NYTEX Energy Holdings, Inc. Reports Third Quarter 2012 Results
DALLAS--(BUSINESS WIRE)-- NYTEX Energy Holdings, Inc. ("NYTEX") (OTCQB: NYTE), a Dallas-based exploration and production (E&P) company engaged in the acquisition, development, and production of oil & gas reserves from low-risk, high rate-of-return wells in shallow carbonate reservoirs, announces its operating and financial results for the three and nine month periods ended September 30, 2012. NYTEX filed its Form 10-Q for the third quarter ended September 30, 2012 with the SEC on Tuesday, November 6, 2012.
Operating and financial highlights for the third quarter and first nine months of 2012 were as follows:
During the third quarter of 2012, we acquired an average 1% overriding royalty interest (ORRI) in approximately 30,000 leasehold acres in North Texas.
For the nine months ended September 30, 2012, we have acquired an average 8.5% working interest in approximately 7,600 leasehold acres in North Texas and an average 1% ORRI in approximately 68,000 leasehold acres in North Texas.
Since 2011, we have acquired an average 11.4% working interest in approximately 22,900 leasehold acres in North Texas. In the third quarter, we recognized oil and gas revenues from drilling programs commenced by one of two oil companies operating these properties. We expect the second company to begin its drilling program in the fourth quarter of 2012.
We currently have leasehold ownership in approximately 1,300 acres with up to 32 drilling locations.
For the third quarter of 2012, revenues from oil and gas sales increased 350% to $54,026 as compared to the second quarter of 2012 as we began recognizing revenues from carried interests we hold on the 22,900 leasehold acres in North Texas.
We completed the first of six 5,500' vertical Marble Falls wells at an initial rate of 75 barrels of oil per day and 1.8 million cubic feet per day of high btu, liquids rich gas. Subsequent to the third quarter, we began cash flowing on this first well. We have an average 9.8% net revenues interest in the six wells that have been drilled to-date. We expect to complete the remaining five wells during the fourth quarter.
During the third quarter, we substantially completed the restructuring of our Series A Convertible Preferred Stock, eliminating accrued cash dividends of $767,570 as well as the future cash obligation of a 9% cumulative preferred dividend of approximately $520,000 annually.
Income from continuing operations was $1,378,590 on total revenues of $3,113,211 for the nine months ended September 30, 2012. We generated income from continuing operations of $244,126 on total revenues of $931,668 for the three months ended September 30, 2012.
Michael Galvis, NYTEX President and CEO, commented, "We remain excited by NYTEX's operating efficiency, having realized a 26% margin of income from continuing operations after taxes on revenues generated during the third quarter of 2012 and a 44% margin of income from continuing operations after taxes on revenues generated during the first three quarters of 2012 while building substantial positions in oil and gas mineral acreage. As the E&P companies that operate the 68,000 acres in which we have overriding royalty interests develop this acreage, at no capital costs to NYTEX, these assets will provide NYTEX new revenues and develop additional oil and gas reserves."
Mr. Galvis added, "Initial drilling and development on oil and gas leases where NYTEX has carried working interest has begun and we anticipate drilling activity to increase over the next year. Meanwhile, we are actively acquiring acreage for drilling inventory and drilled our first six wells during the third quarter."
Mr. Galvis concluded, "We are energized by the prospect of increasing production rates and are committed to growth through drilling. We look forward to concluding 2012 with strong results from oil and gas sales and maintaining our momentum well into the future."
About NYTEX Energy Holdings, Inc.
NYTEX Energy Holdings, Inc. (website: http://nytexenergyholdings.com) is an early-stage exploration and production (E&P) company engaged in the acquisition, development, and production of oil and gas reserves from low-risk, high rate-of-return wells in shallow carbonate reservoirs. Our strategy is to enhance value for our shareholders through the development of a well-balanced portfolio of natural resource-based assets at discounted acquisition and development costs. Further, we may acquire oilfield service companies at below-market acquisition prices that complements our portfolio of natural resource-based assets and leverages the inherent synergies across the energy industry.
This press release includes "forward-looking statements," which may include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words "will," "intends," "expects," "outlook," "forecast," "estimates," "anticipates," "projects," "plans," "believes," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. The company's ability to achieve the financial targets described in this press release is subject to numerous factors and contingencies, many of which are beyond the company's control. These include local and national economic, credit and capital market conditions, including prevailing interest rates; legal and regulatory developments, including changes to tax rates, applicable securities regulations or accounting standards, and ability to obtain necessary licenses and permits; and geopolitical conditions, including the occurrence of acts of war or terrorist incidents, and weather or natural disasters. Any of these factors or others not named herein could cause the company's actual results to differ materially from those expressed as forward-looking statements. In addition, other risk factors that could cause actual results to differ materially from the forward-looking statements contained in this release include those that are discussed in the company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no, and expressly disclaims any, obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
NYTEX Energy Holdings, Inc.
Bryan A. Sinclair, 972-770-4700
KEYWORDS: United States North America Texas
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