Mariner Energy, Inc. reported record quarterly revenues, income and production for the three-month period ended March 31, 2008. Net income for the 2008 first quarter was $72.1 million, an increase of 89% compared with the same period of 2007. Fully-diluted earnings per share (EPS) were $0.82, up 82% from $0.45 fully-diluted EPS reported for the first quarter 2007. Other financial and operational highlights for the 2008 first quarter include:
--Average daily production increased to 344 million cubic feet of natural gas equivalent per day (MMcfe/d), up 22% compared with the same period of 2007.
--Total revenues increased 49% to $315.9 million, up from the $211.6 million reported for first quarter a year ago.
--Net cash provided by operations for the first quarter 2008 increased 39% to $214.2 million, up from $153.6 million for the first quarter 2007.
--Mariner completed several significant transactions and projects, including the previously-disclosed acquisition in January of an indirect subsidiary of StatoilHydro ASA owning substantially all of its Gulf of Mexico shelf properties, the start-up in February of production from the Bass Lite and Northwest Nansen fields in the deepwater Gulf of Mexico, and purchase in February of additional working interests in the Mariner-operated Spraberry Aldwell Unit in West Texas, which complements the year-end 2007 West Texas acquisition. The company also was the apparent high bidder on 19 blocks in the U.S. Minerals Management Service's Central Gulf of Mexico lease sale held during March. One block has already been awarded.
"We are clearly pleased with the performance for the quarter. Our strategy of balanced growth is working well, with solid contributions from each of our core areas. Consistent with our objective of focused and efficient growth, we completed transactions and projects that we believe will generate near-term and long-term shareholder value. We believe we are on track to deliver excellent results in 2008," said Scott D. Josey, Chairman, Chief Executive and President of Mariner Energy.
First quarter 2008 net income was $72.1 million, compared with $38.2 million for the same period in 2007. Basic and fully-diluted EPS for the first quarter 2008 were $0.83 and $0.82, respectively, up from the $0.45 basic and fully-diluted EPS reported for the first quarter of 2007.
Mariner's net production during the first quarter 2008 was 31.3 billion cubic feet of natural gas equivalent (Bcfe), compared with 25.4 Bcfe for the first quarter 2007. Net natural gas production for the first quarter 2008 was 21.0 billion cubic feet (Bcf), a 20% increase compared with the 17.5 Bcf reported for the first quarter 2007. Net oil production for the first quarter 2008 was up 29% to 1.35 million barrels (MMBbls), compared with 1.05 MMBbls for the same period in 2007. Net natural gas liquids (NGL) production for the first quarter 2008 was 0.38 MMBbls, a 36% increase compared with the 0.28 MMBbls reported for the first quarter 2007.
For the first quarter 2008, Mariner's average realized natural gas price was $8.57 per thousand cubic feet (Mcf), compared with $8.04 per Mcf for the same period in 2007. Mariner's average realized oil price was $84.16 per barrel (Bbl) for the first quarter 2008, compared with $57.76 per Bbl for the same period in 2007. The first quarter 2008 average realized NGL price was $55.65 per Bbl, compared with $33.04 per Bbl for the first quarter 2007. Average realized prices reflect settlements during the period under Mariner's hedging program.
Mariner provides additional information regarding its hedging activities in quarterly and annual reports filed with the Securities and Exchange Commission.
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