Gastar Exploration Posts 4Q09 Financial Results
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:
- First, the Company determined that the accumulated other comprehensive foreign exchange loss of $3.8 million on our balance sheet should have been included as an offset to foreign exchange gain in the statement of operations. This adjustment reduced net income for the third quarter of 2009 by $3.8 million.
- Second, the statement of operations had previously reflected the gain on the sale of unproved properties net of income taxes of $65.8 million. This has been adjusted to reflect the gross gain, with the related income tax expense now included in the provision for income taxes. This adjustment had no impact on net income for the third quarter.
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