Gastar Exploration Ltd. (NYSE MKT: GST) today reported financial and operating results for the three and nine months ended September 30, 2012.
Excluding non-cash impairment charges and unrealized hedging gains, adjusted net income attributable to Gastar's common shareholders was breakeven -- $0.0 million, or $0.00 per diluted share -- for the third quarter of 2012. Including the effect of a non-cash impairment of natural gas and oil properties of $78.1 million and an unrealized hedging loss of $5.4 million, reported net loss attributable to Gastar's common shares for the third quarter of 2012 was $83.5 million, or $1.31 per diluted common share. Excluding the impact of an unrealized hedging gain of $2.4 million in the third quarter of 2011, adjusted net loss was $1.4 million, or $0.02 per diluted common share, for the period. Reported net income attributable to Gastar's common shareholders was $1.0 million, or $0.02 per diluted share, in the third quarter of 2011. (See the accompanying reconciliation of net income (loss) per common share and earnings per diluted share to this non-GAAP financial measure at the end of this news release.)
Net cash provided by operating activities before working capital changes for the third quarter was $9.8 million or $0.15 per share compared to $3.2 million or $0.05 per share for the third quarter of 2011. For the first nine months of 2012, our net cash provided by operating activities before working capital changes and adjusted to exclude special items was $19.4 million or $0.31 per share versus $10.7 million or $0.17 per share for the same period last year. (See the accompanying reconciliation of cash flow before working capital changes and as adjusted for special items to GAAP financial measures at the end of this news release.)
Natural gas, oil and natural gas liquids (NGLs) revenues increased 55% to $14.8 million in the third quarter of 2012, up from $9.6 million for the same period a year earlier. The increase was the result of an 82% growth in production volumes partially offset by a 15% decrease in realized commodity prices. Average daily production was 38.0 million cubic feet of natural gas equivalent (MMcfe) per day for the third quarter of 2012, compared to 20.9 MMcfe per day for the same period in 2011. Revenues from liquids (oil, condensate and NGLs) represented approximately 40% of our total revenues for the latest quarter compared to 10% for the third quarter of 2011. Liquids daily production represented approximately 20% of total production volumes for the third quarter of 2012 compared to 19% for the second quarter of 2012 and 4% for the third quarter of 2011. Sequentially, total average daily production in the third quarter of 2012 increased 9% from second quarter 2012 production of 34.8 MMcfe per day.
Source: Gastar Exploration Ltd.
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