GeoMet Announces Financial and Operating Results for the Quarter and Six Months Ended June 30, 2014

GeoMet Announces Financial and Operating Results for the Quarter and Six Months  Ended June 30, 2014  HOUSTON, TX -- (Marketwired) -- 08/15/14 --  GeoMet, Inc. (OTCQB: GMET) (NASDAQ: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and six months ended June 30, 2014.  Financial and Operating Results  On May 12, 2014, we closed the sale of substantially all of our remaining assets (the "Asset Sale"). As a result of the Asset Sale, we have classified all of the assets related to our gas properties as Assets related to discontinued operations and all related liabilities as Liabilities related to discontinued operations, both in the Condensed Consolidated Balance Sheet (Unaudited) as of June 30, 2014. Additionally, the related operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the quarter and six months ended June 30, 2014 and 2013.  Quarter Ended June 30, 2014  For the quarter ended June 30, 2014, GeoMet reported net income available to common stockholders of $57.7 million, or $1.42 per fully diluted share. Included in net income available to common stockholders for the quarter ended June 30, 2014 were non-cash charges of $0.7 million for accretion of preferred stock and $0.6 million for paid-in-kind ("PIK") dividends paid on preferred stock. For the quarter ended June 30, 2013, GeoMet reported a net income available to common stockholders of $40.5 million, or $1.00 per fully diluted share. Included in net income available to common stockholders for the quarter ended June 30, 2013 were charges of $0.5 million for accretion of preferred stock and $1.4 million for PIK dividends paid on preferred stock.  For the quarter ended June 30, 2014, GeoMet reported income from discontinued operations of $60.3 million, net of tax of $0.7 million, or $1.49 per fully diluted share. Included in income from discontinued operations was a $61.8 million gain resulting from the Asset Sale. For the quarter ended June 30, 2013, GeoMet reported income from discontinued operations of $43.8 million, net of tax of $0, or $1.08 per fully diluted share. Included in income from discontinued operations was a $37.1 million gain resulting from the June 2013 sale of our Alabama assets.  Six Months Ended June 30, 2014  For the six months ended June 30, 2014, GeoMet reported net income available to common stockholders of $57.3 million, or $1.41 per fully diluted share. Included in net income available to common stockholders for the six months ended June 30, 2014 were non-cash charges of $1.3 million for accretion of preferred stock and $1.2 million for PIK dividends paid on preferred stock. For the six months ended June 30, 2013, GeoMet reported a net income available to common stockholders of $33.1 million, or $0.82 per fully diluted share. Included in net income available to common stockholders for the six months ended June 30, 2013 were charges of $1.0 million for accretion of preferred stock and $2.4 million for PIK dividends paid on preferred stock.  For the six months ended June 30, 2014, GeoMet reported income from discontinued operations of $62.3 million, net of tax of $0.7 million, or $1.54 per fully diluted share. Included in income from discontinued operations was a $61.8 million gain resulting from the Asset Sale. For the six months ended June 30, 2013, GeoMet reported income from discontinued operations of $39.2 million, net of tax of $0, or $0.97 per fully diluted share. Included in income from discontinued operations was a $37.1 million gain resulting from the June 2013 sale of our Alabama assets.  Forward-Looking Statements Notice  This press release may contain "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 and our ability to raise additional capital to fund cash requirements for future operations. 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.  Through the closing of the Asset Sale, GeoMet was engaged in the production of natural gas from coal seams ("coalbed methane"). Prior to the Asset Sale, our core area of operations were the Central Appalachian Basin of Virginia and West Virginia.                                                                                                                                                                                       GEOMET, INC. AND SUBSIDIARIES                                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)                                                                                                               Quarter Ended June 30,    Six Months Ended June 30,                        -------------------------   -------------------------                            2014          2013          2014          2013                           -----------   -----------   -----------   -----------  Expenses:                                                                      Depreciation,                                                                 depletion and                                                                amortization       $        --   $    34,639   $   113,817   $    69,011    General and                                                                   administrative         917,519     1,408,521     1,947,123     2,406,754    Lease termination                                                             costs                  427,722            --       427,722            --    Restructuring                                                                 costs                       --        17,396            --        87,584                        -----------   -----------   -----------   -----------  Total operating                                                               expenses               1,345,241     1,460,556     2,488,662     2,563,349                                                                               Other expense              (1,669)       (6,697)      (20,203)      (35,345)                                                                               Income tax expense          6,250         6,250        12,500        12,500                        -----------   -----------   -----------   -----------                                                                               Discontinued                                                                  operations            60,327,228    43,843,152    62,344,289    39,225,929                        -----------   -----------   -----------   -----------                                                                               Net income            $58,974,068   $42,369,649   $59,822,924   $36,614,735                        ===========   ===========   ===========   ===========                                                                               Accretion of                                                                  Preferred Stock         (705,165)     (532,836)   (1,349,909)   (1,026,373) Paid in-kind                                                                  dividends on                                                                 Preferred Stock         (552,915)   (1,367,488)   (1,152,790)   (2,443,173) Cash dividends paid                                                           on Preferred Stock          (490)         (568)       (1,058)       (1,201)                       -----------   -----------   -----------   -----------                                                                               Net income available                                                          to common                                                                    stockholders         $57,715,498   $40,468,757   $57,319,167   $33,143,988                        ===========   ===========   ===========   ===========                                                                               Net income per                                                                common share--basic                                                          and diluted:                                                                Continuing                                                                    operations           $     (0.07)  $     (0.08)  $     (0.13)  $     (0.15) Discontinued                                                                  operations                  1.49          1.08          1.54          0.97                        -----------   -----------   -----------   -----------  Total                 $      1.42   $      1.00   $      1.41   $      0.82                        ===========   ===========   ===========   ===========                                                                               Weighted average                                                              number of common                                                             shares:                                                                     Basic and diluted      40,515,020    40,477,411    40,514,561    40,467,149                        ===========   ===========   ===========   ===========                                                                                                                                                                                                                                                                                                                                             GEOMET, INC. AND SUBSIDIARIES                                      CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)                                                                                                                                                                                                                            June 30,    December 31,                                                       2014          2013                                                       ------------  ------------                       ASSETS                                                                                                                               Current Assets:                                                                Cash and cash equivalents                      $ 24,978,808  $  8,108,272    Assets related to discontinued operations         2,833,774            --    Other current assets                                137,715     3,593,547                                                   ------------  ------------  Total current assets                               27,950,297    11,701,819  Property and equipment--net                                --    42,329,051  Other noncurrent assets                                    --       769,384                                                   ------------  ------------  TOTAL ASSETS                                     $ 27,950,297  $ 54,800,254                                                   ============  ============                                                                               LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                                                                                                          Current Liabilities:                                                           Liabilities related to discontinued operations $  2,298,769  $         --    Current portion of long-term debt                        --    71,550,000    Derivative liability--natural gas contracts              --       834,151    Asset retirement obligations                        669,817       265,470    Income taxes payable                                709,719            --    Other current liabilities                           289,024     8,271,695                                                   ------------  ------------  Total current liabilities                           3,967,329    80,921,316                                                   ------------  ------------  Asset retirement obligations                               --     8,915,407  Derivative liability--natural gas contracts                --       709,571  Other long-term accrued liabilities                        --       113,434                                                   ------------  ------------  TOTAL LIABILITIES                                   3,967,329    90,659,728                                                   ------------  ------------  Series A Convertible Redeemable Preferred Stock    45,907,692    43,404,993  Stockholders' deficit                             (21,924,724)  (79,264,467)                                                  ------------  ------------  TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS'                                DEFICIT                                         $ 27,950,297  $ 54,800,254                                                   ============  ============                                                                                                                                                                                                                                                                                                                                                      GEOMET, INC.                                               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                      Six Months Ended   Six Months Ended                                           June 30, 2014      June 30, 2013                                           -----------------  -----------------                                                                               Net cash (used in) provided by                                                operating activities                  $      (7,020,576) $       6,346,181                                                                               Net cash provided by investing                                                activities                                   95,442,170         60,258,020                                                                               Net cash used in financing activities        (71,551,058)       (62,305,020)                                        -----------------  -----------------                                                                               Increase in cash and cash equivalents         16,870,536          4,299,181                                                                               Cash and cash equivalents at beginning                                        of period                                     8,108,272          7,234,225                                         -----------------  -----------------                                                                               Cash and cash equivalents at end of                                           period                                $      24,978,808  $      11,533,406                                         =================  =================      For more information please contact Tony Oviedo Senior Vice President, Chief Financial Officer, Chief Accounting Officer and  Controller (713) 287-2262 toviedo@geometcbm.com     
Press spacebar to pause and continue. Press esc to stop.