Dune Energy Reports First Quarter 2013 Financial And Operating Results

    Dune Energy Reports First Quarter 2013 Financial And Operating Results

PR Newswire

HOUSTON, May 13, 2013

HOUSTON, May 13, 2013 /PRNewswire/ --Dune Energy, Inc. (OTCBB:DUNR) today
announced results for the first quarter of calendar year 2013.

Revenue and Production

Oil and gas revenue for the first quarter of 2013 totaled $12.1 million as
compared with $13.4 million for the first quarter of 2012. Production volumes
in the first quarter were 162 Mboe with 60% of this production being oil.
This compares with 229 Mboe for the first quarter of 2012 with a 43% oil cut.
In the first quarter of 2013, the average sales price per barrel of oil was
$110.04 and $3.71 per Mcf for natural gas, as compared with $110.73 per BO and
$3.12 per Mcf, respectively for the first quarter of 2012. Oil prices
decreased 1% and gas prices increased 19% from 2012 levels. During the first
quarter of 2013 oil revenue accounted for 88% of the total production
revenue. Additionally, the Company had other revenue of $1.0 million
consisting of the sale of emission credits in the first quarter of 2013.

Although the first quarter production volumes were low compared to a year ago,
our investment in Garden Island Bay projects resulted in production increases
throughout the quarter. January production averaged 1,393 BOe/day and March
production averaged 2,400 BOe/day. We will see the full impact of our
investment in the Leeville field in the second quarter. However, the increase
will be partially offset by shut in production at Garden Island Bay for field
maintenance.

Costs and Expenses

Total lease operating expense was $6.8 million for the first quarter of 2013
as compared to $6.2 million for the first quarter of 2012, or $42.30 and
$26.88 per BOe produced, respectively. This increase on a BOe basis was
reflective of lower production volumes in 2013 in our older fields with high
fixed expenses. DD&A expense was $3.2 million for the first quarter of 2013,
or $19.56 per BOe. Total January and February volumes were also negatively
impacted by some third party pipeline repairs over and above normal declines.
G&A expense totaled $2.6 million for the first quarter of 2013 compared to
$3.1 million in the first quarter of 2012. This includes $0.6 million and
$0.7 million non-cash stock based compensation in the first quarter of 2013
and first quarter of 2012. Interest and financing did not fluctuate between
quarters, remaining at $2.4 million.

Earnings

Net loss totaled $3.2 million for the first quarter of 2013. This compares
with a $3.6 million loss in 2012.

Liquidity and Credit Agreements

At the end of the quarter we had $12.2 million in cash and $20 million
available under our Sr. Credit Facility based on $50 million of availability.
Subsequent to the end of the quarter we signed a second amendment to our
credit facility amending the total Debt/EBITDAX covenant ratio to 5.0 times
from 4.0 times for the first quarter of 2013 and to 4.5 times from 4.0 times
for the second quarter of 2013. It returns to 4.0 times in the third quarter
of 2013 and beyond. Additionally, on May 8, 2013 our major shareholders
funded a second draw of $10 million on our $50 million equity financing of
December 21, 2012. We have now drawn $40 million of the $50 million facility.

2013 Operations Summary and Capital Program

Since our last operations update of March 8, 2013, we have completed the six
well shallow drilling program at our Leeville field. Five of the six wells
were successful and will result in seven completions, as two wells are dual
completions. The final well, the LL&E #340 ST #1, was drilled to 8,867 feet
and is to be completed in the 95E sand. The zone has approximately 130 feet
of hydrocarbon pay by log and core analysis. Initial production is
anticipated soon with expected rates of 120 to 140 BOe/day net to the
Company's 40% working interest. The initial six completions have all come on
production over the last month and gross production from over the past week
has averaged approximately 6.5 MMCF/day and 1,100 BO/day or over 2,200
BOe/day. The Company's net interest in this production is over 650 BOe/day.
One additional workover is scheduled to come online in the next several days
with an anticipated gross rates of 1.5 MMCF/day and 30 BO/day or 280 BOe/day,
which will be approximately 80 BOe/day net to the company. We anticipate that
when all wells are producing, Dune will net between 750-850 BOe/day from the
new completions. The SL 20783 #1 is drilling below 16,600 feet with a target
depth of 20,625 feet.

With the infusion of new equity capital, we anticipate spudding the Wieting
#31 well at Chocolate Bayou in June and will also look to commencing new
drilling activity in Garden Island Bay and Live Oak Fields in the summer. We
provide a monthly update to operations on our website www.duneenergy.com.

James A. Watt, President and CEO of the company stated, "Once again we have
shown that as we invest capital in our assets, they respond with increased
production volumes. We will continue judiciously investing in our property
base as capital availability permits."

Click here for more information:
http://www.duneenergy.com/news.html?b=1683&1=1

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements.
Forward-looking statements include, but are not limited to, statements
concerning estimates of expected drilling and development wells and associated
costs, statements relating to estimates of, and increases in, production, cash
flows and values, statements relating to the continued advancement of Dune
Energy, Inc.'s projects and other statements which are not historical facts.
When used in this document, the words such as "could," "plan," "estimate,"
"expect," "intend," "may," "potential," "should," and similar expressions are
forward-looking statements. Although Dune Energy, Inc. believes that its
expectations reflected in these forward-looking statements are reasonable,
such statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these
forward-looking statements include the potential that the Company's projects
will experience technological and mechanical problems, geological conditions
in the reservoir may not result in commercial levels of oil and gas
production, changes in product prices and other risks disclosed in Dune's
Annual report on Form 10-K filed with the U.S. Securities and Exchange
Commission.

Investor Contact:
Steven J. Craig
Sr. Vice President Investor Relations and Administration
713-229-6300 

Dune Energy, Inc.
Consolidated Balance Sheets
(Unaudited)
ASSETS                               March 31, 2013    December 31, 2012
Current assets:
 Cash                              $   12,159,561  $     
                                                         22,793,916
 Accounts receivable               7,797,925         6,723,233
 Current derivative asset          77,233            765,992
 Prepayments and other current      3,062,504         5,160,533
assets
Total current assets                 23,097,223        35,443,674
Oil and gas properties, using
successful efforts accounting -        258,448,945       239,233,653
proved
Less accumulated depreciation,        (16,966,353)      (13,806,672)
depletion and amortization
Net oil and gas properties           241,482,592       225,426,981
Property and equipment, net of
accumulated depreciation of $264,585   192,881           71,080
and $256,380
Deferred financing costs, net of
accumulated amortization of $967,513   2,268,599         2,428,453
and $771,061
Noncurrent derivative asset          244,357           397,886
Other assets                         2,732,813         2,692,797
                                       5,438,650         5,590,216
TOTAL ASSETS                         $  270,018,465   $     266,460,871
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
 Accounts payable                  $   15,424,588  $      
                                                         6,987,857
 Accrued liabilities               9,176,526         12,529,899
 Current maturities on long-term    927,738           1,623,541
debt
Total current liabilities            25,528,852        21,141,297
Long-term debt                       85,023,470        83,429,862
Other long-term liabilities          14,210,124        13,860,597
Total liabilities                    124,762,446       118,431,756
Commitments and contingencies        -                 -
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value,
1,000,000 shares authorized, 250,000   -                 -
shares undesignated, no shares issued
and outstanding
Common stock, $.001 par value,
4,200,000,000 shares authorized,       59,070            59,022
59,070,458 and 59,022,445 shares
issued
Treasury stock, at cost (63,810 and   (121,146)         (1,914)
1,056 shares)
Additional paid-in capital           156,381,131       155,824,868
Accumulated deficit                  (11,063,036)      (7,852,861)
Total stockholders' equity           145,256,019       148,029,115
TOTAL LIABILITIES AND STOCKHOLDERS'   $  270,018,465   $     266,460,871
EQUITY





Dune Energy, Inc.
Consolidated Statements of Operations
(Unaudited)
                                          Three months ended March 31,
                                          2013               2012
Revenues:
 Oil and gas revenues                 $ 12,121,663       $ 13,395,116
 Other revenues                       963,150            -
Total revenues                          13,084,813         13,395,116
Operating expenses:
 Lease operating expense and           6,861,401          6,158,785
production taxes
 Accretion of asset retirement         402,732            365,439
obligation
 Depletion, depreciation and           3,167,886          4,285,661
amortization
 General and administrative expense   2,588,082          3,101,057
 Loss on settlement of asset           22,920             423,922
retirement obligation liability
Total operating expense                 13,043,021         14,334,864
Operating income (loss)                 41,792             (939,748)
Other income (expense):
 Other income                         602                11,297
 Interest expense                     (2,434,979)        (2,369,686)
 Loss on derivative instruments       (817,590)          (292,422)
Total other income (expense)            (3,251,967)        (2,650,811)
Net loss                                $ (3,210,175)      $ (3,590,559)
Net loss per share:
 Basic and diluted                    $     (0.05)  $     (0.09)
Weighted average shares outstanding:
 Basic and diluted                    59,041,035         38,826,328





Dune Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
                                                Three months ended March 31,
                                                2013            2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                      $ (3,210,175)   $ (3,590,559)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
 Depletion, depreciation and amortization   3,167,886       4,285,661
 Amortization of deferred financing costs   196,452         178,388
 Stock-based compensation                   632,305         653,294
 Loss on settlement of asset retirement      22,920          423,922
obligation liability
 Accretion of asset retirement obligation   402,732         365,439
 Unrealized loss on derivative instruments  842,288         528,423
 Changes in:
 Accounts receivable                     (1,193,924)     41,019
 Prepayments and other assets            2,098,029       515,110
 Payments made to settle asset            (76,125)        (945,182)
retirement obligations
 Accounts payable and accrued             5,887,765       5,719,226
liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES     8,770,153       8,174,741
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in proved and unproved properties  (18,426,091)    (8,956,747)
Decrease in restricted cash                   -               17,184
Purchase of furniture and fixtures            (130,006)       (69,308)
Decrease (increase) in other assets           (71,092)        315,099
NET CASH USED IN INVESTING ACTIVITIES         (18,627,189)    (8,693,772)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on short-term debt                   (695,803)       (672,796)
Decrease (increase) in long-term debt          (5,522)         28,452
issuance costs
Common stock issuance costs                   (75,994)        -
Payments on long-term debt                    -               (3,000,000)
NET CASH USED IN FINANCING ACTIVITIES         (777,319)       (3,644,344)
NET CHANGE IN CASH BALANCE                    (10,634,355)    (4,163,375)
 Cash balance at beginning of period        22,793,916      20,393,672
 Cash balance at end of period              $ 12,159,561    $ 16,230,297
SUPPLEMENTAL DISCLOSURES
Interest paid                                 $   562,198  $   539,949
Income taxes paid                             -               -
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Accrued interest converted to long-term debt  $  1,593,608   $  1,328,357
Non-cash investment in proved and unproved     789,201         2,622,454
properties in accounts payable



SOURCE Dune Energy, Inc.

Website: http://www.duneenergy.com
 
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