Double Eagle Petroleum Company (DBLE, Financial) filed Quarterly Report for the period ended 2009-06-30.
Double Eagle Petroleum Co. explores for develops produces and sells crude oil and natural gas. The Company concentrates its activities in areas in which it believes it has accumulated detailed geologic knowledge and developed significant management experience. Double Eagle Petroleum Company has a market cap of $38.9 million; its shares were traded at around $4.21 with and P/S ratio of 0.8.
Effective July 22, 2009, the Company amended its credit facility to terminate the $5 million term loan and to increase the revolving line of credit from $40 million to $45 million. As a result of the amendment, the $3.75 million outstanding under the term loan was rolled into the revolving line of credit and is no longer due July 31, 2009. Any balance outstanding on the revolving line of credit matures July 31, 2010. No changes were made to the interest rate as part of this amendment.
For the three and six months ended June 30, 2009 and 2008, we recognized interest expense of $284 and $0, respectively, related to the credit facility. The Company capitalized interest costs of $343 and $188 for the three months ended June 30, 2009 and 2008, respectively, and $643 and $293 for the six months ended June 30, 2009 and 2008, respectively
During the six months ended June 30, 2009, our negative working capital balance decreased to $(1,524) compared to negative working capital of $(6,314) at December 31, 2008. The increased working capital balance is primarily the result of a $28,140 decrease in accounts payable and accrued expenses due to payments we made to vendors in the first quarter of 2009 related to drilling costs incurred in the fourth quarter of 2008. This was partially offset by a $12,885 decrease in our accounts receivable balance and an $8,308 decrease in current price risk management assets since December 31, 2008. The decrease in the accounts receivable balance was due to cash receipts from our joint interest partners at the Catalina Unit for their respective working interest percentage of costs incurred as part of the 2008 drilling program. The decrease in current price risk management assets is due primarily to the settlement of derivative contracts we had in place at December 31, 2008.
Net cash provided by operating activities was $16,826 for the six months ended June 30, 2009, compared to $10,470 in the same prior-year period. During the six months ended June 30, 2009, the primary sources of cash were $765 of net income, which was net of non-cash charges of $9,147 related to depreciation, depletion, and amortization expenses (DD&A) and accretion expense, an unrealized non-cash loss on the change in fair value of our derivatives of $6,218 and non-cash stock-based compensation expense of $770. In addition, we had a decrease in accounts receivable from operations of $14,137 primarily related to the collection of receivables from our joint interest partners for capital expenditures at the Catalina Unit. These changes were offset partially by a decrease of $14,376 in accounts payable and accrued expenses related to operations.
During the six months ended June 30, 2009, net cash provided by financing activities increased to $15,722, as compared to $14,154 in the same prior-year period. Borrowings on our line of credit increased to $17,861 during the six months ended June 30, 2009 from $15,739 in same 2008 period, and were primarily used to fund the 2008 drilling activity incurred in the fourth quarter of 2008. Borrowings were partially offset in both 2009 and 2008 by the first and second quarter dividend payments totaling $1,862. Dividends are expected to be paid on a quarterly basis on the Series A Preferred Stock in the future at a rate of approximately $931 per quarter.
Read the The complete ReportDBLE is in the portfolios of Robert Bruce of Bruce & Co., Inc..
Double Eagle Petroleum Co. explores for develops produces and sells crude oil and natural gas. The Company concentrates its activities in areas in which it believes it has accumulated detailed geologic knowledge and developed significant management experience. Double Eagle Petroleum Company has a market cap of $38.9 million; its shares were traded at around $4.21 with and P/S ratio of 0.8.
Highlight of Business Operations:
As of June 30, 2009, the Company had a $75 million credit facility in place, with a $45 million borrowing base, collateralized by its oil and gas producing properties and other assets. Under this facility, $5 million of the $45 million borrowing base represented a term loan, which if drawn upon, was to be repaid by July 31, 2009, and the remaining $40 million of available borrowing base was a revolving line of credit. Any outstanding balance on the revolving line of credit matures on July 31, 2010. The interest rate on this credit facility varies based on prevailing market rates and our level of outstanding borrowings, with a minimum floor rate of 4.5%.Effective July 22, 2009, the Company amended its credit facility to terminate the $5 million term loan and to increase the revolving line of credit from $40 million to $45 million. As a result of the amendment, the $3.75 million outstanding under the term loan was rolled into the revolving line of credit and is no longer due July 31, 2009. Any balance outstanding on the revolving line of credit matures July 31, 2010. No changes were made to the interest rate as part of this amendment.
For the three and six months ended June 30, 2009 and 2008, we recognized interest expense of $284 and $0, respectively, related to the credit facility. The Company capitalized interest costs of $343 and $188 for the three months ended June 30, 2009 and 2008, respectively, and $643 and $293 for the six months ended June 30, 2009 and 2008, respectively
During the six months ended June 30, 2009, our negative working capital balance decreased to $(1,524) compared to negative working capital of $(6,314) at December 31, 2008. The increased working capital balance is primarily the result of a $28,140 decrease in accounts payable and accrued expenses due to payments we made to vendors in the first quarter of 2009 related to drilling costs incurred in the fourth quarter of 2008. This was partially offset by a $12,885 decrease in our accounts receivable balance and an $8,308 decrease in current price risk management assets since December 31, 2008. The decrease in the accounts receivable balance was due to cash receipts from our joint interest partners at the Catalina Unit for their respective working interest percentage of costs incurred as part of the 2008 drilling program. The decrease in current price risk management assets is due primarily to the settlement of derivative contracts we had in place at December 31, 2008.
Net cash provided by operating activities was $16,826 for the six months ended June 30, 2009, compared to $10,470 in the same prior-year period. During the six months ended June 30, 2009, the primary sources of cash were $765 of net income, which was net of non-cash charges of $9,147 related to depreciation, depletion, and amortization expenses (DD&A) and accretion expense, an unrealized non-cash loss on the change in fair value of our derivatives of $6,218 and non-cash stock-based compensation expense of $770. In addition, we had a decrease in accounts receivable from operations of $14,137 primarily related to the collection of receivables from our joint interest partners for capital expenditures at the Catalina Unit. These changes were offset partially by a decrease of $14,376 in accounts payable and accrued expenses related to operations.
During the six months ended June 30, 2009, net cash provided by financing activities increased to $15,722, as compared to $14,154 in the same prior-year period. Borrowings on our line of credit increased to $17,861 during the six months ended June 30, 2009 from $15,739 in same 2008 period, and were primarily used to fund the 2008 drilling activity incurred in the fourth quarter of 2008. Borrowings were partially offset in both 2009 and 2008 by the first and second quarter dividend payments totaling $1,862. Dividends are expected to be paid on a quarterly basis on the Series A Preferred Stock in the future at a rate of approximately $931 per quarter.
Read the The complete ReportDBLE is in the portfolios of Robert Bruce of Bruce & Co., Inc..
