ESP Resources Reports First Quarter 2014 Financial Results

ESP Resources Reports First Quarter 2014 Financial Results

 Production Petrochemical 2014 First Quarter Sales Increased 53.2% From 2013
          First Quarter Sales and 18.6% From the 2013 Fourth Quarter
       Adjusted EBITDA Swings to Profit of $50,606 in the First Quarter
                      Quarterly Net Loss Decreases 41.3%

LAFAYETTE, La., May 16, 2014 (GLOBE NEWSWIRE) -- ESP Resources, Inc.
(OTCQB:ESPI), an oil and gas services company, announced unaudited financial
results for the three months ended March 31, 2014.

First Quarter 2014 Highlights

First quarter 2014 financial results, compared to first quarter 2013, were as
follows:

  *Total revenues from production petrochemicals were $2,866,790 at the three
    months ended March 31, 2014, compared to $1,870,840 in the first quarter
    of 2013, a 53.2% increase; and an 18.6% increase from $2,416,805 in the
    fourth quarter of 2013.
  *Adjusted EBITDA, a non-GAAP measure, swung into the positive at $50,606,
    as compared to a loss of ($503,477) in the first quarter of 2013.
  *Gross profit margin increased by 4.3% to 53.4% in the first quarter of
    2014 due to the higher margins on sales of production petrochemical
    products, which constituted 91% of sales in the quarter.
  *Operating loss from continuing operations decreased 61.6% to ($371,851),
    as compared to a loss of ($970,754) for the comparable 2013
    period.Excluding a loss on disposal of certain assets of $16,169,
    stock-based compensation of $233,069 and depreciation and amortization of
    $180,000, pro forma operating profit was $57,687 for the first quarter of
    2014.
  *Net loss for the quarter decreased 41.3% to ($756,309), as compared to
    ($1,288,393) for the comparable 2013 period.
  *While total revenues for the quarter decreased by $302,192 compared to the
    respective 2013 period, first quarter 2013 revenues included sales from
    divisions that were non-core to the Company's business and have since been
    discontinued.

Management Comment

"The results of our decision in early 2013 to discontinue certain non-core
divisions and focus on our core production petrochemical business continue to
bear fruit.We expect the same positive trends in the coming quarters as well
as our operating cash flows and gross margins to continue to improve," said
David Dugas, President and Chief Executive Officer. "As we pursue
opportunities in completion petrochemical work for our customers and focus on
our growing production petrochemical business, we anticipate announcing some
new customer growth in the coming weeks and months."

Quarterly Financial Results

Sales were $3,152,765 for the three months ended March 31, 2014, compared to
$3,454,957 for the same period in 2013, a decrease of $302,192, or 9%. The
decrease was mainly due to a $1,357,000 decreased sales volume from completion
petrochemical sales and services to customers engaged in the hydraulic
fracturing of oil and gas wells. This decrease occurred as a result of a
slowdown in fracking activity by certain of the Company's customers and
closure of the Company's district office in Arkansas.In addition, as the
Company's customers shifted their hydraulic fracturing activity to other shale
regions where the Company did not have any district offices, the Company was
not able to recapture that fracking activity.This decrease in completion
petrochemical sales was offset by an increase in production chemical sales of
$995,950.

Cost of goods was $1,470,343, or 46.6% of net sales, for the three months
ended March 31, 2014, compared to $1,756,871 or 50.6% of net sales, for the
same period in 2013. Gross profit was $1,682,422, or 53.4% of net sales, for
the three months ended March 31, 2014, compared to $1,698,086, or 49.4% of net
sales, for the same period in 2013. The 4.3% increase in gross profit for the
three month period in 2014 is the result of a decline in completion
petrochemical sales from customers engaged in the hydraulic fracturing of oil
and gas wells that has a lower gross profit margin than production
petrochemical product sales.

General and administrative expenses decreased by $578,936 for the three months
ended March 31, 2014, as compared to the same period in 2013. The decrease in
general and administrative expenses was primarily due to a reduction in legal
costs related to an intellectual property suit that was settled in the fourth
quarter of 2012, the closure of the Houston office in June 2013 and
approximately $165,000 reduction in stock compensation expenses.

The Company's net loss from continued operations decreased to $756,309 for the
three months ended March 31, 2014, as compared to a net loss from continued
operations of $1,115,481 for the same period in 2013.The primary reason for
the decrease in the net loss was due to a cost reduction initiated by the
Company in the second half of 2013.

About ESP Resources, Inc.

ESP Resources, Inc. is a publicly traded oil and gas services company
headquartered in Lafayette, Louisiana.The Company manufactures, blends,
distributes and markets specialty chemicals and analytical services to the oil
and gas industry.The Company's senior management has over 100 years of
combined operating experience in the oil and gas services industry.More
information is available on the Company's Website at www.espchem.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains "forward looking statements" within the meaning of
the safe harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995.Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and
uncertainties.Forward-looking statements are based on current facts and
analyses and other information that are based on forecasts of future results,
estimates of amounts not yet determined and assumptions of management.Forward
looking statements are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "aims", "potential", "goal", "objective", "prospective", and
similar expressions or that events or conditions "will", "would", "may",
"can", "could" or "should" occur.Information concerning oil or natural gas
reserve estimates may also be deemed to be forward looking statements, as it
constitutes a prediction of what might be found to be present when and if a
project is actually developed.Actual results may differ materially from those
currently anticipated due to a number of factors beyond the reasonable control
of the Company.It is important to note that actual outcomes and actual
results could differ materially from those in such forward-looking statements.

Readers are cautioned not to place undue reliance on the forward-looking
statements made in this press release.In evaluating these statements, you
should consider the risks discussed, from time to time, in the reports we file
with the U.S. Securities & Exchange Commission.For a discussion of some of
the risks and important factors that could affect the Company's future results
and financial condition, see the Company's Form 10-Ks and 10-Qs on file with
the U.S. Securities & Exchange Commission.

CONTACT: David Dugas
         President and Chief Executive Officer
         ESP Resources, Inc.
         david.dugas@espchem.com
         (337) 706-7056
 
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