CALIFORNIA
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001-32989
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94-0787340 | ||
(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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£
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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£
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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£
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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£
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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Press Release dated November 16, 2015.
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YUMA ENERGY, INC.
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By:
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/s/ Sam L. Banks
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Name:
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Sam L. Banks
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Date: November 16, 2015
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Title:
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President and Chief Executive Officer
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Exhibit No.
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Description
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Press Release dated November 16, 2015.
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![]() |
Yuma Energy, Inc.
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Three Months Ended September 30, |
Nine Months Ended September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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|||||||||||||
Production volumes:
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Crude oil and condensate (Bbl)
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61,938 | 49,475 | 186,531 | 172,965 | ||||||||||||
Natural gas (Mcf)
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497,868 | 513,002 | 1,488,408 | 2,229,405 | ||||||||||||
Natural gas liquids (Bbl)
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20,899 | 16,457 | 54,838 | 77,389 | ||||||||||||
Total (Boe) (1)
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165,815 | 151,432 | 489,437 | 621,922 | ||||||||||||
Average prices realized:
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||||||||||||||||
Excluding commodity derivatives (both realized and unrealized)
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||||||||||||||||
Crude oil and condensate (per Bbl)
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$ | 46.10 | $ | 98.58 | $ | 50.52 | $ | 101.23 | ||||||||
Natural gas (per Mcf)
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$ | 2.72 | $ | 4.04 | $ | 2.77 | $ | 4.76 | ||||||||
Natural gas liquids (per Bbl)
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$ | 18.61 | $ | 40.73 | $ | 19.20 | $ | 41.25 |
(1)
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Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (Boe).
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Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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Sales of natural gas and crude oil:
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||||||||||||||||
Crude oil and condensate
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$ | 2,855,530 | $ | 4,877,227 | $ | 9,423,519 | $ | 17,508,388 | ||||||||
Natural gas
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1,340,877 | 2,066,368 | 4,112,065 | 10,585,238 | ||||||||||||
Natural gas liquids
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388,966 | 670,267 | 1,053,076 | 3,192,449 | ||||||||||||
Realized gains (losses) on commodity derivatives
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432,824 | (200,176 | ) | 5,114,609 | (2,194,348 | ) | ||||||||||
Unrealized gains (losses) on commodity derivatives
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3,460,825 | 2,607,959 | (1,847,371 | ) | 921,026 | |||||||||||
Gas marketing sales
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63,637 | 207,635 | 167,923 | 551,491 | ||||||||||||
Total revenues
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$ | 8,542,659 | $ | 10,229,280 | $ | 18,023,821 | $ | 30,564,244 |
Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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Net Income (loss)
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$ | 637,643 | $ | (11,152,037 | ) | $ | (11,572,395 | ) | $ | (18,997,712 | ) | |||||
Depreciation, depletion & amortization of property and equipment
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3,123,812 | 3,865,675 | 11,020,278 | 15,604,283 | ||||||||||||
Interest expense, net of interest income and amounts capitalized
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130,091 | 112,078 | 318,538 | 316,850 | ||||||||||||
Income tax benefit
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(398,400 | ) | (576,632 | ) | (5,779,000 | ) | (1,710,632 | ) | ||||||||
Costs to obtain a public listing
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- | 844,482 | - | 2,729,447 | ||||||||||||
Increase in value of preferred stock derivative liability
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- | 11,172,928 | - | 15,676,842 | ||||||||||||
Stock-based compensation net of capitalized cost
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338,619 | 521,978 | 2,210,950 | 598,818 | ||||||||||||
Accretion of asset retirement obligation
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170,209 | 150,628 | 499,766 | 438,717 | ||||||||||||
Goodwill impairment
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- | - | 5,349,988 | - | ||||||||||||
Amortization of benefit from commodity derivatives sold
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- | (23,438 | ) | - | (70,313 | ) | ||||||||||
Unrealized (gains) losses on commodity derivatives
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(3,460,825 | ) | (2,607,959 | ) | 1,847,371 | (921,026 | ) | |||||||||
Adjusted EBITDA
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$ | 541,149 | $ | 2,307,703 | $ | 3,895,496 | $ | 13,665,274 |
(1)
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Liquidity can vary from period to period for Yuma and can vary among companies as to what is or is not included in liquidity. This measurement should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service financial obligations) and is not in accordance with, nor superior to, generally accepted accounting principles, but provides additional information for evaluation of our operating performance.
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September 30,
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||||||||
2015
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December 31,
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|||||||
(Unaudited)
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2014
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|||||||
ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 5,048,104 | $ | 11,558,322 | ||||
Short-term investments
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- | 1,170,868 | ||||||
Accounts receivable, net of allowance for doubtful accounts:
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||||||||
Trade
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5,379,899 | 9,739,737 | ||||||
Officers and employees
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49,765 | 316,077 | ||||||
Other
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468,181 | 697,991 | ||||||
Commodity derivative instruments
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1,822,034 | 3,338,537 | ||||||
Prepayments
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859,687 | 782,234 | ||||||
Deferred taxes
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245,922 | 245,922 | ||||||
Other deferred charges
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277,858 | 342,798 | ||||||
Total current assets
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14,151,450 | 28,192,486 | ||||||
OIL AND GAS PROPERTIES (full cost method):
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Not subject to amortization
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24,842,415 | 25,707,052 | ||||||
Subject to amortization
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196,299,194 | 186,530,863 | ||||||
221,141,609 | 212,237,915 | |||||||
Less: accumulated depreciation, depletion and amortization
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(114,741,341 | ) | (103,929,493 | ) | ||||
Net oil and gas properties
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106,400,268 | 108,308,422 | ||||||
OTHER PROPERTY AND EQUIPMENT:
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Land, buildings and improvements
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2,795,000 | 2,795,000 | ||||||
Other property and equipment
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3,471,408 | 3,439,688 | ||||||
6,266,408 | 6,234,688 | |||||||
Less: accumulated depreciation and amortization
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(2,117,783 | ) | (1,909,352 | ) | ||||
Net other property and equipment
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4,148,625 | 4,325,336 | ||||||
OTHER ASSETS AND DEFERRED CHARGES:
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Commodity derivative instruments
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993,849 | 1,403,109 | ||||||
Deposits
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264,064 | 264,064 | ||||||
Goodwill
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- | 5,349,988 | ||||||
Other noncurrent assets
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210,473 | 262,200 | ||||||
Total other assets and deferred charges
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1,468,386 | 7,279,361 | ||||||
TOTAL ASSETS
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$ | 126,168,729 | $ | 148,105,605 |
September 30,
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||||||||
2015
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December 31,
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|||||||
(Unaudited)
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2014
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|||||||
LIABILITIES AND EQUITY
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CURRENT LIABILITIES:
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Current maturities of debt
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$ | 30,217,400 | $ | 282,843 | ||||
Accounts payable, principally trade
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8,086,414 | 25,004,364 | ||||||
Asset retirement obligations
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733,917 | - | ||||||
Deferred taxes
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471,995 | 471,995 | ||||||
Other accrued liabilities
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2,195,531 | 1,419,565 | ||||||
Total current liabilities
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41,705,257 | 27,178,767 | ||||||
LONG-TERM DEBT:
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Bank debt
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- | 22,900,000 | ||||||
OTHER NONCURRENT LIABILITIES:
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Asset retirement obligations
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12,239,139 | 12,487,770 | ||||||
Deferred taxes
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8,577,081 | 14,388,662 | ||||||
Restricted stock units
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- | 71,569 | ||||||
Other liabilities
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43,671 | 22,451 | ||||||
Total other noncurrent liabilities
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20,859,891 | 26,970,452 | ||||||
EQUITY:
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Common stock, no par value
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||||||||
(300 million shares authorized, 71,609,741 and 69,139,869 issued)
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141,707,502 | 137,469,772 | ||||||
Preferred stock
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10,828,603 | 9,958,217 | ||||||
Accumulated other comprehensive income (loss)
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(9,410 | ) | 38,801 | |||||
Accumulated earnings (deficit)
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(88,923,114 | ) | (76,410,404 | ) | ||||
Total equity
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63,603,581 | 71,056,386 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 126,168,729 | $ | 148,105,605 |
Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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REVENUES:
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Sales of natural gas and crude oil
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$ | 4,649,009 | $ | 7,821,497 | $ | 14,756,582 | $ | 31,837,566 | ||||||||
Realized and unrealized net gains (losses) from
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commodity derivatives
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3,893,650 | 2,407,783 | 3,267,239 | (1,273,322 | ) | |||||||||||
Total revenues
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8,542,659 | 10,229,280 | 18,023,821 | 30,564,244 | ||||||||||||
EXPENSES:
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Marketing cost of sales
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234,507 | 408,559 | 434,189 | 1,012,577 | ||||||||||||
Lease operating
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2,718,919 | 2,838,055 | 9,168,260 | 9,761,203 | ||||||||||||
Re-engineering and workovers
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1,136 | 778,628 | 555,628 | 1,330,539 | ||||||||||||
General and administrative – stock-based
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compensation
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338,619 | 521,978 | 2,210,950 | 598,818 | ||||||||||||
General and administrative – other
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1,873,484 | 2,054,961 | 5,389,859 | 6,450,446 | ||||||||||||
Depreciation, depletion and amortization
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3,123,812 | 3,865,675 | 11,020,278 | 15,604,283 | ||||||||||||
Asset retirement obligation accretion expense
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170,209 | 150,628 | 499,766 | 438,717 | ||||||||||||
Goodwill impairment
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- | - | 5,349,988 | - | ||||||||||||
Bad debt expense
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49,728 | 55,102 | 787,264 | 85,101 | ||||||||||||
Recovery of bad debts
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(324,057 | ) | - | (342,944 | ) | (1,984 | ) | |||||||||
Total expenses
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8,186,357 | 10,673,586 | 35,073,238 | 35,279,700 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS
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356,302 | (444,306 | ) | (17,049,417 | ) | (4,715,456 | ) | |||||||||
OTHER INCOME (EXPENSE):
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Change in fair value of preferred stock
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derivative liability – Series A and Series B
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- | (11,172,928 | ) | - | (15,676,842 | ) | ||||||||||
Interest expense
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(131,114 | ) | (114,405 | ) | (337,499 | ) | (321,680 | ) | ||||||||
Other, net
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14,055 | 2,970 | 35,521 | 5,634 | ||||||||||||
Total other income (expense)
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(117,059 | ) | (11,284,363 | ) | (301,978 | ) | (15,992,888 | ) | ||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES
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239,243 | (11,728,669 | ) | (17,351,395 | ) | (20,708,344 | ) | |||||||||
Income tax benefit
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(398,400 | ) | (576,632 | ) | (5,779,000 | ) | (1,710,632 | ) | ||||||||
NET INCOME (LOSS)
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637,643 | (11,152,037 | ) | (11,572,395 | ) | (18,997,712 | ) | |||||||||
PREFERRED STOCK, SERIES A AND SERIES B:
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||||||||||||||||
Dividends paid in cash, perpetual preferred Series A
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320,626 | - | 940,315 | - | ||||||||||||
Accretion, Series A and Series B
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- | 220,007 | - | 786,536 | ||||||||||||
Dividends paid in cash, Series A and Series B
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- | 346,192 | - | 445,152 | ||||||||||||
Dividends paid in kind, Series A and Series B
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- | - | - | 4,133,380 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO
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||||||||||||||||
COMMON STOCKHOLDERS
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$ | 317,017 | $ | (11,718,236 | ) | $ | (12,512,710 | ) | $ | (24,362,780 | ) | |||||
EARNINGS (LOSS) PER COMMON SHARE:
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Basic
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$ | (0.00 | ) | $ | (0.25 | ) | $ | (0.18 | ) | $ | (0.56 | ) | ||||
Diluted
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$ | (0.00 | ) | $ | (0.25 | ) | $ | (0.18 | ) | $ | (0.56 | ) | ||||
WEIGHTED AVERAGE NUMBER OF COMMON
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SHARES OUTSTANDING:
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Basic
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71,603,265 | 47,414,388 | 70,795,104 | 43,211,317 | ||||||||||||
Diluted
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73,273,007 | 47,414,388 | 70,795,104 | 43,211,317 |
Nine Months Ended September 30,
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||||||||
2015
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2014
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Reconciliation of net loss to net cash provided by (used in) operating activities
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||||||||
Net loss
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$ | (11,572,395 | ) | $ | (18,997,712 | ) | ||
Goodwill impairment
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5,349,988 | - | ||||||
Increase in fair value of preferred stock derivative liability
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- | 15,676,842 | ||||||
Depreciation, depletion and amortization of property and equipment
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11,020,278 | 15,604,283 | ||||||
Accretion of asset retirement obligation
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499,766 | 438,717 | ||||||
Stock-based compensation net of capitalized cost
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2,210,950 | 598,818 | ||||||
Amortization of other assets and liabilities
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209,904 | 140,954 | ||||||
Deferred tax expense (benefit)
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(5,781,400 | ) | (1,710,632 | ) | ||||
Bad debt expense
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787,264 | 85,101 | ||||||
Write off deferred offering costs
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- | 1,257,160 | ||||||
Amortization of benefit from commodity derivatives sold
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- | (70,313 | ) | |||||
Unrealized (gains) losses on commodity derivatives
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1,847,371 | (921,026 | ) | |||||
Other
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(342,944 | ) | 2,058 | |||||
Changes in current operating assets and liabilities:
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Accounts receivable
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4,411,640 | 1,868,318 | ||||||
Other current assets
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(77,453 | ) | (274,235 | ) | ||||
Accounts payable
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(13,938,649 | ) | 6,165,919 | |||||
Other current liabilities
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1,095,356 | 971,048 | ||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
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(4,280,324 | ) | 20,835,300 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures on property and equipment
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(11,211,634 | ) | (16,042,655 | ) | ||||
Proceeds from sale of property
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30,442 | 307,600 | ||||||
Cash received from merger
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- | 4,550,082 | ||||||
Decrease in short-term investments
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1,170,868 | 2,142,128 | ||||||
Decrease in noncurrent receivable from affiliate
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- | 95,634 | ||||||
NET CASH USED IN INVESTING ACTIVITIES
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(10,010,324 | ) | (8,947,211 | ) |
Nine Months Ended September 30,
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||||||||
2015
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2014
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|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Change in borrowing on line of credit
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$ | 6,800,000 | $ | (6,250,000 | ) | |||
Proceeds from insurance note
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813,562 | 901,257 | ||||||
Payments on insurance note
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(579,005 | ) | (514,118 | ) | ||||
Line of credit financing costs
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(215,141 | ) | (47,291 | ) | ||||
Net proceeds from sale of common stock
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1,363,160 | - | ||||||
Net proceeds (preparations costs) from sale of perpetual preferred stock
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870,386 | (165,034 | ) | |||||
Cash dividends to preferred shareholders
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(940,315 | ) | (445,152 | ) | ||||
Common stock purchased from employees
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(300,732 | ) | - | |||||
Other
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(31,485 | ) | - | |||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
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7,780,430 | (6,520,338 | ) | |||||
NET INCREASE (DECREASE) IN CASH AND
|
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CASH EQUIVALENTS
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(6,510,218 | ) | 5,367,751 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
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11,558,322 | 4,194,511 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
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$ | 5,048,104 | $ | 9,562,262 | ||||
Supplemental disclosure of cash flow information:
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||||||||
Interest payments (net of interest capitalized)
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$ | 73,342 | $ | 210,323 | ||||
Interest capitalized
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$ | 750,107 | $ | 767,908 | ||||
Supplemental disclosure of significant non-cash activity:
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Change in capital expenditures financed by accounts payable
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$ | (2,979,301 | ) | $ | 1,858,609 | |||
Preferred dividends paid in kind
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$ | - | $ | 4,133,380 |