Revenue and Production
Revenue for the first quarter totaled
Costs and Expenses
Total lease operating expense for the first quarter totaled
Earnings
Net loss totaled
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FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of Dune Energy, Inc.'s projects and other statements which are not historical facts. When used in this document, the words such as 'could,' 'plan,' 'estimate,' 'expect,' 'intend,' 'may,' 'potential,' 'should,' and similar expressions are forward-looking statements. Although Dune Energy, Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, changes in product prices and other risks disclosed in Dune's Annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.
Dune Energy, Inc.
Consolidated Balance Sheets
(Unaudited)
March 31, 2009 December 31, 2008
-------------- -----------------
ASSETS
Current assets:
Cash $9,617,942 $15,491,532
Accounts receivable, net of
reserve for doubtful accounts
of $396,629 and $396,629 11,693,503 14,477,918
Prepayments and other current
assets 2,980,806 6,910,422
Derivative assets 5,486,519 4,015,219
--------- ---------
Total current assets 29,778,770 40,895,091
---------- ----------
Oil and gas properties, using
successful efforts accounting
- proved 581,090,944 578,074,569
Less accumulated depreciation,
depletion, amortization and
impairment (230,707,639) (222,876,172)
------------ ------------
Net oil and gas properties 350,383,305 355,198,397
----------- -----------
Property and equipment, net of
accumulated depreciation
of $1,631,187 and $1,406,927 1,869,910 2,086,313
Deferred financing costs, net of
accumulated amortization
of $1,118,871 and $970,068 1,472,854 1,621,657
Other assets 6,154,522 2,250,868
--------- ---------
TOTAL ASSETS $389,659,361 $402,052,326
============ ============
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Accounts payable $9,591,971 $21,662,965
Accrued liabilities 29,162,187 20,038,900
Current debt 1,150,692 2,013,699
Preferred stock dividend
payable 2,451,000 2,446,985
--------- ---------
Total current liabilities 42,355,850 46,162,549
Long-term debt, net of
discount of $9,758,108 and
$10,393,213 290,241,892 289,606,787
Other long-term liabilities 16,032,786 15,732,483
---------- ----------
Total liabilities 348,630,528 351,501,819
----------- -----------
Commitments and contingencies - -
Redeemable convertible
preferred stock, net of
discount of $8,707,104
and $9,179,927,
liquidation preference
of $1,000 per share,
750,000 shares designated,
235,815 and 236,805
shares issued and
outstanding 227,107,896 227,625,073
STOCKHOLDERS' DEFICIT
Preferred stock, $.001 par
value, 1,000,000 shares
authorized, 250,000 shares
undesignated, no shares issued and
outstanding - -
Common stock, $.001 par value,
300,000,000 shares authorized,
108,027,052 and 96,129,047
shares issued and
outstanding 108,027 96,129
Treasury stock, at cost
(203,925 and 34,009 shares) 35,270 8,332
Additional paid-in capital 52,252,473 50,139,148
Accumulated other
comprehensive loss (2,784,959) (3,709,177)
Accumulated deficit (235,689,874) (223,608,998)
------------ ------------
Total stockholders' deficit (186,079,063) (177,074,566)
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $389,659,361 $402,052,326
============ ============
Dune Energy, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
Three months ended March
31,
------------------------
2009 2008
---- ----
Revenues $14,298,648 $36,691,227
----------- -----------
Operating expenses:
Lease operating expense and production
taxes 7,019,723 12,027,243
Accretion of asset retirement
obligation 410,874 156,820
Depletion, depreciation and amortization 8,055,727 13,199,501
General and administrative expense 5,047,580 4,964,345
--------- ---------
Total operating expense 20,533,904 30,347,909
---------- ----------
Operating income (loss) (6,235,256) 6,343,318
---------- ---------
Other income(expense):
Interest income 30,327 105,285
Interest expense (8,678,947) (8,651,619)
Gain (loss) on derivative liabilities 2,803,000 (11,901,979)
--------- -----------
Total other income(expense) (5,845,620) (20,448,313)
---------- -----------
Loss from continuing operations before
income taxes (12,080,876) (14,104,995)
Income tax benefit - 5,374,003
----------- ---------
Loss from continuing operations (12,080,876) (8,730,992)
----------- ----------
Discontinued operations:
Income from operations of Barnett Shale
Properties - 87,861
Income tax expense - (33,475)
---------- -------
Income on discontinued operations - 54,386
---------- ------
Net loss (12,080,876) (8,676,606)
Preferred stock dividend (8,855,060) (5,724,030)
---------- ----------
Net loss available to common shareholders $(20,935,936) $(14,400,636)
============ ============
Net loss per share:
Basic and diluted from continuing
operations $(0.21) $(0.18)
Basic and diluted from discontinued
operations - -
------ ------
Total basic and diluted $(0.21) $(0.18)
====== ======
Weighted average shares outstanding:
Basic and diluted 101,233,960 79,610,349
Comprehensive loss:
Net loss $(12,080,876) $(8,676,606)
Other comprehensive income 924,218 835,776
------- -------
Comprehensive loss $(11,156,658) $(7,840,830)
============ ===========
Dune Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Three months ended March
31,
------------------------
2009 2008
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(12,080,876) $(8,676,606)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Income from discontinued operations - (54,386)
Depletion, depreciation and
amortization 8,055,727 13,199,501
Amortization of deferred financing
costs and debt discount 783,908 717,351
Stock-based compensation 1,639,001 1,123,993
Accretion of asset retirement
obligation 410,874 156,820
Loss (gain) on derivative
liabilities (361,442) 10,129,752
Deferred tax benefit - (5,374,003)
Changes in:
Accounts receivable 2,598,773 (2,870,490)
Prepayments and other assets 675,239 1,853,391
Payments made to settle asset
retirement obligations (129,062) (799,742)
Accounts payable and accrued
liabilities (2,929,215) (6,709,128)
---------- ----------
NET CASH PROVIDED BY (USED IN)
CONTINUING OPERATIONS (1,337,073) 2,696,453
NET CASH PROVIDED BY DISCONTINUED
OPERATIONS - 2,105,315
---------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (1,337,073) 4,801,768
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in proved and unproved
properties (3,016,375) (15,157,758)
Purchase of furniture and fixtures (7,858) (329,206)
Increase in other assets (649,277) (12,168)
-------- -------
NET CASH USED IN INVESTING ACTIVITIES -
CONTINUING OPERATIONS (3,673,510) (15,499,132)
NET CASH USED IN INVESTING ACTIVITIES -
DISCONTINUED OPERATIONS - (6,777,948)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (3,673,510) (22,277,080)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt - 16,000,000
Payments on short-term debt (863,007) (705,524)
-------- --------
NET CASH PROVIDED BY FINANCING
ACTIVITIES (863,007) 15,294,476
-------- ----------
NET CHANGE IN CASH BALANCE (5,873,590) (2,180,836)
Cash balance at beginning of period 15,491,532 16,771,726
---------- ----------
Cash balance at end of period $9,617,942 $14,590,890
========== ===========
SUPPLEMENTAL DISCLOSURES
Interest paid $20,039 $19,781
Income taxes paid - -
NON-CASH DISCLOSURES
Redeemable convertible preferred
stock dividends $7,041,017 $5,724,030
Accretion of discount on preferred
stock 472,823 422,317
Common stock issued for conversion of
preferred stock 8,027,000 1,000,000
SOURCE Dune Energy, Inc.
