WisdomTree Trust WidsomTree Middle East Reports Operating Results (10-Q)
Wisdomtree Trust Widsomtree Middle East has a market cap of $2.3 million; its shares were traded at around $14.8 .
Highlight of Business Operations:Natural gas, crude oil and natural gas liquids prices are reported net of the realized effect of our hedging agreements. We realized gains of $0.5 million on our crude oil hedges and $5.5 million on our natural gas hedges in the second quarter 2010, compared to realized gains of $2.3 million for crude oil hedges and $8.5 million for natural gas hedges in the second quarter 2009, which were included in our natural gas and crude oil sales revenues on our Consolidated Statements of Operations.
Exploration Expenses. Exploration expenses were $0.2 million in the second quarter 2010, compared to $1.5 million for the second quarter 2009. The decrease in exploration expenses was primarily due to lower geological and geophysical (“G&G”) acquisition costs and lower settled asset retirement costs in the second quarter 2010.
Depreciation, Depletion and Amortization (“DD&A”). DD&A expense for the second quarter 2010 was $10.5 million compared to $14.3 million for the second quarter 2009, a decrease primarily due to lower production and the sale of the Southwest Louisiana properties in December 2009.
General and Administrative (“G&A”) Expenses. Total G&A expenses were $4.5 million for the second quarter 2010 compared to $4.3 million for the second quarter 2009. Included in G&A expense is a non-cash stock expense of $0.4 million ($0.14 per Mcfe) and $0.6 million ($0.14 per Mcfe) for the second quarters 2010 and 2009, respectively. G&A expenses for the second quarter 2010 were higher primarily due to approximately $0.6 million in legal fees incurred in successfully defending a lawsuit related to the 2005 recapitalization. The increase in per unit costs was primarily a result of the legal fees and lower production.
Income Taxes. Our net loss before taxes was $9.6 million for the second quarter 2010, compared to $20.4 million in the second quarter 2009. After adjusting for permanent tax differences, we recorded an income tax benefit of $3.2 million for the second quarter 2010, compared to $7.1 million for the second quarter 2009.
Dividends on Preferred Stock. Dividends on preferred stock were zero for the second quarter 2010, compared with $1.1 million in the second quarter 2009. All of the Series G and Series H Preferred Stock, including accrued dividends, were converted to Common Stock in December 2009 in conjunction with our Common Stock offering. Dividends in the second quarter 2009 included approximately $1.1 million on the Series G Preferred Stock and $4,445 on the Series H Preferred Stock.
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