Independent oil and gas company PetroQuest Energy, Inc. has reported a net loss of $154,794,000 or $3.14 per share for the quarter ended December 31, 2008, compared to fourth quarter 2007 net income of $10,837,000, or $0.22 per share. For the year ended December 31, 2008, the company reported a net loss of $102,100,000, or $2.08 per share, compared to net income of $39,245,000, or $0.79 per share, for the year ended December 31, 2007.
The company said that it has experienced negative price-related reserve revisions and lower than expected future cash flows that resulted in a non-cash ceiling test writedown of $247 million (approximately $155 million on an after-tax basis) for the fourth quarter of 2008 and $266 million (approximately $167 million after tax) for the year ended December 31, 2008.
Charles Goodson, Chairman, Chief Executive Officer and President of PetroQuest Energy, said: "Due to the challenging commodity price environment, we have made the strategic decision to reduce our drilling program and operate during 2009 below internally generated cash flow, we plan to use the free cash flow that we expect to generate to build liquidity and position ourselves to increase our drilling program once projected returns on investment improve."
Discretionary cash flow for the fourth quarter of 2008 was $45,224,000, as compared to $51,689,000 for the comparable 2007 period. For the year ended December 31, 2008, discretionary cash flow was $233,534,000 compared to $196,180,000 for 2007.
Oil and gas sales during the fourth quarter of 2008 were $66,203,000 as compared to $65,521,000 in the fourth quarter of 2007. For the year ended December 31, 2008, oil and gas sales increased 20% to $308,623,000 as compared to $256,223,000 in the year ended December 31, 2007.
Production for the fourth quarter and year ended December 31, 2008 was 20% and 7% higher, respectively, than production for the comparable periods of 2007. Stated on a Mcfe basis, unit prices received during the fourth quarter and the year ended December 31, 2008 were 16% lower and 12% higher, respectively, as compared to the prices received during the comparable 2007 periods.
