(RTTNews) - Oil and gas explorer Newfield Exploration Co. (NFX: News ), Wednesday reported a decline in profit for the third quarter on lower revenues and a loss from commodity derivatives.

Third-quarter net income plunged to $78 million from $724 million last year. Earnings per share decreased to $0.58 from $5.48 reported in the prior-year period.

Results included net unrealized loss on commodity derivatives of $243 million and a $24 million tax benefit, or $0.18 per share, associated with deferred tax assets in Malaysia. Results for the prior year quarter included commodity derivative income of $726 million.

On a non-GAAP basis, third quarter earnings were $209 million or $1.58 per share.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $1.34 per share for the quarter. Analysts' estimate typically exclude special items.

Oil and gas revenues for the quarter decreased to $375 million from $680 million last year, due to lower prices. Analysts expected revenues of $536.34 million for the quarter.
Total income from operations declined to $112 million from $345 million reported in the year-ago period on lower revenues, hurt by the increase in operating expenses to $263 million from $335 million reported last year.

Production in the third quarter was 65.5 Billion cubic feet equivalent or Bcfe, an increase of 7% over the prior year period. Average realized prices of oil and gas for the third quarter was $9.31 per Million cubic feet equivalent or Mcfe, with domestic prices of $8.87 per Mcfe and international prices of $11.13 per Mcfe, respectively.

The company's capital expenditures in the third quarter of 2009 were $285 million.

For the nine months, the company reported net loss of $655 million or $5.06 per share, compared to net income of $416 million or $3.15 per share in the year-ago period. Revenues for the nine-month period declined to $924 million from $1.88 billion last year.

NFX finished Wednesday's regular trade at $48.08 down $1.12 on a volume of 2.53 million shares on the NYSE.

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by RTT Staff Writer

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