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Amen Properties Reports Results for First Quarter of 2010

^{Published on 2010-06-14 06:12:45 - Market Wire}
 

RICHARDSON, Texas--([ BUSINESS WIRE ])--Amen Properties (Pink Sheets: AMEN) today announced financial results for its fiscal quarter ended March 31, 2010. The Company posted quarterly revenue of $2.6 million and a net loss of $(222) thousand, or $(4.34) per diluted share. These results compare to revenue of $1.9 million and a net loss of $(488) thousand, or $(11.60) per diluted share, for the year ago quarter. This increase in earnings is attributable to revenue growth at Priority Power and increased oil and gas commodity prices.

Priority Power, the Companya™s energy management and consulting business, generated operating income of $499 thousand for the quarter, a significant increase from the same quarter in 2009 when the company generated operating earnings of $44 thousand. This increase was driven primarily by new customer acquisition and an increase in consulting revenue.

As discussed in the 2009 annual report, in January of 2010 the Company entered into new five-year employment agreements with John Bick and Pat Ennis, the management team of Priority Power. In connection with these employment agreements, Bick and Ennis were issued a five-year warrant entitling them to 80% of Prioritya™s equity after the delivery of $1.9 million in earnings. In recognition of this warrant and Prioritya™s earnings during the first quarter, Amen recorded an impairment loss of $(627) thousand related to the $2.9 million in goodwill recorded when Priority was purchased in 2006. The Company will continue to assess the value of the Priority goodwill on its balance sheet and record additional impairments as required.

The Companya™s Oil & Gas Interests generated net income of $71 thousand and cash distributions to Amen totaling over $639 thousand during the first quarter of 2010. During the same quarter in 2009, the Company reported a loss related to its oil and gas properties of $(369) thousand. This improvement in earnings in 2010 was driven by increases in oil and gas commodity prices.

The Companya™s 2010 first quarter report is available for viewing or download from the companya™s web site a" [ www.amenproperties.com ].

About Amen Properties:

Amen is a Christian corporation with a strategic asset a" a net operating loss accumulated during the Companya™s adot coma 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 Companya™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 clientsa™ 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.