(RTTNews) - Friday, Brigham Exploration Co. (BEXP: News ) reported a steep fall in third quarter earnings hurt by a 36% decline in oil and gas revenues due to significantly lower commodity prices, partially offset by higher production volumes. The company also provided its production outlook for the fourth quarter.

The Austin, Texas-based company's net income for the quarter plunged to $0.5 million or $0.01 per share from $15.26 million or $0.33 per share in the corresponding period last year.

Excluding the effect of unrealized mark-to-market hedging gains and non-cash write-down of the carrying value of inventory, net loss was $0.3 million or break even per share, compared with earnings of $4.3 million or $0.09 per share in the year-ago quarter. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue slid to $19.87 million from $47.19 million in the year-ago quarter. Thirteen Street analysts expected the company to report revenue of $18.67 million for the quarter. Revenues from the sale of oil and natural gas, including hedge settlements, but excluding unrealized mark-to-market hedging gains and losses, were $19.0 million, down 36% when compared to the year-ago quarter.

The company attributed the decline in oil and gas sale revenue to a 48% decrease in average oil equivalent sales price, which reduced revenues by $21.8 million. The decrease attributable to lower commodity prices was partially offset by higher production volumes, which increased revenues by $8.8 million, and by higher hedge settlements, which boosted revenues by $2.4 million
Production for the quarter was 5,200 barrels of oil equivalent per day, compared to the company's previously established guidance range of 4,667 to 5,167 barrels of oil equivalent per day. Successful drilling results in the Williston Basin Bakken and Three Forks plays contributed to higher oil volumes, which grew by 84% to 2,606 barrels of oil per day relative to the same a year earlier.

Average net daily production of natural gas declined to 15.6 million cubic feet or Mmcf from 19.1 Mmcf a year earlier. Average net daily production of oil rose to 2,606 barrels or Bbls from 1,419 Bbls in the year-ago quarter. Average daily production rose to 5,200 barrels of oil equivalent or boe from 4,611 boe in the corresponding period last year.

Sales price for natural gas plunged to $3.38 per thousand cubic feet or Mcf from $10.08 per Mcf in the corresponding period last year. Oil price slid to $59.74 per barrel from $112.60 per barrel a year earlier.

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