McMoRan Reports Lower 3Q Revenues Than Previous Year



McMoRan reported a net loss applicable to common stock of $51.9 million, $0.60 per share, for the third quarter of 2009 compared with a net loss applicable to common stock of $6.1 million, $0.10 per share, for the third quarter of 2008. For the nine months ended September 30, 2009, McMoRan reported a net loss applicable to common stock of $215.8 million, $2.83 per share, compared with net income applicable to common stock of $75.6 million, $1.14 per share, in the 2008 period.

James R. Moffett and Richard Adkerson, McMoRan's Co-Chairmen, said, "The data and geologic information gained from our deep drilling and production activities, and correlation analysis with deepwater reservoirs support our view that there are large structures with significant potential for hydrocarbon accumulation on the Shelf of the Gulf of Mexico. The Blueberry Hill results are positive and we look forward to defining the potential in the area. We expect to have results from our high potential Davy Jones ultra-deep well in the fourth quarter and are excited about future activities on our ultra-deep program which we believe have the potential to create significant values for shareholders."

REVENUES

McMoRan's third-quarter 2009 oil and gas revenues totaled $105.8 million, compared to $282.7 million during the third quarter of 2008. During the third quarter of 2009, McMoRan's sales volumes totaled 13.6 Bcf of gas, 761,600 barrels of oil and condensate and 1.6 Bcfe of plant products, compared to 13.5 Bcf of gas, 811,900 barrels of oil and condensate and 2.3 Bcfe of plant products in the third quarter of 2008. McMoRan's third-quarter comparable average realizations for gas (before hedging) were $3.39 per thousand cubic feet (Mcf) in 2009 and $10.67 per Mcf in 2008; for oil and condensate McMoRan received an average of $66.81 per barrel in third-quarter 2009 compared to $124.05 per barrel in third-quarter 2008.

CASH, LIQUIDITY AND CAPITAL EXPENDITURES

At September 30, 2009, McMoRan had $225 million in cash, the same level of cash on hand at June 30, 2009. Total debt was $375 million at September 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. McMoRan’s bank group is currently completing its semi-annual redetermination of its borrowing base. The review is expected to be completed in the fourth quarter of 2009. McMoRan expects the borrowing base will be reduced from the current level, reflecting the impact of year-to-date production and lower natural gas prices assumptions used by the bank group in the assessments. McMoRan does not expect the redetermination to impact its future plans or operations.

Capital expenditures totaled $29.0 million for the third quarter of 2009 and $113.4 million for the nine-months ended September 30, 2009.

Capital expenditures are expected to approximate $155 million for the year ended 2009. Capital expenditures are lower than previous estimates of $180 million because of partner arrangements and the timing of expenditures. In addition, net abandonment expenditures, which include scheduled conventional and hurricane related work, totaled $40 million for the nine-months ended September 30, 2009 and are expected to approximate $60 million in for the year.
 


RELATED COMPANIES