PostRock Energy Corp. (PSTR, Financial) filed Quarterly Report for the period ended 2012-03-31.
Postrock Energy has a market cap of $27.6 million; its shares were traded at around $2.25 with and P/S ratio of 0.3.
Gathering revenue decreased $657,000, or 48.5%, from $1.4 million for the three months ended March 31, 2011 to $699,000 for the three months ended March 31, 2012. The decrease is primarily due to the settlement of the royalty lawsuits in late 2011 which lowered the rates that we are paid for gathering royalty interest gas. A decline in production volumes also contributed to the decrease.
Pipeline revenue increased $255,000, or 8.0%, from $3.2 million for the three months ended March 31, 2011 to $3.4 million for the three months ended March 31, 2012. The increase was due to higher volumes transported associated with oil production in Osage County, Oklahoma.
Cash Flows from Operating Activities Cash flows provided by operating activities decreased $2.2 million from $12.6 million for the three months ended March 31, 2011, to $10.4 million for the three months ended March 31, 2012. The decrease was primarily the result of a decrease in revenues partially offset by an increase in gains from our commodity derivatives along with lower operating expenses.
At March 31, 2012, including 2,180,233 shares of our common stock held by White Deer, we had 12,268,970 shares of common stock issued and outstanding. In addition, we have 22,915,155 outstanding warrants to purchase our common stock of which 22,241,333 are owned by White Deer at an average exercise price of $3.23 and 673,822 are owned by Constellation Energy Group Inc. at an average exercise price of $7.07. We also have 114,966 unvested restricted stock units and 1,140,620 options outstanding granted under our long term incentive plan. Consequently, if these securities were included as outstanding, our outstanding shares would have been 36,439,711 of which the warrants and common stock owned by White Deer represent approximately 67%. By exercising their warrants, White Deer can benefit from their respective percentage of all of our profits and growth. In addition, if White Deer begins to sell significant amounts of our common stock, or if public markets perceive that they may sell significant amounts of our common stock, the market price of our common stock may be significantly impacted.
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Postrock Energy has a market cap of $27.6 million; its shares were traded at around $2.25 with and P/S ratio of 0.3.
Highlight of Business Operations:
Oil and gas sales decreased $6.6 million, or 32.7%, from $20.2 million during the three months ended March 31, 2011 to $13.6 million during the three months ended March 31, 2012. Decreased average realized natural gas prices reduced revenue by $5.8 million and lower production volumes reduced revenue by $1.0 million. These decreases were slightly offset by increased oil production volumes and prices. Our average realized prices on an equivalent basis (Mcfe) decreased from $4.33 per Mcfe for the three months ended March 31, 2011, to $3.08 per Mcfe for the three months ended March 31, 2012. Oil and gas sales exclude any realized or unrealized hedging gains or losses.Gathering revenue decreased $657,000, or 48.5%, from $1.4 million for the three months ended March 31, 2011 to $699,000 for the three months ended March 31, 2012. The decrease is primarily due to the settlement of the royalty lawsuits in late 2011 which lowered the rates that we are paid for gathering royalty interest gas. A decline in production volumes also contributed to the decrease.
Pipeline revenue increased $255,000, or 8.0%, from $3.2 million for the three months ended March 31, 2011 to $3.4 million for the three months ended March 31, 2012. The increase was due to higher volumes transported associated with oil production in Osage County, Oklahoma.
Cash Flows from Operating Activities Cash flows provided by operating activities decreased $2.2 million from $12.6 million for the three months ended March 31, 2011, to $10.4 million for the three months ended March 31, 2012. The decrease was primarily the result of a decrease in revenues partially offset by an increase in gains from our commodity derivatives along with lower operating expenses.
At March 31, 2012, including 2,180,233 shares of our common stock held by White Deer, we had 12,268,970 shares of common stock issued and outstanding. In addition, we have 22,915,155 outstanding warrants to purchase our common stock of which 22,241,333 are owned by White Deer at an average exercise price of $3.23 and 673,822 are owned by Constellation Energy Group Inc. at an average exercise price of $7.07. We also have 114,966 unvested restricted stock units and 1,140,620 options outstanding granted under our long term incentive plan. Consequently, if these securities were included as outstanding, our outstanding shares would have been 36,439,711 of which the warrants and common stock owned by White Deer represent approximately 67%. By exercising their warrants, White Deer can benefit from their respective percentage of all of our profits and growth. In addition, if White Deer begins to sell significant amounts of our common stock, or if public markets perceive that they may sell significant amounts of our common stock, the market price of our common stock may be significantly impacted.
Read the The complete Report
