GreenHunter Resources, Inc. reported financial and operating results for the third quarter and nine months ended September 30, 2014.

Highlights:

• Generated a 41% increase in Total Disposal Volumes from continuing operations for the three months ended September 30, 2014 to 1,017,000 barrels (BBL) injected compared to 720,000 BBL injected in the similar period in 2013
• Exceeded 31,000 barrels per day (BBL/D) of operating permitted disposal capacity for the period ending September 30, 2014 (Total Operating Salt Water Disposal Permitted Injection Capacity)
• Operated a fleet of 37 trucks capable of transporting brine and condensate at approximately 100% utilization
• Reported a significant increase in adjusted EBITDA from continuing operations to $645,419 for the third quarter of 2014
• The Company substantially improved operating margins (revenue minus direct operating costs) to 43% from 24%

Operational Results - 3Q

Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.11) compared to ($.05) for the third quarters of 2014 and 2013, respectively. Our loss from continuing operations was $1.5 million for the third quarter 2014 compared to a loss of $1.3 million for third quarter 2013. Our net loss per share from continuing operations was ($.08) per share compared to ($.08) per share, basic and diluted, for the third quarters of 2014 and 2013, respectively. Our loss from discontinued operations was ($1.2) million (loss of $.03 per common share, basic and diluted) for the third quarter 2014, compared to income from discontinued operations of $896 thousand (income of $.03 per share, basic and diluted) for the third quarter 2013. Operating revenues from continuing operations were $6.3 million during third quarter 2014 compared to $7.8 million for third quarter 2013, a decrease of 19%.

Operational Results - Nine Months

Our net loss per share for both continuing operations and discontinued operations, basic and diluted, was ($.25) compared to ($.35) for the nine months ending September 30, 2014 and 2013, respectively. Our loss from continuing operations was $6.1 million for the nine months ending September 30, 2014 compared to a loss of $1.8 million for the same period in 2013. Our net loss per share from continuing operations was ($.28) per share and ($.15) per share, basic and diluted, for the nine months ending September 30, 2014 and 2013 respectively. Our income from discontinued operations was $1.1 million (earnings of $.03 per common share, basic and diluted) compared to a loss from discontinued operations of $6.6 million (loss of ($.20) per share, basic and diluted) for the nine months ending September 30, 2014 and 2013, respectively.

Additional Highlights:

• The Company’s Mills Hunter Facility (4 new SWD wells) located in Meigs County, Ohio is nearing completion with the pipeline and barge infrastructure in the final stages of construction
• The Company announced during the second quarter that it had entered into a definitive agreement with a third party to construct three new pipelines from in and around the Claysville, Pa., area to a region located around Benwood, W.V. The construction partner on the project failed to obtain the necessary financing and the Company subsequently took over the project and is seeking financing for the project on its own behalf
• As of October 24, 2014, the Company’s $150 million Universal Shelf Registration Statement became effective with the Securities & Exchange Commission

Commenting on GreenHunter Resources financial and operating results released today, Mr. Kirk J. Trosclair, Executive Vice President and COO, stated, "Improved margin strength which substantially increased EBITDA and combined with rising disposal volumes are fueling growth across the GreenHunter Resources platform. Although trucking revenue, in total, decreased only about $270 thousand from the same period last year, the Company actually had a decrease of $1.2 million in third party trucking with an offsetting increase in the utilization of our internal trucking and related revenues. This reduced third party charges within GreenHunter Resources’ trucking division resulted in significant margin improvement across our company’s overall trucking division.

"Our decision last year to focus our efforts in Appalachia is continuing to prove out to be the correct decision. Increased drilling activity and rising disposal volumes in the Marcellus and Utica/Point Pleasant formations are driving significant growth opportunities in both our existing and newly affiliated business lines. Total disposal volumes were up 41%. Operating margins grew from 24% to 43%. And total utilization within the GreenHunter Resources’ trucking fleet is running around 100%. With four new disposal wells coming on line prior to year-end, SWD capacity will increase significantly. As we continue to execute the GreenHunter Resources business plan, we also anticipate significant growth from our company’s newly affiliated business lines with a corresponding decrease in costs as a percentage of revenues."

"It’s been an exciting period at GreenHunter Resources. In the past year we’ve divested our non-core assets, developed a pure-play Marcellus/Utica Company and created a new Hydrocarbon and Pipeline division that we believe has tremendous growth potential in 2015. In addition, upon approval from the IRS regarding our planned IPO opportunities and our intent to form a MLP, we will then have access to the cheapest form of capital available to fuel these growth plans.

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