Forest Oil Report Record Sales for 3Q 2007
Forest Oil reported sales volumes increased 62% from 2006 to a record 508 MMcfe/d with record sales volumes in its "Big 5" assets having a combined rate of 315 MMcfe/d, accounting for 62% of the company's sales volumes. Adjusted net earnings per share increased 75% from 2006 to $.84 per share. Adjusted EBITDA increased 93% from 2006 to a record $256.3 million. Adjusted discretionary cash flow increased 103% from 2006 to a record $226.9 million.
Forest Oil closed the sale of all Alaska assets and entered into a sale-leaseback transaction for its drilling rigs, reducing net debt by $463 million, or 22%, to $1.67 billion as of September 30, 2007
H. Craig Clark, President and CEO, stated, "The third quarter was the first full quarter of operations of the Houston Exploration assets in the portfolio and reflected the disposition of Forest's Alaska assets. This completes the transformation of Forest to a cost efficient development company focused primarily on production optimization and cost control in North American onshore plays. During the quarter Forest was able to increase sales volumes to record levels while allocating capital to projects with attractive economic returns and focusing on margin capture. Forest is significantly ahead of schedule in reducing total cash costs related to its acquisition of Houston Exploration. We have reduced production expense to $1.28 per Mcfe and general and administrative expense per-unit back to levels that existed prior to the acquisition. The future of the Company will remain focused on tight-gas sand and oil development as well as optimizing value from existing legacy assets."
- Forest Oil to Put Texas Panhandle Properties Up For Sale (Jul 15)
- Forest Oil Partners with Schlumberger on Eagle Ford Shale Land (Apr 12)
- Forest Oil to Sell South Texas Assets Excluding Eagle Ford (Jan 03)