GreenHunter Energy, Inc. A diversified renewable energy company focused on biomass power generation, the production of biodiesel, wind and solar energy projects, announced today financial and operating results for the three months ended March 31, 2010.
Revenues for the three months ended March 31, 2010 were $0.2 million, a decrease of $3.0 million compared to revenues of $3.2 million reported in the first quarter of 2009. Net loss to common shareholders, including one-time items, was $2.7 million ($0.12 loss per common share) compared to a net loss of $8.7 million ($0.45 loss per common share), from continuing operations, in the first quarter of 2009.
KEY INITIATIVES
Since the beginning of 2010, GreenHunter Energy management has been focused on three key initiatives. These include (i) engineering, permitting and financing the 18 MW Mesquite Lake biomass plant located in Imperial County, California; (ii) assembling a pipeline of growth projects and acquisition candidates predominantly focused in the power sector; and, (iii) restructuring the non-recourse credit agreement with the senior secured lender related to the biodiesel refinery located in Houston.
As announced last year, the power purchase agreement with Imperial Irrigation District (IID) specifies a commercial operation date for Mesquite Lake by the end of June 2011 — a target management presently believes is achievable. During the first quarter, GreenHunter Mesquite Lake submitted a Generator Interconnection Request with IID to accommodate an additional 10 MW of biomass energy that is expected to be generated in Phase 2 of the Mesquite Lake project plus an increase in capacity from a solar project, GreenHunter Mesquite Lake Solar 1 that has begun the development phase.
Meanwhile, the low crude oil price environment, the expiration of the blenders’ tax credit for biodiesel at the end of calendar year 2009, and the delayed implementation of the Renewable Fuels Standard 2 (RFS 2), have limited the company’s ability to operate or find a buyer for its biodiesel facility in Houston. As disclosed earlier this month, GreenHunter Biofuels received a notice from its lender that it is currently in default on its debt that is secured entirely by the assets of GreenHunter Biofuels. Management is continuing negotiations to restructure the existing credit agreement with the Lender, however, there can be no assurance they will be successful.
MANAGEMENT COMMENTS
Commenting on GreenHunter Energy’s first quarter 2010 financial and operating results, Mr. Gary C. Evans, Chairman and CEO, stated, “During the first quarter of 2010, we have made significant progress at our Mesquite Lake biomass project located in Southern California. We anxiously anticipate the County Board of Supervisors to adopt an amendment later this month to increase the approved amount in Recovery Zone Facility Bonds above the $20 million approved earlier in the year. With project financing nearing finalization, we have stepped up the pace of our engineering, procurement and contracting efforts with expectations to re-mobilize our refurbishment and conversion activities during the summer.”
With respect to growth, Mr. Jonathan D. Hoopes, President and COO, stated, “We are actively pursuing acquisition candidates to add to our renewable energy portfolio. We are presently engaged in multiple discussions with asset owners who are interested in our development platform and our industry expertise.”
Forward-Looking Statements
Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of a residual interest in the future development of a wind energy project located in California, one of the nation’s largest biodiesel refineries located in Houston, Texas, and a biomass-fired power plant located near Imperial, California. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at www.greenhunterenergy.com.
