DALLAS--(BUSINESS WIRE)--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.