GreenHunter Energy, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC), a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced financial and operating results for the three and six months ended June 30, 2012.

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2012

Revenues for the three months ended June 30, 2012 were $4.2 million, compared to zero revenues during the second quarter of 2011. The operating loss for the three months ended June 30, 2012 was $429 thousand, compared to an operating loss of $1.037 million during the second quarter of 2011. Net loss to common shareholders was $1.0 million, ($(0.04) loss per common share basic and diluted) for the three months ended June 30, 2012 compared to a net loss of $1.655 million, ($(0.07) loss per common share basic and diluted), during the second quarter of 2011. The increase in revenues and decrease in both the operating loss and loss to common shareholders was due to the strategic shift in the Company’s business plan to our water management products and services business activities which were initiated in late 2011.

For the three months ended June 30, 2012, GreenHunter Energy’s adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization’ (“Adjusted EBITDA”) was $573 thousand or $0.02 per basic and diluted common shares outstanding. This represents a 138% increase over the Adjusted EBITDA of $240 thousand or $0.01 per basic and diluted common shares outstanding for the three months ended March 31, 2012.

Adjusted EBITDA for the three months ended June 30, 2011 was negative $1.059 million or ($(0.04) loss per common share basic and diluted–a reconciliation of adjusted EBITDA to net loss is included in the tables attached). Second quarter financial numbers reflect a full quarter of revenues from the Hunter Disposal facilities which were acquired in mid-February 2012. Improvements in operational efficiencies, equipment utilization and revenue mix resulted in a 200 basis point sequential improvement in gross margins during the second quarter to 43.5% as compared to what was realized in the first quarter of 2012.

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2012

Revenues for the six months ended June 30, 2012 were $6.445 million, compared to zero revenues during the first half of 2011. The operating loss for the six months ended June 30, 2012 was $876 thousand, compared to an operating loss of $2.211 million during the first half of 2011. Net loss to common shareholders was $1.853 million, ($(0.07) loss per common share basic and diluted) for the six months ended June 30, 2012 compared to a net loss of $3.129 million, ($(0.13) loss per common share basic and diluted), during the first half of 2011.

For the six months ended June 30, 2012, GreenHunter Energy’s adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization’ (“Adjusted EBITDA”) was $813 thousand or $0.03 per basic and diluted common shares outstanding. This compares to Adjusted EBITDA of ($1.950 million) or $(0.08) per basic and diluted common shares outstanding for the six months ended June 30, 2011.

OPERATIONAL UPDATE

Disposal volumes increased 102% for the three months ended June 30, 2012 to 277,479 barrels (“BBL”) or an average of 3,049 barrels of produced and flowback water per day (“BBL/D”) as compared to the 137,045 BBL or 1,505 BBL/D handled for the three months ended March 31, 2012. As of June 30, 2012, GreenHunter Water owned and/or operated seven (7) Class II SWD wells with a cumulative daily injection capacity of 26,000 BBL/D. At the end of the quarter, GreenHunter Water owned and operated 10 vacuum trucks and had a frac tank rental fleet of 68 units. The Appalachia operating team remains on track to achieve its 12,500 BBL/D total injection capacity target in the Marcellus and Utica Shale plays by the end of 2012.

The acquisition of the three inactive Oklahoma SWD wells that was initiated during the second quarter and which closed on July 31, 2012 brought an additional 12,000 BBL/D of commercial capacity to the Company’s water services portfolio. Management was successful in bringing into commercial operation two of these SWD facilities in July. The Company’s immediate goal is working to increase total daily disposal capacity at these Oklahoma facilities to 12,500 BBL/D by the end of 2012. In the Eagle Ford Shale in South Texas, management has established a 10,000 BBL/D commercial SWD capacity target for the end of 2012.