GeoMet Announces Financial and Operating Results for the Quarter and Nine Months Ended September 30, 2014

HOUSTON, TX--(Marketwired - Nov 12, 2014) -  GeoMet, Inc. (OTCQB: GMET) (PINKSHEETS: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and nine months ended September 30, 2014.

Financial and Operating Results

On May 12, 2014, GeoMet closed the sale of substantially all of its remaining assets (the "Asset Sale"). As a result of the Asset Sale, all operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the quarter and nine months ended September 30, 2014 and 2013.

Quarter Ended September 30, 2014

For the quarter ended September 30, 2014, GeoMet reported a net loss available to common stockholders of $2.0 million, or $0.05 per fully diluted share. Included in net loss available to common stockholders for the quarter ended September 30, 2014 were non-cash charges of $0.8 million for accretion of preferred stock and $0.6 million for paid-in-kind ("PIK") dividends paid on preferred stock. For the quarter ended September 30, 2013, GeoMet reported a net loss available to common stockholders of $1.0 million, or $0.03 per fully diluted share. Included in net loss available to common stockholders for the quarter ended September 30, 2013 were non-cash charges of $0.6 million for accretion of preferred stock and $1.3 million for PIK dividends paid on preferred stock.

For the quarter ended September 30, 2014, GeoMet reported income from discontinued operations of $0.6 million, including a tax benefit of $0.03 million, or $0.02 per fully diluted share. For the quarter ended September 30, 2013, GeoMet reported income from discontinued operations of $1.9 million, net of tax of $0, or $0.04 per fully diluted share.

Nine months Ended September 30, 2014

For the nine months ended September 30, 2014, GeoMet reported net income available to common stockholders of $55.3 million, or $1.36 per fully diluted share. Included in net income available to common stockholders for the nine months ended September 30, 2014 were non-cash charges of $2.1 million for accretion of preferred stock and $1.8 million for PIK dividends paid on preferred stock. For the nine months ended September 30, 2013, GeoMet reported a net income available to common stockholders of $32.1 million, or $0.79 per fully diluted share. Included in net income available to common stockholders for the nine months ended September 30, 2013 were non-cash charges of $1.6 million for accretion of preferred stock and $3.7 million for PIK dividends paid on preferred stock.

For the nine months ended September 30, 2014, GeoMet reported income from discontinued operations of $62.9 million, net of tax of $0.7 million, or $1.55 per fully diluted share. Included in income from discontinued operations was a $62.4 million gain resulting from the Asset Sale. For the nine months ended September 30, 2013, GeoMet reported income from discontinued operations of $41.2 million, net of tax of $0, or $1.01 per fully diluted share. Included in income from discontinued operations was a $36.9 million gain resulting from the June 2013 sale of GeoMet's Alabama assets.

Forward-Looking Statements Notice

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words "believe," "expects," "anticipates," "intends," "estimates," "projects," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such words, are forward-looking statements. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are volatility of future natural gas prices, our estimate of the sufficiency of our existing capital sources and our ability to raise additional capital to fund cash requirements for future operations. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the Securities and Exchange Commission ("SEC"). Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company's web site at http://www.geometinc.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. GeoMet undertakes no duty to update or revise these forward-looking statements.

About GeoMet, Inc.

Through the closing of the Asset Sale, GeoMet was engaged in the production of natural gas from coal seams. Prior to the Asset Sale, GeoMet's core area of operations was the Central Appalachian Basin of Virginia and West Virginia.

GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
			Quarter Ended September 30,								Nine Months Ended September 30,
			2014				2013				2014				2013
Expenses:
	Depreciation, depletion and amortization		$	--			$	32,212			$	113,817			$	101,223
	General and administrative			1,212,887				1,049,372				3,160,010				3,456,126
	Lease termination costs			--				--				427,722				--
	Restructuring costs			--				6,000				--				93,584
Total operating expenses				1,212,887				1,087,584				3,701,549				3,650,933
Other income (expense)				2,457				(9,565	)			(17,746	)			(44,910	)
Loss before income taxes from continuing operations				(1,210,430	)			(1,097,149	)			(3,719,295	)			(3,695,843	)
Income tax expense				6,250				6,250				18,750				18,750
Loss from continuing operations				(1,216,680	)			(1,103,399	)			(3,738,045	)			(3,714,593	)
Discontinued operations				605,008				1,935,067				62,949,297				41,160,996
Net (loss) income			$	(611,672	)		$	831,668			$	59,211,252			$	37,446,403
Accretion of Preferred Stock				(772,910	)			(598,611	)			(2,122,819	)			(1,624,984	)
Paid-in-kind dividends on Preferred Stock				(649,937	)			(1,277,889	)			(1,802,727	)			(3,721,062	)
Cash dividends paid on Preferred Stock				(505	)			(634	)			(1,563	)			(1,835	)
Net (loss) income available to common stockholders			$	(2,035,024	)		$	(1,045,466	)		$	55,284,143			$	32,098,522
Net (loss) income per common share--basic and diluted:
Continuing operations			$	(0.07	)		$	(0.07	)		$	(0.19	)		$	(0.22	)
Discontinued operations				0.02				0.04				1.55				1.01
Total			$	(0.05	)		$	(0.03	)		$	1.36			$	0.79
Weighted average number of common shares:
Basic and diluted				40,513,373				40,485,875				40,513,093				40,473,460

GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
			September 30, 2014				December 31, 2013
ASSETS
Current Assets:
	Cash and cash equivalents		$	24,118,090			$	8,108,272
	Other current assets			305,155				3,593,547
Total current assets				24,423,245				11,701,819
Property and equipment--net				--				42,329,051
Other noncurrent assets				10,832				769,384
TOTAL ASSETS			$	24,434,077			$	54,800,254
LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT
Current Liabilities:
	Payable to purchaser of assets		$	346,606			$	--
	Current portion of long-term debt			--				71,550,000
	Derivative liability--natural gas contracts			--				834,151
	Asset retirement obligations			173,524				265,470
	Income taxes payable			126,444				--
	Other current liabilities			416,712				8,271,695
Total current liabilities				1,063,286				80,921,316
Asset retirement obligations				--				8,915,407
Derivative liability--natural gas contracts				--				709,571
Other long-term accrued liabilities				--				113,434
TOTAL LIABILITIES				1,063,286				90,659,728
Series A Convertible Redeemable Preferred Stock				47,330,539				43,404,993
Stockholders' deficit				(23,959,748	)			(79,264,467	)
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT			$	24,434,077			$	54,800,254

GEOMET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Nine months Ended September 30, 2014				Nine months Ended September 30, 2013
Net cash (used in) provided by operating activities		$	(7,733,919	)		$	7,604,340
Net cash provided by investing activities			95,295,299				60,171,728
Net cash used in financing activities			(71,551,562	)			(65,305,663	)
Increase in cash and cash equivalents			16,009,818				2,470,405
Cash and cash equivalents at beginning of period			8,108,272				7,234,225
Cash and cash equivalents at end of period		$	24,118,090			$	9,704,630