PostRock Energy Corporation announced unaudited consolidated earnings and operating results for the second quarter ended June 30, 2014. For the quarter, the company reported revenue rose to $21.596 million, up 10% from $19.594 million for the prior-year period. Despite lower volumes, gas revenue increased slightly to $14.7 million, due to an 11% increase in realized prices to $4.39 per Mcf. Oil revenue increased 39% to $6.2 million, as production grew 25% and the realized price of $99.82 per barrel was 11% higher than the prior-year period. Gas gathering revenue increased 4% to $746,000, as higher gas prices more than offset lower third-party volumes in the Cherokee Basin. Loss before income taxes was $5.988 million against income before income taxes of $6.880 million a year ago. Net loss attributable to common stockholders was $7.445 million or $0.23 per basic and diluted share against net income attributable to common stockholders of $3,231 million or $0.13 per basic and diluted share a year ago. EBITDA was $4.852 million against $14.342 million a year ago. Adjusted EBITDA was $6.545 million against $4.539 million a year ago. During the quarter, capital expenditures totaled $10.7 million.

For the six months, net cash flows from operating activities were $8.451 million against $1.249 million a year ago. Expenditures for equipment, development and leasehold were $14.737 million against $26.821 million a year ago.

For the quarter, the company's oil production averaged 682 barrels per day, up 25% from the prior-year period. Total natural gas production was 3,337 MMcf against 3,635 MMcf a year ago. Total crude oil production was 62,050 Bbls against 49,481 Bbls a year ago. Total natural gas 23:1 oil-to-gas economic equivalency was 4,764 MMcfe against 4,773 MMcfe a year ago. Total natural gas 6:1 oil-to-gas economic equivalency was 3,709 MMcfe against 3,931 MMcfe a year ago. The increase in oil production in the first quarter was driven predominantly by a very successful workover program that was initiated in March and continued on through May 2014. Gas production averaged 36.7 MMcf a day, down 8.2% from the prior year period. This is an improvement from traditional 11% to 13% decline on the quarter. The primary driver of the reduction is attributable to the fuel savings from the compressor optimization project that wrapped up in late May of this year coupled with a slight improvement in the overall decline curve for the period.

The company expects to invest an additional $14 million to $15 million throughout the balance of the year on capital development, almost completely funded by cash flow from operations.

The company expects to drill at least 1 may be 2 additional Hunton wells, just rig availability and preparation to drill and watching the performance of the first 2 wells for a little while it would not expect to spud the next Hunton well until late third quarter, early fourth quarter. The company also expect to participate in either as a non-operator or possible as an operator in 1 to 2 other Woodford wells in the balance of the year, probably at less than 50% operating ownership and 1 of them probably less than 10%.