Miller Energy Resources Inc. (NYSE: MILL) detailed its financial results for both fourth-quarter 2014 and the fiscal year (FY) which ended April 30, the company said July 14.
Production, revenue and adjusted EBITDA all increased in both time frames, the company said.
FY 2014’s total revenues increased 103%, to $70.6 million, compared with FY 2013’s $34.8 million. Fourth-quarter 2014’s total revenues increased 33%, to $22.1 million, compared with $16.6 million in the third quarter, Miller said.
FY 2014’s adjusted EBITDA increased to $37.8 million, compared with a $5.2 million adjusted EBITDA loss in FY 2013. Fourth-quarter 2014’s adjusted EBITDA increased 516%, to $26.5 million, compared with the third quarter’s $4.3 million, the company said. The increased EBITDA in the fourth quarter included $16.3 million of Alaska production credits, the company added.
Regarding net losses, they increased to $43.5 million (before taxes) in FY 2014, compared with FY 2013’s $30.2 million in losses. In fourth-quarter 2014, the losses increased to $16.8 million, compared with the third quarter’s loss of $5.3 million, Miller said. The fourth-quarter 2014 losses included the Alaska credits, the company noted.
Regarding operating losses, they decreased to $10.7 million in FY 2014, compared with FY 2013’s $32.3 million in losses. In fourth-quarter 2014, the losses increased to become $6.4 million in operating income, compared with the third quarter’s loss of $6.6 million, the company said.
The increase in net losses in FY 2014 were mostly due to noncash charges that included losses on debt erasure from the refinancing of the Apollo facility, the company said.
Capex increased during FY 2014, due to a “successful” drilling program and increased long-term debt associated with the Apollo facility’s refinancing, the company said. Additionally, the acquisition of North Fork contributed to the increase, the company noted. Capex was $167.9 million, compared with FY 2013’s $37.9 million, Miller said. Fourth-quarter 2014’s capex decreased to $40 million, compared with the third quarter’s $45.5 million, the company added.
On April 30, total debt--$184.2 million—had increased, compared with Jan. 31’s $74.3 million, and April 30, 2013’s $55 million.
"Fiscal 2014 was a banner year for Miller Energy, establishing tremendous momentum for the company," said CEO Scott M. Boruff.
"We more than doubled our production and our revenue, including a fourth-quarter top line of $22.1 million, representing the highest quarterly revenue in company history. During fiscal 2014, we ramped up our production through our aggressive drilling program, employing as many as three rigs concurrently. Investments made during the past year have also expanded our production and developmental horizons. We acquired North Fork, which provided additional wellbore diversification and has afforded us appreciable upside allowing us to grow its current production to approximately 10 MMcf/d gross and 8 MMcf/d net, with additional development plans for fiscal 2015,” he continued.
“By the end of the fourth quarter, we also greatly enhanced our access to capital with a $175 million second-lien credit facility, and after fiscal year end, our first-lien revolving bank loan. In the process, our blended cost of debt has been reduced to approximately 10%, and we believe we have fully funded our calendar year 2014 capital budget,” he added.
“We expect to close the Savant acquisition in the fall, which will expand our operations into the North Slope and our overall footprint as an Alaskan producer with strategic midstream facilities. Our developing asset base, consisting of a solid inventory of drilling projects and the rigs to drill them, has allowed us to deliver very strong financial growth and provided a clear path to increasing shareholder value through development and continued acquisition," Boruff concluded.
Knoxville, Tenn.-based Miller Energy Resources Inc. explores and produces domestic oil and natural gas.
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