American Eagle Energy: 4Q14 Results And Liquidity Statement -- April 7, 2015

American Eagle Energy press release - 4Q14 results and liquidity update.

Highlights:

• Production of 238,140 barrels of oil equivalent, or an average of 2,588 boepd;
• year-over-year increase of 38% from 1,879 boepd(172,829 boe)
• sequential quarterly increase of 18% from 2,193 boepd (201,774 boe)
• Fourth quarter 2014 oil and gas sales of $14.5 million;
  • a year-over-year increase of 7%
  • a sequential quarterly decrease of 15%
• Adjusted EBITDA of $7.9 million;
• Adjusted Cash Flow of $3.1 million;
• Adjusted Loss of $7.0 million or $0.23 per diluted share; and
• Negative working capital of $9 million that includes cash of $19 million as of February 28, 2015.

Also, of note:

LOE for the quarter ended December 31, 2014 was $25.00 per BOE, which was significantly elevated from previous periods due to year-end adjustments and utilization of higher cost submersible pumps.  

Liquidity:

As of December 31, 2014, American Eagle had $25.9 million in cash, $175.0 million total debt outstanding, comprised solely of the bonds that the Company sold in August 2014, and 30.4 million shares of common stock outstanding. American Eagle ended the fourth quarter of 2014 with $13.6 million of negative working capital. Current assets consisted primarily of $25.9 million in cash and $9.5 million in receivables. Current liabilities consisted primarily of $42.4 million in accounts payable and accruals and $6.6 million in accrued interest.

As of February 28, 2015, the Company estimates that it had approximately $9 million of negative working capital. Current assets consisted primarily of approximately $19 million in cash and approximately $12 million in receivables. Current liabilities consisted primarily of approximately $30 million in accounts payable and accruals and approximately $9.8 million in accrued interest.

From Yahoo!In-Play today: American Eagle Energy announces Forbearance Agreement:

• The Company entered into a Forbearance Agreement with four holders, who collectively own or manage in excess of 50% (face amount) of the August Notes; 
• The Company tendered the sum of $4.0 million as a partial interest payment to U.S. Bank National Association.
• Co issued the August Notes to the holders thereof, some of whom are members of the Ad Hoc Group, which partial interest payment left the Company in default as to approximately $5.8 million of unpaid interest as of April 1, 2015
• Co received a letter from SunTrust Bank, as control agent, in respect of an August 27, 2015.  SunTrust Bank provided notice of its resignation as control agent under that Intercreditor Agreement, which resignation is to become effective on May 1, 2015, unless SunTrust Bank is replaced in that role earlier; 
• Co received a letter from SunTrust Bank, in which SunTrust Bank gave the Company notice of an Event of Default thereunder -- specifically, the Company's failure to have paid the above-referenced interest payment in full, rather than in part.

American Eagle Energy has about 50,000 acres in northwest North Dakota; on the edge of the Bakken.

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