383)      (149,208)
Warrant revaluation expense                          196,000      3,439,000 
Stock based compensation expense                   3,695,303      1,307,986 
                                               -------------  ------------- 
Adjusted income (loss)                         $   2,485,686  $  (1,735,879)
                                               =============  ============= 
                                                                            
Adjusted income (loss) per share - basic       $        0.04  $       (0.07)
                                               =============  ============= 
                                                                            
Weighted average shares outstanding - basic       66,171,875     25,692,535 
                                               =============  ============= 

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories

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

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
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...
"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.
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 ...
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...
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...
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...
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...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“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.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...