American Standard Energy Corp. Reports Second Quarter, 2012 Financial Results and Record Quarterly ProductionPR Newswire
SCOTTSDALE, Ariz., Aug. 10, 2012 /PRNewswire/ -- American Standard Energy Corp. ("American Standard" or the "Company") (ASEN.OB), a domestic oil and gas exploration and production company, today announced results for the three and six months ended June 30, 2012.
For the three months ended June 30, 2012, American Standard had revenues of $7.0 million, an increase of $3.8 million or 121%, from $3.2 million for the three months ended June 30, 2011. The average realized crude oil and gas sales prices for the second quarter 2012 were $77.13 per barrel for crude oil and $4.43 per one thousand cubic feet (MCF) for natural gas.
Revenues were driven by incremental production across our core holdings in the Permian Basin, South Texas and the Williston Basin. Production for the quarter ended June 30, 2012 was 114,701 barrels of oil equivalent (BOE), an increase of 63,929 BOE, or 129%, from 50,772 BOE for the quarter ended June 30, 2011. Production mix in the quarter was 68% crude oil and 32% natural gas compared to 57% oil and 43% gas in the quarter ended June 30, 2011.
"We are pleased with our continued growth in production and, as a result, revenue in the second quarter," said Scott Feldhacker, Chief Executive Officer of American Standard. "Through the successful execution of our core strategy to acquire prime leasehold acreage and production in key conventional and unconventional basins, we shifted our full attention to the development of our acreage in the second quarter."
Adjusted EBITDA for the quarter ended June 30, 2012 was $3.4 million, an increase of $2.7 million when compared to $0.7 million in adjusted EBITDA for the quarter ending June 30, 2011. Adjusted EBITDA is a non-GAAP financial measure. Reconciliation to GAAP net income (loss) can be found at the conclusion of this release.
American Standard posted net income for the quarter ended June 30, 2012 of $1.4 million, or $0.03 per share compared to a net loss for the quarter ended June 30, 2011 of $4.6 million, or ($0.13) per share.
American Standard's capital expenditures for the quarter ended March 31, 2012 totaled $25 million, compared with capital expenditures of $7.7 million for the quarter ended June 30, 2011. For the first six months of 2012, American Standard's capital expenditures totaled $88.0 million including $58.5 million for property acquisitions and $29.5 million for development.
Development of American Standard's mineral assets accelerated during the quarter. During the quarter, the Company participated in 22 gross (5.99 net) wells in the Permian Basin as well as the Eagle Ford and Bakken shales. In the Permian Basin, American Standard completed 5 vertical wells in Crockett and Schleicher counties in Texas including Wolfcamp and Clearfork, targets. Bakken development increased by over 37% in the quarter.
Gross Wells Count
Net Wells Count
Gross Well Count
In South Texas, American Standard's interest in the Auld Shipman Eagle Ford project (La Salle and Frio counties) began initial commercial production.At the beginning of the quarter, 4 gross (0.4 net) wells were producing at restricted volumes as processing facilities came on-line. By the end of the second quarter, 11 gross wells (1.1 net) were producing at curtailed levels. As of August 9th, 2012, 18 wells were producing.
The Auld Shipman project was the largest single contributor to production growth in the second quarter ended June 30, 2012, producing 12,211 net barrels of crude oil and 30.3 MCF of natural gas net to the Company.
"While we are pleased with our production, revenue and income growth during the quarter, we are now acutely focused on sustaining development growth in the coming months while continuing to improve our financial position," added Feldhacker. "We are convinced that our best opportunities in the coming months will be found in the Permian Basin and, as such, plan to focus our development work in West Texas for the balance of the year while meeting on non-operated obligations in South Texas and the Williston Basin."
About American Standard Energy
American Standard Energy Corp. is an oil and gas exploration and production company based in Scottsdale, Arizona. The Company's oil and gas asset base is comprised of operated acreage in the Permian Basin and non-operated acreage in the Williston Basin and South Texas Eagle Ford resource prospects. The Company currently holds approximately 112,000 combined net acres in the Permian Basin, Williston Basin, Eagle Ford, Niobrara, Eagle Bine and Gulf Coast.
For additional information on American Standard Energy Corp. visit our website at: www.asenergycorp.com
Forward Looking Statements
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may," "continue," "opportunities" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. Please refer to the documents American Standard files, from time to time, with the Securities and Exchange Commission; specifically, American Standard's most recent Form 10-K and the cautionary statements and risk factors contained therein. Those documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
Non-GAAP Accounting Reconciliation: Adjusted EBITDA
Net income (loss) - GAAP
Accretion of discount on asset retirement obligations
Depreciation, depletion, and amortization
Realized and unrealized loss on commodity derivatives
Realized and unrealized loss on warrant derivatives
Impairment of oil and gas properties
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SOURCE American Standard Energy Corp.