‘Third Quarter Operating Income of $234,000 is an increase of $529,000 from the Third Quarter of 2013’
Dublin OH, November 19, 2014 — Cardinal Energy Group, Inc. (OTCQB: CEGX), an oil and gas exploration and production company with its primary assets in Shakelford County, Texas, reported financial results for the third quarter ended September 30, 2014. Cardinal showed the first operating profit in its history in the Third Quarter of 2014 as the Company expanded into providing contract development services along with the exploration and development of its own prospects.
The following report provides the financial results for the third quarter as well as an operations update.
Financial Results for Third Quarter ending September 30, 2014
Total operating revenues for the quarter increased from $5,000 in 2013 to $1,023,000 in 2014. During the Third Quarter, the Company had EBITDA of $248,000 compared to a loss for the comparable period of 2013 of $292,000.
The improvement in earnings was accomplished through increased sales of oil and gas products of $48,000 compared to $5,000 during 2013, and income from drilling and development services provided to an unrelated joint venture of $647,000 for the three months ended September 30, 2014.
For the nine months ended September 30, 2014, the Company had a net comprehensive loss of $2,504,000 compared to a net comprehensive loss for the comparable period in 2013 of $1,395,000. The losses sustained are due primarily to increased interest expense incurred and the significant increase in operating and production expenses associated with the expansion of the Company’s portfolio of oil and gas properties during 2014.
Operations should continue to improve during Fourth Quarter as production increases from its existing oil and gas leases and as production from additional oil and gas properties are brought online. The Company is moving from the initial stage of acquiring oil and gas leases to an operating model, as the Company continues to develop its portfolio of operating assets, while providing development services to various joint ventures.
Drilling and Completion Operations:
Year to date in 2014, Cardinal has invested approximately $1,159,000 in oil and gas properties, $111,000 in vehicles and $167,000 in property, plant and equipment.
Timothy Crawford, CEO of Cardinal comments, “Since becoming a public company in September of 2012 we are pleased to announce that in the third quarter of 2014 we had operating income of $234,000, an increase of $529,000 from the third quarter of 2013. Our operations should continue to improve during the fourth quarter as we bring more of our oil and gas properties online. We are at the end of the transition from being called a start-up company into becoming an operating company, as we continue to develop our core assets and provide oil and gas production and development services to various joint ventures. We will announce the co-ordinates for our earnings conference call in the next couple of days. I congratulate our team of executives, management and professional associates for their work ethic and contributions towards achieving this financial milestone.”