Monday, oil and natural gas explorer Energy Partners Ltd. (EPL), following its emergence from bankruptcy, reported that its predecessor company's third quarter profit decreased from a year ago due to a 50% drop in revenues that was partially off-set by proceeds from fresh-start adjustments.
The New orleans, Lousiana-based company noted that the results reflected the reorganization accounting rules applied in connection with its emergence from bankruptcy on September 21, 2009 pursuant to its plan of reorganization. On September 30, 2009, the company implemented fresh-start accounting and reporting in accordance with financial reporting requirements for entities in bankruptcy reorganization.
Energy Partners' predecessor posted third-quarter net income of $29.4 million, down from $34.44 million in the same quarter last year.
Results included expenses of $11.6 million from reorganization items, a loss on discharge of debt of $2.7 million, and fresh-start adjustments totaling a gain of $57.1 million.
Excluding these items, the company posted net loss of $13.4 million for the quarter.
Total revenue for the quarter was $46.10 million, compared with $94.67 million in the prior year quarter.
For the current quarter, oil and gas revenues plunged to $46.07 million from $94.62 million last year.
Energy Partners' predecessor's total loss from operations was $11.85 million, compared to income from operations of $36.93 million reported in the year-ago period on lower revenues, hurt by the increase in operating expenses to $57.96 million from $57.73 million reported last year.
Average Production per day was down to 14,830 barrels of oil equivalent or Boe from 12,263 Boe in the prior year quarter. Natural gas production averaged 59.0 million cubic feet or Mmcf per day and oil production averaged 4,992 barrels of oil per day.
Average realized price of oil was $61.77 per barrel for oil compared to $114.61 per barrel and natural gas price for the quarter was $3.26 per thousand cubic feet or Mcf, down from $10.22 per Mcf in the prior year quarter.
For the nine months, the company's predecessor reported net loss of $36.1 million, compared to net income of $40.8 million in the year-ago period. Revenues for the nine-month period declined to $134.88 million from $317.85 million last year.
Looking ahead, for the fourth quarter the company estimates total net production per day to range between 12,500 Boe and 13,500 Boe and capital expenditures to be in the range of $4.5 million - $7.0 million.
EPL is currently trading at $8.66, down $0.14 or 1.59% on the NYSE.
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