HOUSTON, Sept. 7, 2018 /PRNewswire/ -- Gastar Exploration Inc. (OTCQB: GSTC) ("Gastar" and the "Company") today announced that its two preferred stock issues have commenced trading on the OTCQB over-the-counter market under the trading symbols listed below.

Investors can find quotes for the Company's common stock and two preferred issues on www.otcmarkets.com.

About Gastar Exploration

Gastar Exploration Inc. is a pure play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Oswego limestone, Meramec and Osage bench formations within the Mississippi Lime, the Woodford shale and Hunton limestone formations. For more information, visit Gastar's website at www.gastar.com.

Forward Looking Statements

This news release includes "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.  Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks described in Gastar's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:
Gastar Exploration Inc.
Michael A. Gerlich, Chief Financial Officer
713-739-1800 / mgerlich@gastar.com

Investor Relations Counsel: 
Lisa Elliott / lelliott@DennardLascar.com
Dennard-Lascar Investor Relations: 713-529-6600

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SOURCE Gastar Exploration Inc.

HOUSTON, Sept. 6, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar") today announced that it received notification from the NYSE American LLC ("NYSE") that the NYSE has suspended trading of the Company's common stock on the exchange due to its abnormally low trading price. The Company's following two preferred stock issues listed on the NYSE have also been suspended from trading on the exchange:

The Company anticipates that during the trading suspension its common stock and its two preferred stock issues will be quoted for trading on the OTCQB over-the counter market under different trading symbols on September 7, 2018, or shortly thereafter. The transition to the over-the-counter market will not affect Gastar's business operations or its previously announced process seeking proposals from third parties as it continues to evaluate strategic alternatives for Gastar. The Company will remain subject to the public reporting requirements of the Securities and Exchange Commission ("SEC") following the transfer of trading to the OTCQB.

As reported on August 29, 2018, Gastar was informed by the NYSE that Gastar was not in compliance with the NYSE's continued listing standards because the Company's common stock has been selling for a low price per share for a substantial period of time. In light of the trading suspension, the NYSE stated that it intends to commence the delisting process and will apply to the SEC) to delist the Company's common stock and preferred stocks upon completion of all applicable procedures. Gastar is reviewing whether it will appeal the delisting determination pending the outcome of its previously announced process seeking proposals from third parties for strategic alternatives for the Company.

A delisting of the Company's common stock would constitute a "fundamental change" under the terms of the indenture (the "Indenture") governing the Company's Convertible Notes due 2022 ("Convertible Notes"), which would permit the noteholders to require the Company to repurchase all or part of such holder's notes at a cash repurchase price equal to 101% of the principal amount of the Convertible Notes being repurchased, plus accrued and unpaid interest. The Convertible Notes would be required to be repurchased on a date specified by the Company (the "Fundamental Change Repurchase Date") that is not less than 20 nor more than 35 calendar days after the date a fundamental change repurchase notice is sent (which is required to be sent within 20 calendar days of the fundamental change event).  The failure to repurchase the Convertible Notes on the Fundamental Change Repurchase Date would constitute an event of default under the Indenture and result in the automatic acceleration of the maturity date of the Convertible Notes.  Furthermore, upon the occurrence of an event of default under the Indenture, Ares Management LLC and its affiliates, as holders of a majority in principal amount of the Company's term loan, or any transferee holder of a majority in principal amount of the Company's term loan, would have the right to immediately accelerate the maturity of the term loan.

About Gastar Exploration
Gastar Exploration Inc. is a pure play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Oswego limestone, Meramec and Osage bench formations within the Mississippi Lime, the Woodford shale and Hunton limestone formations. For more information, visit Gastar's website at www.gastar.com.

Forward Looking Statements
This news release includes "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.  Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks described in Gastar's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

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SOURCE Gastar Exploration Inc.

HOUSTON, Aug. 29, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar" or the "Company") announced today that, on August 28, 2018, it received a deficiency letter from the NYSE American stock exchange informing the Company of its non-compliance with continued listing standards because the Company's common stock has been selling for a low price per share for a substantial period of time. The NYSE American staff determined that the Company's continued listing on the exchange is predicated on it effecting a reverse stock split of its common stock or otherwise demonstrating sustained price improvement within a reasonable period of time, which the staff determined to be no later than February 28, 2019.

As previously reported, the Company is working closely with its financial and legal advisors to consider potential strategic transactions including financing, refinancing, sale or merger transactions, and is encouraging proposals from existing stakeholders and interested third-parties.  The Company will accordingly consider measures that are in the best interests of the Company and its stockholders, but no decision has been made at this time with respect to specific measures regarding the continued listing of the Company's stock on the NYSE American. If the Company is unable to regain compliance, the NYSE American will initiate procedures to suspend and delist the Company's common stock, 8.625% Series A Cumulative Preferred Stock and 10.75% Series B Cumulative Preferred Stock.  In the interim, the Company's common stock and two series of preferred stock will continue to be listed on the NYSE American subject to the Company's compliance with other continued listing requirements and subject to the trading price remaining above $0.06 per share. The Company's common stock will continue to trade on the NYSE American under the symbol "GST," but will have an added designation of ".BC" to indicate that the Company is below compliance with the listing standards set forth in the Company Guide. The NYSE American notification of continued listing deficiency does not affect the Company's business operations or its reporting obligations under the Securities and Exchange Commission regulations.

The Company has also been informally notified by the NYSE American staff that if the trading price of the Company's common stock trades at or below $0.06 per share, then the Company's common and preferred stock will be automatically suspended from further trading on the NYSE American. If the Company's preferred and common stock are suspended from the NYSE American, the Company expects that the securities would be quoted on the OTCQB over-the-counter market under different symbols on the following trading day. Such a suspension of trading would also accelerate the delisting process with respect to the Company's securities.

A delisting of the Company's common stock would constitute a "fundamental change" under the terms of the indenture (the "Indenture") governing the Company's Convertible Notes due 2022 ("Convertible Notes"), which would permit the noteholders to require the Company to repurchase all or part of such holder's notes on a date specified by the Company (the "Fundamental Change Repurchase Date") that is not less than 20 nor more than 35 calendar days after the date a fundamental change repurchase notice is sent (which is required to be sent within 20 calendar days of the fundamental change event) at a repurchase price, payable in cash, equal to 101% of the principal amount of the Convertible Notes being repurchased, plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date.  The failure to redeem the Convertible Notes on the Fundamental Change Repurchase Date would constitute an event of default under the Indenture and result in the automatic acceleration of the maturity date of the Convertible Notes.  Furthermore, upon the occurrence of an event of default under the Indenture, Ares Management LLC and its affiliates, as holders of a majority in principal amount of the Company's term loan, or any transferee holder of a majority in principal amount of the Company's term loan, would have the right to immediately accelerate the maturity of the term loan.

About Gastar Exploration

Gastar Exploration Inc. is a pure-play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Meramec, Oswego, Osage, Woodford and Hunton formations. For more information, visit Gastar's website at www.gastar.com.

Forward Looking Statements

This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks described in Gastar's Annual Report on Form 10-K, Quarterly Report on Form 10-Q for the three months ended June 30, 2018 and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:
Gastar Exploration Inc.
Michael A. Gerlich, Chief Financial Officer
713-739-1800 / mgerlich@gastar.com

Investor Relations Counsel: 
Lisa Elliott / lelliott@DennardLascar.com  
Dennard-Lascar Investor Relations: 713-529-6600

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SOURCE Gastar Exploration Inc.

HOUSTON, Aug. 9, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar" or the "Company") today reported financial and operating results for the three and six months ended June 30, 2018. 

Net loss attributable to Gastar's common stockholders for the second quarter of 2018 was $39.4 million, or a loss of $0.19 per share, compared to a second quarter 2017 net loss of $6.4 million, or a loss of $0.03 per share.  Adjusted net loss attributable to common stockholders for the second quarter of 2018 was $15.3 million, or a loss of $0.07 per share, excluding the impact of an $18.0 million non-cash, pre-tax ceiling test impairment charge and a $6.1 million loss resulting from the mark-to-market of outstanding hedge positions compared to an adjusted net loss of $9.8 million, or a loss of $0.05 per share, for the second quarter of 2017 which excludes $3.4 million of gains resulting from the mark-to-market of outstanding hedge positions. The increase in the adjusted net loss is due to the sale of the Company's West Edmund Hunton Lime Unit ("WEHLU") assets in February 2018 coupled with increased interest and depreciation, depletion and amortization  expense.  (See the accompanying reconciliation of the non-GAAP financial measure adjusted net loss at the end of this news release.)

Adjusted earnings before interest, income taxes, depreciation, depletion and amortization ("adjusted EBITDA") (non-GAAP) for the second quarter of 2018 decreased 26% to $7.3 million compared to $9.8 million for the second quarter of 2017 and decreased 40% sequentially from $12.0 million for the first quarter of 2018. The sequential decline in adjusted EBITDA was primarily due to the sale of the Company's WEHLU assets.  (See the accompanying reconciliation of the non-GAAP financial adjusted EBITDA at the end of this news release.)

Revenues from oil, condensate, natural gas and natural gas liquids ("NGLs"), before the effects of commodity derivatives contracts, totaled $19.5 million in the second quarter of 2018, a 13% increase from $17.3 million in the second quarter of 2017 and a 26% decrease from $26.4 million in the first quarter of 2018.  The increase from the second quarter of 2017 in oil, condensate, natural gas and NGLs revenues primarily resulted from a 21% increase in equivalent product pricing, partially offset by a 7% decrease in equivalent production volumes primarily due to the sale of the Company's WEHLU assets.  The decrease from first quarter 2018 revenues was due to a 6% decrease in equivalent product pricing and a 22% decrease in equivalent production volumes due to the sale of the WEHLU assets.  Second quarter 2018 oil, condensate, natural gas and NGLs revenues were net of transportation, treating and gathering costs of $1.2 million pursuant to current authoritative accounting guidance. 

Commodity derivative contracts settled during the second quarter of 2018 resulted in a $3.1 million decrease in revenue compared to a $2.0 million increase in revenues in the second quarter of 2017.  For details on Gastar's current hedging position, please see our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 filed today with the United States Securities and Exchange Commission (the "SEC").

The following table provides a summary of Gastar's total net production volumes and overall average commodity prices for the three and six months ended June 30, 2018 and 2017:  

The following table provides a summary of Gastar's Mid-Continent STACK Play production volumes and average commodity prices, excluding the sale of our WEHLU assets, for the three and six months ended June 30, 2018 and 2017:

STACK Play production for the second quarter of 2018 consisted of approximately 66% liquids, (comprised of 46% oil and 20% NGLs), down from 72% and 69% liquids in the first quarter of 2018 and second quarter of 2017, respectively.  The percentage of liquids as a component of production in the second quarter of 2018 was down sequentially due to certain new wells brought online during the second quarter of 2018 producing significantly higher volumes of natural gas.

General and administrative ("G&A") expense was $4.9 million in the second quarter of 2018 compared to $4.6 million in the second quarter of 2017 and $9.0 million in the first quarter of 2018. The decrease in second quarter 2018 G&A expense compared to first quarter 2018 was primarily due to severance costs incurred during the first quarter of 2018.  G&A expense for the second quarter of 2018 included $1.2 million of non-cash stock-based compensation expense, versus $1.2 million in the second quarter of 2017 and $1.7 million in the first quarter of 2018.  Excluding non-cash stock based compensation, cash G&A expense per Boe for the second quarters of 2018 and 2017 and the first quarter of 2018, excluding severance costs, were $7.10, $6.06 and $5.57, respectively.

During the second quarter of 2018, Gastar recorded an impairment of oil and natural gas properties of approximately $18.0 million due to the downward revision of its proved reserve quantities. The downward revision was primarily associated with the decision to reclassify proved undeveloped reserves to unproved reserves due to the uncertainty regarding the timing and availability of funding required to develop these reserves. 

Exploration of Strategic Alternatives

As previously reported, the Company's management and Board of Directors (the "Board") are working closely with the Company's financial and legal advisors to consider potential strategic transactions, including financing alternatives and sale or merger transactions and is encouraging proposals from existing stakeholders and interested third-parties.  The Company has formed a special committee consisting of directors not affiliated with Ares (defined below), including Jerry Schuyler, Gastar's Interim Chief Executive Officer and Board Chairman, and Board members Randolph Coley and Harry Quarls, who, along with the advisors, are exploring a wide range of strategic alternatives for the Company's future, including a sale, business combination or strategic merger and/or restructuring of its balance sheet.

On July 20, 2018, the Company received a non-binding preliminary term sheet from funds affiliated with Ares Management LLC ("Ares") proposing a potential restructuring transaction through a sale or a court-approved bankruptcy sale process or a Chapter 11 plan of reorganization.  The Company continues to review and evaluate the Ares proposal, and is open to and will similarly evaluate any other proposals from other stakeholders or third-parties. Additionally, the Company intends to distribute a process letter to prospective bidders and investors in the coming weeks that provides additional details regarding the Company's financial restructuring process, including key deadlines.  The process letter and other information related to the Company's financial restructuring process will be available on the Company's Investor Relations website at https://ir.gastar.com/investor-relations.  

Mr. Schuyler added, "Through this process, our Board is committed to evaluating strategic alternatives in an effort to maximize value for our stakeholders while simultaneously supporting the Company's management and employees."

The Company may not comment further regarding this process unless a specific transaction or other alternative is approved by the Board, this process is concluded or it is otherwise determined that further disclosure is appropriate or required by law.  The Company cannot assure you that it will be able to achieve a transaction on favorable terms or at all. 

Operations Review and Update

During the second quarter of 2018, through its one-rig drilling program, Gastar spud four gross (3.7 net) operated Osage wells and two gross (1.9 net) operated Meramec wells and completed five gross (4.9 net) Osage operated wells using its new 35-stage completion design.  The Company also participated in numerous third-party wells across its highly contiguous, 67,900 net acre STACK Play acreage position.  This position is approximately 84% operated and 73% held by production. 

The Company recently elected to suspend its operated drilling program and release the rig to allow time to fully analyze results of its 35-stage completion design as well as preserve capital for other cash needs, including but not limited to debt service while all strategic alternatives are considered or a possible restructuring of its debt and equity.  The Company intends to continue to participate in select non-operated wells and renew certain leases to preserve its STACK Play acreage position.  The Company believes it needs to consummate a substantial financing, refinancing or other financial restructuring transaction in the relative near term to re-engage in normal operated drilling activities. 

Capital Budget

Gastar's capital expenditures in the second quarter of 2018 totaled $42.0 million, comprised of $32.8 million for drilling, completions and infrastructure costs, $6.0 million for unproved acreage extensions, renewals and additions and $3.2 million for other capitalized costs resulting in year-to-date total capital expenditures of $76.8 million.  With the suspension of the operated drilling program in August 2018 and anticipated completion of five operated wells, capital expenditures for the remainder of 2018 are estimated to total $45.3 million, comprised of $34.2 million for drilling, completions and infrastructure costs, $6.2 million for unproved acreage extensions, renewals and additions and $4.9 million for other capitalized costs.  It is unlikely that the Company could materially reduce capital expenditures further without creating the risk for deterioration of the Company's core business. 

Guidance for Third Quarter 2018 and Full-Year 2018

Our guidance for the third quarter and full-year 2018, excluding WEHLU results, is presented in the table below and represents the Company's best estimate of the range of likely future results. Guidance could be affected by the factors described below in "Forward Looking Statements."

Mid-Year 2018 Reserve Update

SEC proved reserve estimates as of June 30, 2018 totaled 10.5 MMBoe, a 76% decrease over year-end 2017 proved reserves, primarily due to the sale of 19.8 MMBoe of proved reserves associated with the Company's WEHLU assets in February 2018 and the reclassification of approximately 14.8 MMBoe of proved undeveloped reserves to unproved reserves due to the uncertainty regarding the timing and availability of funding required to develop these reserves.  The proved undeveloped reserves that were reclassified to unproved remain economically producible at current commodities prices, and the Company may report proved undeveloped reserves in the future if it determines that it has the financial capability to execute a development plan.  The mid-year 2018 reserves were 93% proved developed and comprised of 4.2 million barrels of crude oil and condensate, 2.6 million barrels of NGLs and 22.1 billion cubic feet of natural gas. 

The pre-tax SEC-priced present value of future cash flows of reserve estimates as of June 30, 2018, discounted at 10% ("PV-10") (a non-GAAP financial measure defined below in "Information on Reserves and PV-10 Value"), was $124.9 million, a 57% decrease as compared to year-end 2017 primarily as a result of the sale of the WEHLU assets and lower proved undeveloped reserve volumes.  In accordance with SEC regulations, estimates of proved reserves as of June 30, 2018 were calculated using the 12-month unweighted arithmetic average of the first-day-of-the-month price for each month in the period July 1, 2017 through June 30, 2018.  For oil, the average 12-month West Texas Intermediate price utilized was $57.67 per barrel, compared to $51.34 per barrel for year-end 2017 SEC proved reserves, and for natural gas, the average 12-month Henry Hub price utilized was $2.92 per million British thermal unit ("MMBtu"), compared to $2.98 per MMBtu for year-end 2017 SEC proved reserves. 

For a discussion of PV-10 and the standardized measure of future net cash flows, see "Information on Reserves and PV-10 Value" below.

Conference Call

Gastar has scheduled a conference call for 9:00 a.m. Eastern Time (8:00 a.m. Central Time) on Friday, August 10, 2018.  Investors may participate in the call either by phone or audio webcast.

For more information, please contact Donna Washburn at Dennard-Lascar Associates at 713-529-6600 or e-mail dwashburn@DennardLascar.com.

About Gastar Exploration

Gastar Exploration Inc. is a pure-play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Oswego limestone, Meramec and Osage bench formations within the Mississippi Lime, the Woodford shale and Hunton limestone formations. For more information, visit Gastar's website at www.gastar.com.

Information on Reserves and PV-10 Value  

For the mid-year reserves at June 30, 2018 and year ended December 31, 2017, future cash inflows were computed using the 12-month un-weighted arithmetic average of the first-day-of-the-month prices for natural gas and oil (the "benchmark base prices") adjusted by lease in accordance with sales contracts and for energy content, quality, transportation, compression and gathering fees and regional price differentials, relating to the Company's proved reserves.  Benchmark base prices are held constant in accordance with SEC guidelines for the life of the wells.

PV-10 represents the present value, discounted at 10% per annum, of estimated future net revenue before income tax of our estimated proved reserves. PV-10 is a non-GAAP financial measure as defined by the SEC.  We believe that the presentation of PV-10 is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our reserves prior to taking into account corporate future income taxes and our current tax structure.  We further believe investors and creditors use PV-10 as a basis for comparison of the relative size of our reserves as compared with other companies.

The financial measure most directly comparable to PV-10 is the standardized measure of future net cash flows ("Standardized Measure")  which takes into account future income taxes and our current tax structure.  As a result of our current net operating tax loss position, no future income taxes are anticipated and the PV-10 value shown should be reflective of our Standardized Measure. 

The Company's 2018 mid-year and 2017 year-end total proved reserves estimates were prepared by Wright & Company, Inc.

Forward Looking Statements

This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward looking statements give our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks inherent in natural gas and oil drilling and production activities, including risks with respect to continued low or further declining prices for natural gas and oil that could result in further downward revisions to the value of proved reserves or otherwise cause Gastar to further delay or suspend planned drilling and completion operations or reduce production levels which would adversely impact cash flow; risks relating to the availability of capital to fund drilling operations that can be adversely affected by debt service obligations, adverse drilling results, production declines and continued low or further declining prices for natural gas and oil; risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to our ability to integrate acquired assets with ours and to realize the anticipated benefits from such acquisitions; risks associated with engagement in the exploration of strategic alternatives; and other risks described in Gastar's Annual Report on Form 10-K and other filings with the SEC, available at the SEC's website at www.sec.gov.  Our actual sales production rates can vary considerably from tested initial production rates depending upon completion and production techniques and our primary areas of operations are subject to natural steep decline rates. In addition, production information from our recently completed wells completed using our Gen 3 design is based on limited flow back history and therefore may not be fully indicative of sustained production rates or predictive of ultimate hydrocarbon recoveries.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Targeted expectations and guidance for the third quarter and full-year of 2018 are based upon the current capital expenditures budget planned for the remainder of 2018, which includes the Company's election to suspend its operated drilling program to, among other things, preserve capital for other cash needs, including, but not limited to, debt service while all strategic alternatives are considered or a possible restructuring of its debt and equity is completed.  The budget for the remainder of 2018 may be subject to further revision and reevaluation dependent upon future developments, including changes in commodity prices, drilling results, our liquidity position, availability of crews, supplies and production capacity, weather delays and significant changes in drilling costs.

Unless otherwise stated herein, equivalent volumes of production are based upon an energy equivalent ratio of six Mcf of natural gas to each barrel of liquids (oil, condensate and NGLs), which ratio is not reflective of relative value.  Our NGLs are sold as part of our wet gas subject to an incremental NGLs pricing formula based upon a percentage of NGLs extracted from our wet gas production.  Our reported production volumes reflect incremental post-processing NGLs volumes and residual gas volumes with which we are credited under our sales contracts.

- Financial Tables Follow –

NON-GAAP FINANCIAL INFORMATION AND RECONCILIATION

We use both GAAP and certain non-GAAP financial measures to assess performance.  Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.  Our management believes that these non-GAAP measures provide useful supplemental information to investors in order that they may evaluate our financial performance using the same measures as management.  These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.  A reconciliation is provided below outlining the differences between these non-GAAP measures and their most directly comparable financial measure calculated in accordance with GAAP.

Contacts:
Gastar Exploration Inc.
Michael A. Gerlich, Chief Financial Officer
713-739-1800 / mgerlich@gastar.com

Investor Relations Counsel:
Lisa Elliott, Dennard•Lascar Investor Relations
713-529-6600 / lelliott@DennardLascar.com

View original content:http://www.prnewswire.com/news-releases/gastar-exploration-announces-second-quarter-2018-results-300695061.html

SOURCE Gastar Exploration Inc.

HOUSTON, Aug. 1, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar" or the "Company") announced today that it is considering potential strategic transactions, including financing, refinancing, sale, or merger transactions, and is encouraging proposals from existing stakeholders and interested third-parties. 

As previously announced, the board of directors of Gastar (the "Board") has appointed Jerry R. Schuyler, Randolph C. Coley and Harry Quarls to serve as members of a Board committee tasked with exploring financial, transactional, and strategic alternatives, including a potential restructuring of Gastar's balance sheet.

Mr. Schuyler, the interim Chief Executive Officer and Board Chairman of Gastar, commented: "We are running an open process to consider all strategic transactions, including financing, refinancing, sale, or merger transactions, or other forms of restructuring.  We encourage all existing stakeholders and interested third-parties to participate."

Gastar previously disclosed in its Form 8-K filed on July 23, 2018 that it received a non-binding preliminary term sheet from funds affiliated with Ares Management, L.P. ("Ares") proposing a potential restructuring transaction through a sale, among other means.  As disclosed, Gastar continues to review and evaluate the Ares proposal, and is open to and will similarly evaluate any other proposals from other stakeholders or third-parties.

Gastar has retained Kirkland & Ellis LLP, as legal advisor and Perella Weinberg Partners L.P. and Tudor Pickering & Holt L.P., as financial advisors.  Parties interested in participating in Gastar's process should contact Kevin Cofsky of Perella Weinberg Partners at 212.287.3357/kcofsky@pwpartners.com or Chad Michael of Tudor Pickering at 713.333.7101/cmichael@tphco.com.

About Gastar Exploration

Gastar is a pure-play Mid-Continent independent energy company engaged in the exploration, development, and production of oil, condensate, natural gas, and natural gas liquids in the United States.  Gastar's principal business activities include the identification, acquisition and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays.  Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home

to multiple oil and natural gas-rich reservoirs including the Meramec, Oswego, Osage, Woodford, and Hunton formations. For more information, visit Gastar's website at www.gastar.com.

Forward Looking Statements

This news release includes "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.  Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks described in Gastar's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:
Gastar Exploration Inc.
Michael A. Gerlich, Chief Financial Officer
713-739-1800 / mgerlich@gastar.com

Investor Relations Counsel:
Lisa Elliott, Dennard▪Lascar Investor Relations
713-529-6600 / lelliott@DennardLascar.com

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SOURCE Gastar Exploration Inc.

HOUSTON, May 14, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar") today announced that its board of directors (the "Board") has appointed Harry Quarls to the Board effective today. 

Mr. Quarls currently serves as an independent director for Rosehill Resources Inc., a publicly traded independent oil and natural gas company, a position he has held since April 2017.  He also currently serves as chairman of the board of SH 130 Concessions Company LLC and as a director of Opal Resources LLC, privately-held companies.  Mr. Quarls served as chairman of the board for Penn Virginia Corporation, a publicly traded exploration and production company, from September 2016 until his retirement in February 2018.  He also previously served as chairman of the board of US Oil Sands Corporation and of Trident Resources Corporation, and was a director for Fairway Resources LLC.

Mr. Quarls served as managing director at Global Infrastructure Partners., a leading global, independent infrastructure investor from January 2009 until December 2017.  Additionally, Mr. Quarls served as managing director and practice leader for global energy as well as a member of the board of directors at Booz & Company, a leading international management consulting firm, from 1982 to 2007. 

Mr. Quarls earned an MBA from Stanford University and also holds ScM. and Bachelors of Science degrees, both in chemical engineering, from M.I.T. and Tulane University, respectively. 

Jerry Schuyler, Gastar's Chairman of the board of directors and interim CEO, said, "On behalf of the Board of Gastar Exploration, we are very pleased to welcome Harry Quarls to the Board and look forward to benefitting from his substantial knowledge. His outstanding qualifications include considerable financial and energy investing expertise, as well as experience on the boards of numerous public and private energy companies. This level of experience will be a tremendous asset as Gastar develops its quality acreage position in the STACK Play and works to build shareholder value."

About Gastar Exploration

Gastar Exploration Inc. is a pure-play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in the normally pressured oil window of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Meramec, Oswego, Osage, Woodford and Hunton formations. For more information, visit Gastar's website at www.gastar.com.

Forward Looking Statements

This news release includes "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.  Forward looking statements express our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks described in Gastar's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.  By issuing forward looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:
Gastar Exploration Inc.
Michael A. Gerlich, Chief Financial Officer
713-739-1800 / mgerlich@gastar.com

Investor Relations Counsel: 
Lisa Elliott / lelliott@DennardLascar.com
Dennard-Lascar Investor Relations: 713-529-6600

View original content:http://www.prnewswire.com/news-releases/gastar-exploration-announces-new-independent-director-300647403.html

SOURCE Gastar Exploration Inc.

HOUSTON, May 10, 2018 /PRNewswire/ -- Gastar Exploration Inc. (NYSE American: GST) ("Gastar" or the "Company") today reported financial and operating results for the three months ended March 31, 2018. 

First quarter 2018 highlights

• Became a pure Oklahoma STACK Play operator with the sale of the West Edmund Hunton Lime Unit ("WEHLU") assets, which closed February 28, 2018.
• STACK Play average daily production, excluding WEHLU, was 5,500 barrels of oil equivalent ("Boe") per day ("Boe/d"), a 38% increase over fourth quarter 2017 STACK Play production and a 125% increase over first quarter 2017 STACK Play production.
• Total average daily production increased 7% over fourth quarter 2017 total production and 30% over first quarter 2017 total production.

Michael Gerlich, Gastar's Senior Vice President and Chief Financial Officer, commented, "We achieved strong production growth during the quarter from our STACK Play acreage reflecting the efficient and effective pace of our drilling and completion program, as well as improved production performance from our  new completion design with increased frack stages.  First quarter production volumes were boosted by higher working interests in operated wells under forced pooling, resulting in volumes exceeding our guidance.  Our growing production volumes coupled with improved oil pricing generated higher revenues." 

Financial Review

Net loss attributable to Gastar's common stockholders for the first quarter of 2018 was $19.1 million, or a loss of $0.09 per share, compared to a first quarter 2017 net loss of $22.3 million, or a loss of $0.14 per share.  Adjusted net loss attributable to common stockholders (non-GAAP), which excludes non-cash and unusual items, was $12.3 million, or a loss of $0.06 per share, for the first quarter of 2018, compared to $9.6 million, or a loss of $0.06 per share, for the first quarter 2017 and $6.6 million, or $0.03 per share, for the fourth quarter of 2017. (See the accompanying reconciliation of the non-GAAP financial measure adjusted net loss at the end of this news release.)

Adjusted earnings before interest, income taxes, depreciation, depletion and amortization ("adjusted EBITDA") (non-GAAP) for the first quarter of 2018 increased 14% to $12.0 million compared to $10.6 million for the first quarter of 2017 and decreased 22% sequentially from $15.5 million for the fourth quarter of 2017. The sequential decline in adjusted EBITDA was due to the sale of WEHLU during the first quarter of 2018, loss on realized hedges and higher operating costs.  (See the accompanying reconciliation of the non-GAAP financial adjusted EBITDA at the end of this news release.)

Revenues from oil, condensate, natural gas and natural gas liquids ("NGLs"), before the effects of commodity derivatives contracts, totaled $26.4 million in the first quarter of 2018, a 52% increase from $17.4 million in the first quarter of 2017 and an 11% increase from $23.7 million in the fourth quarter of 2017.  The increase from the first quarter of 2017 in oil, condensate, natural gas and NGLs revenues primarily resulted from a 17% increase in equivalent product pricing and a 30% increase in equivalent production volumes.  The increase from fourth quarter 2017 revenues was due to a 7% increase in equivalent product pricing and a 7% increase in daily equivalent production volumes.  First quarter 2018 oil, condensate and NGLs revenues were net of transportation, treating and gathering costs of $933,000 pursuant to current authoritative accounting guidance. 

Commodity derivatives were in place for approximately 79% of our oil and condensate production, 69% of our natural gas production and 33% of our NGLs production for the first quarter of 2018.  Commodity derivative contracts settled during the first quarter of 2018 resulted in a $2.2 million decrease in revenue compared to a $1.9 million increase in revenues in the first quarter of 2017.  For details on Gastar's current hedging position, please see our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 filed today with the United States Securities and Exchange Commission (the "SEC").

The following table provides a summary of Gastar's total net production volumes and overall average commodity prices for the three months ended March 31, 2018 and 2017:

The following table provides a summary of Gastar's Mid-Continent STACK Play production volumes and average commodity prices, excluding WEHLU which was sold in February 2018, for the three months ended March 31, 2018 and 2017:

First quarter 2018 STACK Play, excluding WEHLU, equivalent production was 5.5 MBoe/d as compared to first quarter 2017 and fourth quarter 2017 production of 2.4 and 4.0 MBoe/d, respectively.  STACK Play production for the first quarter of 2018 consisted of approximately 72% liquids, comprised of 53% oil and 19% NGLs, in line with fourth quarter 2017 production and up from 67% liquids in the first quarter of 2017. 

Total lease operating expenses ("LOE") per Boe of production as reported were $11.32 in the first quarter of 2018 versus $9.93 per Boe in the first quarter of 2017 and $9.14 per Boe in the fourth quarter of 2017, including workover costs per Boe of $1.21, $2.19 and $0.50, respectively.  STACK Play LOE per Boe including workover costs for the first quarter of 2018 was $10.79 compared to $9.83 and $9.96 per Boe in the first and fourth quarters, respectively, of 2017.  The increase in LOE per Boe was primarily due to higher water production and associated disposal costs related to new producing wells.    

General and administrative ("G&A") expense was $9.0 million in the first quarter of 2018 compared to $3.8 million in the first quarter of 2017 and $4.4 million in the fourth quarter of 2017. The increase in G&A expense was primarily due to one-time severance costs.  G&A expense for the first quarter of 2018 included $1.7 million of non-cash stock-based compensation expense, versus $996,000 in the first quarter of 2017 and $1.9 million in the fourth quarter of 2017.  Excluding non-cash stock based compensation and one-time severance costs, cash G&A expense per Boe for the first quarters of 2018 and 2017 and the fourth quarter 2017 were $5.57, $5.54 and $3.83, respectively, while on a STACK only production basis, first quarter 2018 cash G&A expense was $7.49 per Boe. 

Capital Budget

Gastar's capital expenditures in the first quarter of 2018 totaled $35.0 million, comprised of $27.6 million for drilling, completions and infrastructure costs, $4.5 million for unproved acreage extensions, renewals and additions and $2.9 million for other capitalized costs.

As previously announced, on February 28, 2018, the Company completed the sale of its interest in WEHLU for $107.5 million, adjusted for the effective date of October 1, 2017 and resulting in net cash proceeds of $97.6 million after effective date adjustments, fees and expenses. 

Operations Review and Update

Stephen Roberts, Senior Vice President and Chief Operating Officer, commented, "We are pleased with the excellent progress we are making in 2018 to develop and delineate our STACK Play acreage effectively.  Our execution of the improved drilling and completion procedures we implemented last year continues to result in lower average well costs.  Recently, we further enhanced our well performance utilizing our new Gen. 3.0 completion design by increasing the number of hydraulic fracture stages per well."

"During the first quarter, we focused on drilling wells targeting the Osage formation and are currently using 35-stage completions versus our earlier wells with 25-stage completions.  We are encouraged by our early production results as well as the results of similarly drilled and completed wells by offset operators. "

Currently, Gastar is running one rig in its STACK Play acreage.  During the first quarter of 2018, the Company spud four gross (3.7 net) operated Osage wells, completed three gross (2.7 net) Osage operated wells and participated in numerous third-party wells across its 67,900 net acre core STACK Play acreage position.  This highly contiguous position is approximately 84% operated and 68% held by production.

During the second quarter of 2018, the Company expects to spud between three and four gross Osage operated wells and two gross Meramec operated wells on its acreage.

Guidance for Second Quarter 2018 and Full-Year 2018

Our guidance for the second quarter and full-year 2018, excluding WEHLU results, is presented in the table below and represents the Company's best estimate of the range of likely future results. Guidance could be affected by the factors described below in "Forward Looking Statements."