Syntroleum Announces Second Quarter 2013 Results

Syntroleum Announces Second Quarter 2013 Results

TULSA, Okla., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Syntroleum Corporation
(Nasdaq:SYNM), a renewable and synthetic fuels technology company, today
announced financial results for the six months ended June 30, 2013.

Financial Highlights

For the six months ended June 30, 2013, the Company reported operating losses
of $3.7 million resulting from total revenues of $1.3 million and operating
expenses of $5.0 million. Revenues relate to engineering services provided
to Dynamic Fuels and others for process design and research support.

For the six months ended March 31, 2013, we reported earnings from Dynamic
Fuels of $5.2 million.This compares to a loss of $3.0 million for the six
months ended March 31, 2012. During the six months ended March 31, 2013 the
plant recognized revenue of $26.7 million from the re-instatement of the tax
credits for the production of renewable diesel and qualified alternative
fuels.

We report Dynamic Fuels on a three month lag and the income reflected in our
income statement from Dynamic Fuels represents the income incurred for the
period ending March 31, 2013.Our 10Q filing includes Dynamic Fuels
financials for their six months ended March 31, 2013.

For the six months ended June 30, 2013, we reported income from discontinued
operations of $6.4 million related to the sale of our two b/d pilot plant in
Tulsa, Oklahoma.

Syntroleum's net loss was $1.3 million or $0.13 per share for the three months
ended June 30, 2013 and net income was $9.7 million or $0.98 per share, for
the six months ended June 30, 2013.This compares to net income of $6.9
million or $0.71 per share and $5.0 million or $0.51 per share for the
respective corresponding periods in 2012.

As of June 30, 2013, Syntroleum's available cash position was $19.7 million.

Conference Call

The conference call will be held on Wednesday, August 7, 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 1-877-300-8521 about 10 minutes before
the start time and reference the Syntroleum conference call.International
callers should dial 1-412-317-6026.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-Q for the six months
ended June 30, 2013, filed with the SEC on Tuesday, August 6, 2013.The 10-Q
is available through the Investor Relations section of the Company's Web site,
www.syntroleum.com.

About Syntroleum (Nasdaq / SYNM)

Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT)
conversion of synthesis gas into liquid hydrocarbons, the Synfining® Process
for upgrading FT liquid hydrocarbons into refined petroleum products, and the
Bio-Synfining® technology for converting renewable feedstocks into drop-in
fuels.For additional information, visit the Company's web site at
www.syntroleum.com.

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
CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                                
                                                    June30,     December 31,
                                                     2013         2012
                                                    (Unaudited) 
ASSETS
CURRENT ASSETS:                                                  
Cash and cash equivalents                            $19,729      $15,909
Restricted cash                                      --           725
Accounts receivable                                  107          134
Taxes receivable                                     697          --
Accounts receivable from Dynamic Fuels, LLC          3            252
Other current assets                                 151          237
Total current assets                                 20,687       17,257
                                                                
                                                                
PROPERTY AND EQUIPMENT – at cost, net                72           58
INVESTMENT IN AND LOANS TO DYNAMIC FUELS, LLC        42,232       38,407
OTHER ASSETS, net                                    1,099        1,023
                                                    $64,090      $56,745
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:                                             
Accounts payable                                     $320         $312
Accrued employee costs                               441          71
Deposits                                             --          725
Total current liabilities                            761          1,108
                                                                
NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS    --           603
DEFERRED REVENUE                                     13,755       15,612
COMMITMENTS AND CONTINGENCIES                        --          --
                                                                
STOCKHOLDERS' EQUITY:                                            
Preferred stock, $0.01 par value, 5,000 shares       --          --
authorized, no shares issued
Common stock, $0.01 par value, 150,000 shares
authorized, 9,932 and 9,829 shares issued and        99          98
outstanding at June 30, 2013 and December 31,
2012,respectively
Additional paid-in capital                           400,200     399,788
Accumulated deficit                                  (350,725)   (360,464)
Total stockholders' equity                           49,574      39,422
                                                    $64,090      $56,745



SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                                  
                                      For the Three Months For the Six Months
                                       Ended June 30,       Ended June 30,
                                      2013        2012     2013      2012
REVENUES:                                                          
Technology                             $--       $6,150   $100      $6,300
Technical services                     380         473      762       954
Technical services from Dynamic Fuels, 28          4,052    445       4,431
LLC
Royalties from Dynamic Fuels, LLC      --          135      --        375
plant production
Total revenues                         408         10,810   1,307     12,060
                                                                  
COSTS AND EXPENSES:                                                
Engineering                            533         592      1,119     1,190
Depreciation and amortization          44          49       87        101
General, administrative and other
(including non-cash equity
compensation of $30 and $102 for the
three months ended June 30, 2013 and   1,550      1,406   3,829    2,792
2012, respectively, and $413 and $415
for the six months ended June 30, 2013
and 2012, respectively.)
                                                                  
OPERATING INCOME (LOSS)                (1,719)    8,763   (3,728)  7,977
                                                                  
INTEREST INCOME                        3          6       5        14
EQUITY IN EARNINGS (LOSS) OF DYNAMIC   (1,498)    (2,155) 5,209    (2,985)
FUELS, LLC
OTHER INCOME                           4          2       6        4
FOREIGN CURRENCY EXCHANGE              1,924      340     1,856    23
                                                                  
INCOME (LOSS) FROM CONTINUING          (1,286)    6,956   3,348    5,033
OPERATIONS
                                                                  
INCOME (LOSS) FROM DISCONTINUED        --        (9)     6,391    (19)
OPERATIONS
                                                                  
NET INCOME (LOSS)                      $(1,286)  $6,947 $9,739  $5,014
                                                                  
BASIC NET INCOME (LOSS) PER SHARE:                                 
Income (loss) from continuing          ($0.13)     $0.71    $0.34     $0.51
operations
Income from discontinued operations    --          --       0.64      --
Net income (loss)                      ($0.13)     $0.71    $0.98     $0.51
                                                                  
DILUTED NET INCOME (LOSS) PER SHARE:                               
Income (loss) from continuing          ($0.13)     $0.70    $0.32     $0.50
operations
Income from discontinued operations    --          --       0.62      --
Net income (loss)                      ($0.13)     $0.70    $0.94     $0.50
                                                                  
WEIGHTED AVERAGE COMMON SHARES                                     
OUTSTANDING:
Basic                                  9,932       9,848    9,924     9,844
Diluted                                9,932       9,986    10,376    9,982



SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                            
                                            For the Six Months Ended June 30,
                                            2013             2012
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net income                                   $9,739           $5,014
Income (loss) from discontinued operations   6,391           (19)
Net income from continuing operations        3,348           5,033
Adjustments to reconcile net loss to net
cash provided by (used in) operating                         
activities:
Depreciation and amortization                87              101
Foreign currency exchange                    (1,856)         (23)
Non-cash compensation expense                413             415
Non-cash (income) loss in equity method      (5,209)         2,985
investee
Non-cash technical services revenue from     --             (3,685)
Dynamic Fuels, LLC
Changes in assets and liabilities:                           
Accounts receivable                          27              (33)
Accounts receivable from Dynamic Fuels, LLC  249             (494)
Other assets                                 (61)            106
Accounts payable                             8               76
Accrued employee costs                       370             192
Deferred revenue                             --             (6,000)
Net cash used in continuing operations       (2,624)         (1,327)
Net cash used in discontinued operations     (10)            (19)
Net cash used in operating activities        (2,634)         (1,346)
                                                            
CASH FLOWS FROM INVESTING ACTIVITIES:                        
Purchase of property and equipment           (30)            (5)
Investment in and loans to Dynamic Fuels,    686             (3,000)
LLC, net
Net cash provided by (used in) continuing    656             (3,005)
operations
Net cash provided by discontinued operations 5,798           --
Net cash provided by (used in) investing     6,454           (3,005)
activities
                                                            
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Proceeds from sale of common stock, warrants --             63
and option exercises
Net cash provided by financing activities    --             63
                                                            
NET CHANGE IN CASH AND CASH EQUIVALENTS      3,820           (4,288)
CASH AND CASH EQUIVALENTS, beginning of      15,909          22,601
period
CASH AND CASH EQUIVALENTS, end of period     $19,729          $18,313
                                                            
NON-CASH INVESTING ACTIVITIES:                               
Common stock warrants                        $ --           $166
Accounts receivable reduction in Dynamic     $697             $--
Fuels, LLC working capital loan
Investment in and Loans to Dynamic Fuels,    $--           $6,597
LLC

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

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