On June 11, Earthstone Energy Inc. (NYSE MKT: ESTE) detailed its financial results for the end of fiscal year (FY) 2014. The FY ended March 31, the company said.
The company’s net income was about $3.9 million, and its revenue was about $17.5 million, Earthstone said. The net income and the revenue for FY 2013 were both lower, at about $1.8 million and $11.4 million, respectively, the company noted. During FY 2014, there was a 54% increase--$6.1 million—in revenue, and there was a 121% increase—$2.2 million—in net income, the company added.
These increases were partly due to higher sales volumes for oil and natural gas, as well as higher prices for these commodities, Earthstone said.
"We are pleased and proud to report a year with strong growth in reserves, production, revenue and earnings. It was also a year where the results of our exit from Colorado and our strategy to redeploy capital into our Bakken acreage became apparent," said president Ray Singleton.
"There are a number of bright spots to highlight. First, with both boe [barrels of oil equivalent] sale volumes and prices increasing 46% and 9%, respectively, our oil and gas revenues have increased nearly 59%. This has yielded an approximate 121% increase in net income and earnings per share over the prior year. Just as important, our EBITDA increased from nearly $4.1 million to over $9.1 million, a 125% increase," he added.
According to Singleton, proved developed producing reserves increased by 27% due to drilling and completion activity.
The company’s capex during the FY was "relatively" unchanged, Singleton noted.
Singleton mentioned the company’s May 19 agreement with Houston-based Oak Valley Resources LLC. Under it, Earthstone would trade about 9.1 million common shares for Oak Valley’s subsidiaries, assets and about $138 million in cash. Singleton noted that the agreement could be a “game changer” for Earthstone, “effectively facilitating a quantum leap in market capitalization and market stature.”
Under the agreement, if it is approved, Earthstone would continue Oak Valley’s Eagle Ford drilling activities, as well as its own Bakken drilling activities, he added.
Earthstone Energy Inc. is based in Denver.
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