Syntroleum Announces First Quarter 2013 Results

Syntroleum Announces First Quarter 2013 Results

TULSA, Okla., May 3, 2013 (GLOBE NEWSWIRE) -- Syntroleum Corporation
(Nasdaq:SYNM) today announced financial results for the three months ended
March 31, 2013.

Highlights

Syntroleum's net income was $11.0 million or $1.15 per share for the three
months ended March 31, 2013, compared to a net loss of $1.9 million or $0.20
per share for the corresponding period in 2012.

The financial statements for all prior periods have been retroactively
adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of the
Company's common stock which allowed the Company to regain compliance with
NASDAQ's minimum price Marketplace Rule as of April 26, 2013.

For the quarter ended March 31, 2013, the Company reported an operating loss
of $2.0 million resulting from total revenues of $899 thousand and operating
expenses of $2.9 million.

Equity in earnings of Dynamic Fuels for the quarter ended March 31, 2013 is
$6.7 million which includes $12.6 million in gains representing our portion of
the retroactive reinstatement of the $1 tax credit for 2012, partially offset
by $5.9 million in losses resulting from our share of Dynamic Fuels' operating
results for its first quarter ended December 31, 2012. Due to the material
impact of the retroactive reinstatement of the $1 tax credit, we are reporting
it in the current quarter rather than on a three month lag basis which is our
normal accounting practice. For Dynamic Fuels' quarter ended December 31,
2011, we reported a loss from Dynamic Fuels of $830 thousand.

Income from Discontinued Operations for the quarter ended March 31, 2013
includes $5.8 million in proceeds from the sale of our nominal two b/d pilot
plant in Tulsa, Oklahoma and $603 thousand from the previously accrued asset
retirement obligations.

As of March 31, 2013 Syntroleum's available cash position was $14.9 million.
On April 12, 2013 we received $9.0 million in refunds from the IRS related to
the reinstatement of the $1 tax credit retroactive to 2012 resulting in total
cash of approximately $23.9 million.

During the quarter ended March 31, 2013, Syntroleum and Tyson each made
additional equity contributions of $1.7 million and working capital loans of
$4.0 million to Dynamic Fuels to fund operations to maintain the Geismar Plant
in standby mode.

Our conference call will be held on Wednesday, May 8, 2013, at 10:00 a.m.
Central time (11:00 a.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

Forward-Looking Statements

This document may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as well as historical facts.
These forward-looking statements include statements relating to the
Fischer-Tropsch ("FT") process, Syntroleum ® Process, Synfining ® Process, and
related technologies including, gas-to-liquids ("GTL"), coal-to-liquids
("CTL") and biomass-to-liquids ("BTL"), our renewable fuels Bio-Synfining ®
Technology (hereinafter "Technologies"), plants based on these Technologies,
anticipated cost and schedule to design, construct and operate plants,
expected production of fuel, obtaining required financing for these plants and
other activities, the value and markets for products, testing, certification,
characteristics and use of plant products, the continued development of our
Technologies, use of proceeds from our equity offerings, anticipated revenues,
availability of catalyst, our support of and relationship with our licensees,
and any other forward-looking statements including future growth, cash needs,
capital availability, operations, business plans and financial 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 are described under "Item 1A. Risk Factors" and
elsewhere in our 2012 Annual Report on Form 10K.

®"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)                                              
                                                March 31,   December 31,
                                                2013        2012
ASSETS
CURRENT ASSETS:                                             
Cash and cash equivalents                       $14,935   $ 15,909
Restricted cash                                 762        725
Accounts receivable                             123        134
Taxes receivable                                8,986       --
Accounts receivable from Dynamic Fuels, LLC     85         252
Other current assets                            213        237
Total current assets                            25,104     17,257
                                                           
PROPERTY AND EQUIPMENT                                      
Property, plant, and equip,                     448        446
Accumulated depletion, depreciation and         (395)      (388)
amortization
Total Property & Equipment, net                 53         58
                                                           
INVESTMENT IN AND LOANS TO DYNAMIC FUELS, LLC    41,798      38,407
OTHER ASSETS, net                                1,031       1,023
Total Assets                                    $67,986   $56,745
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:                                        
Accounts payable                                $529     $312
Accruedliabilities                             185         71
Deposits                                        762        725
Total current liabilities                       1,476      1,108
                                                           
NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS --         603
DEFERRED REVENUE                                 15,679     15,612
COMMITMENTS AND CONTINGENCIES                    --         --
Total liabilities                               17,155     17,323
                                                           
STOCKHOLDERS' EQUITY:                                       
Common stock, $0.01 par value, 150,000 shares
authorized, 9,924 and 9,829 shares issued and    992        983
outstanding at March 31,2013 and December 31,
2012 respectively
Additional paid-in capital                       399,278    398,903
Retained Earnings, beginning of year             (360,464)  (359,363)
Current Year Earnings                            11,025    (1,101)
Accumulated deficit                              (349,439)  (360,464)
Total stockholders' equity                      50,831    39,422
Total Liabilities and Stockholders' Equity      $67,986   $56,745
                                                                            
Share and per share information for the prior periods has been retroactively
adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of    
the Company's common stock.

                                                           
                                                           
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                           
                                                           
                                            For the Quarter Ended March 31,
                                            2013            2012
REVENUES:                                                   
Technology                                 $100            $150
Technical services                         382             481
Technical services from Dynamic Fuels, LLC  417             379
Royalties from Dynamic Fuels, LLC plant     --              240
production
Total revenues                              899             1,250
                                                           
COSTS AND EXPENSES:                                         
Engineering                                 586             598
Depreciation and amortization               43              52
General, administrative and other
(including non-cash equity compensation of   2,279           1,386
$384, and $312 for the quarters ended March
31, 2013, and 2012, respectively.)
                                                           
OPERATING LOSS                               (2,009)         (786)
                                                           
INTEREST INCOME                              2               8
OTHER INCOME                                2               2
EQUITY IN EARNINGS (LOSS) OF DYNAMIC FUELS,  6,707           (830)
LLC
FOREIGN CURRENCY EXCHANGE                    (68)            (317)
                                                           
INCOME (LOSS) FROM CONTINUING OPERATIONS     4,634           (1,923)
                                                           
INCOME (LOSS) FROM DISCONTINUED OPERATIONS   6,391           (10)
                                                           
NET INCOME (LOSS)                            $11,025         $(1,933)
                                                           
BASIC NET INCOME (LOSS) PER SHARE:                          
Net Income (Loss) from continuing operations $0.48           $(0.20)
Income (Loss) from discontinued operations  0.67            (0.00)
Net Income (Loss)                            $1.15           $(0.20)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                 
Basic                                        9,585           9,840
Diluted                                      9,585           9,840
                                                           
Share and per share information for the prior periods has been retroactively
adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of the
Company's common stock.

                                                            
                                                            
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                            
                                                            
                                              For the Quarter Ended March 31,
                                              2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net Income (loss)                            $11,025        $(1,933)
Income (loss) from discontinued operations    6,391          (10)
Income (loss) from continuing operations      4,634          (1,923)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating                     
activities:
Depreciation and amortization                 43             52
Foreign currency exchange                     68             317
Non-cash compensation expense                 384            312
Non-cash (income) loss in equity method       (6,707)        830
investee
Changes in assets and liabilities:                          
Accounts receivable                           11             (35)
Accounts receivable from Dynamic Fuels, LLC   167            (536)
Other assets                                  (21)           72
Accounts payable                              217            (152)
Accrued employee costs                        114            (48)
Deferred revenue                              --             (50)
Net cash used in continuing operations        (1,090)        (1,161)
Net cash used in discontinued operations      (10)           (9)
Net cash used in operating activities         (1,100)        (1,170)
                                                            
CASH FLOWS FROM INVESTING ACTIVITIES:                        
Purchase of property and equipment            (2)            (5)
Investment in and loans to Dynamic Fuels, LLC (5,670)        --
Net cash used in continuing operations        (5,672)        (5)
Net cash provided by discontinued operations  5,798          --
Net cash provided by (used in) investing      126            (5)
activities
                                                            
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Proceeds from restricted stock exercises      --             63
Net cash provided by financing activities     --             63
                                                            
NET CHANGE IN CASH AND CASH EQUIVALENTS        (974)          (1,112)
CASH AND CASH EQUIVALENTS, beginning of period 15,909         22,601
CASH AND CASH EQUIVALENTS, end of period       $14,935        $21,489
                                                            
NON-CASH INVESTING ACTIVITIES:                               
Accounts receivable reduction in Dynamic       $8,986         $--
Fuels, LLC working capital loan

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

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