SALT LAKE CITY, Nov. 6, 2015 /PRNewswire/ -- FX Energy,
Inc. (NASDAQ: FXEN), today announced a net loss attributable to
common stockholders of $2.8 million,
or $0.05 per share, for the quarter
ended September 30, 2015.
Excluding a noncash, intracompany, foreign currency exchange
loss of $1.4 million, the Company
would have recorded a third quarter 2015 net loss attributable to
common stockholders of $1.4 million,
or $0.03 per share.
For the comparable 2014 quarter, the Company reported a net loss
attributable to common stockholders of $16.8
million, or $0.31 per share.
Excluding a noncash, intracompany, foreign currency exchange
loss of $13.4 million, the Company
would have recorded a third quarter 2014 net loss attributable to
common stockholders of $3.4 million,
or $0.06 per share.
Continuing Lower Oil and Gas Prices and a Strong Dollar
Impact Third Quarter Revenues
Oil and gas revenues were $5.1
million during the third quarter of 2015, or 40% lower than
the $8.5 million during the same
quarter of 2014. Total revenues declined 50% to $5.1 million for the 2015 third quarter, compared
to $10.2 million for the same quarter
in 2014.
Revenues from gas sales were $4.6
million during the third quarter of 2015, compared to
$7.6 million during the same quarter
of 2014. Lower production and prices in the 2015 quarter led to the
decrease in natural gas revenues. Daily gas production was 9.2
million cubic feet of natural gas per day, or MMcfd, in the third
quarter of 2015, compared to 11.3 MMcfd in the third quarter of
2014. Production was shut-in for two weeks for annual maintenance
and pressure testing at six of our producing wells during the third
quarter of 2015, while only one of our wells incurred its annual
maintenance period during the third quarter of 2014. In addition,
production from our Roszkow and Komorze wells continued to decline.
Following the third quarter 2015 customary maintenance and testing
period, production resumed at all wells at a daily rate of
approximately 11.0 MMcfd.
Gas prices during the third quarter of 2015 averaged
$5.48 per Mcf, compared to
$7.26 per Mcf during the same quarter
of 2014, a decrease of 25%. Two factors contributed to the decrease
in average prices. First, the Polish low-methane tariff, which
serves as the reference price for our gas sales agreements, was
10.9% lower during the third quarter of 2015, compared to the same
quarter of 2014. Second, period-to-period strength in the dollar
against the zloty decreased our dollar-denominated gas prices. The
average exchange rate during the third quarter of 2015 was
3.77 zlotys per dollar. The average
exchange rate during the third quarter of 2014 was 3.15 zlotys per dollar, a change of approximately
20%.
Oil revenues were $0.5 million for
the third quarter of 2015, a 44% decrease from $0.9 million recognized during the third quarter
of 2014. Production levels increased slightly, due to a number of
successful well workovers during earlier periods, by approximately
11% from 2014 to 2015. The increase in production was offset by
lower prices received during the third quarter of 2015. Our average
oil price during the third quarter of 2015 was $35.74 per barrel, a 54% decrease from
$78.18 per barrel received during the
same quarter of 2014.
Lower Product Prices Also Reduce Nine-Month Oil and Gas
Revenues
The Company reported a net loss of $23.2
million, or $0.43 per share,
for the first nine months of 2015. Excluding noncash,
intracompany, foreign currency exchange losses of $13.4 million, the Company would have recorded a
net loss attributable to common stockholders for the first nine
months of 2015 of $9.8 million, or
$0.18 per share. The Company
reported a net loss of $22.3 million,
or $0.42 per share, for the first
nine months of 2014. Excluding noncash, intracompany, foreign
currency exchange losses of $15.4
million, the Company would have recorded a net loss for the
first nine months of 2014 of $7.0
million, or $0.13 per
share.
The Company recognized oil and gas revenues of $18.3 million for the first nine months of 2015,
compared to $26.8 million for the
same period of 2014. Total revenues for the first nine months of
2015 were also $18.3 million,
compared to $29.9 million in the
first nine months of 2014.
Total net oil and gas production of 3,145 Mmcfe during the first
nine months of 2015 decreased 9% compared to 3,445 Mmcfe during the
same period last year. Natural gas production in Poland was 2,930 Mmcf during the first nine
months of 2015, compared to 3,233 Mmcf during the first nine months
of 2014.
Gas prices during the first nine months of 2015 averaged
$5.75 per Mcf, compared to
$7.41 per Mcf during the same period
of 2014, a decrease of 22%. The price decrease was a combination of
lower natural gas tariffs, and the impact of the stronger U.S.
dollar discussed above. Oil prices decreased 50% over the year,
averaging $39.57 per barrel in the
first nine months of 2015, compared to $79.60 per barrel in the same period of 2014.
Lower Revenues Impact Operating Cash; Noncash Charges
Continue to Vary
Net cash used in operating activities of $1.1 million during the first nine months of 2015
decreased from net cash provided by operating activities of
$8.8 million during the 2014 nine
months. The primary driver of the year-to-year decrease was lower
revenues, caused by lower production and prices as discussed
above.
The noncash foreign exchange losses of $13.4 million and $15.4
million for the first nine months of 2015 and 2014,
respectively, are included in other income and expense. The losses
come primarily from recognition of losses on U.S.
dollar-denominated intercompany loans from FX Energy, Inc., to FX
Poland, its wholly owned subsidiary. These are noncash losses only
and could vary greatly depending upon future exchange-rate
changes.
About FX Energy
FX Energy is an independent oil and gas exploration and
production company with production in the
United States and Poland.
The Company's main exploration and production activity is
focused on Poland's Permian Basin
where the gas-bearing Rotliegend sandstone is a direct analog to
the Southern Gas Basin offshore England. The Company trades on the
NASDAQ Global Market under the symbol FXEN. Website
www.fxenergy.com.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements.
Forward-looking statements are not guarantees. For
example, exploration, drilling, development, construction, or other
projects or operations may be subject to the successful completion
of technical work; environmental, governmental, or partner
approvals; equipment availability, or other things that are or may
be beyond the control of the Company. Operations that are
anticipated, planned, or scheduled may be changed, delayed, take
longer than expected, fail to accomplish intended results, or not
take place at all.
In carrying out exploration it is necessary to identify and
evaluate risks and potential rewards. This identification and
evaluation is informed by science but remains inherently uncertain.
Subsurface features that appear to be possible traps may not
exist at all, may be smaller than interpreted, may not contain
hydrocarbons, may not contain the quantity or quality estimated, or
may have reservoir conditions that do not allow adequate recovery
to render a discovery commercial or profitable.
Forward-looking statements about the size, potential, or
likelihood of discovery with respect to exploration targets are
certainly not guarantees of discovery or of the actual presence or
recoverability of hydrocarbons or of the ability to produce in
commercial or profitable quantities. Estimates of potential
typically do not take into account all the risks of drilling and
completion nor do they take into account the fact that hydrocarbon
volumes are never 100% recoverable. Such estimates are part
of the complex process of trying to measure and evaluate risk and
reward in an uncertain industry.
Forward-looking statements are subject to risks and
uncertainties outside FX Energy's control. Actual events or
results may differ materially from the forward-looking statements.
For a discussion of additional contingencies and
uncertainties to which information respecting future events is
subject, see FX Energy's SEC reports or visit FX Energy's website
at www.fxenergy.com.
FX ENERGY, INC.,
AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(Unaudited)
|
(in
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
8,738
|
|
$
|
11,232
|
Marketable
securities
|
|
-
|
|
|
7,313
|
Receivables:
|
|
|
|
|
|
Accrued
oil and gas sales
|
|
1,461
|
|
|
2,948
|
Joint
interest and other receivables
|
|
562
|
|
|
551
|
VAT
receivable
|
|
-
|
|
|
895
|
Inventory
|
|
99
|
|
|
97
|
Other current
assets
|
|
252
|
|
|
415
|
Total
current assets
|
|
11,112
|
|
|
23,451
|
|
|
|
|
|
|
Property and
equipment, at cost:
|
|
|
|
|
|
Oil and gas properties
(successful-efforts method):
|
|
|
|
|
|
Proved
|
|
65,103
|
|
|
65,621
|
Unproved
|
|
1,906
|
|
|
1,991
|
Other property and
equipment
|
|
12,970
|
|
|
12,738
|
Gross
property and equipment
|
|
79,979
|
|
|
80,350
|
Less accumulated
depreciation, depletion, and amortization
|
|
(30,016)
|
|
|
(26,867)
|
Net
property and equipment
|
|
49,963
|
|
|
53,483
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
Certificates of
deposit
|
|
406
|
|
|
406
|
Loan fees
|
|
2,655
|
|
|
1,553
|
Total
other assets
|
|
3,061
|
|
|
1,959
|
|
|
|
|
|
|
Total
assets
|
$
|
64,136
|
|
$
|
78,893
|
-Continued-
FX ENERGY, INC.,
AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(Unaudited)
|
(in thousands,
except share data)
|
-Continued-
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,792
|
|
$
|
5,036
|
Accrued
liabilities
|
|
544
|
|
|
821
|
VAT payable
|
|
240
|
|
|
--
|
Accrued
dividends
|
|
463
|
|
|
463
|
Total
current liabilities
|
|
3,039
|
|
|
6,320
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
Notes
payable
|
|
50,659
|
|
|
50,000
|
Asset retirement
obligation
|
|
2,008
|
|
|
1,989
|
Total
long-term liabilities
|
|
52,667
|
|
|
51,989
|
|
|
|
|
|
|
Total
liabilities
|
|
55,706
|
|
|
58,309
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 5,000,000 shares authorized; 800,000 shares outstanding as of September 30, 2015,
and December 31, 2014,
respectively
|
|
1
|
|
|
1
|
Common stock, $0.001
par value, 100,000,000 shares authorized; 54,869,256 and 54,401,967 shares issued and
outstanding as of September 30,
2015, and December 31, 2014, respectively
|
|
55
|
|
|
54
|
Additional paid-in
capital
|
|
250,567
|
|
|
248,186
|
Cumulative translation
adjustment
|
|
38,710
|
|
|
30,072
|
Accumulated other
comprehensive loss
|
|
-
|
|
|
(67)
|
Accumulated
deficit
|
|
(280,903)
|
|
|
(257,662)
|
Total stockholders'
equity
|
|
8,430
|
|
|
20,584
|
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
$
|
64,136
|
|
$
|
78,893
|
FX ENERGY, INC.,
AND SUBSIDIARIES
|
Consolidated
Statements of Operations and Comprehensive Income
|
(Unaudited)
|
(in thousands,
except per-share amounts)
|
|
|
For the three
months ended
September 30,
|
|
For the nine
months ended September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Oil and gas
sales
|
$ 5,092
|
|
$ 8,472
|
|
$ 18,273
|
|
$ 26,782
|
Oilfield
services
|
12
|
|
1,722
|
|
44
|
|
3,088
|
Total
revenues
|
5,104
|
|
10,194
|
|
18,317
|
|
29,870
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
Lease operating
expenses
|
824
|
|
1,213
|
|
2,770
|
|
3,502
|
Exploration
costs
|
285
|
|
1,935
|
|
8,536
|
|
8,846
|
Property
impairments
|
182
|
|
4,540
|
|
619
|
|
8,274
|
Oilfield services
costs
|
123
|
|
941
|
|
354
|
|
1,987
|
Depreciation,
depletion and amortization
|
1,289
|
|
1,264
|
|
4,305
|
|
3,859
|
Accretion
expense
|
30
|
|
22
|
|
91
|
|
69
|
Stock
compensation
|
556
|
|
650
|
|
1,653
|
|
2,016
|
General and
administrative
|
1,980
|
|
1,869
|
|
6,316
|
|
5,794
|
Total operating costs
and expenses
|
5,269
|
|
12,434
|
|
24,644
|
|
34,347
|
|
|
|
|
|
|
|
|
Operating
loss
|
(165)
|
|
(2,240)
|
|
(6,327)
|
|
(4,477)
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
Interest
expense
|
(897)
|
|
(802)
|
|
(2,200)
|
|
(2,143)
|
Interest and other
income
|
65
|
|
22
|
|
111
|
|
48
|
Foreign exchange
loss
|
(1,358)
|
|
(13,425)
|
|
(13,437)
|
|
(15,361)
|
Total other
expense
|
(2,190)
|
|
(14,205)
|
|
(15,526)
|
|
(17,456)
|
|
|
|
|
|
|
|
|
Net
loss
|
(2,355)
|
|
(16,445)
|
|
(21,853)
|
|
(21,933)
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
Increase (decrease) in
market value of available for sale marketable securities
|
--
|
|
(7)
|
|
67
|
|
(7)
|
Foreign currency
translation adjustment
|
356
|
|
7,144
|
|
8,638
|
|
8,107
|
Comprehensive
loss
|
$ (1,999)
|
|
$ (9,308)
|
|
$ (13,148)
|
|
$ (13,833)
|
|
|
|
|
|
|
|
|
Dividends on preferred
stock
|
(462)
|
|
(385)
|
|
(1,388)
|
|
(385)
|
Net loss attributable
to common stockholders
|
$ (2,817)
|
|
$ (16,830)
|
|
$ (23,241)
|
|
$ (22,318)
|
|
|
|
|
|
|
|
|
Net loss per common
share
|
|
|
|
|
|
|
|
Basic
|
$ (0.05)
|
|
$ (0.31)
|
|
$ (0.43)
|
|
$ (0.42)
|
Diluted
|
$ (0.05)
|
|
$ (0.31)
|
|
$ (0.43)
|
|
$ (0.42)
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
54,223
|
|
53,453
|
|
54,223
|
|
53,338
|
Dilutive effect of
stock options
|
-
|
|
-
|
|
-
|
|
-
|
Diluted
|
54,223
|
|
53,453
|
|
54,223
|
|
53,338
|
|
|
|
|
|
|
|
|
|
FX ENERGY, INC.,
AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
(in
thousands)
|
|
|
For the Nine
Months Ended
|
|
September
30,
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(21,853)
|
|
$
|
(21,933)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
4,305
|
|
|
3,859
|
Accretion
expense
|
|
91
|
|
|
69
|
Amortization of loan
fees
|
|
335
|
|
|
379
|
Stock
compensation
|
|
1,653
|
|
|
2,016
|
Property
impairments
|
|
395
|
|
|
8,232
|
Unrealized foreign
exchange losses
|
|
13,420
|
|
|
15,340
|
Common stock issued
for services
|
|
729
|
|
|
657
|
Increase (decrease)
from changes in working capital items:
|
|
|
|
|
|
Receivables
|
|
2,373
|
|
|
5,340
|
Inventory
|
|
(2)
|
|
|
2
|
Other current
assets
|
|
158
|
|
|
(112)
|
Accounts payable and
accrued liabilities
|
|
(2,776)
|
|
|
(5,066)
|
Net cash (used in)
provided by operating activities
|
|
(1,172)
|
|
|
8,783
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Additions to oil and
gas properties
|
|
(4,783)
|
|
|
(15,143)
|
Additions to other
property and equipment
|
|
(469)
|
|
|
(730)
|
Sales (purchases) of
marketable securities
|
|
7,380
|
|
|
(4,066)
|
Net cash provided by
(used in) investing activities
|
|
2,128
|
|
|
(19,939)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from common
stock issuance
|
|
--
|
|
|
615
|
Proceeds from issuance
of preferred stock, net of costs
|
|
--
|
|
|
18,361
|
Payment of preferred
stock dividends
|
|
(1,388)
|
|
|
--
|
Payments on notes
payable
|
|
(50,000)
|
|
|
--
|
Proceeds from notes
payable
|
|
49,719
|
|
|
5,000
|
Payment of loan
fees
|
|
(1,548)
|
|
|
--
|
Net cash (used in)
provided by financing activities
|
|
(3,217)
|
|
|
23,976
|
|
|
|
|
|
|
Effect of
exchange-rate changes on cash
|
|
(233)
|
|
|
(506)
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
(2,494)
|
|
|
12,314
|
Cash and cash
equivalents at beginning of year
|
|
11,232
|
|
|
11,153
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
8,738
|
|
$
|
23,467
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fx-energy-reports-third-quarter-and-nine-month-results-300174212.html
SOURCE FX Energy, Inc.