Monday, Constellation Energy Partners LLC (CEP) said its fourth-quarter loss narrowed from a year ago on lower operating expenses, including depreciation, depletion and amortization costs, despite a decline in revenue.
Constellation Energy's fourth-quarter net loss narrowed to $2.11 million or $0.11 per share from $12.38 million or $0.56 per share in the year-ago quarter.
Total revenue declined to $47.48 million from $51.15 million in the year-earlier period. Revenue from oil and gas sales dipped to $28.90 million from $33.77 million, while gains from mark-to-market activities increased to $18.58 million from $17.38 million.
Constellation Energy Partners' total production was 4,041 MMcfe for the fourth quarter with an average daily net production of 43.9 Mmcfe in the prior-year quarter. This compares the year-ago period's production of 4,442 MMcfe on an average daily net production of 48.2 Mmcfe.
Net realized price, including hedges, was $7.00 for the fourth quarter, compared to $7.32 in the prior year period. Excluding hedges, net realized price was $4.25, compared to $4.57 last year.
For the fourth quarter, exploration costs increased to $373,000 from $172,000 in the year-ago period. Depreciation, depletion and amortization costs decreased to $28.20 million from $45.57 million, bringing down fourth-quarter total operating expenses to $43.00 million from $60.57 million in the year-earlier quarter.
For the full-year, the company posted a loss of $9.02 million or $0.40 per share from a profit of $7.26 million or $0.32 per share last year. Revenue declined to $142.53 million from $163.23 million.
The company produced 17.1 Bcfe during the fiscal year with an average daily net production of 46.7 Mmcfe, compared to last year's production of 17.3 Bcfe with an average daily net production of 47.5 Mmcfe.
Constellation Energy net proved reserves stood at 131.2 Bcfe, compared to last year's reserves of 232.4 Bcfe. Proved developed reserves were 112.1 Bcfe during the year, compared to 158.5 Bcfe last year. Proved undeveloped reserves decreased to 19.1 Bcfe from 74.0 Bcfe last year.
On its liquidity position, the company's outstanding debt under its credit facility totaled $195 million with a cash balance of $11.3 million as of December 31, 2009. Since December 31, 2009, the company reduced debt by an additional $5 million, bringing the balance outstanding debt to $190 million and leaving $15 million in available borrowing capacity.
Looking ahead, Stephen Brunner, president and CEO, Constellation Energy Partners, said, "In 2010, our focus remains on debt reduction, which we intend to achieve with cash flow from operations through lower capital spending, a continuation of our distribution suspension, and cost containment."
The company announced that it anticipates total capital spending to range between $10 million and $12 million next fiscal. Net production is forecast to range between 14.5 and 15.5 Bcfe with operating costs expected to range between $52 million and $56 million for the year.
The company has hedged approximately 9.5 Bcfe of its mid-Continent production next fiscal at an average price of $7.47 per Mcfe and an additional 2.4 Bcfe of production at an average price of $8.21 per Mcfe.
CEP is currently trading at $3.99, down $0.24 or 5.67%, on a volume of 136,905 shares on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.