PostRock Energy Corp. (PSTR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Postrock Energy Corp. has a market cap of $55.8 million; its shares were traded at around $6.9501 with and P/S ratio of 0.5. PSTR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Depreciation, Depletion and Amortization. We are subject to variances in our depletion rates from period to period due to changes in our oil and natural gas reserve quantities, production levels, product prices and changes in the depletable cost basis of our oil and natural gas properties. Our depreciation, depletion and amortization decreased approximately $8.4 million, or 69.4%, during the three months ended March 31, 2010 to $3.7 million from $12.2 million during the three months ended March 31, 2009. On a per unit basis, we had a decrease of $1.42 per Mcfe to $0.77 per Mcfe during the three months ended March 31, 2010 from $2.19 per Mcfe during the three months ended March 31, 2009. This decrease was primarily due to the impairment of our oil and gas properties in the first quarter of 2009 along with the impact to our reserves from higher prices in 2010, both of which decreased our rate per unit in the current quarter compared to the prior year quarter.
Gain from Derivative Financial Instruments. Gain from derivative financial instruments increased $4.3 million, or 10.9%, to $43.8 million for the three months ended March 31, 2010, from $39.5 million for the three months ended March 31, 2009. We recorded a $37.0 million unrealized gain and $6.8 million realized gain on our derivative contracts for the three months ended March 31, 2010 compared to a $22.6 million unrealized gain and $16.8 million realized gain for the three months ended March 31, 2009. Unrealized gains and losses are attributable to changes in oil and natural gas prices and volumes hedged from one period end to another.
Cash Flows from Investing Activities. Cash flows used in investing activities totaled $4.4 million for the three months ended March 31, 2010 as compared to cash flows provided by investing activities of $4.8 million for the three months ended March 31, 2009. The decrease in cash flows from investing activities was due to proceeds from the sale of oil and natural gas properties in Lycoming County, Pennsylvania for $8.7 million in February 2009. Capital expenditures were $4.5 million and $4.0 million for the three months ended March 31, 2010 and 2009, respectively. The following table sets forth our capital expenditures, on an accrual basis, by major categories for the three months ended March 31, 2010:
Cash Flows from Financing Activities. Cash flows used in financing activities totaled $2.6 million for the three months ended March 31, 2010 as compared to cash flows used in financing activities of $4.8 million for the three months ended March 31, 2009. The cash used in financing activities during 2010 was primarily due to the repayment of $4.0 million of bank borrowings partially offset by proceeds from borrowings under our revolving credit facility of $1.4 million. Cash used for the three months ended March 31, 2009 was primarily due to the repayment of $4.9 million of bank borrowings.
Working Capital. At March 31, 2010, we had current assets of $86.8 million. Our working capital (current assets minus current liabilities, excluding the short-term derivative asset and liability of $28.8 million and $2.1 million, respectively) was a deficit of $284.5 million at March 31, 2010, compared to a working capital deficit (excluding the short-term derivative asset and liability of $10.6 million and $1.4 million, respectively) of $282.7 million at December 31, 2009.
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Postrock Energy Corp. has a market cap of $55.8 million; its shares were traded at around $6.9501 with and P/S ratio of 0.5. PSTR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Oil and gas production costs, which include lease operating expenses, severance taxes and ad valorem taxes, increased $0.1 million, or 1.1%, to $7.8 million during the three months ended March 31, 2010, from $7.7 million during the three months ended March 31, 2009. The increase was primarily due to higher ad valorem taxes of $1.2 million partially offset by a $1.1 million reduction in lease operating expense. Production costs were $1.61 per Mcfe for the three months ended March 31, 2010 as compared to $1.39 per Mcfe for the three months ended March 31, 2009.Depreciation, Depletion and Amortization. We are subject to variances in our depletion rates from period to period due to changes in our oil and natural gas reserve quantities, production levels, product prices and changes in the depletable cost basis of our oil and natural gas properties. Our depreciation, depletion and amortization decreased approximately $8.4 million, or 69.4%, during the three months ended March 31, 2010 to $3.7 million from $12.2 million during the three months ended March 31, 2009. On a per unit basis, we had a decrease of $1.42 per Mcfe to $0.77 per Mcfe during the three months ended March 31, 2010 from $2.19 per Mcfe during the three months ended March 31, 2009. This decrease was primarily due to the impairment of our oil and gas properties in the first quarter of 2009 along with the impact to our reserves from higher prices in 2010, both of which decreased our rate per unit in the current quarter compared to the prior year quarter.
Gain from Derivative Financial Instruments. Gain from derivative financial instruments increased $4.3 million, or 10.9%, to $43.8 million for the three months ended March 31, 2010, from $39.5 million for the three months ended March 31, 2009. We recorded a $37.0 million unrealized gain and $6.8 million realized gain on our derivative contracts for the three months ended March 31, 2010 compared to a $22.6 million unrealized gain and $16.8 million realized gain for the three months ended March 31, 2009. Unrealized gains and losses are attributable to changes in oil and natural gas prices and volumes hedged from one period end to another.
Cash Flows from Investing Activities. Cash flows used in investing activities totaled $4.4 million for the three months ended March 31, 2010 as compared to cash flows provided by investing activities of $4.8 million for the three months ended March 31, 2009. The decrease in cash flows from investing activities was due to proceeds from the sale of oil and natural gas properties in Lycoming County, Pennsylvania for $8.7 million in February 2009. Capital expenditures were $4.5 million and $4.0 million for the three months ended March 31, 2010 and 2009, respectively. The following table sets forth our capital expenditures, on an accrual basis, by major categories for the three months ended March 31, 2010:
Cash Flows from Financing Activities. Cash flows used in financing activities totaled $2.6 million for the three months ended March 31, 2010 as compared to cash flows used in financing activities of $4.8 million for the three months ended March 31, 2009. The cash used in financing activities during 2010 was primarily due to the repayment of $4.0 million of bank borrowings partially offset by proceeds from borrowings under our revolving credit facility of $1.4 million. Cash used for the three months ended March 31, 2009 was primarily due to the repayment of $4.9 million of bank borrowings.
Working Capital. At March 31, 2010, we had current assets of $86.8 million. Our working capital (current assets minus current liabilities, excluding the short-term derivative asset and liability of $28.8 million and $2.1 million, respectively) was a deficit of $284.5 million at March 31, 2010, compared to a working capital deficit (excluding the short-term derivative asset and liability of $10.6 million and $1.4 million, respectively) of $282.7 million at December 31, 2009.
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