McMoRan has reported a net loss applicable to common stock of $100.6 million, $1.40 per share, for the second quarter of 2009 compared
James R. Moffett and Richard Adkerson, McMoRan's Co-Chairmen, said, "We are continuing our focused strategy of drilling high potential exploratory wells in the shallow waters of the Gulf of Mexico. We are encouraged by the recent positive drilling results at our Blueberry Hill deep gas exploratory well and by the important data we have gained on the potentially significant ultra-deep trend. We are engaging in an active drilling program during the second half of the year. The equity financings completed during the second quarter strengthened our financial position as we pursue aggressively these opportunities. We will continue to be prudent about our capital spending programs in light of the currently weak natural gas market but remain optimistic about the potential for significant value creation through our drilling activities."
McMoRan's second-quarter 2009 oil and gas revenues totaled $94.1 million, compared to $372.3 million during the second quarter of 2008. During the second quarter of 2009, McMoRan’s sales volumes totaled 11.2 Bcf of gas; 751,500 barrels of oil and condensate and 1.3 Bcfe of plant products, compared to 17.9 Bcf of gas; 1,125,400 barrels of oil and condensate and 2.1 Bcfe of plant products in the second quarter of 2008. McMoRan’s second-quarter comparable average realizations for gas were $3.92 per thousand cubic feet (Mcf) in 2009 and $12.11 per Mcf in 2008; for oil and condensate McMoRan received an average of $58.24 per barrel in second-quarter 2009 compared to $122.99 per barrel in second-quarter 2008.
As previously reported, in June 2009 McMoRan raised $168 million in net proceeds ($176 million gross proceeds) through the sale of 15.5 million shares of common stock at $5.75 per share and $86 million of 8.00% convertible perpetual preferred stock. The preferred stock is convertible into commonstock at a price of $6.84 per share. McMoRan currently has approximately 86 million shares of common stock outstanding and approximately 111 million after assuming conversion of McMoRan's newly issued 8.00% convertible perpetual preferred stock and the outstanding 6¾% mandatory convertible preferred stock.
Cash, Liquidity And Capital Eexpenditures
At June 30, 2009, McMoRan had $225 million in cash. Total debt was $375 million at June 30, 2009, including $75 million in convertible senior notes due in 2011 with a conversion price of $16.575 per share. McMoRan currently has no borrowings outstanding on its $235 million revolving credit facility and $135 million in availability after considering $100 million in outstanding letters of credit. Capital expenditures totaled $55.2 million for the second quarter of 2009 and $84.3 million for the six-months ended June 30, 2009. Capital expenditures are expected to approximate $180 million for the year. In addition, abandonment expenditures, which include scheduled conventional and hurricane related work, are expected to approximate $80 million in 2009.
During the second quarter of 2009, McMoRan financially settled swap positions hedging 2.8 Bcf of
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