GeoMet Announces Financial and Operating Results for the Quarter Ended March 31, 2014

GeoMet Announces Financial and Operating Results for the Quarter Ended March 
31, 2014 
HOUSTON, TX -- (Marketwired) -- 05/13/14 --  GeoMet, Inc. (OTCQB:
GMET) (NASDAQ: GMETP) ("GeoMet" or the "Company") today announced its
financial and operating results for the quarter ended March 31, 2014. 
Financial and Operating Results  
As a result of meeting all of the relevant criteria established under
GAAP, we have classified all of our remaining productive assets as
Assets held for sale and all related liabilities as Liabilities held
for sale, both in the Condensed Consolidated Balance Sheets
(Unaudited) as of March 31, 2014. Additionally, the related operating
activities are presented as discontinued operations in the Condensed
Consolidated Statements of Operations (Unaudited) for the three
months ended March 31, 2014 and 2013.  
For the quarter ended March 31, 2014, GeoMet reported net income of
$0.8 million. Included in net income was a $1.2 million loss on
natural gas derivatives. For the quarter ended March 31, 2013, GeoMet
reported a net loss of $5.8 million. Included in the net loss was a
$5.5 million loss on natural gas derivatives.  
For the quarter ended March 31, 2014, GeoMet reported net loss
available to common stockholders of $0.4 million, or $0.01 per fully
diluted share. Included in net income available to common
stockholders for the quarter ended March 31, 2014 were non-cash
charges of $0.6 million for accretion of preferred stock and $0.6
million for paid-in-kind ("PIK") dividends paid on preferred stock.
For the quarter ended March 31, 2013, GeoMet reported a net loss
available to common stockholders of $7.3 million, or $0.18 per fully
diluted share. Included in the net loss available to common
stockholders for the quarter ended March 31, 2013 were charges of
$0.5 million for accretion of preferred stock and $1.1 million for
PIK dividends paid on preferred stock.  
Revenues for the quarter ended March 31, 2014 were $9.7 million, as
compared to $10.9 million for the prior year quarter. The average
natural gas price for the quarter ended March 31, 2014 was $5.05 per
Mcf as compared to the prior year quarter average of $3.50 per Mcf. 
Average net gas sales volumes for the quarter ended March 31, 2014
were 21.3 MMcf per day, a 38% decrease from the same quarter in 2013
of which 29% resulted from the June 2013 sale of our Alabama assets
and 9% resulted from decreased production related to our horizontal
Pinnate wells in our remaining properties. 
Forward-Looking Statements Notice 
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Except for statements of historical facts, all statements included in
the document, including those preceded by, followed by or that
otherwise include the words "believe," "expects," "anticipates,"
"intends," "estimates," "projects," "target," "goal," "plans,"
"objective," "should" or similar expressions or variations on such
words, are forward-looking statements. These forward-looking
statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those
projected. Among those risks, trends and uncertainties are volatility
of future natural gas prices, our estimate of the sufficiency of our
existing capital sources, our ability to raise additional capital to
fund cash requirements for future operations, the uncertainties
involved in estimating quantities of proved natural gas reserves,
reductions in the borrowing base under our credit agreement made by
our lenders, the sale of all or substantially all of our assets, in
prospect development and property acquisitions and in projecting
future rates of production, the timing of development expenditures
and drilling of wells, and the operating hazards attendant to the oil
and gas business. In particular, careful consideration should be
given to cautionary statements made in the various reports the
Company has filed with the Securities and Exchange Commission
("SEC"). Additional information concerning factors that could cause
actual results to differ materially from those in the forward-looking
statements is contained from time to time in the Company's SEC
filings, which may be obtained by contacting the Company or the SEC.
These filings are also available through the Company's web site at
http://www.geometinc.com or through the SEC's Electronic Data
Gathering and Analysis Retrieval System (EDGAR) at
http://www.sec.gov. GeoMet undertakes no duty to update or revise
these forward-looking statements.  
About GeoMet, Inc. 
As of March 31, 2014, GeoMet was engaged in the production of natural
gas from coal seams ("coalbed methane"). It's core area of operations
was the Central Appalachian Basin of Virginia and West Virginia. 


 
                                                                            
                        GEOMET, INC. AND SUBSIDIARIES                       
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)        
                    FOR THE THREE MONTHS ENDED MARCH 31,                    
                                                                            
                                                     2014          2013     
                                                 ------------  ------------ 
Expenses:                                                                   
  Depreciation, depletion and amortization       $    113,817  $     34,372 
  General and administrative                        1,029,604       998,233 
  Restructuring costs                                      --        70,188 
                                                 ------------  ------------ 
    Total operating expenses                        1,143,421     1,102,793 
                                                                            
    Other expense                                     (18,534)      (28,648)
                                                                            
    Income tax expense                                  6,250         6,250 
                                                                            
    Discontinued operations                         2,017,061    (4,617,223)
                                                                            
Net income (loss)                                $    848,856  $ (5,754,914)
                                                 ============  ============ 
                                                                            
Accretion of Preferred Stock                         (644,744)     (493,537)
Paid-in-kind dividends on Preferred Stock            (599,875)   (1,075,685)
Cash dividends paid on Preferred Stock                   (568)         (633)
                                                                            
Net loss available to common stockholders        $   (396,331) $ (7,324,769)
                                                 ============  ============ 
                                                                            
Net loss per common share--basic:                                           
  Net loss per common share from continuing                                 
   operations                                    $      (0.06) $      (0.07)
  Income (loss) per common share from                                       
   discontinued operations                           
    0.05         (0.11)
                                                 ------------  ------------ 
  Net loss per common share--basic               $      (0.01) $      (0.18)
                                                 ============  ============ 
                                                                            
Net loss per common share--diluted:                                         
  Net loss per common share from continuing                                 
   operations                                    $      (0.06) $      (0.07)
  Income (loss) per common share from                                       
   discontinued operations                               0.05         (0.11)
                                                 ------------  ------------ 
  Net loss per common share--diluted             $      (0.01) $      (0.18)
                                                 ============  ============ 
                                                                            
Weighted average number of common shares:                                   
  Basic                                            40,514,097    40,456,773 
                                                 ============  ============ 
  Diluted                                          40,514,097    40,456,773 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                        GEOMET, INC. AND SUBSIDIARIES                       
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)             
                                                                            
                                                  March 31,    December 31, 
                                                     2014          2013     
                                                 ------------  ------------ 
                      ASSETS                                                
Current Assets:                                                             
  Cash and cash equivalents                      $  7,559,114  $  8,108,272 
  Assets held for sale                             46,451,620            -- 
  Other current assets                                111,927     3,593,547 
                                                 ------------  ------------ 
Total current assets                               54,122,661    11,701,819 
Property and equipment--net                                --    42,329,051 
Other noncurrent assets                                47,409       769,384 
TOTAL ASSETS                                     $ 54,170,070  $ 54,800,254 
                                                 ============  ============ 
 LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                           
Current Liabilities:                                                        
  Liabilities held for sale                      $ 87,242,070  $         -- 
  Current portion of long-term debt                        --    71,550,000 
  Derivative liability--natural gas contracts              --       834,151 
  Other current liabilities                           540,173     8,537,165 
                                                 ------------  ------------ 
Total current liabilities                          87,782,243    80,921,316 
                                                 ------------  ------------ 
Asset retirement obligations                        1,359,671     8,915,407 
Derivative liability--natural gas contracts                --       709,571 
Other long-term accrued liabilities                        --       113,434 
                                                 ------------  ------------ 
TOTAL LIABILITIES                                  89,141,914    90,659,728 
                                                 ------------  ------------ 
Series A Convertible Redeemable Preferred Stock    44,649,612    43,404,993 
Stockholders' deficit                             (79,621,456)  (79,264,467)
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS'                              
 DEFICIT                                         $ 54,170,070  $ 54,800,254 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                                GEOMET, INC.                                
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS              
                    FOR THE THREE MONTHS ENDED MARCH 31,                    
                                                                            
                                                     2014          2013     
                                                 ------------  ------------ 
Net cash provided by operating activities        $    909,696  $  4,815,636 
                                                                            
Net cash provided by (used in) investing                                    
 activities                                            91,714      (163,091)
                                                                            
Net cash used in financing activities              (1,550,568)   (4,504,451)
                                                 ------------  ------------ 
                                                                            
(Decrease) increase in cash and cash equivalents     (549,158)      148,094 
                                                                            
Cash and cash equivalents at beginning of period    8,108,272     7,234,225 
                                                                            
Cash and cash equivalents at end of period       $  7,559,114  $  7,382,319 
                                                 ============  ============ 
                        GEOMET, INC. AND SUBSIDIARIES                       
                            OPERATING STATISTICS                            
                    FOR THE THREE MONTHS ENDED MARCH 31,                    
                   (in thousands, except per Mcf amounts)                   
                                                                            
                                               Three Months Ended March 31, 
                                              ------------------------------
                                                   2014            2013     
                                              --------------  --------------
Gas sales                                     $        9,678  $       10,879
                                              ==============  ==============
Lease operating expenses                      $        2,552  $        4,469
Compression and transportation expenses                1,674           1,839
Production taxes                                         578             550
Total production expenses                     $        4,804  $        6,858
                                              ==============  ==============
Net sales volumes (Consolidated) (MMcf)                1,916           3,108
  Pond Creek and Lasher fields                         1,376           1,452
  Pinnate wells (Central Appalachian Basin)              540             753
  Gurnee field (Cahaba Basin)                             --             396
  Black Warrior Basin fields                              --             507
Per Mcf data ($/Mcf):                                                       
Average natural gas sales price (Consolidated)$         5.05  $         3.50
  Pond Creek and Lasher fields                $         5.16  $         3.60
  Pinnate wells (Central Appalachian Basin)   $         4.78  $         3.40
  Gurnee field (Cahaba Basin)                 $           --  $         3.44
  Black Warrior Basin fields                  $           --  $         3.43
Average natural gas sales price realized                                    
 (Consolidated)(1
)                            $         4.55  $         4.50
Lease operating expenses (Consolidated)       $         1.33  $         1.44
  Pond Creek and Lasher fields                $         1.21  $         1.21
  Pinnate wells (Central Appalachian Basin)   $         1.65  $         1.68
  Gurnee field (Cahaba Basin)                 $           --  $         2.77
  Black Warrior Basin fields                  $           --  $         0.67
Compression and transportation expenses                                     
 (Consolidated)                               $         0.88  $         0.59
  Pond Creek and Lasher fields                $         0.61  $         0.58
  Pinnate wells (Central Appalachian Basin)   $         1.51  $         1.04
  Gurnee field (Cahaba Basin)                 $           --  $         0.31
  Black Warrior Basin fields                  $           --  $         0.19
Production taxes (Consolidated)               $         0.30  $         0.18
  Pond Creek and Lasher fields                $         0.30  $         0.19
  Pinnate wells (Central Appalachian Basin)   $         0.32  $         0.15
  Gurnee field (Cahaba Basin)                 $           --  $         0.15
  Black Warrior Basin fields                  $           --  $         0.20
Total production expenses (Consolidated)      $         2.51  $         2.21
  Pond Creek and Lasher fields                $         2.12  $         1.98
  Pinnate wells (Central Appalachian Basin)   $         3.48  $         2.87
  Gurnee field (Cahaba Basin)                 $           --  $         3.23
  Black Warrior Basin fields                  $           --  $         1.06
Depletion (Consolidated)                      $         0.38  $         0.47

 
(1) Average natural gas sales price realized includes the effects of
realized gains and losses on derivative contracts. 


 
                                                                            
                                                                            
                                                                            
                                GEOMET, INC.                                
                 CONSOLIDATED DERIVATIVE CONTRACT POSITIONS                 

 
At March 31, 2014, we had the following natural gas collar positions: 


 
                                              Volume      Sold      Bought  
Period                                        (MMBtu)    Ceiling     Floor  
------------------------------------------- ----------                      
April 2014 through December 2015             3,200,000 $     4.30 $     3.60
April 2014 through December 2015             3,200,000 $     4.20 $     3.50
                                            ----------                      
                                             6,400,000                      
                                            ==========                      

  
For more information please contact
Tony Oviedo
Senior Vice President, Chief Financial Officer, Chief Accounting Officer and 
Controller
(713) 287-2262
toviedo@geometcbm.com 
 
 
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