Forest Oil Corporation
) first-quarter 2014 loss of 2 cents per share (excluding
non-recurring items) came in line with the Zacks Consensus
Estimate. Moreover, the quarterly figure decreased approximately
167% from the year-earlier earnings of 3 cents.
BOARDWALK PIPLN (BWP): Free Stock Analysis
FOREST OIL CORP (FST): Free Stock Analysis
TARGA RESOURCES (NGLS): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
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The lackluster performance was mainly due to a fall in net sales
volume and oil sales volume. Lower
also contributed to the decline.
Total revenue in the reported quarter decreased 44.8% to $65.2
million from the year-ago level of $118.2 million and missed the
Zacks Consensus Estimate of $67.0 million.
Net sales volume shrunk nearly 57% year over year to 105.1
million cubic feet equivalent per day (MMcfe/d) in the reported
quarter. It comprised 32% liquids compared to 34% in the
The company's oil net sales volume in the first quarter decreased
nearly 42% from the year-ago period to 3.6 thousand barrels per
day (MBbls/d). On the bright side, natural gas sales volume in
the quarter was 71.5 MMcf/d and accounted for 68% of the total
The average equivalent price per Mcf (including the effect of
hedging) was $6.34, up 8.6% from the year-ago realization of
$5.84. Natural gas was sold at $3.84 per Mcf, up 6.1% from the
comparable prior-year quarter. However, natural gas liquids
(NGLs) were sold at $33.45 per barrel, up nearly 9% from the
year-ago quarter and average realized oil price was $89.88 per
barrel, down 7.6% from the year-ago quarter.
The first-quarter lease operating expenses of $1.53 per Mcfe
increased 35% year over year. Unit general and administrative
expenses rose 100% to 72 cents per Mcfe from the year-ago level
of 36 cents per Mcfe. Transportation and processing costs per
unit increased nearly 50% to $0.27 per Mcfe from $0.18 per Mcfe
in the first quarter of 2013.
At the quarter-end, Forest Oil had $48.3 million of cash and cash
equivalents with $800.2 million of long-term debt (including
current portion), representing a debt-to-capitalization ratio of
95.8% (up from 46.4% at the end of fourth-quarter 2013).
At present, Forest Oil has a Zacks Rank #3 (Hold). However, other
stocks in the oil and gas sector like
Targa Resources Partners LP
Boardwalk Pipeline Partners LP
), sporting a Zacks Rank #1 (Strong Buy) are expected to perform