Forest Oil Corporation
) third-quarter 2013 earnings of 6 cents per share (excluding
non-recurring items) missed the Zacks Consensus Estimate of 8
cents per share. The figure also decreased from the year-earlier
earnings of 10 cents.
FOREST OIL CORP (FST): Free Stock Analysis
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Total revenue in the reported quarter decreased 24.3% to $118.2
million from the year-ago level of $156.1 million and missed the
Zacks Consensus Estimate of $131.0 million.
The lackluster performance was mainly due to lower net sales and
natural gas sales volumes as the company postponed capital
investment in its natural gas properties to concentrate on
higher-margin oil prospects. Lower oil and gas prices also
contributed to the decline.
Net sales volume shrunk nearly 38.4% year over year to 209.0
million cubic feet equivalent per day (MMcfe/d) in the reported
quarter. It comprised 40% liquids compared with 44% in the
The company's oil net sales volume in the third quarter was 6.8
thousand barrels per day (MBbls/d) versus 8.9 MBbls/d in the
year-earlier quarter. Natural gas sales volume was 125.7 MMcf/d
versus 224.9 MMcf/d in the year-earlier quarter and comprised 60%
of the total volume.
The average equivalent price per Mcf (including the effect of
hedging) was $6.20, up 6.2% from the year-ago realization of
$5.84. Natural gas was sold at $3.55 per Mcf, down 0.6% from the
comparable prior-year quarter. However, NGLs were sold at $29.22
per barrel, down 6.0% year over year and average realized oil
price was $95.03 per barrel, down 1.9%.
Third quarter production expenses of $1.39 per Mcfe increased 13%
year over year. Unit general and administrative expenses
increased 31.3% year over year to 42 cents per Mcfe from the
year-ago level of 32 cents per Mcfe.
At quarter end, Forest had $2,121 million of cash and cash
equivalents with $1,615.3 million of long-term debt (including
Forest Oil holds a Zacks Rank #3 (Hold). However, there are other
stocks in the oil and gas sector -
TransAtlantic Petroleum Ltd
Matador Resources Company
Northern Oil and Gas, Inc.
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to