The Resource March 2014 Volume 1 Issue 003 | Page 26

St. Michaels, Ariz. – Navajo Nation Oil and Gas Company (NNOGC), a profitable fully integrated oil and gas company, today announced its Third-Quarter financial results for Fiscal- Year 2014 (April 2013 – March 2014). The Company has increased its total value, operating revenue, net income, and reduced its debt obligations. “The financial results of NNOGC are very impressive. It indicates that the current leadership of the company has found ways to increase the revenues and valuation on the company through the implementation of financial and operating strategies. The current management understands what measures need to be taken to grow NNOGC, which is very promising for the Navajo people,” said Carlos V. Duno, NNOGC Board member who developed the first strategic plan for the National Venezuelan Oil Company which is the 5th largest global oil exporter and has one of the greatest reserves of hydrocarbons in the world. In June of 2013, NNOGC hired a new CEO who reviewed the financial and operational strategy of the company. To focus on maximizing expected value of investment opportunities, the company operating and capital expenditure plan was reduced to $140 million from $192 million that was originally set by previous leadership. This resulted in a 27.1% reduction in spending with an emphasis on 26 march 2014 issue 003 utilizing a capital expenditure plan that would increase total value of the Company. NNOGC’s total debt was $165 million, near its full borrowing capacity, and was highly leveraged per Hein & Associates, LLP. The company is now on track to pay down 13.9% of its debt. vajo Nation as the company’s sole shareholder. NNOGC is fulfilling its mission of maximizing resources for the benefit of the Navajo Nation with respect for Mother Earth. The company had significant production transfers from Proved Developed Non-Producing (PDNP) to Proved Developed Producing (PDP), which the lenders appreciated, exemplified by an increase of $75 million in total company value. That is good news for the Na- million; a significant increase of 22.1% as compared to the previous year. Net Income for FY 2014 Third Quarter was $37.5 million; an increase of 60.1% as compared to the previous year. Financial Highlights NNOGC’s Operating Revenue for FY 2014 Third Quarter is $118.6 The financial and operating results indicate that NNOGC’s realignment and optimization strategy has provided positive results. In August 2013, NNOGC commenced with the closure of its Denver Exploration and Production (E&P) office. The company determined that its E&P operations should be located in close proximity to the Paradox and San Juan Basin where it operates its properties, thereby increasing operational efficiencies and allowing for better Navajo employment opportunities. Focusing on the health and viability of NNOGC, the Company evaluated all business units where optimization of costs and overhead was warranted. These changes have increased the Company’s financial performance. “As a Shareholder Representative, I am pleased with the financial performance of NNOGC, and the leadership team’s new direction with operational strategies as they progress towards becoming a billion dollar company,” said Russell Begaye, Navajo Nation Council Delegate (Shiprock). Business Highlights • Navajo Nation President Ben Shelly nominated four high-caliber professionals to serve threeyear terms as Presidential Appointments to the continued on page 27 advertise your business with us and save! for more info call [phone] or email [email protected]