Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - AMERICAN EAGLE ENERGY Corp | v371096_8k.htm |
| EX-23.1 - EXHIBIT 23.1 - AMERICAN EAGLE ENERGY Corp | v371096_ex23-1.htm |
| EX-99.1 - EXHIBIT 99.1 - AMERICAN EAGLE ENERGY Corp | v371096_ex99-1.htm |
The following unaudited pro forma combined balance sheet presents the Company’s historical financial position, combined with working interests acquired in October 2013 (the “Acquired Interests”) and the Interests to be Acquired, as if both acquisitions had occurred on September 30, 2013. The following unaudited pro forma combined statements of operations present the Company’s historical results of operations, combined with the Acquired Interests and the Interests to be Acquired, as if the acquisitions had occurred on January 1, 2012. The pro forma combined balance sheet and pro forma combined statements of operations include adjustments which give effect to events that are directly attributable to the acquisition transactions, such as related financing transactions. The pro forma combined balance sheet and pro forma combined statements of operations should be read in conjunction with the Company’s audited financial statements as of and for the year ended December 31, 2012, as reported on its Annual Report on Form 10-K, and the Company’s unaudited financial statements as of and for the nine-month period ended September 30, 2013, as reported on its Quarterly Report on Form 10-Q.
American Eagle Energy Corporation
Pro Forma Combined Balance Sheet (Unaudited)
As of September 30, 2013
| Pro Form Adjustments | ||||||||||||||||
| Interests | Combined | |||||||||||||||
| Historical | Acquired | to be | Pro Forma | |||||||||||||
| Amounts | Interests | Acquired | Amounts | |||||||||||||
| Cash and cash equivalents | $ | 19,038,092 | $ | 18,523,417 | $ | - | (a)(b) | $ | 37,561,509 | |||||||
| Receivables | 29,992,585 | 3,646,951 | - | 33,639,536 | ||||||||||||
| Income taxes receivable | 223,167 | - | - | 223,167 | ||||||||||||
| Prepaid expenses | 135,019 | - | - | 135,019 | ||||||||||||
| Derivative asset | 118,013 | - | - | 118,013 | ||||||||||||
| Total current assets | 49,506,876 | 22,170,368 | - | 71,677,244 | ||||||||||||
| Office equipment, net | 146,617 | - | - | 146,617 | ||||||||||||
| Oil and gas properties, subject to amortization, net | 99,798,033 | 41,423,371 | 43,654,022 | (c) | 184,875,426 | |||||||||||
| Oil and gas properties, not subject to amortization | 2,908,972 | - | - | 2,908,972 | ||||||||||||
| Marketable securities | 1,030,897 | - | - | 1,030,897 | ||||||||||||
| Other noncurrent assets | 5,017,689 | 2,800,000 | - | 7,817,689 | ||||||||||||
| Total assets | $ | 158,409,084 | $ | 66,393,739 | $ | 43,654,022 | $ | 268,456,845 | ||||||||
| Accounts payable and accrued liabilities | $ | 49,206,615 | $ | 1,400,000 | $ | - | (a) | $ | 50,606,615 | |||||||
| Current portion of long-term debt | 780,000 | 420,000 | - | (a) | 1,200,000 | |||||||||||
| Total current liabilities | 49,986,615 | 1,820,000 | - | 51,806,615 | ||||||||||||
| Noncurrent portion of long-term debt | 67,220,000 | 39,580,000 | - | (a) | 106,800,000 | |||||||||||
| Asset retirement obligations | 886,020 | - | - | 886,020 | ||||||||||||
| Derivative liability | 893,052 | - | - | 893,052 | ||||||||||||
| Deferred tax liability | 5,238,543 | - | - | 5,238,543 | ||||||||||||
| Total liabilities | 124,224,230 | 41,400,000 | - | 165,624,230 | ||||||||||||
| Common stock | 55,068 | 15,766 | - | (b) | 70,834 | |||||||||||
| Additional paid in capital | 41,790,670 | 24,977,973 | 43,654,022 | (b)(d) | 110,422,665 | |||||||||||
| Accumulated deficit | (7,652,506 | ) | - | - | (7,652,506 | ) | ||||||||||
| Accumulated other comprehensive loss | (8,378 | ) | - | - | (8,378 | ) | ||||||||||
| Total stockholders’ equity | 34,184,854 | 24,993,739 | 43,654,022 | 102,832,615 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 158,409,084 | $ | 66,393,739 | $ | 43,654,022 | $ | 268,456,845 | ||||||||
American Eagle Energy Corporation
Pro Forma Combined Balance Sheet (Unaudited)
As of September 30, 2013
Summary of pro forma adjustments:
| (a) | Includes funds borrowed on the Company’s existing Credit Facility totaling $40,000,000 and related deferred financing costs of $2,800,000, of which $1,400,000 is payable as of September 30, 2013. |
| (b) | Includes proceeds received from the sale of 15,765,794 shares of the Company’s common stock, totaling $24,993,739. |
| (c) | Includes the net purchase price of the Acquired Interests and the Interests to be Acquired. |
| (d) | Includes estimated proceeds from the future sale of shares of the Company’s common stock needed to finance the purchase of the Interests to be Acquired. |
American Eagle Energy Corporation
Pro Forma Combined Statement of Operations (Unaudited)
For the Nine-Month Period Ended September 30, 2013
| Interests | Combined | |||||||||||||||||||
| Historical | Acquired | to be | Pro Forma | Pro Forma | ||||||||||||||||
| Amounts | Interests | Acquired | Adjustments | Amounts | ||||||||||||||||
| Oil and gas sales | $ | 29,637,600 | $ | 14,684,418 | $ | 8,810,651 | $ | - | $ | 53,132,669 | ||||||||||
| Oil and gas operating expenses | 7,657,009 | 3,265,788 | 1,973,490 | - | 12,896,287 | |||||||||||||||
| General and administrative expenses | 4,379,911 | - | - | - | 4,379,911 | |||||||||||||||
| Depreciation, depletion and amortization | 5,915,340 | - | - | 8,365,495 | (e) | 14,280,835 | ||||||||||||||
| Impairment of oil and gas properties | 1,525,027 | - | - | - | 1,525,027 | |||||||||||||||
| Total operating expenses | 19,477,287 | 3,265,788 | 1,973,490 | 8,365,495 | 33,082,060 | |||||||||||||||
| Total operating income | 10,160,313 | 11,418,630 | 6,837,161 | (8,365,495 | ) | 20,050,609 | ||||||||||||||
| Interest income | 6,328 | - | - | - | 6,328 | |||||||||||||||
| Dividend income | 50,919 | - | - | - | 50,919 | |||||||||||||||
| Interest expense | (2,149,002 | ) | - | - | (3,570,000 | )(f) | (5,719,002 | ) | ||||||||||||
| Loss on early extinguishment of debt | (3,713,972 | ) | - | - | - | (3,713,972 | ) | |||||||||||||
| Realized gain on derivatives | 115,708 | - | - | - | 115,708 | |||||||||||||||
| Unrealized loss on derivatives | (775,040 | ) | - | - | - | (775,040 | ) | |||||||||||||
| Income before taxes | 3,695,254 | 11,418,630 | 6,837,161 | (11,935,495 | ) | 10,015,550 | ||||||||||||||
| Income tax expense | (1,638,660 | ) | - | - | (2,285,002 | )(g) | (3,923,662 | ) | ||||||||||||
| Net income (loss) | $ | 2,056,594 | $ | 11,418,630 | $ | 6,837,161 | $ | (14,220,497 | ) | $ | 6,091,888 | |||||||||
Summary of pro forma adjustments:
| (e) | Represents estimated additional depletion expense for the period based on historical depletion rates. |
| (f) | Represents interest expense related to the additional borrowings under the Company’s Credit Facility totaling $3,150,000 and amortization of deferred financing costs totaling $420,000. |
| (g) | Represents additional income tax expense attributable to the pro forma income from the Acquired Interests, the Interests to be Acquired and the Pro Forma Adjustments for depletion and interest expense. |
American Eagle Energy Corporation
Pro Forma Combined Statement of Operations (Unaudited)
For the Year Ended December 31, 2012
| Interests | Combined | |||||||||||||||||||
| Historical | Acquired | to be | Pro Forma | Pro Forma | ||||||||||||||||
| Amounts | Interests | Acquired | Adjustments | Amounts | ||||||||||||||||
| Oil and gas sales | $ | 10,713,946 | $ | 5,274,485 | $ | 3,164,691 | $ | - | $ | 19,153,122 | ||||||||||
| Oil and gas operating expenses | 3,200,171 | 1,425,597 | 855,358 | - | 5,481,126 | |||||||||||||||
| General and administrative expenses | 4,503,759 | - | - | - | 4,503,759 | |||||||||||||||
| Depreciation, depletion and amortization | 2,860,187 | - | - | 3,392,213 | (h) | 6,252,400 | ||||||||||||||
| Impairment of oil and gas properties | 10,631,345 | - | - | - | 10,631,345 | |||||||||||||||
| Total operating expenses | 21,195,462 | 1,425,597 | 855,358 | 3,392,213 | 26,868,630 | |||||||||||||||
| Total operating income | (10,481,516 | ) | 3,848,888 | 2,309,333 | (3,392,213 | ) | (7,715,508 | ) | ||||||||||||
| Interest income | 8,335 | - | - | - | 8,335 | |||||||||||||||
| Dividend income | 63,654 | - | - | - | 63,654 | |||||||||||||||
| Interest expense | (706 | ) | - | - | (4,760,000 | )(i) | (4,760,706 | ) | ||||||||||||
| Loss on early extinguishment of debt | - | - | - | - | - | |||||||||||||||
| Realized gain on derivatives | - | - | - | - | - | |||||||||||||||
| Unrealized loss on derivatives | (122,651 | ) | - | - | - | (122,651 | ) | |||||||||||||
| Income before taxes | (10,532,884 | ) | 3,848,888 | 2,309,333 | (8,152,213 | ) | (12,526,876 | ) | ||||||||||||
| Income tax benefit | 1,240,010 | - | - | 723,819 | (j) | 1,963,829 | ||||||||||||||
| Net income (loss) | $ | (9,292,874 | ) | $ | 3,848,888 | $ | 2,309,333 | $ | (7,428,394 | ) | $ | (10,563,047 | ) | |||||||
Summary of pro forma adjustments:
| (h) | Represents estimated additional depletion expense for the period based on historical depletion rates. |
| (i) | Represents interest expense related to the additional borrowings under the Company’s Credit Facility totaling $4,200,000 and amortization of deferred financing costs totaling $560,000. |
| (j) | Represents additional income tax benefit attributable to the pro forma loss from the Acquired Interests, the Interests to be Acquired and the Pro Forma Adjustments for depletion and interest expense. |