Crusader Energy Group Inc. Cover Sheet to Monthly Operating Report June 1, 2009 through June 30, 2009

Transcription

1 Crusader Energy Group Inc. Cover Sheet to Monthly Operating Report June 1, 2009 through June 30, 2009 Given the nature and format of the monthly operating reports, certain information concerning the assets and/or liabilities of the above-referenced debtor-in-possession was not easily captured and included therein. 1 Accordingly, please refer to Crusader Energy Group Inc. s Schedules and Statements of Financial Affairs, and any amendments thereto, for a complete listing of all assets and liabilities owned by Crusader Energy Group Inc. Also, Crusader Energy Group Inc. has more particularly identified the following assets that it owns: Additional Other Assets Number of Leases 3,163 2 Net Acres 174,812 3 Proved Developed Producing Reserves - $15,825,000 4 PV10% 1 Since the consummation of the Business Combination, the Debtors have not maintained separately complete books and records on an entity-by-entity basis, including separate general ledgers, oil and gas production and expenditure data and financial statements. The financial books and records of Crusader Energy Group Inc. were maintained on a consolidated basis and as such financial and production data related to a specified Debtor may not be easily or immediately available. For example, the accounts receivable for oil and gas sales contained in the books and records of Crusader Energy Group Inc. contain oil and gas production of other affiliated Debtors. The Debtors do have books and records to substantiate ownership of leases, mineral interests, net acres and other assets on an entity-by-entity basis to the extent set forth contained in the Schedules and other records of the Debtors. Certain of the information responsive to this report are included in the corresponding report for Crusader Energy Group Inc. to the extent they have not been broken out or attributed. 2 As of April 1, For a full listing of the leases owned by the Debtor, see Crusader Energy Group Inc. s Schedules and related amendments that have been filed with the Bankruptcy Court. 3 As of April 1, Based on the Debtor s internal reserve report as of 4/1/09 and prices as of the last day of trading in March of $3.75/mmbtu for gas and $48.30/bbb for oil. Dallas v.3

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3 CASE NAME: Crusader Energy Group, Inc. ACCRUAL BASIS-1 COMPARATIVE BALANCE SHEET SCHEDULE MONTH MONTH MONTH ASSETS AMOUNT April 30, 2009 May 31, 2009 June 30, UNRESTRICTED CASH $6,854,441 $16,002,477 $18,502,738 $18,543, RESTRICTED CASH 3. TOTAL CASH $6,854,441 $16,002,477 $18,502,738 $18,543, ACCOUNTS RECEIVABLE (NET) $43,902,029 $41,072,509 $40,196,806 $41,196, INVENTORY $127,678 $193,263 $193,623 $193, NOTES RECEIVABLE 7. PREPAID EPENSES $5,265 $1,911,343 $1,858,240 $1,804, OTHER (ATTACH LIST) $1,312, TOTAL CURRENT ASSETS $52,201,766 $59,179,591 $60,751,408 $61,738, PROPERTY, PLANT & EQUIPMENT $780,848,408 $782,249,537 $783,404,582 $785,790, LESS: ACCUMULATED DEPRECIATION / DEPLETION $508,022,038 $510,612,565 $513,526,219 $516,180, NET PROPERTY, PLANT & EQUIPMENT - "SEE SUPPLEMENT" $272,826,370 $271,636,972 $269,878,364 $269,609, DUE FROM INSIDERS 14. OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST) $0 $4,763,483 $4,719,256 $4,437, OTHER (ATTACH LIST) $10,000,000 $10,000,000 $10,000,000 $10,000,000 TOTAL ASSETS - SEE 16. SUPPLEMENT $335,028,136 $345,580,046 $345,349,027 $345,785,264 POSTPETITION LIABILITIES 17. ACCOUNTS PAYABLE $660,502 $555,807 $491, TAES PAYABLE 19. NOTES PAYABLE 20. PROFESSIONAL FEES - (D) $3,920,000 $4,145, SECURED DEBT 22. OTHER (ATTACH LIST) - (E) 3,005,947 5,587,065 7,926, TOTAL POSTPETITION LIABILITIES $3,666,449 $10,062,872 $12,562,333 PREPETITION LIABILITIES 24. SECURED DEBT - (A) $293,928,899 $281,127,273 $284,562,355 $290,010, PRIORITY DEBT 26. UNSECURED DEBT $58,924,600 $36,457,738 $32,751,487 $28,873, OTHER (ATTACH LIST) - (B) 10,077,979 10,529,419 10,889, TOTAL PREPETITION LIABILITIES $352,853,499 $327,662,990 $327,843,261 $329,773, TOTAL LIABILITIES $352,853,499 $331,329,439 $337,906,133 $342,336,001 EQUITY 30. PREPETITION OWNERS' EQUITY ($17,825,363) $18,144,926 $18,144,926 $18,144, POSTPETITION CUMULATIVE PROFIT OR (LOSS) ($3,894,318) ($10,702,032) ($14,695,663) 32. DIRECT CHARGES TO EQUITY (ATTACH EPLANATION) 33. TOTAL EQUITY - (C) ($17,825,363) $14,250,607 $7,442,893 $3,449, TOTAL LIABILITIES & OWNERS' EQUITY $335,028,136 $345,580,046 $345,349,027 $345,785,264 (A) Represents first lien debt, second lien debt, and M&M liens (B) Other consists of: Accrued Interest Payable 3,819,093 3,819,093 3,819,093 Accrued Lease Operating Expense 1,330,500 1,330,500 1,330,500 AFE Deposits 2,335,595 2,336,372 2,336,266 Accrued Liabilities 593, , ,471 Production Taxes Payable 31,639 40,466 57,760 Revenues Payable 165, , ,093 Asset Retirement Obligation 1,404,013 1,404,013 1,404,013 Credit Balances in A/R 319, , ,983 Misc 78, , ,008 10,077,979 10,529,419 10,889,187 (C) (D) (E) The equity amount in the Schedule column is a result of calculations based upon the makeup of the bankruptcy schedules and is not indicative of the equity amount in the Company's financial statements. Professional fees are accrued per the cash collateral budget approved by the bankruptcy court. This line-item includes a correction of a previous period due to the liability previously being included in pre-petition instead of post-petition. This line-item consists of the following (Adjustments to previous periods have been made to account for liabilities that were previously marked as pre-petition instead of post-petition.) Accrued Interest Payable 2,408,131 4,772,710 6,862,833 Accrued Lease Operating Expense 540, , ,000 Accrued Property Taxes 5,000 10,000 15,000 Payroll Payable 52,316 52,355 51,168 3,005,947 5,587,065 7,926,001

4 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-2 INCOME STATEMENT MONTH MONTH MONTH MONTH REVENUES April 30, 2009 May 31, 2009 June 30, GROSS REVENUES $3,360,966 $4,474,665 $4,873, LESS: RETURNS & DISCOUNTS $0 $0 $0 3. NET REVENUE $3,360,966 $4,474,665 $4,873,865 $0 COST OF GOODS SOLD 4. MATERIAL 5. DIRECT LABOR -(A) $1,100,101 $984,595 $966, DIRECT OVERHEAD - (B) $225,529 $204,837 $306, TOTAL COST OF GOODS SOLD $1,325,630 $1,189,432 $1,273,041 $0 8. GROSS PROFIT $2,035,336 $3,285,233 $3,600,824 $0 OPERATING EPENSES 9. OFFICER / INSIDER COMPENSATION 10. SELLING & MARKETING 11. GENERAL & ADMINISTRATIVE 12. RENT & LEASE 13. OTHER (ATTACH LIST) 14. TOTAL OPERATING EPENSES $0 $0 $0 $0 15. INCOME BEFORE NON-OPERATING INCOME & EPENSE $2,035,336 $3,285,233 $3,600,824 $0 OTHER INCOME & EPENSES 16. NON-OPERATING INCOME (ATT. LIST) ($41,845) ($40,100) ($39,034) 17. NON-OPERATING EPENSE (ATT. LIST) $299,252 $0 $0 18. INTEREST EPENSE $2,597,735 $2,814,944 $2,834, DEPRECIATION / DEPLETION $2,590,527 $2,913,654 $2,654, AMORTIZATION 21. OTHER (ATTACH LIST) - (C) $483,986 $4,404,449 $2,144, NET OTHER INCOME & EPENSES $5,929,655 $10,092,946 $7,594,454 $0 REORGANIZATION EPENSES 23. PROFESSIONAL FEES 24. U.S. TRUSTEE FEES 25. OTHER (ATTACH LIST) 26. TOTAL REORGANIZATION EPENSES $0 $0 $0 $0 27. INCOME TA 28. NET PROFIT (LOSS) ($3,894,319) ($6,807,713) ($3,993,630) $0 (A) The Company has shown lease operating expense on this line. (B) The Company has shown production taxes and other deducts expense on this line. (C) The Company has shown other expenses on this line which consists primarily of payroll, legal fees, insurance and rent.

5 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-3 CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS April 30, 2009 TOTAL 1. CASH - BEGINNING OF MONTH $6,854,441 $15,897,039 $18,502,738 RECEIPTS FROM OPERATIONS 2. CASH SALES $3,639,896 $4,192,244 $3,402,242 COLLECTION OF ACCOUNTS RECEIVABLE 3. PREPETITION $4,725,202 $161,099 $457, POSTPETITION $0 $1,661 $127, TOTAL OPERATING RECEIPTS $8,365,098 $4,355,005 $3,987,105 $0 NON - OPERATING RECEIPTS 6. LOANS & ADVANCES (ATTACH LIST) 7. SALE OF ASSETS $1,551,818 $0 $0 8. OTHER (ATTACH LIST) $0 $0 $0 9. TOTAL NON-OPERATING RECEIPTS $1,551,818 $0 $0 $0 10. TOTAL RECEIPTS $9,916,916 $4,355,005 $3,987,105 $0 11. TOTAL CASH AVAILABLE $16,771,357 $20,252,044 $22,489,843 $0 OPERATING DISBURSEMENTS 12. NET PAYROLL $286,670 $306,578 $301, PAYROLL TAES PAID 14. SALES, USE & OTHER TAES PAID 15. SECURED / RENTAL / LEASES $52,000 $52,000 $104, UTILITIES $2,657 $14,860 $13, INSURANCE $46,766 $42,702 $73, INVENTORY PURCHASES - (A) $81,843 $276,202 $581, VEHICLE EPENSES 20. TRAVEL 21. ENTERTAINMENT 22. REPAIRS & MAINTENANCE - (B) $362,825 $693,171 $815, SUPPLIES 24. ADVERTISING 25. OTHER (ATTACH LIST) - (C) $38,957 $363,793 $629, TOTAL OPERATING DISBURSEMENTS $871,718 $1,749,306 $2,518,288 $0 REORGANIZATION EPENSES 27. PROFESSIONAL FEES $1,428, U.S. TRUSTEE FEES $2, OTHER (ATTACH LIST) 30. TOTAL REORGANIZATION EPENSES $2,600 $0 $1,428,072 $0 31. TOTAL DISBURSEMENTS $874,318 $1,749,306 $3,946,360 $0 32. NET CASH FLOW $9,042,598 $2,605,699 $40,745 $0 33. CASH - END OF MONTH $15,897,039 $18,502,738 $18,543,483 $0 (A) The Company has shown capital expenditures on this line. (B) The Company has shown lease operating expense on this line. (C) Consists of various expenses including employee expense reimbursements, software costs and building maintenance costs.

6 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-4 SCHEDULE MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING AMOUNT April 30, 2009 May 31, 2009 June 30, $129,333 $520,853 $158, $904,261 $390,312 $547, $7,137,320 $745,946 $347, $17,056,741 $23,987,804 $24,103, TOTAL ACCOUNTS RECEIVABLE $0 $25,227,655 $25,644,914 $25,157, AMOUNT CONSIDERED UNCOLLECTIBLE $235,400 $235,400 $235, ACCOUNTS RECEIVABLE (NET) $0 $24,992,255 $25,409,514 $24,921,825 AGING OF POSTPETITION TAES AND PAYABLES MONTH: June 30, TAES PAYABLE DAYS DAYS DAYS DAYS TOTAL 1. FEDERAL $40,092 $40, STATE $11,073 $3 $11, LOCAL 4. OTHER (ATTACH LIST) 5. TOTAL TAES PAYABLE $51,165 $3 $0 $0 $51, ACCOUNTS PAYABLE $488,492 $2,840 $491,332 STATUS OF POSTPETITION TAES MONTH: June 30, 2009 BEGINNING AMOUNT ENDING TA WITHHELD AND/ AMOUNT TA FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY 1. WITHHOLDING** $21,843 $43,040 $43,299 $21, FICA-EMPLOYEE** $9,573 $18,509 $18,827 $9, FICA-EMPLOYER** $9,573 $18,509 $18,827 $9, UNEMPLOYMENT $0 5. INCOME 6. OTHER (ATTACH LIST) 7. TOTAL FEDERAL TAES $40,989 $80,057 $80,954 $40,092 STATE AND LOCAL 8. WITHHOLDING $11,360 $11,069 $11,360 $11, SALES 10. ECISE 11. UNEMPLOYMENT $3 $4 $0 $7 12. REAL PROPERTY 13. PERSONAL PROPERTY 14. OTHER (ATTACH LIST) 15. TOTAL STATE & LOCAL $11,363 $11,073 $11,360 $11, TOTAL TAES $52,352 $91,130 $92,314 $51,168 * The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

7 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-5 The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. BANK RECONCILIATIONS MONTH: June 30, 2009 Account #1 Account #2 Account #3 A. BANK: BancFirst BancFirst BancFirst B. ACCOUNT NUMBER: xxxx4560 xxxx9732 xxxx5072 TOTAL C. PURPOSE (TYPE): Operating Payroll Revenue 1. BALANCE PER BANK STATEMENT $9,828,197 $1,262,619 $7,524,705 $18,615, ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0 3. SUBTRACT: OUTSTANDING CHECKS $740,328 $0 $2,848 $743, OTHER RECONCILING ITEMS $0 $0 $0 5. MONTH END BALANCE PER BOOKS $9,087,869 $1,262,619 $7,521,857 $17,872, NUMBER OF LAST CHECK WRITTEN ACH 6157 INVESTMENT ACCOUNTS DATE OF TYPE OF PURCHASE CURRENT BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE TOTAL INVESTMENTS $0 $0 CASH 12. CURRENCY ON HAND $0 13. TOTAL CASH - END OF MONTH $18,543,483

8 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-5 The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. BANK RECONCILIATIONS MONTH: June 30, 2009 Account #1 Account #2 Account #3 A. BANK: IBC IBC UBS B. ACCOUNT NUMBER: xxxx4560 xxxx4617 xxxx5072 TOTAL C. PURPOSE (TYPE): Operating Revenue Money Mkt 1. BALANCE PER BANK STATEMENT $623,661 $92,361 $0 $716, ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0 3. SUBTRACT: OUTSTANDING CHECKS $173,175 $6,299 $0 $179, OTHER RECONCILING ITEMS $134,589 $0 $134, MONTH END BALANCE PER BOOKS $585,075 $86,062 $0 $671, NUMBER OF LAST CHECK WRITTEN N/A INVESTMENT ACCOUNTS DATE OF TYPE OF PURCHASE CURRENT BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE TOTAL INVESTMENTS $0 $0 CASH 12. CURRENCY ON HAND $0 13. TOTAL CASH - END OF MONTH $671,137

9 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-6 MONTH: June 30, 2009 PAYMENTS TO INSIDERS AND PROFESSIONALS OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY. INSIDERS TYPE OF AMOUNT TOTAL PAID NAME PAYMENT PAID TO DATE 1. Roy A. Fletcher Net Payroll $10,589 $31, Jessica N. Hutchison Net Payroll $2,656 $7, David D. Le Norman Net Payroll * $19,465 $57, Charles L. Mullens, Jr. Net Payroll $8,841 $26, Merri G. Oliver Net Payroll $5,746 $17,238 6 Charles A. Paulson Net Payroll $9,063 $27,188 7 TOTAL PAYMENTS TO INSIDERS $56,359 $168,058 * - amount includes car allowance of $350 per pay period. PROFESSIONALS DATE OF COURT TOTAL ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID * 1. Vinson & Elkins $1,262,343 $670,356 $670,356 $591, Jefferies & Co. $0 $0 $0 $0 3. Gardere Wynn Sewell $275,525 $90,475 $90,475 $185, Opportune $136,575 $127,200 $127,200 $9, Bracewell $381,356 $235,961 $235,961 $145,395 6 Thompson & Knight $585,013 $304,080 $304,080 $280, TOTAL PAYMENTS TO PROFESSIONALS $2,640,812 $1,428,072 $1,428,072 $1,212,740 * INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS SCHEDULED AMOUNTS MONTHLY PAID TOTAL PAYMENTS DURING UNPAID NAME OF CREDITOR DUE MONTH POSTPETITION 1. Union Bank of California - 1st $0 $28,448, JPMorgan Chase Bank, N.A. - 2nd $0 $256,842, Le Norman Properties (Office Lease) $52,000 $106, TOTAL $52,000 $106,146 $285,290,307

10 CASE NAME: Crusader Energy Group Inc. ACCRUAL BASIS-7 MONTH: June 30, 2009 QUESTIONNAIRE YES 1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD? 2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? 3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? 4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? 5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? 6. ARE ANY POSTPETITION PAYROLL TAES PAST DUE? 7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAES PAST DUE? 8. ARE ANY POSTPETITION REAL ESTATE TAES PAST DUE? 9. ARE ANY OTHER POSTPETITION TAES PAST DUE? 10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? 11. HAVE ANY PREPETITION TAES BEEN PAID DURING THE REPORTING PERIOD? 12. ARE ANY WAGE PAYMENTS PAST DUE? NO IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY. The Company had distributions from their existing accounts to their current debtor in possession accounts. All activities were done in the ordinary course of business. Additionally, certain third party operators netted the Company's oil and gas revenues against the amount owed under joint interest billings. INSURANCE 1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT? 2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? 3. PLEASE ITEMIZE POLICIES BELOW. YES NO IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY. INSTALLMENT PAYMENTS TYPE OF PAYMENT AMOUNT POLICY CARRIER PERIOD COVERED & FREQUENCY Property Coverage - Office Lease Hartford January 23, 2009 thru January 23, 2010 Monthly - $1, Umbrella Vaughan Insurance Group, LLC February 19, 2009 thru February 18, 2010 Monthly - $6,687 General Liability Vaughan Insurance Group, LLC February 19, 2009 thru February 18, 2011 Monthly - $6,942