Spark Energy Reports Higher Earnings, "Enhanced Margins"

Spark Energy reported higher earnings on "enhanced margins" for the quarter ending June 30, 2015

Spark reported Adjusted EBITDA of $4.6 million for the second quarter of 2015, versus Adjusted EBITDA of $1.4 million a year ago.

Adjusted EBITDA was lifted by lower supply costs across several of Spark's markets as well as, "enhanced margins," in retail electricity and retail natural gas

For the quarter ended June 30, 2015, Spark reported Retail Gross Margin of $23.1 million compared to Retail Gross Margin of $17.9 million for the quarter ended June 30, 2014. This increase of $5.2 million is primarily attributable to higher retail natural gas and retail electricity unit margins. Favorable supply costs across several of our markets were a key driver of these elevated unit margins in the second quarter.

Retail Gross Margin for electricity was $36.10/MWh for the second quarter of 2015, versus $29.17/MWh a year ago.

Retail Gross Margin for natural gas was $4.17/MMBtu for the second quarter of 2015, versus $2.83/MMBtu a year ago

Electricity volumes were 378 GWh for the second quarter of 2015, versus 369 GWh a year ago

Natural gas volumes were 2.263 million MMBtu for the second quarter of 2015, versus 2.519 million MMBtu a year ago

As previously reported, after the close of the second quarter, Spark closed on its acquisitions of CenStar Energy and Oasis Energy, added over 100,000 residential customer equivalents and bringing Spark's total residential customer equivalent count to over 400,000.

Net income for the quarter ended June 30, 2015 was $4.6 million, which reflected an unrealized gain on the hedge portfolio valuation of future supply of $0.3 million. Net income for the quarter ended June 30, 2014 was $0.2 million and contained an unrealized loss on the hedge portfolio valuation of $(4.5) million.