HKN, Inc. (NYSE Amex: HKN) ("HKN") today reported its interim
financial results for the three and six months ended June 30, 2009.
HKN reported a reduced net loss of $159 thousand during the second
quarter of 2009 as compared to a net loss of $1.1 million in the
first quarter of 2009.
Focus on Efficient Operations:
During the first half of 2009, oil and natural gas prices have
declined sharply as compared to the prior year period. In response
to this challenge, we have worked to reduce our controllable costs
in order to maintain positive cash flow from operations even during
a low commodity pricing environment. We have no debt outstanding,
and we have a cash balance of approximately $12.4 million at June
30, 2009. We anticipate our operating cash flow and other capital
resources, if needed, will adequately fund our planned capital
expenditures and other capital uses over the near-term. Based on
industry outlook for 2009, prices for oil and natural gas could
remain reduced as compared to the prior year with the perception of
future worldwide demand being altered by turmoil in the financial
markets.
During 2009, our oil and gas revenue has been comprised of
approximately 78% from oil sales and 22% from natural gas sales.
During the six months ended June 30, 2009, oil commodity pricing
was approximately 57% lower than the prior year period, and natural
gas commodity pricing was approximately 63% lower than the prior
year period. Our oil and gas revenues are generated from operations
in onshore and offshore areas of the Texas and Louisiana Gulf
Coast. In conjunction with lower oil and gas commodity pricing
during the second quarter 2009, our oil and gas revenues decreased
from $7.7 million in the second quarter 2008 to $2.8 million for
the second quarter 2009. This decrease was primarily due to the
significantly lower oil and gas prices received during the
period.
Our oil and gas operating expense decreased 18%, decreasing from
approximately $2.4 million during second quarter 2008 to $2 million
during second quarter 2009 due primarily to lower operating costs
at our Main Pass 35 field and lower production taxes which resulted
from lower prices realized on our oil and gas sales during the
current quarter.
General and administrative expenses decreased 40% from $1.1
million for the second quarter 2008 to $638 thousand for the second
quarter 2009 primarily due to overall lower salary and personnel
costs along with decreased professional fees.
OHSOL Investment:
During the second quarter 2009, we acquired an interest in a
private company, UniPureEnergy Acquisition Co., LLC, ("UniPure")
with a patented emulsion breaking "OHSOL" technology. This
environmentally-clean process can be used to purify oilfield
emulsions by breaking and separating the emulsions into oil, water
and solids. This technology was successfully tested with a mobile
OHSOL unit in a demonstration in Prudhoe Bay, Alaska, proving the
effectiveness of the OHSOL emulsion breaking technology to recover
valuable hydrocarbons and reduce wastes. During the last half of
2009, we will focus on emulsion testing the OHSOL plant currently
located in Texas and commercializing the OHSOL technology.
Under the UniPure Operating Agreement, effective June 30, 2009,
we are the Managing Member of UniPure and, as such, possess the
legal power to direct the operating policies and procedures of
UniPure. Therefore, we have consolidated the assets and liabilities
of UniPure as of June 30, 2009, the acquisition date. We did not
consolidate the results of operations for the one day ended June
30, 2009, as it was determined to be immaterial.
During the remainder of 2009, we will continue to seek and
identify further investment opportunities in undervalued
energy-based companies which could provide future value for our
shareholders.
Financial Results:
HKN's operating results for the three and six months ended June
30, 2009 and 2008 are as follows (in thousands except for share and
per share amounts)
Three Months Ended
----------------------------
June 30,
----------------------------
2009 2008
------------- -------------
(unaudited) (unaudited)
Oil Revenues $ 2,353 $ 5,269
Gas Revenues $ 430 $ 2,448
Trade Losses $ - $ (1,287)
Fees, Interest and Other Revenues $ 611 $ 642
Oil and Gas Operating Expenses $ 1,988 $ 2,421
General and Administrative Expenses $ 638 $ 1,057
Provision for Doubtful Accounts $ (3) $ -
Operating Margin (Non-GAAP; see
reconciliation below) $ 771 $ 3,594
Depreciation, Depletion, Amortization and
Accretion $ 885 $ 1,260
Net Income (Loss) $ (159) $ 2,345
Net Income Attributed to Noncontrolling
Interests $ - $ (13)
Net Income (Loss) Attributed to HKN, Inc. $ (159) $ 2,358
Net Income (Loss) Attributed to Common Stock $ (348) $ 2,256
Basic and Diluted Net Income (Loss) per
Common Share $ (0.04) $ 0.23
Basic and Diluted Weighted Average Common
Shares Outstanding 8,735,005 9,678,882
Six Months Ended
----------------------------
June 30,
----------------------------
2009 2008
------------- -------------
(unaudited) (unaudited)
Oil Revenues $ 3,739 $ 9,125
Gas Revenues $ 1,064 $ 4,128
Trade Losses $ - $ (1,421)
Fees, Interest and Other Revenues $ 1,319 $ 1,520
Oil and Gas Operating Expenses $ 3,812 $ 5,076
General and Administrative Expenses $ 1,189 $ 2,246
Provision for Doubtful Accounts $ 271 $ -
Operating Margin (Non-GAAP; see
reconciliation below) $ 850 $ 6,030
Depreciation, Depletion, Amortization and
Accretion $ 1,985 $ 2,490
Net Income (Loss) $ (1,277) $ 3,459
Net Income Attributed to Noncontrolling
Interests $ - $ (13)
Net Income (Loss) Attributed to HKN, Inc. $ (1,277) $ 3,472
Net Income (Loss) Attributed to Common Stock $ (1,559) $ 3,309
Basic and Diluted Net Income (Loss) per
Common Share $ (0.17) $ 0.34
Basic and Diluted Weighted Average Common
Shares Outstanding 8,924,516 9,708,153
Balance Sheet Summary (in thousands)
June 30, December 31,
----------- --------------
2009 2008
----------- --------------
(unaudited)
Current Ratio (1) 4.16 to 1 5.77 to 1
Working Capital (2) $ 11,686 $ 16,102
Cash and Marketable Securities $ 12,416 $ 15,219
Total Debt $ - $ -
Stockholders' Equity $ 63,128 $ 59,904
Total Liabilities to Equity 0.16 to 1 0.15 to 1
(1) Current ratio is calculated as current assets divided by current
liabilities.
(2) Working capital is the difference between current assets and current
liabilities.
NON-GAAP FINANCIAL MEASURE
Reconciliation of Operating Margin to Net Income (Loss) (in
thousands)
Three Months Ended
June 30,
----------------------------
2009 2008
------------- -------------
(unaudited) (unaudited)
Net Income - GAAP $ (159) $ 2,345
Depreciation, Depletion, and Amortization 885 1,260
Interest Expense and Other Losses 12 (41)
Equity in Losses of Spitfire 33 26
Income Tax Expense - 4
------------- -------------
Operating Margin $ 771 $ 3,594
============= =============
Six Months Ended
June 30,
----------------------------
2009 2008
------------- -------------
(unaudited) (unaudited)
Net Income (Loss) - GAAP $ (1,277) $ 3,459
Depreciation, Depletion, and Amortization 1,985 2,490
Interest Expense and Other Losses 59 45
Equity in Losses of Spitfire 123 29
Income Tax Expense (40) 7
------------- -------------
Operating Margin $ 850 $ 6,030
============= =============
Management believes the presentation of this non-GAAP financial
measure, in connection with the results for the three and six
months ended June 30, 2009 and 2008, provides useful information to
investors regarding our results of operations. Management also
believes that this non-GAAP financial measure provides a picture of
our results that is comparable among reporting periods and provides
factors that influenced performance during the period under the
report. This non-GAAP financial measure should be considered in
addition to, and not as a substitute for, financial measures
prepared in accordance with GAAP.
HKN, Inc. is an independent energy company engaged in the
development and production of crude oil, natural gas and coalbed
methane assets and in the active management of investments in the
energy industry. Additional information may be found at the HKN Web
site, www.hkninc.com. Please e-mail all investor inquiries to
HKNinquiries@ctaintegrated.com.
Certain statements in this announcement and inferences derived
therefrom may be regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are based on the opinions and
estimates of management at the time the statements are made.
Management's current view and plans, however, are subject to
numerous known and unknown risks, uncertainties and other factors
that may cause the actual results, performance, timing or
achievements of HKN to be materially different from any results,
performance, timing or achievements expressed or implied by such
forward-looking statements. The various uncertainties, variables,
and other risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K filed on
February 18, 2009. HKN undertakes no duty to update or revise any
forward-looking statements. Actual results may vary materially.
For Further Information Contact: Investor Relations Email: Email
Contact www.hkninc.com
Grafico Azioni Hkn, Inc. (AMEX:HKN)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Hkn, Inc. (AMEX:HKN)
Storico
Da Giu 2023 a Giu 2024
