GreenHunter Resources, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC), a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced today financial and operating results for the Company’s quarterly report Form 10-Q for the three months ended March 31, 2014.
OPERATIONAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2014
Highlights from the Company’s financial and operating results include the following:
- During the three months ended March 31, 2014, GreenHunter Resources’ wholly-owned subsidiary, GreenHunter Water, continued to strengthen its dominant position as an owner and operator of commercial salt water disposal (SWD) wells in the Marcellus and Utica Shale plays in Appalachia where it exited the first quarter 2014 with over 13,900 barrels per day (BBL/D) of operating permitted disposal capacity, along with operating a fleet of 39 vacuum trucks capable of transporting brine and condensate. Total disposal volumes for the Company’s nine (9) Appalachia SWD’s increased approximately 97% in the first quarter 2014 to 927 thousand barrels as compared to 471 thousand barrels disposed in the first quarter 2013. The company continues to develop barge transloading and bulk storage facilities for oilfield brine and condensate in the Appalachia region along the Ohio River with operations anticipated to begin in the near future.
- Operating revenues from continuing operations were $8.5 million during first quarter 2014 compared to $4.7 million for first quarter 2013, an increase of 79%. Our loss for 2014 from continuing operations was $1.3 million for fiscal year 2014 compared to a loss of $1.7 million for 2013. Our net loss per share from continuing operations for both 2014 and 2013 was ($.08) per share, basic and diluted. Our loss on discontinued operations for 2014 was $130 thousand (a loss of ($.00) per common share, basic and diluted), compared to loss from discontinued operations of $5.8 million (loss of ($.17) per share, basic and diluted) for 2013. Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.08) compared to ($.25) for the years 2014 and 2013, respectively.
- The Company reported positive EBITDA from continuing operations of $378,072 for the first quarter 2014.
- On January 28, 2014, the Company sold the Kenedy Hunter well to Sable Environmental for aggregate consideration of approx. $3.9 million. Total consideration of $1 million cash and a promissory note for approximately $2.9 million with an interest rate of 10% per annum and maturity date of January 31, 2016 was received at closing.
- On January 31, 2014 the Company sold its second MAG Tank™ and had revenue of $800 thousand related to this sale.
- On February 19, 2014, GreenHunter Mesquite Lake entered an agreement to sell the biomass project to ML Energy Park, LLC for $2.0 million. The closing is scheduled for March 15, 2015. The prospective buyer made an initial payment of $50 thousand as earnest money deposit and has continued to pay $50 thousand per month to date and is required to continue the monthly payments for a year or until deciding to ultimately purchase the property. The monthly payments, as well as the initial $25 thousand fee, are non-refundable.
- On February 28, 2014 the Company closed on the private placement of approx. $1.1 million of the Company’s unsecured term notes due one year from the date of issuance together with 100,879 common stock purchase warrants with an exercise price of $2.25.
- On March 16, 2014 the Company began operations of the Mills Hunter #2 SWD well, located in Meigs County, Ohio. The well has a permitted capacity of approximately 1,500 bbls per day and has been running near capacity since going operational.
- On March 26, 2014, the Company sold the Westhoff Hunter disposal well to Clearwater Resources for a purchase price of $3.4 million. Total consideration of $1.0 million in cash and a promissory note for approximately $2.4 million with an interest rate of 10% per annum and a maturity date of May 1, 2016 was received at closing.
- On May 1, 2014, the Company sold the Dilley disposal well to Sable Environmental for a purchase price of $4.7 million. As part of the agreement, the purchaser paid off the original $2.9 million promissory note that was issued on January 28, 2014.
RECENT EVENTSThe Company recently established a new environmental solutions division, GreenHunter Environmental Solutions’ (GHES). Based on customer demand and the amount of business that has been referred to locally based environmental service companies, the company made the decision to add this new business segment to our Total Water Management Solutions™ package of services.
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