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Black Ridge Oil & Gas Reports First Quarter 2013 Results

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Adjusted EBITDA up $1.0 Million Year-Over-Year Driven by Production Growth, Revenue Growth and a Decline in General and Administrative Expenses

MINNETONKA, Minn., May 14, 2013 /PRNewswire/ -- Black Ridge Oil & Gas, Inc. ("the Company") (OTCQB: ANFC), a well-positioned exploration and production (E&P) company focused on non-operated Bakken and Three Forks properties, today announced financial and operating results for the three months ended March 31, 2013.

First Quarter 2013 Financial Highlights

  • Adjusted EBITDA increased to $982 thousand, compared to a loss of $(30) thousand in the first quarter of 2012
  • Total revenues increased 187% from the first quarter of 2012 to $1.91 million and 13% compared to the fourth quarter of 2012
  • Realized oil price was $90.70 per barrel in the first quarter of 2013 compared to $85.43 and $85.15 in the first quarter of 2012 and the fourth quarter of 2012, respectively
  • General and administrative expenses decreased 15% compared to the first quarter of 2012, representing a 69% decrease on a per Boe basis
  • Net income reached $314 thousand compared to a net loss of $(761) thousand in the first quarter of 2012.

First Quarter 2013 Operational Achievements

  • Participated in the completion of 7 gross (0.29 net) wells, with a 100% success rate in the Bakken and Three Forks plays, resulting in a total of 73 gross (2.59 net) producing wells as of March 31, 2013
  • Production of 21.8 thousand barrels of oil equivalents (MBoe), or 242 Boe per day, represents 171% production growth compared to the first quarter of 2012; daily first quarter 2013 production increased by 9% as compared to the fourth quarter of 2012
  • Acquired leasehold interest in approximately 800 net mineral acres for $416,283, an average of $520/acre

First Quarter 2013 Financial Results

Black Ridge Oil & Gas reported first quarter of 2013 net income attributable to common stockholders of $314 thousand, or $0.01 per basic and diluted common share, compared to a net loss of $(761) thousand, or a loss of $(0.02) per basic and diluted common share, for the first quarter of 2012.

Revenues for the first quarter of 2013 were $1.91 million compared to $0.67 million for the first quarter of 2012, an increase of 187%. Production in the first quarter of 2013 totaled 21.8 MBoe, of which 94% was crude oil, representing a 171% increase over the first quarter of 2012.

For the first quarter of 2013, the Company's realized oil price was $90.70 per barrel of oil.  The Company's realized price was 3% per barrel below WTI as compared to a differential of 16% per barrel in the first quarter of 2012.

Black Ridge ended the first quarter with $0.1 million of working capital and $10.8 million of remaining availability on its revolving credit facility.

The Company realized a decrease in LOE expenses of 31% per Boe and reduced its general and administrative expenses by 69% per Boe, compared to the first quarter of 2012, contributing to a $1.0 million increase in Adjusted EBITDA year over year.  Ken DeCubellis, Black Ridge's Chief Executive Officer, said: "Our recent track record of growing EBITDA is directly related to our team's ability to target wells that generate the highest internal rates of returns.  The Company's growth in production and revenue, while controlling general and administrative expenses, demonstrates management's ability to couple continued growth and cost control, which is essential in our non-operator business model."

First Quarter 2013 Operational Results

During the first quarter of 2013, Black Ridge Oil & Gas expanded its core acreage position by 800 net mineral acres.  As of March 31, 2013, the Company controlled approximately 12,971 net mineral acres prospective for the Bakken and Three Forks formations.  

Additionally, Black Ridge Oil & Gas participated in the completion of 7 gross (0.29 net) wells during the first quarter of 2013 with a 100% success rate, increasing our producing wells to 73 gross (2.59 net) wells.  As of March 31, 2013, the Company owned working interests in 90 gross (3.17 net) wells that are preparing to drill, drilling, awaiting completion, complete or producing.

DeCubellis said: "This is an exciting time at Black Ridge.  We continue to be focused on our strategy of actively aggregating high quality, non-operated leases and converting the opportunities into high return, near-term development and production."

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 March 31, 2013.

Well

Operator

Location

WI(1)

Stateline 14-3427H

EOG

Roosevelt, MT

0.083

SCHA 33-34 #2TFH

Brigham

Mountrail, ND

0.063

Vanville 20-1201H

EOG

Burke, ND

0.042

Vanville 19-1213H

EOG

Burke, ND

0.042

Martinez 36-25 #1TFH

Zavanna

McKenzie, ND

0.031

Louisville 2-9H

Continental

McKenzie, ND

0.021

Jackman 156-100-11-2-1H

Liberty

Williams, ND

0.015



(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.         

"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 March 31, 2013.

Well

Operator

Location

WI(1)

SCHA 33-34 #3H

Brigham

Mountrail, ND

0.063

SCHA 33-34 #4TFH

Brigham

Mountrail, ND

0.063

Colfax 3-19H

Continental

Williams, ND

0.055

Colfax 2-19H

Continental

Williams, ND

0.055

Mathewson 2-30H

Continental

Williams, ND

0.055

Mathewson 3-30H

Continental

Williams, ND

0.055

Raymond 1-21AH

Continental

Williams, ND

0.043

Hanson 33-28H

Zenergy

Williams, ND

0.036

Thorp Federal 11X-28B

XTO

Dunn, ND

0.034

Thorp Federal 11X-28F

XTO

Dunn, ND

0.034

Sequoia 6093 42-34H

Oasis

Burke, ND

0.031

Moody 159-94-15A-22-1H

Petro-Hunt

Burke, ND

0.018

Vera 1-1H

Continental

Williams, ND

0.016

Dietz 34-7PH

Whiting

Stark, ND

0.006

Dietz 14-7PH

Whiting

Stark, ND

0.006

Tena 1-13H

Continental

Williams, ND

0.005

Helstad 157-99-2A-11-1H

Petro-Hunt

Williams, ND

0.002



(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.

Adjusted Net Income (Loss) and Adjusted EBITDA

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 settlement income, net of settlement expenses, and 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, and (v) 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, are included below:


Three Months Ended


March 31,


2013


2012

Net income (loss)

$ 313,813


$ (760,857)





Add back:




Interest expense, net, excluding amortization of warrant based financing costs

222,772


83,942

Income tax provision

(433,788)


(154,184)

Depreciation, depletion, and amortization

705,536


293,753

Accretion of abandonment liability

1,152


797

Share based compensation

172,453


506,742





Adjusted EBITDA

$ 981,938


$   (29,807)

Financial and Statistical Data Tables

Following are financial highlights for the comparative three month period ended March 31, 2013 and 2012. The following information is based on GAAP reported earnings, with additional required disclosures included in the Company's Form 10-Q:


BLACK RIDGE OIL & GAS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS










March 31,


December 31,


2013


2012

ASSETS

 (Unaudited)







Current assets:




Cash and cash equivalents

$  1,350,313


$     1,417,340

Accounts receivable

1,132,160


856,233

Settlement receivable

2,500,000


2,500,000

Prepaid expenses

77,011


1,397,450

Total current assets

5,059,484


6,171,023





Property and equipment:




Oil and natural gas properties, full cost method of accounting




Proved properties

39,834,838


35,248,983

Unproved properties

8,040,576


9,055,513

Other property and equipment

85,917


85,917

Total property and equipment

47,961,331


44,390,413

Less, accumulated depreciation, amortization, depletion and allowance

for impairment

(6,498,720)


(5,793,184)

Total property and equipment, net

41,462,611


38,597,229





Debt issuance costs

594,629


657,702





Total assets

$47,116,724


$   45,425,954









LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:




Accounts payable

$  4,568,317


$     2,953,526

Settlement payable

160,000


160,000

Settlement accounts payable, related party

116,234


116,234

Accrued expenses

102,113


61,666

Total current liabilities

4,946,664


3,291,426





Asset retirement obligations

50,199


67,145

Revolving credit facility

5,748,844


5,748,844

Deferred tax liability

4,298,908


4,732,696





Total liabilities

15,044,615


13,840,111





Commitments and contingencies

-


-





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

30,019,665


29,847,212

Retained earnings

2,004,464


1,690,651

Total stockholders' equity

32,072,109


31,585,843





Total liabilities and stockholders' equity

$47,116,724


$ 45,425,954








BLACK RIDGE OIL & GAS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)










For the Three Months


Ended March 31,


2013


2012





Oil and gas sales

$    1,911,299


$       666,206





Operating expenses:




Production expenses

268,806


144,151

Production taxes

219,342


75,432

General and administrative

603,578


713,891

Depletion of oil and gas properties

699,725


286,903

Accretion of discount on asset retirement obligations

1,152


797

Depreciation and amortization

5,811


6,850

Total operating expenses

1,798,414


1,228,024





Net operating income (loss)

112,885


(561,818)





Other income (expense):




Interest income

120


42

Interest (expense)

(232,980)


(353,265)

Total other income (expense)

(232,860)


(353,223)





Loss before provision for income taxes

(119,975)


(915,041)





Provision for income taxes

433,788


154,184





Net income (loss)

$       313,813


$    (760,857)









Weighted average common shares outstanding - basic

47,979,990


47,402,965

Weighted average common shares outstanding - fully diluted

48,493,840


47,402,965





Net income (loss) per common share - basic

$             0.01


$          (0.02)

Net income (loss) per common share - fully diluted

$             0.01


$          (0.02)








BLACK RIDGE OIL & GAS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)










For the Three Months


Ended March 31,


2013


2012

CASH FLOWS FROM OPERATING ACTIVITIES




Net income (loss)

$       313,813


$     (760,857)

Adjustments to reconcile net income (loss)




to net cash provided by operating activities:




Depletion of oil and gas properties

699,725


286,903

Depreciation and amortization

5,811


6,850

Amortization of debt issuance costs

63,073


45,984

Accretion of discount on asset retirement obligations

1,152


797

Common stock warrants

10,088


228,888

Common stock warrants, related parties

-


40,393

Common stock options, related parties

162,365


237,461

Deferred income taxes

(433,788)


(154,184)

Decrease (increase) in current assets:




Accounts receivable

(275,927)


249,336

Prepaid expenses

7,141


(478)

Contingent consideration receivable

-


207,033

Increase (decrease) in current liabilities:




Accounts payable

952


122,902

Accounts payable, related parties

-


6,212

Accrued expenses

40,447


38,089

Royalties payable, related party

-


(10,352)

Net cash provided by operating activities

594,852


544,977





CASH FLOWS FROM INVESTING ACTIVITIES




Proceeds from sale of oil and gas properties

199,800


-

Purchases of oil and gas properties and development capital expenditures

(861,679)


(2,436,964)

Purchases of other property and equipment

-


(3,660)

Net cash used in investing activities

(661,879)


(2,440,624)





CASH FLOWS FROM FINANCING ACTIVITIES




Advances from revolving credit facilities

-


2,000,000

Debt issuance costs paid

-


(46,919)

Net cash provided by financing activities

-


1,953,081





NET CHANGE IN CASH

(67,027)


57,434

CASH AT BEGINNING OF PERIOD

1,417,340


1,401,141

CASH AT END OF PERIOD

$    1,350,313


$    1,458,575









SUPPLEMENTAL INFORMATION:




Interest paid

$       104,280


$                   -

Income taxes paid

$                    -


$                   -





NON-CASH INVESTING AND FINANCING ACTIVITIES:




Net change in accounts payable for purchase of oil and gas properties

$    1,613,839


$    4,176,755

Prepaid expenses applied to purchase of oil and gas properties

$   1,313,298


$                     -

Deposits on purchase of oil and gas properties owed in common stock

$                    -


$       438,539

Capitalized asset retirement costs, net of revision in estimate

$      (18,098)


$         24,746





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.

About the Company

Black Ridge Oil & Gas is an 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 12,971 net acres prospective for Bakken and/or Three Forks development. For additional information, visit the Company's website at www.blackridgeoil.com.

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Contact
Black Ridge Oil & Gas, Inc.
Ken DeCubellis, Chief Executive Officer
952-426-1241
www.blackridgeoil.com

 

SOURCE Black Ridge Oil & Gas, Inc.