Warren Reports Third Quarter Net Earnings Increased 27%
Warren's oil and gas revenues increased 99% to $16.8 million for the third quarter of 2007 compared to $8.4 million in the same period last year. This increase resulted from an 85% increase in oil and gas production in the third quarter of 2007 compared to the third quarter of 2006. The third quarter production increase was primarily due to a 111% increase in oil production from one of the Company's core assets, the Wilmington Townlot Unit ("WTU") in California. This growth was achieved despite WTU production being temporarily reduced by Warren during September and October as discussed in more detail below.
Third Quarter 2007 Financial Highlights
Total revenues increased 81% to $17.2 million for the third quarter of 2007 as compared to the same period of last year. The Company reported the highest quarterly production in its history. Production for the third quarter of 2007 increased to a record 1.8 billion cubic feet equivalent ("Bcfe") from 0.9 Bcfe in the third quarter of 2006.
The average realized price per barrel of oil was $66.75 for the third quarter of 2007 compared to $60.82 for the same period of last year. Additionally, the average realized price per Mcf of gas was $4.22 for the third quarter of 2007 compared to $5.28 for the third quarter of 2006.
Total expenses increased 100% to $14.1 million during the third quarter of 2007 compared to the same period in 2006. Production and exploration expense and DD&A expense increased 118% and 104%, respectively, primarily due to increased production and increases in the costs of goods and services. As the Company used more borrowings under its secured credit facility to fund capital expenditures, interest expense increased to $630 thousand in the third quarter of 2007 compared to $98 thousand in 2006.
Cash flow from operations increased 130% to $17.7 million for the first nine months of 2007 compared to $7.7 million for the first nine months of 2006.
"We are extremely pleased that we were able to continue our strong organic growth in production, revenues, earnings and cash flow during the third quarter. Additionally, we are very excited about the commencement of full-scale drilling activities in our Sun Dog Unit in the Atlantic Rim coalbed methane project with Anadarko Petroleum Corporation," stated Norman F. Swanton, Warren's Chairman and CEO.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension