Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update

EnerJex Sees Huge Jump in Production, Revenue

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EnerJex Resources, Inc. has reported its second quarter 2014 results. These results include the impact of EnerJex's merger with Black Raven Energy, Inc. for the second quarter of 2014.

Highlights:

• Record production of 52,935 barrels of oil equivalent (72% oil), a 122% increase compared to the prior year.
• Record revenue of $3.9 million, an 80% increase compared to the prior year.
• Net income, adjusted to exclude the effect of derivative contracts or oil hedges and non-recurring items, of $0.6 million, a 35% increase compared to the prior year.
• Earnings before interest, income tax, depreciation and amortization, adjusted to exclude the effect of derivative contracts or oil hedges and non-recurring items, of $1.8 million, a 78% increase compared to the prior year. 
• Completion of non-dilutive perpetual preferred stock offering for gross proceeds of $15.2 million and listing of common and preferred shares on the NYSE MKT exchange. 

Production volumes during the three months ended June 30, 2014 were 52,935 barrels of oil equivalent compared to 23,857 barrels of oil equivalent during the three months ended June 30, 2013.

Revenue was $3,949,396 for the second quarter of 2014 compared to $2,196,736 for the second quarter of 2013. The Company realized an average price of $94.36 per barrel of oil and $4.15 per thousand cubic feet of natural gas during the second quarter of 2014 compared to $92.08 per barrel of oil during the second quarter of 2013. EnerJex did not produce any natural gas during the second quarter of 2013.

Lease operating expenses were $1,511,133 or $28.55 per net barrel of oil equivalent produced during the three months ended June 30, 2014 compared to $751,957 or $31.52 per net barrel of oil equivalent produced during the three months ended June 30, 2013.

Operating income was $758,381 for the second quarter of 2014 compared to operating income of $396,740 for the second quarter of 2013.

Adjusted EBITDA was $1,831,036 during the three months ended June 30, 2014 compared to $1,028,459 during the three months ended June 30, 2013.

Net income was a loss of $1,006,805 for the second quarter of 2014 compared to net income of $716,585 during the second quarter of 2013. Adjusted to exclude the effect of derivative contracts (oil hedges) and non-recurring items, net income was $639,916 for the second quarter of 2014 compared to $472,770 in the same period last year. 

EnerJex's CEO, Robert Watson, Jr., commented, "I am pleased to announce these results and look forward to updating investors on our progress as EnerJex executes its aggressive growth plans throughout the remainder of 2014. In addition, management continues to evaluate numerous potential strategic opportunities to create and unlock value for common stockholders on a per-share basis."