Mariner Sails out of Second Quarter with 274% Net Increase
Mariner Energy, Inc.
Friday, August 08, 2008
Mariner Energy, Inc. has reported record quarterly revenues, income and production for the three-month period ended June 30, 2008. Net income for second quarter 2008 was $123.4 million, an increase of 274% compared with the same period of 2007. Fully-diluted earnings per share (EPS) were $1.39, up 266% from $0.38 fully-diluted EPS reported for the second quarter 2007.
Other financial and operational highlights for second quarter 2008 include:
- Total revenues increased to $429.5 million, up from the $213.1 million reported for the second quarter a year ago.
- Estimated average daily production increased to approximately 390 million cubic feet of natural gas equivalent per day (MMcfe/d).
- Net cash provided by operations for the six-month period ended June 30, 2008 increased 94% to $551.5 million, up from $283.9 million for the same period in the prior year.
- Six of seven offshore wells drilled were successful.
- 100% success rate on 34 West Texas wells drilled.
Scott D. Josey, Chairman, Chief Executive Officer and President of Mariner Energy, commented, "Mariner's second quarter results reflect our strong production growth, diligent cost control efforts, as well as impressive drilling success in all areas -- deepwater, shelf and onshore. We further expanded our position in West Texas, to more than 93,000 net acres, up almost 50% from year end 2007.
"Moreover, we significantly strengthened our balance sheet, resulting in an upgrade from Standard & Poor's. Our strategy to build a diversified asset base is working, delivering growth in all areas at attractive rates of return and providing significant upside potential. I believe we are on track to deliver record operational and financial results for the full year; and with identified deepwater projects set to come online next year and the continuation of our successful shelf and onshore programs, we expect 2009 to be another strong year as well."
SECOND QUARTER 2008 RESULTS
Second quarter 2008 net income was $123.4 million, compared with $33.0 million for the same period in 2007. Basic and fully-diluted EPS for second quarter 2008 were $1.40 and $1.39, respectively, up from the $0.38 basic and fully-diluted EPS reported for second quarter 2007.
Mariner's second quarter 2008 net production was 36.4 billion cubic feet of natural gas equivalent (Bcfe), a 48% increase from 24.6 Bcfe for second quarter 2007. Net natural gas production for second quarter 2008 was 24.4 billion cubic feet (Bcf), a 49% increase compared with the 16.4 Bcf reported for second quarter 2007. Net oil production for second quarter 2008 was up 39% to 1.50 million barrels (MMBbls), compared with 1.08 MMBbls for the same period in 2007. Net natural gas liquids (NGL) production for second quarter 2008 was 0.51 MMBbls, an 81% increase compared with the 0.28 MMBbls reported for second quarter 2007.
For second quarter 2008, Mariner's average realized natural gas price was $10.27 per thousand cubic feet (Mcf), compared with $8.18 per Mcf for the same period in 2007. Mariner's average realized oil price was $96.24 per barrel (Bbl) for second quarter 2008, compared with $61.69 per Bbl for the same period in 2007. The second quarter 2008 average realized NGL price was $64.69 per Bbl, compared with $40.51 per Bbl for second 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 (SEC).