IRVINE, Calif., June 25, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets and distributes natural gas, propane, petroleum and coal, announced it is forecasting strong consolidated earnings of $11 million to $17 million for the Company in the next 12 to 18 months from its natural gas, gas storage profit centers and its coal mining division.
Universal Bioenergy continues to grow at double digit rates and achieved sales of over $71.74 million in 2011. It projects that it may double its sales in the next 12 to 18 months through more acquisitions, gas storage, and higher sales of natural gas, propane, oil and coal for electric power plants. Through NDR Energy Group, its subsidiary, it sells natural gas to 29 of the largest public utilities, electric power producers and local gas distribution companies that serve millions of commercial, industrial and residential customers.
On February 28, 2012, the Company closed the Whitesburg coal mine acquisition, and forecasts its coal mining operations could generate an estimated $52.80 million in revenues and an estimated $5 million to $8 million in earnings annually. The Company expects to begin generating revenues from the Whitesburg Friday Branch coal mine in the 2nd Quarter and earnings in the 4th Quarter of 2012.
On May 2, 2012, the Company announced that it had signed an agreement for natural gas storage services with one of the largest natural gas utilities in the United States, with over 134 billion cubic feet of underground gas storage. The customer's parent company reported over $10.0 billion in revenues in 2011. Universal is forecasting strong earnings of $6 million to $9 million from gas storage services and related new profit centers. The profit centers from gas storage include, natural gas scheduling, gas nominations, capacity releases for the release of transportation capacity on interstate natural gas pipelines, gas transmission, options, futures contracts, spot market sales, physical trading, financial trading and hedging of gas futures.
Solomon Ali, Universal's Senior Vice President says, "We are still very bullish on the future of natural gas usage in terms of electric power generation and in natural gas powered vehicles. The Energy Information Administration projects that growth in total natural gas consumption will continue into 2013, and that consumption in the residential and commercial sectors will increase in 2013, because of the forecasted return to near-normal temperatures next winter. The EIA also expects that Henry Hub spot prices will average $3.96 per MMBtu in 2013. The combined potential earnings to be generated from natural gas sales, gas storage and coal sales is in the $11 million to $17 million range annually. Although we cannot guarantee an actual valuation, according to industry valuation standards using average P/E ratios from Standard & Poor's, at a multiple of 15 times earnings, a valuation of $165 to $255 million dollars is an estimate of the potential additional market capitalization value of this gas storage transaction to Universal. We believe this will bring greater value to our shareholders."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal, propane and refined petroleum energy products. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
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Safe Harbor Statement – There are matters discussed in this media information that are forward-looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements reflect the company's current expectations and projections about future results, performance, prospects, sales levels, profitability and opportunities. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plans," "intends," "likely," "project", or other similar words or phrases are generally intended to identify forward-looking statements. Such statements are subject to a number of risks, uncertainties, and other factors, many of which are beyond our control, and are only forecasts; and actual events, performance, prospects, opportunities or results may differ materially from those expressed in or implied in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report, and accounts, and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.