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Syntroleum Announces 2012 Results

Syntroleum Announces 2012 Results

TULSA, Okla., March 15, 2013 (GLOBE NEWSWIRE) -- Syntroleum Corporation
(Nasdaq:SYNM) a renewable and synthetic fuels technology company, today
announced financial results for the twelve months ended December 31, 2012.

Financial Highlights

For the quarter ended December 31, 2012, the Company reported an operating
loss of $797 thousand resulting from total revenues of $1.1 million and
operating expenses of $1.9 million. For the year ended December 31, 2012, the
company reported operating income of $9.2 million resulting from total
revenues of $17.5 and operating expenses of $8.3 million. Our revenues relate
to recognition of deferred license income, engineering services provided to
Dynamic Fuels and other customers for process design and research support and
revenues for royalties from the Dynamic Fuels commercial production of
renewable fuels.

For Dynamic Fuels quarter ended and year ended September 30, 2012, we reported
a loss from Dynamic Fuels of $4.3 million and $10.0 million respectively. This
compares to a loss of $2.8 million for the quarter ended June 30, 2012. During
the quarter and year ended September 30, 2012 the plant sold 10.6 million and
35.2 million gallons of renewable fuels, respectively.

We report Dynamic Fuels on a three month lag and the loss reflected in our
income statement from Dynamic Fuels represents the loss incurred for the
period ending September 30, 2012. Our 10K filing includes Dynamic financials
for their year ended September 30, 2012.

Syntroleum's net loss was $5.1 million or $0.05 per share and $1.1 million or
$0.01 per share, respectively, for the three month and year ended December 31,
2012, compared with a net loss of $3.0 million or $0.03 per share and $16.9
million or $0.19 per share, respectively for the corresponding periods in
2011.

As of December 31, 2012 Syntroleum's available cash position was $15.9
million.

Conference Call

The conference call will be held on Monday, March 18, 2013, at 2:00 p.m.
Central time (3:00 p.m. Eastern). A webcast of the call will be available via
the Internet by accessing www.syntroleum.com.Listeners should allow a few
minutes for registration into the web site.To participate in the
teleconference, investors should dial 1-877-317-6789 about 10 minutes before
the start time and reference the Syntroleum conference call.International
callers should dial 1-412-317-6789.A replay of this conference call will be
available on the web site under the Syntroleum Investor Relations tab.

For additional information see the Company's Form 10-K for the year ended
December 31, 2012, filed with the SEC on Friday, March 15, 2013.The 10-K is
available through the Investor Relations section of the Company's Web site,
www.syntroleum.com.

About Syntroleum

Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT)
conversion of synthesis gas derived from biomass, coal, natural gas and other
carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for
upgrading FT liquid hydrocarbons into middle distillate products such as
synthetic diesel and jet fuels, and the Bio-Synfining® technology for
converting animal fat and vegetable oil feedstocks into middle distillate
products such as renewable diesel and jet fuel using inedible fats and greases
as feedstock.The 50/50 venture – known as Dynamic Fuels – was formed to
construct and operate multiple renewable synthetic fuels facilities, with
production on the first site beginning in 2010.The Company plans to use its
portfolio of technologies to develop and participate in synthetic and
renewable fuel projects.For additional information, visit the Company's web
site at www.syntroleum.com.

The Syntroleum Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5984

Forward Looking Statements

This document includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as well as historical facts.
These forward‑looking statements may include statements relating to the
Syntroleum® Process, the Synfining® Process, our renewable fuels
Bio-Synfining® technology, plans to use the Company's various technologies,
operational activities of the Company, commercialization of the Company's
technologies, certification of Fischer-Tropsch and renewable
fuels,performance and use of Syntroleum's cobalt catalyst, and performance
and use of fuels derived from the Syntroleum® Process and technology test
results.When used in this document, the words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan," "project," "should" and similar
expressions are intended to be among the statements that identify
forward‑looking statements. Although we believe that the expectations
reflected in these forward‑looking statements are reasonable, these kinds of
statements involve risks and uncertainties.Actual results may not be
consistent with these forward‑looking statements. Syntroleum undertakes no
obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
operating results over time. Important factors that could cause actual results
to differ from these forward-looking statements include the potential that
debt or equity financing for anticipated plantsmay not be available, the
schedule for development, construction and operation of proposed plants may
not be met, anticipated appropriation and expenditure of federal monies does
not occur, commercial-scale plants do not achieve the same results as those
demonstrated on a laboratory or pilot basis or that such plants experience
technological and mechanical problems, the potential that improvements to
Syntroleum's various technologies currently under development may not be
successful, the impact on plant economics of operating conditions (including
energy prices), construction risks, risks associated with investments and
operations in foreign countries, our dependence on strategic relationships
with manufacturing and engineering companies, volatility of energy prices, the
ability to implement corporate strategies, including the continued
availability of adequate working capital, competition, intellectual property
risks, our ability to obtain financing and other risks described in the
Company's filings with the Securities and Exchange Commission.

® "Syntroleum", "Synfining", and "Bio-Synfining" are registered as trademarks
and service marks in the U.S. Patent and Trademark Office.

SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
                                                                
                                                    December 31, December 31,
                                                    2012         2011
ASSETS
CURRENT ASSETS:                                                  
Cash and cash equivalents                           $15,909      $2,601
Restricted cash                                     725          1,189
Accounts receivable                                 134          125
Accounts receivable from Dynamic Fuels, LLC         252          --
Other current assets                                237          277
Total current assets                                17,257       24,192
                                                                
ACCOUNTS RECEIVABLE FROM DYNAMIC FUELS, LLC          --         2,624
PROPERTY AND EQUIPMENT                                           
Property, plant, and equip,                        446          429
Accumulated depletion, depreciation and             (388)        (343)
amortization
Total Property & Equipment, net                     58           86
                                                                
INVESTMENT AND LOANS IN DYNAMIC FUELS, LLC           38,407       38,643
OTHER ASSETS, net                                    1,023        1,106
Total Assets                                        $56,745      $66,651
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:                                             
Accounts payable                                    $312         $220
Accruedliabilities                                 71           288
Current deposits                                    725          1,189
Income tax payable                                  --         --
Current liabilities of discontinued operations      --         --
Total current liabilities                           1,108        1,697
                                                                
OTHER NONCURRENT LIABILITIES OF DISCONTINUED         603          603
OPERATIONS
DEFERRED REVENUE                                     15,612       24,366
COMMITMENTS AND CONTINGENCIES                        --         --
Total liabilities                                   17,323       26,666
                                                                
STOCKHOLDERS' EQUITY:                                            
Common stock, $0.01 par value, 150,000 shares
authorized,98,287 and 97,948 shares issued at       983          979
12/31/12 and 12/31/11,respectively including shares
in treasury
Additional paid-in capital                           398,903      398,369
Retained Earnings, beginning of year                 (359,363)    (342,414)
Current Year Earnings                                (1,101)      (16,949)
Accumulated deficit                                  (360,464)    (359,363)
Total stockholders' equity                          39,422       39,985
Total Liabilities and Stockholders' Equity          $56,745      $66,651


SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                                 
                                            For the Year Ended December 31,
                                            2012       2011        2010
REVENUES:                                                         
Technology                                 $9,600     $600        $3,600
Technical services                         1,909      1,719       2,805
Technical services from Dynamic Fuels, LLC  5,228      974         2,005
Royalties from Dynamic Fuels, LLC plant     789        921         --
production
Other                                      --        --         --
Total revenues                              17,526     4,214       8,410
                                                                 
COSTS AND EXPENSES:                                               
Engineering                                 2,571      2,236       2,871
                                                                 
Depreciation and amortization               186        200         217
General, administrative and other
(including non-cashequity compensation of
$508, $562 and $1,719for the years ended   5,552      4,827       7,574
December 31, 2012, 2011 and2010,
respectively.)
                                                                 
OPERATING INCOME (LOSS)                      9,217      (3,049)     (2,252)
                                                                 
INTEREST INCOME                              22         16          31
OTHER INCOME, net                           6          8           64
LOSS IN EQUITY OF DYNAMIC FUELS, LLC         (10,012)   (13,880)    (5,628)
FOREIGN CURRENCY EXCHANGE                    (296)      (17)        (1,848)
                                                                 
LOSS FROM CONTINUING OPERATIONSBEFORE      (1,063)    (16,922)    (9,633)
INCOME TAXES
                                                                 
INCOME TAXES                                 --         --          --
                                                                 
LOSS FROM CONTINUING OPERATIONS              (1,063)    (16,922)    (9,633)
                                                                 
INCOME (LOSS) FROM DISCONTINUED OPERATIONS   (38)       (27)        97
                                                                 
NET (LOSS)                                   $(1,101) $(16,949) $(9,536)
                                                                 
BASIC AND DILUTED NET INCOME (LOSS) PER                           
SHARE:
Loss from continuing operations              $(0.01)  $(0.19)   $(0.12)
Income (loss) from discontinued operations  0.00       0.00        0.00
Net loss                                     $(0.01)  $(0.19)   $(0.12)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                       
Basic                                        98,354     89,774      77,608
Diluted                                      99,115     89,774      77,608


SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                                 
                                            For the Year Ended December 31,
                                            2012       2011        2010
CASH FLOWS FROM OPERATING ACTIVITIES:                             
Net loss                                   $(1,101) $(16,949) $(9,536)
Income ( loss) from discontinued operations (38)       (27)        97
Loss from continuing operations             (1,063)    (16,922)    (9,633)
Adjustments to reconcile net loss to net
cash provided by (used in)operating                              
activities:
Depreciation and amortization               186        200         217
Abandoned patent write-off                  --         --          466
Foreign currency exchange                   296        17          1,848
Non-cash compensation expense               508        562         1,719
Non-cash loss in equity method investee     10,012     13,880      5,628
Non-cash technical services revenue from    (3,714)    --          --
Dynamic Fuels, LLC
Changes in assets and liabilities:                               
Accounts receivable                         (9)        431         2,609
Accounts receivable from Dynamic Fuels, LLC (524)      (1,895)     (579)
Other assets                                (18)       (27)        (79)
Accounts payable                            92         (870)       729
Accrued liabilities and other               (217)      169         (501)
Deferred revenue                            (9,050)    49          (3,216)
Net cash used in continuing operations      (3,501)    (4,406)     (792)
Net cash used in discontinued operations    (38)       (27)        (320)
Net cash used in operating activities       (3,539)    (4,433)     (1,112)
                                                                 
CASH FLOWS FROM INVESTING ACTIVITIES:                             
Purchase of property and equipment          (17)       (51)        (14)
Investment in and loans to Dynamic Fuels,   (3,000)    (9,000)     (21,250)
LLC
Net cash used in investing activities       (3,017)    (9,051)     (21,264)
                                                                 
CASH FLOWS FROM FINANCING ACTIVITIES:                             
Proceeds from sale of common stock,         63         23,572      9,877
warrants and option exercises
Purchase and retirement of restricted stock (199)      --          --
Net cash provided by (used in) financing    (136)      23,572      9,877
activities
                                                                 
NET CHANGE IN CASH AND CASH EQUIVALENTS      (6,692)    10,088      (12,499)
                                                                 
CASH AND CASH EQUIVALENTS, beginning of year 22,601     12,513      25,012
CASH AND CASH EQUIVALENTS, end of year       $15,909    $22,601     $12,513
                                                                 
NON-CASH INVESTING AND FINANCING ACTIVITIES:                      
Common stock warrants                       $166       $--        $--
AR contributed as investment in Dynamic     $2,896     $--        $--
Fuels, LLC
                                                                 
SUPPLEMENTAL DISCLOSURE                                           
Income taxes paid                           $--      $--        $281

CONTACT: Ron Stinebaugh
         Syntroleum Corporation
         (281) 224-9862
         www.syntroleum.com

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