(PublicWire) — Amen Properties (Pink Sheets: AMEN) today announced financial results for its fiscal quarter and year ended December 31, 2009. The Company posted quarterly revenue of $2.3 million and net income of $401 thousand versus revenue of $1.0 million and net income of $6 thousand in the fourth quarter of 2008. This improvement in earnings was driven by a 42% increase in Priority Power revenue which resulted from a large reengineering project. Priority delivered full year earnings of $1.4 million in 2009, an increase of 6% over 2008.
For the full year 2009, Amen reported revenue of $8.6 million and net income of $451 thousand, versus revenue of $4.5 million and net income of $550 thousand in 2008. The significant increase in 2009 revenue was caused by the consolidation of SFF Production, in which the Company purchased a controlling interest at the end of 2008. The decrease in profitability versus 2008 was driven by decreases in oil and gas prices, depletion expense for SFF Production and the recognition of a gain of $703 thousand in 2008 related to the liquidation of the Company’s holdings in Santa Fe Energy Trust. After payment of preferred dividends, the Company generated a loss per common share of $(0.11) for 2009, compared to earnings per share of $0.05 in 2008 (diluted).
Amen recognized income of $184 thousand in 2009 from its minority investment in HPG Acquisition, LLC, an entity which owns commercial real estate in Midland, Texas. Additionally, the Company’s corporate overhead decreased over $500 thousand in 2009 as a result of the Company’s decision to delist from NASDAQ and other cost-cutting measures.
“Despite our negative accounting results caused by significant depletion expense, our oil and gas investments delivered over $2.3 million in cash flow in 2009, leaving Amen in a very strong financial position with nearly $6 million in cash and less than $2 million in debt at the end of the year,” said Kris Oliver, Amen’s Chief Executive Officer. “We expect our oil and gas properties to continue to drive significant cash flow but little or no accounting income in the near term until the properties are fully depleted, after which our NOL will allow us to maximize cash flow by shielding the earnings from taxes.”
Mr. Oliver also mentioned that Amen accrued a tithing liability of $48 thousand for 2009 in accordance with its bylaws. Amen donates 10% of its net income to Christian charities with an emphasis on benevolence and youth ministry.
The Company’s 2009 fourth quarter report is available for viewing or download from the company’s web site – www.amenproperties.com.
About Amen Properties:
Amen is a Christian corporation with a strategic asset – a net operating loss accumulated during the Company’s “dot com” past totaling $28 million which can be used to offset tax liabilities arising from future earnings. Amen seeks to own strong energy-related assets and businesses with earnings which can be shielded from taxes via the Company’s NOL. Currently, Amen owns business and assets which fall into two categories: Energy Services and Energy Resources.
Energy Services: Priority Power (www.prioritypower.net)
Priority Power is an independent energy management and consulting services firm whose sole purpose is to act as an extension of our clients’ staff to mitigate the risk and overcome the challenges associated with energy supply, information, and demand management. Priority Power has 1,200 clients representing over 7.1 billion kilowatt hours and $650 million in annual energy consumption.
Energy Resources: Oil and Gas Interests
Amen owns royalty and working interests in over 1,200 properties in twelve states through its ownership of SFF Royalty, LLC (33.3% ownership) and SFF Production, LLC (79.1% owner), the entities which own the interests formerly held by Santa Fe Energy Trust.