Manufactured Housing Properties (MHPC) 10-Q 12 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	12-May-14
Document And Entity Information	'	'
Entity Registrant Name	'Caprock Oil, Inc.	'
Entity Central Index Key	'0001277998	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	51,088,276
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Assets	'	'
Cash and cash equivalents	$523,026	$877,525
Accounts receivable (net of allowance for doubtful accounts of $228,574)	303,812	342,676
Prepaid expenses and other	44,546	74,650
Total current assets	871,384	1,294,851
Oil and gas properties, evaluated (full cost method)	15,596,442	15,474,723
Oil and gas properties, unevaluated (full cost method)	381,159	360,859
Other property and equipment	40,978	40,978
Total Property and equipment	16,018,579	15,876,560
Less: Accumulated depreciation, depletion & amortization	-10,038,267	-9,963,444
Net property and equipment	5,980,312	5,913,116
Other noncurrent assets	20,738	20,738
Total other assets	20,738	20,738
Total assets	6,872,434	7,228,705
Liabilities and Stockholders' Equity	'	'
Current portion of long-term debt	1,711,166	1,875,032
Accounts payable	931,679	551,895
Accrued liabilities	1,539,914	1,488,981
Total current liabilities	4,182,759	3,915,908
Long-term debt, net of current portion	26,400	60,000
Deferred income taxes	1,096,700	1,300,500
Asset retirement obligations	448,385	438,575
Total liabilities	5,754,244	5,714,983
Stockholders' equity:	'	'
Preferred stock, $.01 par value per share, 1,000,000 shares authorized, None issued	'	'
Common stock, $.01 par value per share, 200,000,000 shares authorized, 51,088,276 shares and 2,655,738 shares, issued and outstanding	510,882	26,557
Additional paid in capital	13,796,356	14,129,585
Accumulated deficit	-13,189,048	-12,642,420
Total stockholders' equity	1,118,190	1,513,722
Total liabilities and stockholders' equity	$6,872,434	$7,228,705

Consolidated_Balance_Sheets_Un1

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Stockholders' equity:	'	'
Preferred stock, par value	$0.01	$0.01
Preferred stock, authorized shares	1,000,000	1,000,000
Preferred stock, Issued shares	0	0
Common stock, par value	$0.01	$0.01
Common stock, authorized shares	200,000,000	200,000,000
Common stock, issued shares	51,088,276	2,655,738
Common stock, outstanding shares	51,088,276	2,655,738

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Oil and gas sales	$504,625	$765,300
Total revenues	504,625	765,300
Operating expenses:	'	'
Lease operating expense	373,932	402,556
Depreciation, depletion & amortization	74,822	119,993
Accretion expense	9,810	8,980
Workover expense	382,440	42,782
Selling, general and administrative	393,117	308,897
Total operating expenses	1,234,121	883,208
Operating loss	-729,496	-117,908
Other income (expense):	'	'
Interest income	226	26,146
Interest expense	-21,158	-38,781
Loss on oil and gas derivatives	'	-7,440
Loss before income taxes	-750,428	-137,983
Benefit for income taxes	203,800	46,000
Net loss	($546,628)	($91,983)
Net loss per share, basic and diluted	($0.01)	($0.03)
Weighted average shares outstanding, basic and diluted	49,825,015	2,655,738

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($546,628)	($91,983)
Depreciation, depletion & amortization	74,822	119,993
Benefit for income taxes	-203,800	-46,000
Accretion expense	9,810	8,980
Stock based compensation	151,097	'
Unrealized loss on oil and gas derivatives	'	7,440
Changes in current assets and liabilities	499,685	2,925
Net cash flows from operating activties	-15,014	1,355
Cash flows from investing activities:	'	'
Purchase of property and equipment	-142,019	-10,588
Net cash flows from investing activities	-142,019	-10,588
Cash flows from financing activities:	'	'
Payments of long term debt	-197,466	-167,449
Proceeds from long term debt	'	4,781
Net cash flows from financing activities	-197,466	-162,668
Net decrease in cash and cash equivalents	-354,499	-171,901
Cash and cash equivalents at beginning of period	877,525	512,835
Cash and cash equivalents at end of period	523,026	340,934
Supplemental cash flow data:	'	'
Cash paid for interest	$21,118	$32,723

1_Basis_of_Presentation

1. Basis of Presentation	3 Months Ended
	Mar. 31, 2014
BasisOfPresentationAbstract	'
1. Basis of Presentation	'
	Interim Financial Information – The accompanying consolidated financial statements have been prepared by Caprock Oil, Inc. (“we”, “our” or  the “Company”) without audit, in accordance with accounting principles generally accepted in the Unites States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission.  In the opinion of management, these consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position of the Company as of March 31, 2014, the results of its operations for the three month periods ended March 31, 2014 and 2013, and cash flows for the three month periods ended March 31, 2014 and 2013.  Certain prior year amounts have been reclassified to conform with the current year presentation.  These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013.
	Restatement – The consolidated balance sheet as of December 31, 2013 has been retrospectively restated as a result of an acquisition of another company under common control with the Company, which was completed in March 2014, as further described in Note 2 below.
	Recently Issued Accounting Pronouncements – In early 2014, the Financial Accounting Standards Board issued several new Accounting Standards Updates which do not have applicability to the Company.

2_Acquisition_of_Cinco_NRG_LLC

2. Acquisition of Cinco NRG, LLC	3 Months Ended
	Mar. 31, 2014
Acquisition Of Cinco Nrg Llc	'
2. Acquisition of Cinco NRG, LLC	'
	On March 17, 2014, the Company completed the acquisition of Cinco NRG, LLC (“Cinco”), a private oil and gas company, which was under common control by its majority shareholder.  The Company acquired Cinco through the issuance of a total of 46,942,538 shares of its Common Stock.  As a result of this transaction, the members of Cinco now own approximately 95% of the Company’s total shares of Common Stock outstanding.  In conjunction with this transaction, the Company also issued 1,250,000 shares of its Common Stock to an officer of the Company (see Note 7).  Cinco was formed in April 2013 to acquire working interests in specific oil and gas properties in the States of Texas and Alabama.  At present, Cinco has a 10% non-operated working interest in a producing oil field in Texas and a 50% non-operated working interest in two exploratory prospects in Alabama.  Cinco is now a wholly-owned subsidiary of the Company.
	As noted above, the Company and Cinco were both under common control by a majority shareholder prior to this transaction.  Under the accounting rules for entities under common control, the Company has accounted for Cinco’s operations on a retrospective basis in the Company’s consolidated financial statements from the inception of Cinco in April 2013.  Accordingly, the Company’s consolidated balance sheet as of December 31, 2013 has been retrospectively restated in this report to include Cinco’s asset, liability and equity accounts at their historical amounts as of that date.

3_Going_Concern

3. Going Concern	3 Months Ended
	Mar. 31, 2014
Going Concern	'
3. Going Concern	'
	The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has reported net losses from continuing operations in the last two years and has a substantial working capital deficit as of March 31, 2014.  These factors, among others, indicate that the Company may be unable to continue as a going concern for a reasonable period of time.  The consolidated financial statements do not contain any adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

4_Commodity_Derivatives

4. Commodity Derivatives	3 Months Ended
	Mar. 31, 2014
Commodity Derivatives	'
4. Commodity Derivatives	'
	Through December 31, 2013, the Company had a commodity derivative contract with a major energy company covering a portion of a subsidiary’s domestic oil production.  This contract consisted of a two year “costless collar,” with floor and ceiling prices of $80.00 and $108.00 per barrel, and expired on December 31, 2013.  For the periods of any open derivative contracts, the Company has applied “mark to market” accounting in accordance with ASC 815-20, “Accounting for Derivative Instruments and Hedging Activities,” and accounted for such contracts as non-hedging transactions, as defined in ASC 815-20.  Accordingly, we have reflected changes in fair value of open derivative contracts in current period earnings, based on “Level 3” inputs.  In the three months ended March 31, 2013, the Company reported an unrealized derivative loss of $7,440, due to fair value changes.

5_Long_Term_Debt

5. Long Term Debt	3 Months Ended
	Mar. 31, 2014
Long-term Debt, Unclassified [Abstract]	'
5. Long Term Debt	'
	As of March 31, 2014 and December 31, 2013, the Company had the following long-term debt obligations:
		March 31,			December 31,
		2014			2013
	$25,000,000 line of credit with a bank, maturing on January 1, 2015, interest at 1.0% above prime (but not less than 5.5%) payable monthly, secured by first lien on CYMRI, LLC’s oil and gas properties, with a declining borrowing base of $1,686,000 as of March 31, 2014	$	1,686,000		$	1,836,000
	Unsecured notes payable assumed in acquisition of Cinco NRG, LLC, payable with interest at 6% per annum on April 30, 2015		26,400			60,000
	Other short term notes for automobile and insurance financing, interest rates at 6% to 8%		25,166			39,032
			1,737,566			1,935,032
	Current portion of long term debt		(1,711,166	)		(1,875,032	)
	Long term debt, net of current portion	$	26,400		$	60,000
	Borrowings under the bank credit agreement secured by the oil and gas properties owned by CYMRI, LLC (“CYMRI”), a subsidiary in the Exploration & Production business, are subject to a borrowing base, which is periodically redetermined based on oil and gas reserves.  The bank credit agreement does not require monthly principal payments so long as outstanding borrowings are less than a declining borrowing base.  As of March 31, 2014, there was no unutilized borrowing base under the bank credit agreement.
	Effective January 1, 2014, the bank credit agreement was amended to redefine the borrowing base as declining by $50,000 per month while substantially retaining all other significant terms and extending the maturity for 12 months to January 1, 2015.  Due to the unanticipated workover of CYMRI’s largest producing oil and gas well in the first quarter of 2014, the Company was not in compliance with certain financial covenants under the bank credit agreement, however, the bank is expected to grant a waiver with respect to such noncompliance.  As the extended debt is due in less than one year, the outstanding bank borrowings under the credit agreement are classified as a current liability as of March 31, 2014.

6_Net_Loss_Per_Share

6. Net Loss Per Share	3 Months Ended
	Mar. 31, 2014
Net Loss Per Share	'
6. Net Loss Per Share	'
	Basic income or loss per common share is computed by dividing the net income or loss by the weighted average number of shares of common stock outstanding during the period.  Diluted income or loss per common share is computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period and potentially dilutive common share equivalents, consisting of stock options and warrants, under the Treasury Stock Method. The effects of potential common stock equivalents are not included in computations when their effect is anti-dilutive.  In the three months ended March 31, 2014 and 2013, there were no dilutive common stock equivalents reflected in the determination of net loss per share as the effect would have been anti-dilutive.

7_StockBased_Compensation

7. Stock-Based Compensation	3 Months Ended
	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
7. Stock-Based Compensation	'
	The Company has a stock-based compensation plan which was approved by the stockholders in October 2005 and amended in October 2006.  Under the plan, a maximum of 240,000 shares may be awarded to directors, employees and consultants in the form of grants of stock or stock options with underlying registration rights.  The terms and other conditions applicable to each such grant are generally determined by the Board of Directors.
	Pursuant to the terms of the stock-based compensation plan, the Company made a grant of 240,000 freely tradable shares of its Common Stock in March 2014 to a consultant who performed certain services for the Company.  Based on quoted prices for the Company’s stock, the Company calculated the value of such issued shares at $132,000 and recorded an expense of that amount in the three months ended March 31, 2014.  While a new stock-based compensation plan has not been formally approved, the Company has reserved 4,000,000 shares of Common Stock for future issuance under such a plan.
	In conjunction with the acquisition of Cinco, the Company issued 1,250,000 shares of its restricted Common Stock to an officer of the Company in March 2014 (see Note 2).  The restricted shares will vest over a three year period and will be subject to buyback by the Company if the officer should terminate his employment prior to the end of such period.  Based on quoted prices for the Company’s stock, the Company calculated the value of such issued shares at $687,500 and will amortize that total amount of expense over a three year period.  In the three months ended March 31, 2014, the Company recorded an amortized expense in the amount $19,097 for this grant.

8_Related_Party_Transactions

8. Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
8. Related Party Transactions	'
	As indicated in Note 2, Cinco has a 10% non-operated working interest in a producing oil field in Texas.  The president of the company which operates this field became a director of the Company on March 17, 2014.  This company charges the usual and customary amounts to Cinco for its share of the capital and operating costs of the field, under a standard industry joint operating agreement (“JOA”).

9_Contingencies

9. Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
8. Contingencies	'
	From time to time the Company may become involved in litigation in the ordinary course of business.  At the present time, other than the Company’s disclosures below, the Company’s management is not aware of any such litigation or other legal proceedings that could have a material adverse effect on its results of operations, cash flows or financial condition.
	Triumph Energy, Inc., a subsidiary in the Exploration & Production segment, and a former subsidiary which was sold in 2008, have been named as joint defendants in several lawsuits involving professional liability and other matters arising in the normal course of business in the State of Louisiana.  Most of these cases have been settled with little or no net cost to Triumph.  It is not practical at the present time to determine the amount or likelihood of an unfavorable outcome to the Company’s consolidated financial position or results of operations of any of the remaining actions against Triumph.  The Company believes that Triumph has meritorious defenses in each case and is vigorously defending these matters.  The Company has recorded no provision for estimated losses in these cases as of March 31, 2014.
	In October 2008, an insurer for the Company’s inactive Construction Staffing subsidiary filed a lawsuit against the subsidiary alleging default on a premium finance obligation in the amount of approximately $200,000, plus interest and attorney’s fees.  The Company believes that its inactive Construction Staffing subsidiary has a meritorious position in this matter and has not engaged legal counsel to defend this case.  A default judgment was rendered in favor of the plaintiff in January 2011 and the Company has recorded an accrual for the subsidiary’s estimated loss exposure of approximately $100,000 as of March 31, 2014.
	The Company, as a lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. The Company maintains insurance coverage, which it believes is customary in the industry, although the Company is not fully insured against all environmental risks. The Company is not aware of any environmental claims existing as of March 31, 2014, which have not been provided for, covered by insurance or otherwise have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties.

1_Basis_of_Presentation_Polici

1. Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2014
Basis Of Presentation Policies	'
Interim Financial Information	'
	Interim Financial Information – The accompanying consolidated financial statements have been prepared by Caprock Oil, Inc. (“we”, “our” or  the “Company”) without audit, in accordance with accounting principles generally accepted in the Unites States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission.  In the opinion of management, these consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position of the Company as of March 31, 2014, the results of its operations for the three month periods ended March 31, 2014 and 2013, and cash flows for the three month periods ended March 31, 2014 and 2013.  Certain prior year amounts have been reclassified to conform with the current year presentation.  These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013.
Restatement	'
	Restatement – The consolidated balance sheet as of December 31, 2013 has been retrospectively restated as a result of an acquisition of another company under common control with the Company, which was completed in March 2014, as further described in Note 2 below.
Recently Issued Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements – In early 2014, the Financial Accounting Standards Board issued several new Accounting Standards Updates which do not have applicability to the Company.

5_Long_Term_Debt_Tables

5. Long Term Debt (Tables)	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Long Term Debt	'
		March 31,			December 31,
		2014			2013
	$25,000,000 line of credit with a bank, maturing on January 1, 2015, interest at 1.0% above prime (but not less than 5.5%) payable monthly, secured by first lien on CYMRI, LLC’s oil and gas properties, with a declining borrowing base of $1,686,000 as of March 31, 2014	$	1,686,000		$	1,836,000
	Unsecured notes payable assumed in acquisition of Cinco NRG, LLC, payable with interest at 6% per annum on April 30, 2015		26,400			60,000
	Other short term notes for automobile and insurance financing, interest rates at 6% to 8%		25,166			39,032
			1,737,566			1,935,032
	Current portion of long term debt		(1,711,166	)		(1,875,032	)
	Long term debt, net of current portion	$	26,400		$	60,000

4_Commodity_Derivatives_Detail

4. Commodity Derivatives (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Commodity Derivatives Details Narrative	'	'
Unrealized derivative loss	'	$7,440

5_Long_Term_Debt_Details

5. Long Term Debt (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Notes to Financial Statements	'	'
$25,000,000 line of credit with a bank, maturity currently extended to January 1, 2014, interest at 1.0% above prime (but not less than 5.5%) payable monthly, secured by first lien on CYMRI, LLC's oil and gas properties, with a declining borrowing base of $1,686,000 as of March 31, 2014	$1,686,000	$1,836,000
Unsecured notes payable assumed in acquisition of Cinco NRG, LLC, payable with interest at 6% per annum on April 30, 2015	26,400	60,000
Other short term notes for automobile and insurance financing, interest rates at 6% to 8%	25,166	39,032
Total Long Term Debt Obligations	1,737,566	1,935,032
Current portion of long term debt - third parties	-1,711,166	-1,875,032
Long term debt, net of current portions	$26,400	$60,000

5_Long_Term_Debt_Details_Narra

5. Long Term Debt (Details Narrative)	Mar. 31, 2014
Long-term Debt, Unclassified [Abstract]	'
Bank credit agreement maturity	'Will mature in less than one year.

8_Contingencies_Details_Narrat

8. Contingencies (Details Narrative) (USD $)	Mar. 31, 2014
Contingencies Details Narrative	'
Contingency loss	$100,000