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EnerJex Resources Announces Financial Results for the First Quarter Ended March 31, 2014, Including Record Production and a 101% Increase in Adjusted EBITDA

May 14, 2014

EnerJex Resources, Inc.

SAN ANTONIO, TX and DENVER, CO and KANSAS CITY, MO, United States, via eTeligis Inc., 05/14/2014 - - EnerJexResources, Inc. (OTCQB: ENRJ) ("EnerJex" or the "Company") announced today that it has filed its SEC Form 10-Q for the quarter ended March 31, 2014. A copy of this document is available through the Company's website at www.enerjex.com. These results include the impact ofEnerJex'smerger with Black Raven Energy, Inc. for the first quarter of 2014.

Highlights for the first quarter include the following:

-Record production of 49,189 barrels of oil equivalent (81% oil), an 85% increase compared to the prior year. 

-Record revenue of $3.9 million, a 65% increase compared to the prior year. 

-Net income, adjusted to exclude the effect of derivative contracts or oil hedges ("Adjusted Net Income"), of $0.5 million, a 95% increase compared to the prior year. 

-Earnings before interest, income tax, depreciation and amortization, adjusted to exclude the effect of derivative contracts or oil hedges ("Adjusted EBITDA"), of $1.7 million, a 101% increase compared to the prior year. 

-Completion of a new contract to sell natural gas and initiation of production from multiple oil and natural gas wells inEnerJex'sAdenaProject located in Northeast Colorado. 

-Completion of aworkoverprogram and implementation of a plan to drill 17 new wells in the Company's Niobrara Project located in Northeast Colorado. 

-Sale ofEnerJex'sinterests in approximately 2,250 non-producing acres comprising its Lonesome Dove Project in South Texas for $450,000 and an overriding royalty interest of approximately 2.4% in the acreage.

Production volumes during the three months ended March 31, 2014 were 49,189 barrels of oil equivalent compared to 26,537 barrels of oil equivalent during the three months ended March 31, 2013.

Revenue was $3,854,977 for the first quarter of 2014 compared to $2,337,301 for the first quarter of 2013. The Company realized an average price of $91.08 per barrel of oil and $4.24 per thousand cubic feet of natural gas during the first quarter of 2014 compared to $88.07 per barrel of oil during the first quarter of 2013.EnerJexdid not produce any natural gas during the first quarter of 2013.

Lease operating expenses were $1,531,907 or $31.14 per net barrel of oil produced during the three months ended March 31, 2014 compared to $782,072 or $29.47 per net barrel of oil produced during the three months ended March 31, 2013.

Operating income was $883,033 for the first quarter of 2014 compared to operating income of $369,055 for the first quarter of 2013.

Adjusted EBITDA was $1,650,673 during the three months ended March 31, 2014 compared to $822,759 during the three months ended March 31, 2013.

Net income was $103,634 for the first quarter of 2014 compared to net income of $20,036 during the first quarter of 2013. Adjusted to exclude the effect of derivative contracts (oil hedges), netincome was $507,987 for the first quarter of 2014 compared to $259,977 in the same period last year. 

Management Comments

EnerJex'sCEO, Robert Watson, Jr., commented, "I am very pleased to announce these record results, which were achieved despite an extremely cold and prolonged winter, which significantly impacted the company's production and its ability to operate. I expectEnerJexto set new records during the second quarter, and I have never been more excited about the Company's future."

AboutEnerJexResources, Inc.

EnerJexResources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering nearly 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.

EnerJex'soperations are focused in five distinct projects where the company produces oil and natural gas from reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg ("DJ") Basin,EnerJexalso has significant exposure to emerging oil resource plays that are being pursued by competitors on trend with the Company's properties.EnerJex'sheadquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com.

Forward-Looking Statements

This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements giveEnerJex'scurrent expectations or forecasts of future events. The statements in this press release regarding the completion of drilling for and commencement of operations at new wells, successful production at newly drilled wells, expected increases in overall production, the acquisition of operating assets and related agreements, any implied or perceived benefits from any current or future transaction, and any other effects resulting from any of those matters, are forward-looking statements. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability ofEnerJexto meet its loan covenants under the debt facility that is expected to fund the costs of the new wells and to obtain financing from other sources for continued drilling; the costs of operations; delays, and any other difficulties related to producing oil; the ability ofEnerJexto integrate the newly producing assets; the ability to retain necessary skilled workers to operatethe new producing wells; the price of oil;EnerJex'sability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; the ability to manage and continue growth; and the ability of management to successfully integrate Black Raven. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K filed with the SEC.EnerJexundertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.EnerJex'sproduction forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. AlthoughEnerJexbelieves the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.

GAAP Reconciliations

In addition to revenue and net income determined in accordance with GAAP, we have provided a reconciliation of our EBITDA, Adjusted EBITDA, and Adjusted Net Income in this release. These are non-GAAP financial measures that we use as supplemental measures of our performance. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should be considered as alternatives to revenue, net income, operating income or any other performance measure derived in accordance with GAAP. It should not be assumed that these non-GAAP financial measures are comparable to similarly named figures disclosed by other companies. We define EBITDA, Adjusted EBITDA, and Adjusted Net Income as net income attributed toEnerJexbefore the effects of the items listed in the tables below. 

 



 

Contact

EnerJexResources, Inc.

Robert Watson, Jr.

CEO

Phone: (210) 451-5545

 

 

SOURCE:EnerJexResources, Inc.


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Source: eTeligis.com


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