(RTTNews) - Oil and gas exploration and production company Cimarex Energy Co. (XEC: News ) Tuesday reported a profit for the third quarter, compared to a loss last year, reflecting the absence of a hefty oil and gas properties write-down recorded in the prior-year quarter.

Net income for the third quarter was $38.70 million or $0.46 per share, compared to a loss of $232.42 million or $2.85 per share in the previous year. Previous-year results include an impairment of oil and gas properties of $657.15 million.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined to $249.13 million from $577.26 million a year ago. The company attributed the decline in revenues to lower oil and gas prices. Analysts' expected a revenue of $243.21 million for the third quarter.

Gas sales for the quarter were $107.27 million, down from $313.52 million in the previous year. Oil sales declined to $131.07 million from $238.92 million a year ago. Revenues from gas gathering, processing and other decreased to $10.73 million from $24.16 million. Gas marketing revenues were $54 thousand, compared to $654 thousand in the previous year.

Total costs and expenses for the quarter declined to $174.53 million from $951.27 million a year ago. Depreciation, depletion, amortization and accretion expenses declined to $63.26 million from $149.41 million last year. Production costs were $42.68 million, down from $55.36 million in the comparable quarter last year.
Third-quarter 2009 gas prices decreased 61% to $3.80 per thousand cubic feet and oil prices fell 45% to $63.49 per barrel from the same period of 2008.

Oil and gas production for the quarter averaged 441.5 million cubic feet equivalent per day, comprised of 306.8 million cubic feet of gas and 22,439 barrels of oil. Daily production decreased 9% from last year.

For the nine-month period, net loss was $416.59 million or $5.10 per share, compared to an income of $146.13 million or $1.71 per share in the same period of the previous year. Total revenues for the period declined to $0.68 billion from $1.67 billion last year.

The company also said that it has oil and natural gas hedge contracts for October 2009 through December 2010 which cover on average 11,000 barrels of oil per day and 160,000 MMBtu of gas per day, representing slightly less than half of expected production.

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