This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Recovery Energy Reports Second Quarter Financial Results

During the quarter ended June 30, 2010, average daily net production was 659 BOPD net and net oil sales were $4,157,757 with the average oil price received $70.13 per barrel.

For the six months period ended June 30, 2010, Total Revenue was $5,685,200. The company reported a net loss attributable to common stockholders of ($6,017,492) or ($0.32) per share. The net loss attributable to common stockholders for the six months period ended June 30, 2010 include non-cash expenses of approximately $6.5 million comprised of $2.0 million of amortization expense related to deferred financings cost, and $4.5 million of non-cash compensation expense as well as other corporate start-up expenses. A comparison against the company’s operations for the comparable 2009 period were not meaningful as its current operations commenced in 2010.

Cash flow from operations: During the three and six months periods ended June 30, 2010, net cash provided by operating activities was $1,913,423 and $1,718,092, respectively.

Recovery Energy, Inc. is a Denver, Colorado based oil & gas exploration and production company with operations and assets in the Denver-Julesburg (DJ) Basin.

Three months ended June 30, Six months ended March 6, 2009 (inception) through
2010 2009 June 30, 2010 June 30, 2009
Oil sales $ 4,157,757 $ - $ 4,780,352 $ -
Operating fees 1,688 - 2,813 -
Realized gain on hedges 272,829 - 272,829 -
Price risk management activities   762,575   -   629,206   -
Total Revenues 5,194,849 - 5,685,200 -
Costs and expenses
Production costs 224,111 - 345,988 -
Production taxes 485,424 - 520,911 -
General and administrative (includes non-cash expense of $2.5 million and $4.5 million for the three and six month periods ending June 30, 2010) 3,068,698 200 5,412,019 200
Depreciation, depletion and amortization   2,209,496   -   2,441,413   -
Total costs and expenses   5,987,729   200   8,720,331   200
Loss from operations (792,880 ) (200 ) (3,035,131 ) (200 )
Unrealized gain on Lock-up 8,858 - 24,067 -
Interest expense (includes non-cash deferred financing cost amortization expense of $1.5 million and $2.0 million for the three and six month periods ending June 30, 2010)   (2,412,757 )   -   (3,006,428 )   -
NET LOSS $ (3,196,779 ) $ (200 ) $ (6,017,492 ) $ (200 )
Net loss per common share
Basic and diluted $ (0.13 ) $ (0.32 )
Weighted average shares outstanding:
Basic and diluted   25,451,688   18,619,320

The accompanying notes are an integral part of these consolidated financial statements; please refer to the company’s current report on Form 10-Q filed on August 16, 2010 with the Securities and Exchange Commission.

The statements contained in this press release that are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements, without limitation, regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) the Company’s proposed exploration and drilling operations on its various properties and targeted properties, (2) the expected production and revenue from its various properties and targeted properties, (3) estimates regarding the reserve potential of its various properties and targeted properties and (4) the expected production and revenue from the Company’s anticipate acquisitions. These statements are qualified by important factors that could cause the Company’s actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company’s ability to finance the continued exploration and drilling operations on its various properties and targeted properties, (2) positive confirmation of the reserves, production and operating expenses associated with its various properties and targeted properties; and (3) the general risks associated with oil and gas exploration and development, including those risks and factors described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 and Current Reports on Form 8-K filed in 2010. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,600.25 +243.38 1.40%
S&P 500 2,041.01 +28.12 1.40%
NASDAQ 4,713.1480 +68.8360 1.48%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs