Monday, McMoRan Exploration Co. (MMR), an independent oil and natural gas company, reported wider net loss for the third quarter, hurt in large part by sharply lower oil and gas derivative gains. The company also provided production outlook for the fourth quarter and fiscal 2009.
Net loss applicable to common stock widened to $51.9 million, $0.60 per share, from $6.1 million $0.10 per share in the corresponding period last year. On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.56 per share for the quarter.
Gains from oil and gas derivative contracts plunged to $0.74 million from $80.4 million reported in the corresponding quarter a year-earlier.
Revenues slid to $109.5 million from $285.2 million in the year-ago quarter. Five Street analysts expected the company to record revenues of $112.73 million for the quarter.
Production averaged 215 million cubic feet of natural gas equivalents per day or MMcfe/d net to McMoRan, compared with 225 MMcfe/d in the year-ago quarter.
Sales volumes totaled 13.6 billion cubic feet or Bcf of gas, 761,600 barrels of oil and condensate and 1.6 billion cubic feet equivalent or Bcfe of plant products, compared to 13.5 Bcf of gas, 811,900 barrels of oil and condensate and 2.3 Bcfe of plant products in the same period last year.
Average realizations for gas, before hedging, were $3.39 per thousand cubic feet or Mcf in 2009 and $10.67 per Mcf in 2008. For oil and condensate, the company received an average of $66.81 per barrel in third-quarter 2009 compared to $124.05 per barrel in the corresponding period last year.
For the nine-month period, net loss applicable to common stock was $215.8 million or $2.83 per share, compared with net income applicable to common stock of $75.6 million or $1.14 per share, in the year-ago period. Revenues plunged to $303.5 million from $956.2 million in the same period last year.
Looking ahead, the company expects production to average approximately 215 MMcfe/d in the fourth quarter of 2009 and 204 MMcfe/d for the year. The company expects capital expenditures to approximate $155 million for the year.
MMR is currently down $0.28 or 3.43% and trades at $7.89
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