CUBIC ENERGY INC

CIK:0000319156|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Oil and gas sales	$ 3,031,948us-gaap_OilAndGasSalesRevenue	$ 5,219,837us-gaap_OilAndGasSalesRevenue	$ 10,752,951us-gaap_OilAndGasSalesRevenue	$ 10,841,391us-gaap_OilAndGasSalesRevenue
Total revenues	3,031,948us-gaap_Revenues	5,219,837us-gaap_Revenues	10,752,951us-gaap_Revenues	10,841,391us-gaap_Revenues
Costs and expenses:
Oil and gas production and operating costs	1,570,977us-gaap_OilAndGasProductionExpense	3,105,635us-gaap_OilAndGasProductionExpense	6,606,815us-gaap_OilAndGasProductionExpense	6,409,143us-gaap_OilAndGasProductionExpense
Accretion of asset retirement obligations	19,527	113,318	182,864	226,635
General and administrative expenses	1,524,437us-gaap_GeneralAndAdministrativeExpense	1,444,340us-gaap_GeneralAndAdministrativeExpense	4,273,927us-gaap_GeneralAndAdministrativeExpense	4,735,950us-gaap_GeneralAndAdministrativeExpense
Depreciation, depletion and amortization	920,764us-gaap_DepreciationAndAmortization	2,685,149us-gaap_DepreciationAndAmortization	4,988,262us-gaap_DepreciationAndAmortization	5,726,591us-gaap_DepreciationAndAmortization
Total operating costs and expenses	4,035,705us-gaap_CostsAndExpenses	7,348,442us-gaap_CostsAndExpenses	16,051,868us-gaap_CostsAndExpenses	17,098,319us-gaap_CostsAndExpenses
Operating loss	(1,003,757)us-gaap_OperatingIncomeLoss	(2,128,605)us-gaap_OperatingIncomeLoss	(5,298,917)us-gaap_OperatingIncomeLoss	(6,256,928)us-gaap_OperatingIncomeLoss
Non-operating income (expense):
Other income	1,176us-gaap_OtherNonoperatingIncome	3,933us-gaap_OtherNonoperatingIncome	4,740us-gaap_OtherNonoperatingIncome	9,427us-gaap_OtherNonoperatingIncome
Interest expense	(7,240,047)us-gaap_InterestExpense	(5,695,528)us-gaap_InterestExpense	(21,424,926)us-gaap_InterestExpense	(12,580,873)us-gaap_InterestExpense
Gain (Loss) on derivative contracts	7,159,302us-gaap_GainLossOnSaleOfDerivatives	(5,601,123)us-gaap_GainLossOnSaleOfDerivatives	22,718,812us-gaap_GainLossOnSaleOfDerivatives	(12,221,932)us-gaap_GainLossOnSaleOfDerivatives
Amortization of loan costs	(233,492)us-gaap_AmortizationOfFinancingCosts	(233,492)us-gaap_AmortizationOfFinancingCosts	(710,853)us-gaap_AmortizationOfFinancingCosts	(464,390)us-gaap_AmortizationOfFinancingCosts
Gain on acquisition of assets at fair market value				22,578,000
Change in fair value of warrants liability	(1,465,655)us-gaap_FairValueAdjustmentOfWarrants	5,547,121us-gaap_FairValueAdjustmentOfWarrants	12,516,925us-gaap_FairValueAdjustmentOfWarrants	12,017,693us-gaap_FairValueAdjustmentOfWarrants
Total non-operating income (loss)	(1,778,716)us-gaap_NonoperatingIncomeExpense	(5,979,089)us-gaap_NonoperatingIncomeExpense	13,104,698us-gaap_NonoperatingIncomeExpense	9,337,925us-gaap_NonoperatingIncomeExpense
Income (loss) before income taxes	(2,782,473)	(8,107,694)	7,805,781	3,080,997
Net income (loss)	(2,782,473)us-gaap_NetIncomeLoss	(8,107,694)us-gaap_NetIncomeLoss	7,805,781us-gaap_NetIncomeLoss	3,080,997us-gaap_NetIncomeLoss
Dividends on preferred shares	(425,599)us-gaap_DividendsPreferredStock	(387,458)us-gaap_DividendsPreferredStock	(1,265,427)us-gaap_DividendsPreferredStock	(1,009,047)us-gaap_DividendsPreferredStock
Net income (loss) attributable to common shareholders	$ (3,208,072)	$ (8,495,152)	$ 6,540,354	$ 2,071,950
Net income (loss) per common share - basic (in dollars per share)	$ (0.04)us-gaap_EarningsPerShareBasic	$ (0.11)us-gaap_EarningsPerShareBasic	$ 0.08us-gaap_EarningsPerShareBasic	$ 0.03us-gaap_EarningsPerShareBasic
Net income (loss) per common share - diluted (in dollars per share)	$ (0.04)us-gaap_EarningsPerShareDiluted	$ (0.11)us-gaap_EarningsPerShareDiluted	$ 0.07us-gaap_EarningsPerShareDiluted	$ 0.02us-gaap_EarningsPerShareDiluted
Weighted average common shares outstanding (in shares)	77,505,908	77,500,392	77,505,908	77,479,184
Weighted average common shares outstanding - diluted (in shares)	77,505,908	77,500,392	91,826,169	93,756,501

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ 7,805,781us-gaap_NetIncomeLoss	$ 3,080,997us-gaap_NetIncomeLoss
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation, depletion and amortization	4,988,262	5,726,591
Gain on acquisition of assets at fair market value		(22,578,000)
Settlement of ARO liability	(235,709)
Accretion of ARO	182,864	226,635
Amortization of loan costs	710,853qbc_AmortizationOfFinancingCosts1	464,390qbc_AmortizationOfFinancingCosts1
Amortization of debt discount	8,549,953	5,585,553
Gain on derivative contracts	(22,718,812)us-gaap_UnrealizedGainLossOnInvestments	12,221,932us-gaap_UnrealizedGainLossOnInvestments
Settlements of derivative swaps	(459,358)qbc_SettlementOfDerivativeSwaps	(19,935)qbc_SettlementOfDerivativeSwaps
Change in fair value of warrants liability	(12,516,925)us-gaap_FairValueAdjustmentOfWarrants	(12,017,693)us-gaap_FairValueAdjustmentOfWarrants
Paid-in-kind interest expense		2,834,798us-gaap_PaidInKindInterest
Stock issued for compensation		50,750us-gaap_ShareBasedCompensation
Change in assets and liabilities:
(Increase) decrease in accounts receivable - trade	1,218,589	(2,087,456)
(Increase) decrease in other prepaid expenses	1,049,348	(358,060)
Increase in accounts payable and accrued liabilities	9,870,121	2,375,609
Increase in due to affiliates	223,513	598,931
Net cash used in operating activities	(1,331,520)	(3,894,958)
Cash flows used from investing activities:
Acquisition and development of oil and gas properties	(7,394,286)	(8,049,680)
Prepaid drilling costs	(3,386,636)qbc_AmountOfDrillingCosts	(1,171,106)qbc_AmountOfDrillingCosts
Net cash paid for acquisitions of properties		(64,278,148)
Net cash used in investing activities	(10,780,922)	(73,498,934)
Cash flows from financing activities:
Proceeds from long-term debt		31,831,392
Proceeds from issuance of warrants		33,411,033us-gaap_ProceedsFromIssuanceOfWarrants
Proceeds from derivative contracts		35,091,536
Settlement received (paid) on derivative swaps	67,912	(3,018,170)
Proceeds from revolver	5,000,000us-gaap_ProceedsFromLinesOfCredit	4,015,826us-gaap_ProceedsFromLinesOfCredit
Increase in restricted cash	5,000,000	(5,000,000)
Repayment of advances from affiliates		(2,000,000)us-gaap_RepaymentsOfRelatedPartyDebt
Payment of long-term debt		(5,000,000)us-gaap_RepaymentsOfLongTermDebt
Loan costs incurred and other		(2,840,820)qbc_PaymentForLoanCostsIncurredAndOther
Net cash provided by financing activities	10,067,912	86,490,797
Net increase (decrease) in cash and cash equivalents	(2,044,530)	9,096,905
Cash and cash equivalents:
Beginning of period	6,857,970	260,576
End of period	4,813,440	9,357,481
Other information:
Cash interest paid on debt	1,040,130us-gaap_InterestPaid	6,386,785us-gaap_InterestPaid
Non-cash investing and financing activities:
Issuance of preferred stock in connection with acquisition of properties		368,000us-gaap_ConversionOfStockAmountIssued1
Note payable and accrued interest due to affiliate converted to preferred stock		2,114,986
Preferred stock dividends accrued	425,599us-gaap_DividendsPreferredStockCash	1,009,047us-gaap_DividendsPreferredStockCash
Conversion of accrued dividend to preferred stock	1,240,768	305,160
Non-cash additions to oil and gas properties through ARO		$ 1,576,323us-gaap_FairValueOfAssetsAcquired

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 4,813,440	$ 6,857,970
Accounts receivable - trade	807,621us-gaap_AccountsReceivableNetCurrent	2,026,210us-gaap_AccountsReceivableNetCurrent
Other prepaid expenses	464,954us-gaap_OtherPrepaidExpenseCurrent	1,514,302us-gaap_OtherPrepaidExpenseCurrent
Total current assets	6,086,015us-gaap_AssetsCurrent	10,398,482us-gaap_AssetsCurrent
Oil and gas properties, full cost accounting:
Proved properties (including wells and related equipment and facilities)	131,784,309	126,041,447
Unproven properties	9,874,755	8,227,109
Office and other equipment	82,511us-gaap_FurnitureAndFixturesGross	78,733us-gaap_FurnitureAndFixturesGross
Property and equipment, at cost	141,741,575us-gaap_PropertyPlantAndEquipmentGross	134,347,289us-gaap_PropertyPlantAndEquipmentGross
Less accumulated depreciation, depletion and amortization	31,903,234	26,914,972
Property and equipment, net	109,838,341us-gaap_PropertyPlantAndEquipmentNet	107,432,317us-gaap_PropertyPlantAndEquipmentNet
Other assets:
Cash restricted under loan agreement		5,000,000
Deferred loan costs, net	1,429,490	2,140,343
Prepaid drilling costs	3,386,636us-gaap_PrepaidExpenseNoncurrent
Total other assets	4,816,126us-gaap_OtherAssetsNoncurrent	7,140,343us-gaap_OtherAssetsNoncurrent
Total assets	120,740,482us-gaap_Assets	124,971,142us-gaap_Assets
Current liabilities:
Fair value of derivatives	818,212us-gaap_DerivativeLiabilitiesCurrent	8,065,417us-gaap_DerivativeLiabilitiesCurrent
Due to affiliates	455,534us-gaap_DueToAffiliateCurrent	232,021us-gaap_DueToAffiliateCurrent
Accounts payable and accrued expenses	17,022,352	7,127,572
Total current liabilities	99,817,325us-gaap_LiabilitiesCurrent	83,396,284us-gaap_LiabilitiesCurrent
Long-term liabilities:
Asset retirement obligation	1,863,431	1,916,276
Warrants liability	3,773,416us-gaap_WarrantsAndRightsOutstanding	16,290,341us-gaap_WarrantsAndRightsOutstanding
Fair value of derivatives	9,188,955us-gaap_DerivativeLiabilitiesNoncurrent	25,052,008us-gaap_DerivativeLiabilitiesNoncurrent
Total liabilities	114,643,127us-gaap_Liabilities	126,654,909us-gaap_Liabilities
Commitments and contingencies (Note M)
Stockholders' (deficit):
Common stock - $.05 par value; authorized 400,000,000 shares; issued and outstanding 77,505,908 shares at March 31, 2015 and at June 30, 2014	3,875,297us-gaap_CommonStockValue	3,875,297us-gaap_CommonStockValue
Additional paid-in capital	56,954,045	56,954,045
Accumulated deficit	(71,512,577)	(78,052,931)
Total stockholders' equity (deficit)	6,096,367us-gaap_StockholdersEquity	(1,684,755)us-gaap_StockholdersEquity
Total liabilities and stockholders' (deficit)	120,740,482	124,971,142
Senior notes
Current liabilities:
Note payable, net of discounts - Senior Notes	51,640,291	43,090,338
WFEC
Current liabilities:
Note payable - WFEC revolver	29,880,936	24,880,936
Series B Convertible Preferred Stock
Stockholders' (deficit):
Preferred stock	3,343,062	3,114,761
Additional paid-in capital - preferred stock (see Note D)	13,436,540	12,424,073
Series C Redeemable Voting Preferred Stock
Long-term liabilities:
Redeemable Preferred stock - Series C, authorized 98,751.823 shares; $0.01 stated value, voting, redeemable at $0.01; 98,751.823 shares issued and outstanding at March 31, 2015 and at June 30, 2014	$ 988	$ 988