www.QualityStocks.Net would like to highlight RAM Energy Resources Inc. (NASDAQ: RAME). The company is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and gas properties and the marketing of crude oil and natural gas. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq under the symbol RAME.
In the company’s news Friday,
Independent energy company RAM Energy Resources Inc. announced its improvements to certain financial benchmarks and liquidity at the end of the third quarter, as well as its expectations for the fourth quarter. The company said it successfully met its goals for the quarter and is maintaining a solid financial position.
For the nine-month period ended September 30, 2008, RAM’s non-acquisition expenditures were funded internally. As of September 30, long-term debt was approximately $246 million, while cash and cash equivalents were estimated at $7 million, up slightly from $237 million posted in June 2008.
At the end of the third quarter, RAM borrowed $246 million under its borrowing base of $288 million. This leaves approximately $42 million of immediately available funds under the existing credit facility, which is composed of a $113 million term loan maturing in 4.2 years, as well as a revolving credit agreement of $175 million, with current borrowings outstanding at $133 million, which matures in 3.2 years.
“Our non-acquisition capital budget for the 2008 year was set with the anticipation that it would be funded largely, if not entirely, from internally generated cash flow and we have succeeded in executing our business plan while reducing our debt to total capital ratio thus maintaining a strong financial position,” Larry Lee, chairman and CEO stated in the press release.
Current economic conditions are leading many businesses to take proactive and preventative measures, and the company anticipates the strength of its balance sheet will give cushion it through “flexibility and stability during the current financial market uncertainties.”
RAM’s non-acquisition capital budget for 2008, announced in December 2007, was at $80 million. Through the nine months, RAM spent approximately $62 million on basic operations such as exploration, exploitation and development activities; another $10 million was spent on acquisitions of production, reserves and pipeline assets.
In the press release, the company declared generated proceeds of approximately $1 million. Based on industry outlooks and pricing, RAM expects to fund its upcoming estimated fourth quarter non-acquisition capital budget of approximately $18 million through internally generated cash flow, excluding anticipated proceeds from divestitures.
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Forward-Looking Statement:
This 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. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
