American Standard Energy Corp (“American Standard” or the “Company”) (OTCBB: ASEN), a domestic oil and gas exploration and production company, today announced results for the twelve months ended December 31, 2011.
Results compare the current period to our historical recast financial information in which certain information for the year endedDecember 31, 2010 includes the assets, liabilities, revenues and expenses of the properties acquired from Geronimo onFebruary 10 and March 1, 2011. Results also compare the current period to financial information that excludes the impact of the acquisitions that occurred in the current period but were recast to prior period.
Full Year Financial Review
For the year ended December 31, 2011, American Standard had revenues of $12.4 million, an increase of $5.5 million or 80%, from $6.9 million for the year ended December 31, 2010. Excluding the impact from acquisition accounting, revenues increased from $1.3 million for the year ended December 31, 2010 to $12.4 million for the year ended December 31, 2011, an increase of $11.1 million or 816%. The average realized crude oil and gas sales prices for 2011 were $89.93 BO and $5.93MCF, respectively.
Revenues were driven by acquisitions of producing properties, higher oil production and improved realized pricing. Production for the year ended December 31, 2011 was 194,468 barrels of oil equivalent (BOE), an increase of 47,799 BOE, or 33%, from 146,669 BOE for the year ended December 31, 2010. Excluding the impact of acquisition accounting, production increased 173,235 BOE, or 816% in 2011. The oil to gas mix for the year ended December 31, 2011 was 52% oil to 48% gas compared to the year ended December 31, 2010 with a mix of 39% oil and 61% gas.
Scott Feldhacker, Chief Executive Officer of American Standard Energy Corp, stated, “2011 was a transformational year for American Standard Energy Corp, through the successful execution of our core strategy to acquire prime leasehold acreage and production in key conventional and unconventional basins. This strategy is already increasing average daily production, proved reserves and produced a multi-year drilling inventory. We expect to see additional increases in production in 2012 with the completion of infrastructure in the Eagle Ford, further completions in the Permian Basin and development of our acreage in the Williston Basin.”
Adjusted EBITDA for the year ended December 31, 2011 was $6.5 million, an increase of $3.5 million when compared to $3 million in adjusted EBITDA for the period ending December 31, 2010. Excluding the impact of acquisition accounting, adjusted EBITDA increased $7.3 million when compared to negative adjusted EBITDA of $0.7 million for the year ended December 31, 2010. Adjusted EBITDA is a non-GAAP financial measure.
American Standard posted a net loss from operations for the year ended December 31, 2011 of $11.4 million, or $0.32 per share compared to a net loss for the year ended December 31, 2010 of $2.8 million, or $0.12 per share. Excluding the impact of acquisition accounting, the Company posted a net loss from operations for the year ended of $5.5 million, or $0.24 per share primarily related to the recognition of $4.2 million in non-cash stock-based compensation expense and fees related to accounting, legal and consulting services in relation to the formation of the Company.
Proved reserves for the period ended December 31, 2011, per the engineering reserve analysis prepared by DeGolyer and MacNaughton and Cawley, Gillespie & Associates, Inc., the Company’s independent reservoir engineering firms, have an estimated PV10% value of approximately $70.7 million compared to a PV10% value of the Company’s reserves as ofDecember 31, 2010 of $18.5 million. PV10% is the estimated future cash flows from proved reserves, discounted at an annual rate of 10 percent before giving effect to income taxes. Total proved reserves at December 31, 2011 were 3.4 million BOE, an increase of 2.2 million BOE, or 183%, from proved reserves of 1.2 million BOE as of December 31, 2010, excluding the accounting impact from acquisitions.
American Standard’s capital expenditures for the year ended December 31, 2011 totaled approximately $80.0 million, compared with capital expenditures of approximately $8.2 million for the year ended December 31, 2010. Approximately $62.3 million, or 78% of capital expenditures in 2011, were dedicated to development, drilling and completion activities, while approximately $17.7 million or 22% of capital expenditures was related to leasehold acquisitions.
Scott Mahoney, the Chief Financial Officer of American Standard, commented, “We believe that the Company delivered meaningful growth on multiple fronts in 2011. We completed five acquisitions in 2011, which included both production and key acreage positions. As a result, we were able to invest almost 80% of our capital budget in 2011 for drilling, while increasing our total acreage positions by over 180% during the year. This was a key component to our strategy, which enabled us to increase average daily production from 58 barrels of oil equivalent per day (‘BOEPD’) in 2010 to 533 BOEPD in 2011.”
American Standard continued its leasehold acquisition and development strategy in 2011, increasing its overall leasehold acreage from 11,000 acres to 40,100 acres representing an increase of nearly 184%. During 2011, the Company acquired an additional 21,000 net leasehold acres in the Williston Basin and Permian Basin. On March 5, 2012, the Company acquired an additional 72,300 net leasehold acres primarily in the Permian Basin, Williston Basin, Eagle Ford, Niobrara and Eagle Bine.
Exiting the year with daily production in excess of 1,500 barrels of oil (equivalent) per day, the Company drilled 16 gross (16.0 net) wells in the Permian Basin, completing 8 wells by December 31, 2011. In the Williston Basin, the Company participated in 1.8 net wells, all targeting the Bakken and Three Forks formations. In the Eagle Ford, the Company participated in 1.8 net horizontal wells in La Salle and Frio Counties, targeting the Eagle Ford shale and Pearsall formations with infrastructure completion scheduled for the second quarter of 2012.
“We believe that American Standard’s activities in 2011 positioned the Company for continued solid growth in 2012,” addedScott Feldhacker. “I am pleased with our accomplishments to date, along with our recent acquisition. We believe that the Company is now well positioned to focus on accelerated development, building proved reserves and driving our production growth in 2012.”
About American Standard Energy
American Standard Energy Corp is an oil and gas exploration and production company based in Scottsdale, Arizona. The Company’s oil and gas asset base is comprised of operated acreage in the Permian Basin and non-operated acreage in the Williston Basin and South Texas Eagle Ford resource prospects. The Company currently controls approximately 112,000 combined net acres in the Permian Basin, Williston Basin, Eagle Ford, Niobrara, Eagle Bine and Gulf Coast.
SOURCE American Standard Energy Corp
***Reminder: never chase stocks that gap at the open and always protect your profits!
Good luck in making the Best Penny Stock picks.
2012 – Become a Millionaire!!
Want to Discover the “Next” Blue Chip while it is still a Penny Stock and turn $500 into $500,000 or more!?
Subscribe to Aim High Profits Penny Stock Alerts Today. You will have unlimited free access to help guide you to some of the biggest and most profitable trading alerts and techniques proven to bring in the “big bucks“.
Visit AimHighProfits.com to find out more about Good Stocks to Buy and the Best Penny Stocks in the Stock Market Today.
Alternatively, click here to get more Penny Stock News.
AimHighProfits due diligence will help to stay away from all the scams out there these days!