Saratoga Resources' cash declines from year-end to $20.4 million; production improvements eyed

By Lisa Kerner

Charlotte, N.C., May 16 - Saratoga Resources, Inc. ended its first quarter on March 31 with $20.4 million of cash, down from $32.5 million at year-end.

However, that balance had grown to $21 million by the end of April, according to the company's earnings news release.

Debt was roughly flat at about $178 million at quarter- and year-end, according to the company's balance sheet.

Working capital declined to $14.6 million at the end of the first quarter from $20.4 million at Dec. 31.

First-quarter capital expenditures totaled $1.3 million.

Oil and gas revenues declined to $10.6 million for Q1 from $19.3 million in the prior-year period.

Saratoga Resources ended the quarter with an operating loss of $2.2 million, or a loss of $0.07 per fully diluted share. This compares to operating income of $3.7 million, or $0.12 per fully diluted share, for the first quarter of 2013.

The company had a first-quarter net loss of $8.3 million, or a loss of $(0.27) per fully diluted share, compared to net loss of $1.1 million, or a loss of $0.03 per fully diluted share, for the year-ago quarter.

Saratoga Resources attributed the quarterly net loss to a 45% decline in oil and gas revenues. Operating expenses declined 7.2% on decreased production volumes, partially offset by higher average realized commodity prices.

The net loss for the quarter reflects an $800,000, or 15.1%, increase in interest expense resulting from the addition of $27.4 million of borrowing during the fourth quarter of 2013.

Review brings changes

Chairman and chief executive officer Thomas Cooke said a number of "wide-ranging changes" went into effect in March as a result of the company's "exhaustive review" of its field operations. As a result, changes were made in field operating personnel and in Saratoga Resources' Covington, La., office. The company also made investments in repairs and maintenance on its facilities in the field.

"While the review of operations was time consuming and took us away from our planned development operations, I am pleased to say that the initiatives implemented as a result of that review began to show results almost immediately with run times, and production, growing markedly over the last month of the quarter," said Cooke.

Oil and gas production was down 48.1% year over year to 119.7 thousand barrels of oil equivalent. According to the company, following the production optimization initiatives undertaken during the first quarter, average run times increased to 76% in March, up from 54% in January and February.

Saratoga Resources is an oil and gas development and exploration company with operations in southern Louisiana and offices in Houston and Covington, La.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.