Gastar Exploration reported financial results for the three months and twelve months ended December 31, 2009. The Company previously reported operating results only for the fourth quarter of 2009 in a news release issued March 15, 2010. Please note that all common share and per share amounts reported in this earnings release reflect the 1-for-5 common share reverse split, which occurred on August 3, 2009.
Fourth Quarter Financial Results
Net income for the fourth quarter of 2009 was $12.9 million, or $0.26 per basic and diluted share, and contained several special items, the largest of which was a $17.8 million gain on the sale of unproved properties in Australia related to the achievement of a certain gross reserve certification target, partly offset by related income tax expense of $4.5 million on the sale. For the fourth quarter of 2008, net loss was $10.0 million, or $0.24 per share, and included a non-cash impairment of natural gas and oil properties of $14.2 million, partly offset by an unrealized hedging gain of $5.0 million. Excluding these special items and certain other non-cash items for both periods, the Company would have recorded a net loss of $748,000, or $0.02 per share, for the fourth quarter of 2009, versus a net loss of $806,000, or $0.02 per share, for the fourth quarter of 2008.
Net cash flow from operations for the fourth quarter of 2009 was $695,000, up from a negative $1.1 million for the fourth quarter of 2008.
Full-Year Financial Results and Third Quarter Restated Results
For the year ended December 31, 2009, net income was $48.8 million, or $1.06 per basic and diluted share, which included a $211.2 million gain on the sale of the Company's Australian assets, offset by tax expense of $70.3 million associated with that gain, impairment of natural gas and oil properties totaling $68.7 million, a $15.9 million charge for the early extinguishment of debt, an unrealized natural gas hedging loss of $7.8 million and a foreign transaction gain of $3.8 million. This compares to a net loss of $5.4 million, or $0.13 per share, for the year ended December 31, 2008, which included the effect of a $14.2 million impairment of natural gas and oil properties and a $6.5 million unrealized hedging gain. Excluding these special items and certain other non-cash items, the Company would have recorded a 2009 net loss of $3.2 million, or $0.07 per share, compared to 2008 net income of $2.3 million, or $0.06 per share.
Results for the third quarter of 2009 were restated to reflect two adjustments:
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