Breitling Energy Corporation Files SEC Form 10-Q, Quarterly Report

DALLAS--()--On August 13, 2014, Breitling Energy Corporation (OTC: BECC) (“Breitling”) filed its form 10-Q for the second quarter ending June 30, 2014. A copy of the filing is available on the Breitling Energy corporate website in the Investor Center under the SEC Filings tab, or by following the link below:

www.sec.gov/Archives/edgar/data/1229089/000121390014005732/f10q0614_breitlingenergy.htm

Quarterly Report

ITEM 2 – MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operation
For the three months ended June 30, 2014 compared to three months ended June 30, 2013:
Revenue. During the three months ended June 30, 2014, the Company generated revenues of $16,032,000, an increase of $10,484,000, or 189% as compared to the same period last year. The Company has increased revenues through sales of royalty interests and third party drilling in oil and gas properties due to increased available inventory and demand as compared to the same period in the prior year.

Total Expenses. During the three months ended June 30, 2014, total expenses, which include costs of third party drilling, marketing, professional fees, depreciation, operating costs and general and administrative expenses, were $15,088,000 compared to $5,328,000 during the same period in 2013. This change represents an increase of $9,760,000, or 183%. The increase was primarily due to increased costs associated with developing inventory for sales and increased expenses associated with being a public company.

For the six months ended June 30, 2014 compared to six months ended June 30, 2013:
Revenue. During the six months ended June 30, 2014, the Company generated revenues of $32,943,000, an increase of $19,436,000, or 144% as compared to the same period last year. The Company recognized deferred revenues of $4,609,041 and the Company has increased revenues through sales of royalty interests and third party drilling in oil and gas properties due to increased available inventory and demand as compared to the same period in the prior year.

Total Expenses. During the six months ended June 30, 2014, total expenses, which include costs of third party drilling, marketing, professional fees, depreciation, operating costs and general and administrative expenses, were $25,163,000 compared to $12,971,000 during the same period in 2013. This change represents an increase of $12,192,000, or 94%. The increase was primarily due to increased costs associated with developing inventory to sell and expenses associated with being a public company.

Liquidity and Capital Resources
For the six months ended June 30, 2014:
The Company has improved its net working capital as of June 30, 2014 by $7,526,598 to $237,795 from a deficit of $7,288,803 as of December 31, 2013. The improvement was generated by the reversal of deferred revenue and cash flow generated from operations.

Net cash provided in operating activities of $3,743,992 for the six months ended June 30, 2014 increased from $2,015,529 for the same period last year, an increase of $1,728,463. The increase was primarily due to increased revenues and increased profitability as compared to the same period last year.

Net cash used in investing activities of $33,291 was primarily utilized to acquire office equipment as the Company added additional staff necessary for increased revenues.

Off-Balance Sheet Arrangements
From time to time, the Company enters into off-balance sheet arrangements and transactions that can give rise to off-balance sheet obligations. As of June 30, 2014, the off-balance sheet arrangements and transactions that the Company had entered into included operating lease agreements and gas transportation commitments. The Company does not believe that these arrangements are reasonably likely to materially affect its liquidity or availability of, or requirements for, capital resources currently or in the future.

ABOUT BREITLING ENERGY
Breitling Energy Corporation is a growing U.S. energy company based in Dallas engaged in the exploration and development of high-probability, lower risk onshore oil and gas properties. The company’s dual-focused growth strategy primarily relies on leveraging management’s technical and operations expertise to grow through the drill-bit, while also growing its base of non-operating royalty interests. Breitling’s oil and gas operations are focused primarily in the Permian Basin of Texas and the Mississippi oil window of southern Kansas, with non-operating investments in Texas, North Dakota, Oklahoma and Mississippi. Breitling Energy Corporation is traded over the counter under the ticker symbol: BECC. Additional information is available at www.breitlingenergy.com.

Contacts

INVESTOR RELATIONS CONTACT:
Breitling
Gilbert Steedley, 214-716-2060

Contacts

INVESTOR RELATIONS CONTACT:
Breitling
Gilbert Steedley, 214-716-2060