Thursday, energy company Arena Resources Inc. (ARD) said its third-quarter net income decreased from the previous year quarter as oil and gas revenues declined 47%. The revenue decrease was mainly attributable to the significant decrease in commodity prices. Notwithstanding the year-over-year decline, both earnings and revenues came in ahead of analysts' consensus.
Arena recorded third quarter net income which decreased to $12.11 million or $0.31 per share from $26.92 million or $0.69 per share in the prior year period. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the quarter.
Oil and gas revenues for the quarter declined 47% to $36.06 million from $68.41 million in the comparable period. Eleven analysts estimated revenues of $33.96 million for the quarter.
During the quarter, oil sales volume decreased to 511,104 barrels, compared to 528,044 barrels for the same period in 2008, a 3% decrease, and gas sales volume increased to 609,030 MCF, compared to 544,746 MCF for the same period in 2008, a 12% increase.
The average commodity prices received by Arena were $64.16 per barrel of oil, a 44% decrease, and $5.37 per MCF of natural gas, a 61% decrease compared with last year.
Net income for the nine month period was $33.01 million or $0.85 per share, compared to net income of $70.03 million or $1.87 per share for the previous year.
For the nine month period, the company reported oil and gas revenues of $83.90 million, a 52% decrease compared to $175.88 million for the previous year period.
ARD is currently being traded at $42.05 up $1.49 or 4.04% on a volume of 0.365 million shares on the NYSE.
For comments and feedback: editorial@rttnews.com