Double Eagle Petroleum Company (DBLE, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $44.8 million; its shares were traded at around $4.85 with and P/S ratio of 0.8.
We recognized interest expense related to the credit facility of $216 and $0, for the three months ended September 30, 2009 and 2008, respectively, and $500 and $0 for the nine months ended September 30, 2009 and 2008, respectively. The Company capitalized interest costs of $260 and $222 for the three months ended September 30, 2009 and 2008, respectively, and $903 and $515 for the nine months ended September 30, 2009 and 2008, respectively
During the nine months ended September 30, 2009, our negative working capital balance decreased to $(36,145), as the $34,000 balance on our line of credit has been classified as current due to its maturity on July 31, 2010. Also during the nine month period, our accounts receivable balance decreased by $14,051 and the current price risk management assets decreased by $12,116. 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. These changes were offset somewhat by a $31,995 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.
Net cash provided by operating activities was $19,474 for the nine months ended September 30, 2009, compared to $15,100 in the same prior-year period. During the nine months ended September 30, 2009, the primary sources of cash were $1,181 of net income, which was net of non-cash charges of $13,855 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 $7,018 and non-cash stock-based compensation expense of $1,071. In addition, we had a decrease in accounts receivable from operations of $15,219 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 $18,561 in accounts payable and accrued expenses related to operations.
During the nine months ended September 30, 2009, net cash used in investing activities totaled $22,560, as compared to $26,549 in the same prior-year period. During the first nine months of 2009, our capital expenditures were primarily related to the completion of the 2008 drilling program at our operated properties in the Catalina Unit as well as our share of costs for non-operated development wells in the Atlantic Rim and Pinedale Anticline. During the third quarter of 2009, we acquired Petrosearch in exchange for 1.8 million shares of Double Eagle common stock and cash consideration of $873. We assumed 100% of the assets and liabilities of Petrosearch, including cash and cash equivalents totaling $8,606. The net cash to the Company from this acquisition was $7,733. We also had cash outflows of $513 for transaction costs related to the acquisition. Refer to Note 3 in the Notes to the Consolidated Financial Statements for additional details regarding the Petrosearch acquisition.
During the nine months ended September 30, 2009, net cash provided by financing activities decreased to $6,161, as compared to $12,008 in the same prior-year period. Borrowings on our line of credit decreased to $9,361 during the nine months ended September 30, 2009 from $14,521 in same 2008 period, as we used the net cash received from the Petrosearch acquisition to repay a portion of the outstanding balance on our line of credit during the third quarter of 2009. The borrowings during the period were primarily used to fund the 2008 drilling activity incurred in the fourth quarter of 2008. The borrowings were partially offset in both 2009 and 2008 by dividend payments on our Series A Preferred Stock in each of the first three quarters, 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 $44.8 million; its shares were traded at around $4.85 with and P/S ratio of 0.8.
Highlight of Business Operations:
During the three months ended September 30, 2009, oil and gas sales decreased 17% to $9,669, as compared to $11,662 during the same 2008 period. Although net production volumes increased at all significant properties, as discussed above, oil and gas sales were negatively impacted by lower realized average gas prices. During the three months ended September 30, 2009, the average CIG price decreased 52% as compared to the same prior-year period. In comparison, our average gas price received decreased 32%, to $4.27 from $6.27 for the same period. The overall average decrease in the gas price that we experienced was less than the average CIG price decrease due primarily to the hedging instruments we had in place during the period. See additional comments in Contracted Volumes below.We recognized interest expense related to the credit facility of $216 and $0, for the three months ended September 30, 2009 and 2008, respectively, and $500 and $0 for the nine months ended September 30, 2009 and 2008, respectively. The Company capitalized interest costs of $260 and $222 for the three months ended September 30, 2009 and 2008, respectively, and $903 and $515 for the nine months ended September 30, 2009 and 2008, respectively
During the nine months ended September 30, 2009, our negative working capital balance decreased to $(36,145), as the $34,000 balance on our line of credit has been classified as current due to its maturity on July 31, 2010. Also during the nine month period, our accounts receivable balance decreased by $14,051 and the current price risk management assets decreased by $12,116. 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. These changes were offset somewhat by a $31,995 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.
Net cash provided by operating activities was $19,474 for the nine months ended September 30, 2009, compared to $15,100 in the same prior-year period. During the nine months ended September 30, 2009, the primary sources of cash were $1,181 of net income, which was net of non-cash charges of $13,855 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 $7,018 and non-cash stock-based compensation expense of $1,071. In addition, we had a decrease in accounts receivable from operations of $15,219 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 $18,561 in accounts payable and accrued expenses related to operations.
During the nine months ended September 30, 2009, net cash used in investing activities totaled $22,560, as compared to $26,549 in the same prior-year period. During the first nine months of 2009, our capital expenditures were primarily related to the completion of the 2008 drilling program at our operated properties in the Catalina Unit as well as our share of costs for non-operated development wells in the Atlantic Rim and Pinedale Anticline. During the third quarter of 2009, we acquired Petrosearch in exchange for 1.8 million shares of Double Eagle common stock and cash consideration of $873. We assumed 100% of the assets and liabilities of Petrosearch, including cash and cash equivalents totaling $8,606. The net cash to the Company from this acquisition was $7,733. We also had cash outflows of $513 for transaction costs related to the acquisition. Refer to Note 3 in the Notes to the Consolidated Financial Statements for additional details regarding the Petrosearch acquisition.
During the nine months ended September 30, 2009, net cash provided by financing activities decreased to $6,161, as compared to $12,008 in the same prior-year period. Borrowings on our line of credit decreased to $9,361 during the nine months ended September 30, 2009 from $14,521 in same 2008 period, as we used the net cash received from the Petrosearch acquisition to repay a portion of the outstanding balance on our line of credit during the third quarter of 2009. The borrowings during the period were primarily used to fund the 2008 drilling activity incurred in the fourth quarter of 2008. The borrowings were partially offset in both 2009 and 2008 by dividend payments on our Series A Preferred Stock in each of the first three quarters, at a rate of approximately $931 per quarter.
Read the The complete ReportDBLE is in the portfolios of Robert Bruce of Bruce & Co., Inc..
