DENVER, CO — (Marketwired) — 08/12/13 — (NYSE MKT: ESTE) reported net income of $693,000, or $0.40 per diluted share, on revenue of $3,595,000 for the first quarter of fiscal 2014, ended June 30, 2013 (2013). This compares to net income of $270,000, or $0.16 per diluted share, on revenue of $2,347,000 for the first quarter of fiscal 2013, ended June 30, 2012 (2012). Total revenue and net income increased $1,248,000 (53%) and $423,000 (157%), respectively, from 2012. These increases were due to both higher oil and gas sales volumes and higher oil and natural gas prices in 2013 relative to 2012. Other factors which contributed to the quarterly results are disclosed in the Company–s most recent Form 10-Q.
“Certainly, a nice quarter,” commented Ray Singleton, President of Earthstone. “Despite having several of our new Bakken horizontal wells shut-in during this quarter, our oil sales volume increased 37% when contrasted to the comparable quarter last year and 12% when compared to the trailing quarter. With both oil and gas and prices increasing 16% and 13%, respectively, our oil and gas revenues have increased 61% over the comparable quarter last year. This has yielded nearly a 157% increase in net income over the comparable quarter.
Continuing, Singleton said, “We have brought sixteen new wells in the Banks field on production since our March 31st year end and believe more wells will continue to become productive through the summer. Overall, we believe our capital expenditure for fiscal 2014 will meet or exceed last year–s disbursements. And, that our undeveloped Bakken acreage in the Banks Field will receive the majority of these funds and continue to lead the way to higher production levels. We are encouraged by what we have learned in Nebraska and expect to disclose more on our efforts there in the near future. Given all this, we are excited about the potential we see to increase the Company–s profitability and cash flow in the coming year.”
Singleton further stated, “This year–s annual meeting will be held in Denver on September 25th. Our “Notice and Access Materials” will be delivered to our shareholders in the near future. As required by regulation, our proxy materials from last year remain on our website and the secure proxy vote website. They will remain there until August 26th when they will be replaced with this year–s proxy materials. We encourage all of our Shareholders to attend our Annual Meeting and enjoy the many attractions the city of Denver and mountains have to offer.”
Earthstone Energy, Inc. is a growth-oriented independent oil and gas exploration and production company with primary operations in the Williston Basin and southern Texas. Earthstone is currently traded on NYSE MKT under the symbol ESTE. Information on Earthstone can be found at its web site: .
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THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as “should,” “may,” “will,” “anticipate,” “expect,” “estimate,” “intend” or “continue,” or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding assumptions regarding production rates and growth, operating costs, reduction of operation costs, commodity prices, industry outlook, future drilling activities, acquisitions and industry opportunities. Factors that could cause actual results to differ materially include availability of rigs and services, price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone Energy–s filings with the Securities and Exchange Commission, including the Company–s Annual Report on Form 10-K filed for March 31, 2013. The Company disclaims any obligation to update forward-looking statements.
CONTACT:
Ray Singleton
303-296-3076, ext. 102