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Below are some recent press releases. Please check back often to read about the latest news developments of Gateway Energy Corporation. December 22, 2006 November 27, 2006 November 15, 2006 November 14, 2006 August 23, 2006 August 14, 2006 July 18, 2006 July 7, 2006 June 12, 2006 May 30, 2006 May 15, 2006 March 20, 2006 Gateway Energy Corporation Announces the Sale of Its Rights in the AET Nitrogen Rejection Technology HOUSTON, TEXAS, December 22, 2006. Gateway Energy Corporation (OTCBB: GNRG) (“Gateway”) today announced that it sold to HNNG Development, LLC (“HNNG”), its interest in the First Amended and Restated Agreement to Develop Natural Gas Treatment Projects Using Mehra Gas Treating Units with Advanced Extraction Technologies, Inc., involving certain rights to a patented nitrogen rejection process. The total purchase price for the sale is $600,000, consisting of $200,000 paid at closing and a promissory note payable to Gateway in the amount of $400,000, which note is discounted by $100,000 if the note is prepaid on or before March 22, 2007. If not prepaid, the Note becomes due on June 22, 2008. In connection with the sale, for a period of five years, Gateway will have certain rights to participate in pipeline projects available to HNNG that are related to their future nitrogen rejection projects in the U.S. HNNG also agreed to allow Gateway to pursue during 2007 two potential nitrogen rejection projects, provided that HNNG will have the right to participate in such projects if they are consummated. Robert Panico, Chief Executive Officer of Gateway, stated “This sale concludes a lengthy review by Gateway of our nitrogen rejection business and our decision to exit the business of licensing nitrogen rejection units. We believe our agreement will allow us to continue servicing the NRU sector, by participating in pipeline projects available to HNNG. This is a significant step in our restructuring program to position Gateway for growth in 2007 and our renewed focus on our core competencies.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico.
Gateway Energy Corporation Annountes Increased Tariff Rates for Fort Cobb Fuel Authority HOUSTON, TEXAS, November 27, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (www.gatewayenergy.com) (“the Company”) today announced that an increase in the regulated tariff rates of its wholly owned subsidiary, Fort Cobb Fuel Authority, L.L.C (“Fort Cobb”), has been approved by the Oklahoma Corporation Commission. The Company estimates that, based on 2005 sales volumes, the increased tariff rates would have resulted in a $605,000 increase in earnings for Fort Cobb and the consolidated Company financial statements. Robert Panico, Chief Executive Officer of the Company, observed “The increased tariff revenue granted to the Company is expected to return Fort Cobb to profitability. This is an important step in the Company’s ongoing plan to optimize our current asset base.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Currently, the Company has 17,130,937 common shares outstanding. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy Corporation Announces Agreement to Transport Natural Gas on its Bolivar Gathering System HOUSTON, TEXAS, November 15, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (www.gatewayenergy.com) (“Gateway”) announced that its wholly-owned subsidiary, Gateway Offshore Pipeline Company (“Gateway Offshore”), has entered into agreements with a producer to transport all of its natural gas produced through Gateway Offshore’s Bolivar Gathering System. Production is expected to commence during the month of November 2006. Robert Panico, President and Chief Executive Officer of the Company, stated “The Company has focused a great deal of attention recently to optimize its offshore pipeline systems. Currently two producers are drilling wells in our service area and if the wells are successful we believe that we will be able to consummate agreements to provide transportation services. We are continuing to see exploration and development interest near our offshore pipeline systems with producers acquiring leases and filing drilling permits. We expect this trend to continue due to the favorable price of natural gas for the foreseeable future.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy Corporation Posts Financial Results for the Quarter Ended November 14, 2006 HOUSTON, TEXAS, November 14, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (the “Company”) (www.gatewayenergy.com) today announced financial results for the third quarter of 2006. The Company posted a net loss of $(16,859), or $0.00 per share, for the third quarter of 2006 compared to net income of $1,453,910, or $0.08 per share, for the third quarter of 2005. For the nine months ended September 30, 2006, the Company posted net income of $60,286, or $0.00 per share, compared to net income of $1,574,499, or $0.09 per share, for the same period of 2005. Third-quarter and year-to-date 2005 results included a gain of $1,705,257, or $0.10 per share, on the sale of certain assets from the Company’s Madisonville Pipeline system. Operating revenues from continuing operations for the three months ended September 30, 2006 were $2,327,781 as compared to $2,671,624 for the prior year period. Operating margin for the period, defined as revenues less cost of purchased gas and operating and maintenance expenses, decreased 17% over 2005 mainly due to unexpected maintenance expenses and lost revenue from downtime at the Company’s Waxahachie distribution facilities and an increase of the operating loss from Fort Cobb operations of $26,000 from the Company’s third quarter 2005. The Company reduced its loss from continuing operations for the third-quarter from $(277,374) in 2005 to $(16,859) in 2006. The improvement was in part due to a decrease in general and administrative expenses of $306,495. Operating revenues declined by a larger amount than operating margins because a significant portion of the Company’s revenues are related to back-to-back sales of natural gas that are directly impacted by fluctuations in the price of natural gas sold, but do not have a meaningful effect on margins. Operating revenues from continuing operations for the nine months ended September 30, 2006 were $7,494,812 as compared to $6,905,004 for the prior year period, an increase of 9%. Operating margin for the nine month period, defined as revenues less cost of purchased gas and operating and maintenance expenses, increased 14% over 2005 due to increased throughput at the Company’s Waxahachie and Madisonville pipeline facilities, offset by a decline in throughput and higher operating expenses at the Company’s Fort Cobb Fuel Authority. This decline in throughput was in part due to warmer than average temperatures during the first three months of 2006. Income (loss) from continuing operations for the nine months ended September 30, 2006 was $60,286 as compared to $(445,452) for the prior nine month period. On November 8, 2006, the Company entered into a joint stipulation agreement regarding the rate case that the Company filed with the Oklahoma Corporation Commission ("OCC") that the Company estimates will result in a $605,000 increase in Fort Cobb's revenue on an annual basis. The joint stipulation agreement will not be effective unless approved by the OCC. The Company expects the OCC to make its determination of whether to approve the joint stipulation agreement during November 2006. The Company cannot be certain that the OCC will approve the joint stipulation agreement or that the OCC will not require material modification of the terms thereof. Robert Panico, President and Chief Executive Officer of Gateway, stated “While we are disappointed with our results for the third quarter, we are pleased with our improved operating margins for the year-to-date, which reflect improvement in our overall operations. We expect potential growth opportunities in our assets to take effect in the next few quarters and this will help reduce volatility in earnings resulting from unpredictable and often non-recurring events. We continue to seek opportunities to grow the Company by acquisitions. We believe these developments will significantly improve our opportunities for growth in the future.”
Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy
Corporation Announces Election of Gordon Wright as a Member of the Board,
Replacing John Ewing, Jr. HOUSTON, TEXAS, August 23, 2006. Gateway Energy Corporation (OTCBB: GNRG) (the “Company”) today announced John Ewing, Jr. announced his resignation as a member of the Board of Directors of the Company. Mr. Ewing has been a member of Board since 1988. The Company also announced today that Gordon Wright has been elected to fill the vacancy on the Board created by Mr. Ewing’s resignation. Mr. Wright is currently a consultant in the energy industry with about 38 years of industry experience. Prior to providing consulting services, Mr. Wright was Chief Executive Officer of CGAS, Inc., an Appalachian exploration and production company, and spent about 20 years with CMS Nomeco Oil & Gas Co., where he rose to the position of President and Chief Executive Officer. Robert Panico, President and Chief Executive Officer of the Company, observed that “We are very excited to add Mr. Wright to the Board, who brings significant energy industry experience that we believe will be instrumental in assisting the Company in its growth strategy. The Company also greatly appreciates Mr. Ewing’s dedication to the Board of Directors over the years.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams.
Gateway Energy Corporation
Posts Net Income for the Quarter Ended June 30, 2006 • Operating Margin Up 27% Versus Same Period
2005 HOUSTON, TEXAS, August 14, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (the “Company”) (www.gatewayenergy.com) today announced financial results for the second quarter of 2006. The Company posted net income of $50,060, or $0.00 per share, for the second quarter of 2006 compared to net income of $99,399, or $0.01 per share, for the second quarter of 2005. For the six months ended June 30, 2006, the Company posted a net income of $77,145, or $0.00 per share, compared to a net income of $120,589, or $0.01 per share, for the same period of 2005. Operating revenues from continuing operations for the three months ended June 30, 2006 were $2,422,661 as compared to $2,116,567 for the prior year period, an increase of 14%. Operating margin for the period, defined as revenues less cost of purchased gas and operating and maintenance expenses, increased 27% over 2005 due to increased throughput at the Company’s Waxahachie and Madisonville pipeline facilities, offset by a decline in throughput on the Company’s offshore segment. Income (loss) from continuing operations for the quarter ended June 30, 2006 was $50,060 as compared to $(39,061) for the prior period. The increase was in part due to a $101,000 negotiated reduction of legal fees payable recorded during prior periods. Operating revenues from continuing operations for the six months ended June 30, 2006 were $5,167,031 as compared to $4,224,924 for the prior year period, an increase of 22%. Operating margin for the six month period, defined as revenues less cost of purchased gas and operating and maintenance expenses, increased 35% over 2005 due to increased throughput at the Company’s Waxahachie and Madisonville pipeline facilities, offset by a decline in throughput at the Company’s Fort Cobb Fuel Authority. This decline was in part due to warmer than average temperatures during the first three months of 2006. Income (loss) from continuing operations for the six months ended June 30, 2006 was $77,145 as compared to $(147,030) for the prior six month period. The increase was in part due to a $144,000 negotiated reduction of legal fees payable recorded during prior periods. Operating results:
Robert Panico, President and Chief Executive Officer of Gateway, stated “The Company is pleased with the continuing improvement of our overall operations. Operating margins for the second quarter increased $117,000 over the comparable quarter in 2005, reflecting increased throughput volumes at our Waxahachie and Madisonville pipeline facilities. We are also seeing continued drilling activity around our offshore pipeline segments. We continued to focus on improving the utilization of our current asset base and seeking opportunities to grow the Company by acquisitions.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy Corporation
Reports Entering into a New Natural Gas Sales Agreement HOUSTON, TEXAS, July 18, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (www.gatewayenergy.com) announced that its wholly-owned subsidiary, Gateway Pipeline Company (the “Company”), has entered into a natural gas sales agreement with a new customer to deliver gas into the customer’s plant at the Company’s Waxahachie distribution system. The Company expects natural gas sales for this customer to commence in the fourth quarter of 2006 when the plant is expected to begin operations. The Company’s Waxahachie distribution system delivers natural gas to a group of industrial customers in Waxahachie, Texas. Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy Corporation
Common Stock Approved for Listing on NASDAQ Bulletin Board HOUSTON, TEXAS, July 7, 2006. Gateway Energy Corporation (OTC Bulletin Board: GNRG) (the “Company”) (www.gatewayenergy.com) announced that its common stock listing application has been approved by the NASDAQ. The Company’s common stock has commenced trading on the NASDAQ Bulletin Board as of today. “The transition from the OTC Pink Sheets to the NASDAQ OTC Bulletin Board is an exciting development for us,” said Mr. Robert Panico, President and Chief Executive Officer of Gateway Energy Corporation. “We believe this listing will increase our shareholder base, creating additional liquidity for our shareholders. We also believe this listing will allow a greater range of potential investors and more attention from the investment community.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gateway Energy Corporation
Announced Engagement of Starlight Capital, Inc. HOUSTON, TEXAS, June 12, 2006. Gateway Energy Corporation (OTC Pink Sheets: GNRG.PK) (the “Company”) (www.gatewayenergy.com) today announced that it has engaged Starlight Capital, Inc. (www.starlightcapital.com) to provide financial advisory services to the Company with respect to the Company’s strategic acquisition plans in the mid-stream energy industry as well as capital formation. Robert Panico, President and Chief Executive Officer of the Company, observed “The Company has enjoyed significant recent success in more fully deploying its existing assets, and is now positioned to aggressively seek out acquisition opportunities to leverage our industry expertise and infrastructure. We believe that Starlight Capital will be a very important partner in this process.” Deborah Grosser and Murray Froikin, Starlight Capital’s energy investment bankers stated “We are excited about the prospects of assisting Gateway Energy in their efforts to grow their business. We believe the company is now positioned for growth and can take advantage of the opportunities of significantly increased lease acquisition and drilling activity within close proximity to their existing Gulf Coast pipelines. We will work with management to expand their existing asset base, both onshore and offshore”. Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Starlight Capital is a boutique investment bank and M&A/Corporate Finance consulting advisory practice in the financial marketplace of the Americas for middle-market, private and small public companies seeking equity capital. Starlight believes that it provides value to both sides of the investing equation; increased deal flow and syndication opportunities to institutional investors in the network and decreased marketing costs and enhanced exposure for those clients needing expansion or buyout capital. Certain of the statements included in this press
release, which express a belief, expectation or intention, as well as
those regarding future financial performance or results, or which are
not historical facts, are "forward-looking" statements as
that term is defined in the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. The words "expect",
"plan", "believe", "anticipate", "project",
"estimate", and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are not
guarantees of future performance or events and such statements involve
a number of risks, uncertainties and assumptions, including but not
limited to industry conditions, prices of crude oil and natural gas,
regulatory changes, general economic conditions, interest rates, competition,
and other factors. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, actual
results and outcomes may differ materially from those indicated in the
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events. Gateway Energy Corporation
Announced Filing of Rate Case for Fort Cobb Fuel Authority HOUSTON, TEXAS, May 30, 2006. Gateway Energy Corporation (OTC Pink Sheets: GNRG.PK) (the “Company”) today announced that it has filed an application with the Oklahoma Corporation Commission (“OCC”) requesting an increase of residential and commercial rates for its Fort Cobb Fuel Authority business. The Company is requesting a 12.5% return on the rate base, which, if received in full, the Company estimates could result in a $550,000 increase in revenue on an annual basis. The regulatory process is expected to take up to six months, with OCC approval required prior to the Company implementing any rate increase. Robert Panico, Chief Executive Officer of the Company, observed “The Company has not experienced an increase in delivery rates for Fort Cobb Fuel Authority since 2000. Since that time, a number of trends have adversely impacted Fort Cobb, making the business unprofitable and threatening Fort Cobb’s ability to provide a high level of customer service. Our goal is to provide safe, reliable, cost-effective service to our customers.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press
release, which express a belief, expectation or intention, as well as
those regarding future financial performance or results, or which are
not historical facts, are "forward-looking" statements as
that term is defined in the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. The words "expect",
"plan", "believe", "anticipate", "project",
"estimate", and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are not
guarantees of future performance or events and such statements involve
a number of risks, uncertainties and assumptions, including but not
limited to industry conditions, prices of crude oil and natural gas,
regulatory changes, general economic conditions, interest rates, competition,
and other factors. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, actual
results and outcomes may differ materially from those indicated in the
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events. Gateway Energy Corporation
Posts Net Income for the Quarter Ended March 31, 2006 • Operating Margin Up 44% Versus Same Period
2005 HOUSTON, TEXAS, May 15, 2006. Gateway Energy Corporation (OTC Pink Sheets: GNRG.PK) (the “Company”) today announced financial results for the three months ended March 31, 2006. The Company posted net income of $27,085 for the three months ended March 31, 2006 compared to a net income of $21,190 for the three months ended March 31, 2005. Income from continuing operations before income taxes and discontinued operations increased by $135,054 from $(107,969) for the three months ended March 31, 2005 to $27,085 for the three months ended March 31, 2006. Operating revenues from continuing operations for the three months ended March 31, 2006 were $2,744,370 as compared to $2,108,355 for the prior year period, an increase of 30%. Operating margin for the period, defined as revenues less cost of purchased gas and operating and maintenance expenses, increased 44% over 2005 due to increased throughput on the Company’s offshore segment, offset by a decline in operating margin with the Company’s Fort Cobb Fuel Authority, and a write-off of an accounts payable in the amount of $42,800 which management believes is no longer owed. Operating results:
Robert Panico, President and Chief Executive Officer of Gateway, stated “The Company’s strategy to continue improving its balance sheet and focusing on expanding utilization of its existing midstream energy assets has shown positive results. Operating margins for our onshore and offshore operations increased $134,000 and $99,000, respectively, over the comparable quarter in 2005, reflecting increased throughput volumes at our Waxahachie and Madisonville pipeline facilities and increased production near our offshore pipeline systems. We expect this trend to continue during 2006 due to the favorable price of natural gas.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press
release, which express a belief, expectation or intention, as well as
those regarding future financial performance or results, or which are
not historical facts, are "forward-looking" statements as
that term is defined in the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. The words "expect",
"plan", "believe", "anticipate", "project",
"estimate", and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are not
guarantees of future performance or events and such statements involve
a number of risks, uncertainties and assumptions, including but not
limited to industry conditions, prices of crude oil and natural gas,
regulatory changes, general economic conditions, interest rates, competition,
and other factors. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, actual
results and outcomes may differ materially from those indicated in the
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events. Gateway Energy Corporation
Posts Net Income for the Year Ended December 31, 2005 • 2005 Net Income Increases $0.15 Per Share
Over 2004 HOUSTON, TEXAS, March 30, 2006. Gateway Energy Corporation (OTC Pink Sheets: GNRG.PK) (the “Company”) today announced financial results for the year ended December 31, 2005. The Company posted net income of $1,755,384, or $0.10 per share, for the year ended December 31, 2005 compared to a net loss of $800,131, or $(0.05) per share, for the year ended December 31, 2004. Operating revenues from continuing operations for the year ended December 31, 2005 were $10,510,283 as compared to $7,355,553 for the prior year. Operating margin for the year, defined as revenues less cost of purchased gas and operating and maintenance expenses, increased 73% over 2004 due to increased throughput on the Company’s offshore segment. During the year, the Company recognized one-time charges due to the settlement and related legal fees of three arbitration cases involving two former executive officers and our technology licensor totaling $332,000. The Company also recognized a one-time gain on the sale of certain Madisonville assets in the amount of $1,705,257. Robert Panico, President and Chief Executive Officer of Gateway, stated “In 2005, the Company made significant progress and our financial position improved considerably. We restructured the Madisonville project, allowing us to significantly reduce our debt and the risk associated with this project, while continuing to participate in the future prospects of the project. As a result, the Company is now positioned for growth in the midstream energy sector. We are seeing increased exploration and development interest near our offshore pipeline systems with producers acquiring leases and filing drilling permits. Currently two producers are drilling wells in our service area. We expect this trend to continue due to the favorable price of natural gas for the foreseeable future. I am pleased with our improvements in 2005 and our future growth potential.” Gateway Energy Corporation owns and operates natural gas gathering, transportation and distribution systems and related facilities in Texas and Oklahoma and offshore Texas and in federal waters of the Gulf of Mexico. The Company also holds a license for a state of the art, patented process for the rejection of nitrogen from natural gas streams. Certain of the statements included in this press
release, which express a belief, expectation or intention, as well as
those regarding future financial performance or results, or which are
not historical facts, are "forward-looking" statements as
that term is defined in the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. The words "expect",
"plan", "believe", "anticipate", "project",
"estimate", and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are not
guarantees of future performance or events and such statements involve
a number of risks, uncertainties and assumptions, including but not
limited to industry conditions, prices of crude oil and natural gas,
regulatory changes, general economic conditions, interest rates, competition,
and other factors. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, actual
results and outcomes may differ materially from those indicated in the
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events. |
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