IRVINE, Calif., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets natural gas, propane, and produces petroleum and coal, announced today it is gearing for major growth as it diversifies its business strategy and model in an effort to build a billion dollar independent energy company.
The Company is in discussions and negotiations with several companies to acquire more target companies and energy properties and assets. The Company is in discussions with several investment bankers in an effort to raise $50 million to $100 million to fund its growth and expansion to build a multi-billion dollar independent diversified energy company. The Company is seeking to raise capital to fund more acquisitions of oil, natural gas and coal target companies, assets and properties, and position itself to up-list the Company to the NASDAQ or NYSE/Amex Equities stock exchange, and initiate a secondary public offering.
Universal Bioenergy is exploiting changes in the energy market with the intent to propel the company to a dominant market position, and be one of the top independent energy companies in the United States. The Company continues to build at a super growth rate and has aggressive plans to grow itself into a billion dollar company in the next 2 to 3 years. Universal Bioenergy's background and future outlook is very strong based upon the following profile:
Sector: Energy
Sub-Industry: Oil, Gas and Coal Marketing and Distribution
Products: Petroleum, Natural Gas, Thermal Coal, Propane, Refined Petroleum Products and Electricity
Growth Profile: High Growth of 50% to 75% annually
Geography: National and International
Customers: 30 major electric utility customers for natural gas distribution, and power generation
Suppliers: EDF Trading, Chevron Texaco, Conoco Phillips, Chesapeake Energy
OTC Markets Group Exchange: Trading Symbol – "UBRG"
Authorized Shares: 1 Billion
Outstanding Shares: 503,063,086
Subsidiaries: NDR Energy Group, - Texas Gulf Oil & Gas, - Whitesburg Friday Branch Mine
Reporting Status: Registered and fully reporting with the U.S. Securities and Exchange Commission
Highlights and Facts About Universal
- Universal is a high growth Company experiencing double digit growth of 50% to 75% annually
- Universal reported revenues of $71.74 million for year ended 2011 (audited)
- Diversified energy portfolio of natural gas, petroleum, thermal coal and propane
- Successful completion and integration of recent mergers and acquisitions
- Company is planning to be up-listed to NASDAQ or NYSE/Amex/Equities in 6 to 9 months
- Plans to build billion dollar company in the next 2 to 3 years through mergers and acquisitions
- February 20, 2012, completed acquisition of Whitesburg Friday Branch Mine, with projected coal sales of $264 million over 5 years
- In March 2012, NDR Energy signed gas contract with west coast utility valued at $11.47 million
- In April 2012 NDR signed a contract with major utility company for gas storage services
- In April 2012, NDR Energy was awarded a gas supply contract with northern California utility
- On May 1, 2012, NDR Energy opened new sales offices in Houston, Texas
- On May 23, 2012, we signed a gas supply agreement a subsidiary of a $6.44 billion Japanese firm
- On June 18, 2012, we signed a gas supply contract with one of the nation's largest municipal utilities
- On June 19, 2012 NDR Energy Group, established a new division to market and distribute refined petroleum energy products including diesel fuel, kerosene, jet fuel/aviation fuel and lubricants
- On June 20, 2012, the Company paid a special 20% common stock dividend to its shareholders
- On June 22, 2012, NDR Energy Group, signed a contract with Houston based Space City Energy Marketing LLC, to market and distribute natural gas, propane and refined petroleum products
- On July 2, 2012 NDR announces launch of new wholesale electric power division
- On July 3, 2012 we announced we were awarded a gas supply contract with a major west coast utility
- On July 6, 2012, we announced NDR applied for registration on several interstate gas pipelines
- On July 10, 2012, we completed a strategic conference call with our shareholders
- On July 9, 2012, we announced NDR Energy sold over 1.86 billion cubic of natural gas in July
- On July 11, 2012, we announced NDR was awarded a propane supply contract for a utility firm
- On July 17, 2012, we announced NDR Energy applied for its FERC Power Marketers License to sell wholesale electric power
- On August 13, 2012 we announced NDR was awarded a gas supply contract with a Mid-west utility
- Plans to acquire interests in intrastate and interstate natural gas transportation pipelines
- On August 23, 2012 we announced our second quarter revenues of $21,628,124
- On August 30, 2012, we announced we were in negotiations for a $180 million annually credit facility with a major commercial bank
- On September 14, 2012, we announced our plans to hire a new Chief Financial Officer
- On September 25, 2012, we announced NDR sold over 2.07 billion cubic of natural gas in August
- On September 25, 2012 we announced we received a $10 million credit line with a major gas supplier
- Universal has plans for 5 to 7 acquisitions in the $10 to $15+ million range, each with an EBITA of $1 to $1.5 million each for a total of $5 to $10.5 million annually
Universal's President Vince M. Guest states, "We're truly excited about the major achievements we have made thus far this year. The outlook for the company is very strong, and we could not have achieved any of this without the dedicated, and talented team of professionals at Universal Bioenergy and NDR Energy Group. We take issue with some who make statements that we are a pump and dump company. We are a real company with solid audited revenues of $71.74 million in 2011, three operating divisions, verified contracts with 30 of the largest electric utilities in the country, record sales volumes of natural gas, and plans for major expansion. Pump and dump companies don't have real operating companies, and never achieve any of the things we have achieved. Our future plans also include several major acquisitions, exports of coal to several foreign countries, and importing oil from several foreign countries for sale and refined energy products. We also anticipate the DTC will provide us with a final disposition on the chill on our stock very shortly. A major goal for 2012 and beyond is to begin to generate solid earnings for the Company and create an energy powerhouse."
Vince M. Guest further states, "As part of our business strategy, we review acquisition and strategic investment prospects that we believe would complement our current product offerings, augment our market coverage or enhance our technological capabilities, or otherwise offer growth opportunities. From time to time we review investments in new businesses and we expect to make investments in, and to acquire, businesses, products, or technologies in the future. Proper due diligence for proper technical, financial and legal review can be very expensive and time consuming. Often during the due diligence process we discover that the representations and warranties made by the target company regarding its business, operations, assets, financials, books, records, properties, contracts, liabilities, pending litigation, permits, licenses and business status are not accurate or complete, there may be misrepresentations, or there is an adverse material change in the business prior to the closing of the acquisition. In that event, management will elect to terminate that acquisition to avoid any negative impacts on our operations, avoid any adverse legal and financial exposure to the Company and to protect our shareholders. Due to these factors we and other companies that pursue other companies as acquisition targets do not expect that they will close on every potential acquisition target."
Solomon Ali, Universal's Senior Vice President says, "We believe the best days for our growth are still ahead of us. Regarding our capital structure, we elected to raise capital through debt financing because, due to our rapid growth, we had an immediate and continuous need for capital, our investors were willing to take a creditor's position instead of equity position, we could grow the Company rapidly and create short-term economic value to the Company by closing on several target mergers and acquisitions prior to any equity dilution taking place. Additionally, the Notes required no monthly payments which allowed us to use that free cash flow for operating expenses, reduced our cash outlays, interest payments and improve our budget, plans and forecast our cash flow. The tax benefits of debt financing is that it's less expensive, while the Company is taxed on earnings, it is not generally taxed on borrowed money and the interest on the Notes is tax deductible. This strategy resulted in our gaining a greater share of the energy market, increased revenues, increased assets, market capitalization value and our shareholders owning a portion of a much larger and more valuable company. As the Company continues to advance and develop through the different stages of its business life cycle, management will evaluate options, alternatives, and make strategic decisions for the best investment opportunities, financing and capital structure at that time."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal, propane and refined petroleum energy products. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784
Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.