GeoMet Inc. (GMET, Financial) filed Quarterly Report for the period ended 2012-06-30.
Geomet, Inc. has a market cap of $6 million; its shares were traded at around $0.17 with a P/E ratio of 5 and P/S ratio of 0.2.
Our recent cumulative net losses and the forward natural gas price curve represented sufficient negative evidence to outweigh the positive evidence under the evaluation guidance of ASC 740. As a result, we established a full valuation allowance for our U.S. net deferred tax assets at March 31, 2012 of $47.3 million. For the three months ended June 30, 2012, we recorded an income tax benefit of $20.3 million related to our pretax loss of $53.9 million, for which we provided a full valuation allowance. Additionally, we generated a deferred tax asset for the capital loss recognized on the sale of Hudsons Hope Gas, Ltd., for which we also provided a full valuation allowance, as described in Note 5Discontinued Operations in the Notes to Consolidated Financial Statements (Unaudited), in the amount of $13.2 million. Our valuation allowance for our net deferred tax assets as of June 30, 2012 is $80.8 million. These tax benefits will be available, prior to the expiration of carryforwards, to reduce future income tax expense resulting from earnings or increases in deferred tax liabilities.
Central Appalachia - In the Central Appalachian Basin, we are the operator of 300 vertical wells in which we own a 99.0% average working interest. Additionally, we are the operator of 86 horizontal wells in which we own a 66.0% average working interest. We also have a 34.0% average working interest in 64 non-operated horizontal wells. Three properties with 23 net wells averaging 500 Mcf/day total net sales were shut in on June 14, 2012. These wells were generating negative cash flows due to low gas prices and declining production. We are currently evaluating proposals from other parties to acquire the shut in properties which would reduce our future obligations. We will continue to evaluate other properties which may result in further shut-ins due to negative cash flows. In Central Appalachia, we are party to six firm transportation agreements with total maximum daily quantities of approximately 54,000 MMBtu per day and primary terms expiring from April 2012 through November 2024 which can be automatically extended from time to time at the maximum tariff rate. In some cases, our gas sales volumes are delivered to market under transportation agreements controlled by our working interest partners. Generally, our gas sales volumes are sold at a delivery point into the respective interstate pipeline system utilized.
Gas sales. Gas sales decreased by $0.6 million, or 7%, to $7.7 million compared to the prior year quarter. The decrease in gas sales was primarily the result of a 51% decrease in natural gas prices, excluding hedging transactions, partially offset by higher production volumes, of which 1.5 Bcf was due to our November 18, 2011 acquisition of coalbed methane gas properties, while 0.1 Bcf was due to increased production in our previously existing properties.
Gas sales. Gas sales increased by $1.7 million, or 10%, to $17.9 million compared to the prior year period. The increase in gas sales was primarily the result of higher production volumes, of which 3.2 Bcf was due to our November 18, 2011 acquisition of coalbed methane gas properties, while 0.2 Bcf was due to increased production in our previously existing properties, partially offset by a 43% decrease in natural gas prices, excluding hedging transactions.
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Geomet, Inc. has a market cap of $6 million; its shares were traded at around $0.17 with a P/E ratio of 5 and P/S ratio of 0.2.
Highlight of Business Operations:
Our recent cumulative net losses and the forward natural gas price curve represented sufficient negative evidence to outweigh the positive evidence under the evaluation guidance of ASC 740. As a result, we established a full valuation allowance for our U.S. net deferred tax assets at March 31, 2012 of $47.3 million. For the three months ended June 30, 2012, we recorded an income tax benefit of $20.3 million related to our pretax loss of $53.9 million, for which we provided a full valuation allowance. Additionally, we generated a deferred tax asset for the capital loss recognized on the sale of Hudsons Hope Gas, Ltd., for which we also provided a full valuation allowance, as described in Note 5Discontinued Operations, in the amount of $13.2 million. Our valuation allowance for our net deferred tax assets as of June 30, 2012 is $80.8 million. These tax benefits will be available, prior to the expiration of carryforwards, to reduce future income tax expense resulting from earnings or increases in deferred tax liabilities.Our recent cumulative net losses and the forward natural gas price curve represented sufficient negative evidence to outweigh the positive evidence under the evaluation guidance of ASC 740. As a result, we established a full valuation allowance for our U.S. net deferred tax assets at March 31, 2012 of $47.3 million. For the three months ended June 30, 2012, we recorded an income tax benefit of $20.3 million related to our pretax loss of $53.9 million, for which we provided a full valuation allowance. Additionally, we generated a deferred tax asset for the capital loss recognized on the sale of Hudsons Hope Gas, Ltd., for which we also provided a full valuation allowance, as described in Note 5Discontinued Operations in the Notes to Consolidated Financial Statements (Unaudited), in the amount of $13.2 million. Our valuation allowance for our net deferred tax assets as of June 30, 2012 is $80.8 million. These tax benefits will be available, prior to the expiration of carryforwards, to reduce future income tax expense resulting from earnings or increases in deferred tax liabilities.
Central Appalachia - In the Central Appalachian Basin, we are the operator of 300 vertical wells in which we own a 99.0% average working interest. Additionally, we are the operator of 86 horizontal wells in which we own a 66.0% average working interest. We also have a 34.0% average working interest in 64 non-operated horizontal wells. Three properties with 23 net wells averaging 500 Mcf/day total net sales were shut in on June 14, 2012. These wells were generating negative cash flows due to low gas prices and declining production. We are currently evaluating proposals from other parties to acquire the shut in properties which would reduce our future obligations. We will continue to evaluate other properties which may result in further shut-ins due to negative cash flows. In Central Appalachia, we are party to six firm transportation agreements with total maximum daily quantities of approximately 54,000 MMBtu per day and primary terms expiring from April 2012 through November 2024 which can be automatically extended from time to time at the maximum tariff rate. In some cases, our gas sales volumes are delivered to market under transportation agreements controlled by our working interest partners. Generally, our gas sales volumes are sold at a delivery point into the respective interstate pipeline system utilized.
Gas sales. Gas sales decreased by $0.6 million, or 7%, to $7.7 million compared to the prior year quarter. The decrease in gas sales was primarily the result of a 51% decrease in natural gas prices, excluding hedging transactions, partially offset by higher production volumes, of which 1.5 Bcf was due to our November 18, 2011 acquisition of coalbed methane gas properties, while 0.1 Bcf was due to increased production in our previously existing properties.
Gas sales. Gas sales increased by $1.7 million, or 10%, to $17.9 million compared to the prior year period. The increase in gas sales was primarily the result of higher production volumes, of which 3.2 Bcf was due to our November 18, 2011 acquisition of coalbed methane gas properties, while 0.2 Bcf was due to increased production in our previously existing properties, partially offset by a 43% decrease in natural gas prices, excluding hedging transactions.
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