RAAM Global ends Q2 with $44.4 million of cash; oil, gas revenues down

By Lisa Kerner

Charlotte, N.C., Aug. 13 - RAAM Global Energy Co. had total liquidity of $56.9 million at June 30, including $44.4 million of cash and $12.5 million undrawn on the company's $62.5 million credit facility, chief executive officer and president Howard Settle said during the company's second-quarter earnings call on Monday.

At Dec. 30, the company had zero drawn on the credit facility, which has a maturity date of July 1, 2015, according to a 10-Q filing with the Securities and Exchange Commission.

RAAM had a total of $200 million outstanding on its $205 million senior notes issued in 2010 and 2011.

The company has a promissory note with GE Commercial Finance Business Property Corp. related to the construction of its Houston office building. Monthly principal and interest payments of about $27,000 continue until Sept. 1, 2025.

The balance on the note was $2.8 million at June 30 and $2.9 million at Dec. 31, the filing said.

In May, RAAM entered into an agreement to finance the premiums for its annual insurance policies with Premium Assignment Corp. Monthly principal and interest payments are about $800,000 and continue until April 1, 2013. At June 30, $6.7 million was outstanding under the agreement.

In July, RAAM sold acreage and property in Texas and Louisiana for about $14 million, according to the SEC filing.

Financial highlights

Settle reviewed results for the second quarter and the first half of the year for the Lexington, Ky.-based oil and gas company.

For the second quarter, net income including non-controlling interest was $6.2 million, down from $10.5 million for the prior-year period. The figure for the 2012 six-month period was $10.5 million, compared with $21 million for the first six months of 2011.

EBITDA was $32.1 million and $62.4 million for the three- and six-month periods, respectively, compared with $35.8 million and $69 million for the prior-year periods.

Oil and gas revenues were down in the second quarter at $49.1 million from $50.9 million in the prior-year quarter. For the six-month period, oil and gas revenues decreased slightly to $96.2 million from $96.3 million.

RAAM reported cash from operations of $66 million for the first half of the year, compared with $77 million for the same period in 2011.

Capital expenditures increased to $122 million for the six months from $87 million in the prior-year period.

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