AMEN Properties, Inc. (NASDAQ:AMEN), with headquarters in Midland, Texas, today announced the results for the quarter ending September 30, 2006.

AMEN Properties, Inc., (the ?Company?) is a real estate and energy company engaged in owning and managing real estate, oil and gas royalties, and energy related business properties. The Company is a holding company and conducts its operations through AMEN Delaware, LP (?Delaware?); AMEN Minerals, LP (?Minerals?) and W Power and Light, LP (?W Power?), each being a wholly owned subsidiary of the Company. As of September 30, 2006, the Company, through Delaware's investment in a real estate joint venture, has a commercial real estate portfolio consisting of an ownership of approximately 18% in two office properties located in Midland, Texas comprising an aggregate of approximately 428,560 square feet of gross leasable area. The Company's present oil and gas royalty holdings are through Minerals, which owns two oil and gas royalty properties, one in Nowata County, Oklahoma and the other in Hemphill County, Texas. The Company is engaged in the retail electricity market as a retail electric provider serving both retail and wholesale customers within the state of Texas through W Power. Effective April 1, 2006, AMEN Properties acquired 100% of Priority Power Management, Ltd., a Texas limited partnership, and Priority Power Management, Dallas, Ltd., a Texas limited partnership, (collectively referred to as ?Priority Power?). Priority Power is primarily involved in providing energy management services and the Company believes that Priority Power's business is complementary to the retail electricity provider business conducted by the Company's subsidiary W Power.

For the nine months ended September 30, 2006, the Company generated net income of $1,883,397 or $.84 per share as compared to a net loss of $525,454 or $.24 per share for the same period ended September 30, 2005, for a net increase of $2,408,851. This increase is mainly due to the Company's wholly owned subsidiary AMEN Delaware, Ltd selling approximately 74% of its original 71.348% interest in the distributed assets of TCTB during the quarter ending September 30, 2006 for a gain of approximately $1,405,500; W Power generating net income for the nine months ended September 30, 2006 of approximately $348,000 compared to a net loss of approximately $336,000 for the same period ended September 30, 2005; and the Company completing the acquisition of Priority Power effective April 1, 2006 and Priority Power generating net income of approximately $688,000 since the date of acquisition.

For the nine months ended September 30, 2006, the Company experienced an increase in rental revenue of approximately $181,000, as compared to the same period ended September 30, 2005. The increase is mainly due to the Company billing tenants for the incremental increase in building operations. The Company did not pass through the incremental increase in building operations during the same period ended September 30, 2005. W Power experienced a net increase in retail electricity revenue of approximately $4,535,000. This increase is mainly due to W Power moving from a start up phase to growing its customer base to approximately 1,700 meters. Due to Priority Power Management not being a part of the Company's operations during the nine months ended September 30, 2005 comparative information for energy management fees is not available.

Total operating expense for the nine months ended September 30, 2006 as compared to same period ended September 30, 2005 increased approximately $4,711,000. This increase is mainly related to W Power's increase in purchased wholesale electricity of approximately $3,942,000. The remaining increase in operating expenses is mainly related to the increase of general and administrative costs, approximately $513,000, associated with the newly acquired business segment Priority Power and an increase in rental property operations, approximately $240,000, associated with the increase in energy costs.

W Power's cost of goods and services were $7,818,782 or approximately 91.8% of retail electricity sales for the nine months ended September 30, 2006, for a gross profit of approximately $698,000 or approximately 8.1% of retail electricity sales for the nine months ending September 30, 2006. For the nine months ended September 30, 2005 W Power's cost of goods and services were $3,876,737 or approximately 97.4% of retail electricity sales for the nine months ended September 30, 2005, for a gross profit of approximately $105,000 or approximately 2.1% of retail electricity sales for the nine months ending September 30, 2005. The net increase of approximately 6.0% in gross profit earnings is mainly due to W Power successfully increasing its customer contract prices while also experiencing a decrease in the costs of wholesale power and certain wholesale ERCOT ancillary services for the nine month period as compared to last year.

Rental property operations expense increased approximately $240,000 for the nine months ended September 30, 2006 as compared to nine months ended September 30, 2005. The increase for property operations is attributable to the increase in utility expense due to the rising costs of energy.

For the nine months ended September 30, 2006 as compared to the same period ending September 30, 2005, general and administrative costs increased approximately $513,000. This increase is mainly attributable to the newly acquired operating segment Priority Power.

For the nine months ended September 30, 2006, as compared to the same period ended September 30, 2005, the Company experienced an increase of approximately $128,000 in interest income. This increase is mainly due to a rate increase on the Company's previously held $2,100,000 certificated of deposit with the Wells Fargo, Bank, N.A. coupled with the interest the Company received on the restricted deposits with JPMorgan Chase Bank, N.A. totaling $2,181,000 collateralizing outstanding Letters of Credit. During the three months ended September 30, 2006, the Company entered into an Agreement to Distribute Assets, effective September 27, 2006, with and among the partners of TCTB Partners, Ltd. Following the distribution of assets the Company along with the General Partner and other Limited Partners of TCTB collectively agreed to sell and sold 75% of their collective undivided interest in the distributed assets on September 29, 2006. The Company reported a net gain of approximately $1,405,000 on the sale of approximately 74% of its interest in distributed assets from it subsidiary TCTB Partners, Ltd. For the nine months ended September 30, 2006 and 2005, the Company experienced a net decrease in other income of approximately $337,000. This change is mainly related to a non-recurring expense the Company paid to key employees of Priority Power Management upon their signing of employment agreements. The employee's retention of the bonus is not contingent on the employees rendering of future services. This non-recurring expense approximated $125,000. Additionally, the Company accrued approximately $209,000 in corporate tithing during the quarter ending September 30, 2006, as mandated by the Company's Corporate By-Laws.

AMEN Properties, Inc. and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three and Nine Months Ended September 30,
(Unaudited)
 

For the Three Months
Ended September 30,

For the Nine Months
Ended September 30,

  2006    2005    2006    2005 
Operating revenue
Rental revenue $ 834,128  $ 894,749  $ 2,418,702  $ 2,237,068 
Energy management fees 809,217  -  1,486,023  - 
Retail electricity revenue   1,956,012    2,545,563    8,516,667    3,981,948 
Total operating revenue   3,599,357    3,440,312    12,421,392    6,219,016 
Operating expense
Cost of goods and services 1,934,621  2,453,362  7,818,782  3,876,737 
Rental property operations 631,300  554,428  1,652,483  1,412,537 
General and administrative 539,056  329,312  1,272,789  759,877 
Depreciation, amortization and depletion   112,022    106,284    319,357    302,790 
Total operating expenses   3,216,999    3,443,386    11,063,411    6,351,941 
 
(Loss) income from operations   382,358    (3,074)   1,357,981    (132,925)
 
Other (expense) income
Interest income 61,023  14,037  169,839  41,574 
Interest expense (343,344) (130,748) (690,211) (393,243)
Gain on sale of investments 1,405,495  -  1,405,495  - 
Other (expense) income   (209,399)   11,218    (299,451)   37,632 
Total other (expense) income   913,775    (105,493)   585,672    (314,037)
 
Income (loss) from continuing operations before income taxes and minority interest 1,296,133  (108,567) 1,943,653  (446,962)
 
Income taxes -  -  -  - 
Minority interest   (3,547)   (41,899)   (60,256)   (78,492)
 
NET INCOME (LOSS) $ 1,292,586  $ (150,466) $ 1,883,397  $ (525,454)
 
Net income (loss) per common share (basis) $ .56  $ (.07) $ .84  $ (.24)
 
Net income (loss) per common share (diluted) $ .36  $ (.07) $ .52  $ (.24)
 
Weighted average number of common shares outstanding ? basic   2,290,589    2,203,310    2,247,938    2,202,015 
 
Weighted average number of common shares outstanding ? diluted   3,640,353    2,203,310    3,597,702    2,202,015