Saratoga Resources, Inc. (NYSE MKT: SARA; the “Company” or “Saratoga”) today announced financial and operating results for the quarter ended March 31, 2012.
Key Financial Results
- Oil and gas revenues of $19.3 million for the first quarter 2012 compared to $15.8 million for the first quarter 2011;
- Net loss of $(1.2) million, or $(0.04) per fully diluted share, for first quarter 2012 compared to net income of $358,000, or $0.02 per fully diluted share, for the first quarter 2011;
- Discretionary cash flow of $5.8 million, or $0.21 per fully diluted share, for the first quarter 2012 compared to discretionary cash flow of $5.4 million, or $0.26 per fully diluted share, for the first quarter 2011;
- EBITDAX of $10.0 million for the first quarter 2012 compared to $9.3 million for the first quarter 2011; and
- Reserve replacement ratio of 151%.
Discretionary cash flow and EBITDAX are non-GAAP financial measures and are defined and reconciled to the most directly comparable GAAP measure under “Non-GAAP Financial Measures” below.
The change in revenues for the first quarter 2012 reflects increased production volumes (up 24% compared to the first quarter 2011) and increased prices realized from oil sales (up 26%) partially offset by lower natural gas prices. The loss for the quarter reflected one time charges of $1.6 million associated with plugging and abandoning of over 80% of the Company's deep, overpressured, legacy “orphan” wells that were unproductive with no future utility and a $1.8 million increase in DD&A costs driven by our investments in infrastructure projects and increases in production volume together with investments in our development program. The Company retired the majority of its plugging and abandonment ("P&A") obligation for 2012 in the first quarter.