(Source: PRNewswire-FirstCall)
LAFAYETTE, La., Aug. 5 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. announced today that the Company recorded net income available to common stockholders for the quarter ended June 30, 2009 of $7,746,000, or $0.15 per share, compared to second quarter 2008 net income available to common stockholders of $21,775,000 or $0.41 per share. For the first six months of 2009, the Company reported net loss available to common stockholders of $59,211,000, or $1.20 per share, compared to net income available to common stockholders of $35,936,000, or $0.69 per share, for the 2008 comparable period.
Discretionary cash flow for the second quarter of 2009 was $37,788,000, as compared to $71,877,000 for the comparable 2008 period. For the first six months of 2009, discretionary cash flow was $76,256,000, compared to discretionary cash flow of $129,582,000 for the first six months of 2008. See the attached schedule for a reconciliation of net cash flow provided by operating activities to discretionary cash flow.
Production for the second quarter of 2009 was 8.6 Bcfe, compared to 8.4 Bcfe for the comparable period of 2008. Production for the first six months of 2009 was 18.7 Bcfe, which was 14% higher than production for the comparable period of 2008. Approximately 53% of the Company's second quarter 2009 production was from long-lived basins, as compared to approximately 42% during the second quarter of 2008. Stated on an Mcfe basis, unit prices including the effects of hedges were 40% and 39% lower during the second quarter and six months ended June 30, 2009, as compared to the respective 2008 periods. Oil and gas sales during the second quarter of 2009 were $55,376,000 as compared to $90,614,000 in the second quarter of 2008. For the first six months of 2009, oil and gas sales were $114,610,000 compared to oil and gas sales of $165,433,000 for the first six months of 2008.
Lease operating expenses ("LOE") for the second quarter of 2009 decreased to $8,373,000, as compared to $9,900,000 in the second quarter of 2008. LOE per Mcfe was $0.98 for the second quarter of 2009, as compared to $1.18 in the second quarter of 2008, and declined 11% as compared to the first quarter 2009 LOE per Mcfe. For the first six months of 2009, lease operating expenses decreased 15% to $1.05 per Mcfe from $1.23 per Mcfe in the comparable period of 2008. The declines are primarily due to the Company's cost reduction efforts combined with lower services and materials costs.
Depreciation, depletion and amortization ("DD&A") on oil and gas properties for the second quarter of 2009 was $2.11 per Mcfe, as compared to $3.67 per Mcfe in the second quarter of 2008. For the first six months of 2009, DD&A on oil and gas properties was $2.66 per Mcfe compared to $3.68 per Mcfe for the comparable period of 2008. The decline in DD&A is primarily the result of the non-cash ceiling test write-downs of a substantial portion of our proved oil and gas properties during 2008 and the first quarter of 2009.
General and administrative expenses decreased $2,952,000, or 41%, and $3,294,000, or 27%, for the second quarter and six months ended June 30, 2009, as compared to the respective 2008 periods. The decrease in general and administrative expenses for the 2009 periods is primarily due to lower employee related costs.
The following table sets forth certain information with respect to the oil and gas operations of the Company for the three and six month periods ended June 30, 2009 and 2008:
Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Production: Oil (Bbls) 138,788 172,804 313,599 366,580 Gas (Mcf) 7,728,284 7,380,648 16,775,499 14,108,476 Total Production (Mcfe) 8,561,012 8,417,472 18,657,093 16,307,956 Sales: Total oil sales $9,424,297 $19,437,078 $18,703,580 $37,666,918 Total gas sales 45,951,367 71,176,412 95,906,225 127,765,877 ---------- ----------- ----------- ----------- Total oil and gas sales $55,375,664 $90,613,490 $114,609,805 $165,432,795 Average sales prices: Oil (per Bbl) $67.90 $112.48 $59.64 $102.75 Gas (per Mcf) 5.95 9.64 5.72 9.06 Per Mcfe 6.47 10.76 6.14 10.14
The above sales and average sales prices include additions (reductions) related to the settlement of gas hedges of $22,441,000 and ($7,787,000) and the settlement of oil hedges of $1,470,000 and ($2,121,000) for the three months ended June 30, 2009 and 2008, respectively. The above sales and average sales prices include additions (reductions) related to the settlement of gas hedges of $36,419,000 and ($7,613,000) and the settlement of oil hedges of $3,515,000 and ($2,937,000) for the six months ended June 30, 2009 and 2008, respectively.
The following initiates guidance for the third quarter of 2009: Guidance for Description 3rd Quarter 2009 ----------- ---------------- Production volumes (MMcfe/d) 80 - 85 Percent gas 90% Expenses: Lease operating expenses (per Mcfe) $1.30 - $1.40 Production taxes (per Mcfe) $0.20 - $0.25 Depreciation, depletion and amortization (per Mcfe) $2.25 - $2.35 General and administrative (in millions) $4.5 - $5.0 Interest expense (in millions) $3.3 - $3.8 The following updates guidance for the full year of 2009: Guidance for Description Full Year 2009 ----------- -------------- Production volumes (MMcfe/d) 90 - 100 Percent gas 90% Expenses: Lease operating expenses (per Mcfe) $1.10 - $1.20 Production taxes (per Mcfe) $0.17 - $0.21 Depreciation, depletion and amortization (per Mcfe) $2.50 - $2.60 General and administrative (in millions) $18 - $19 Interest expense (in millions) $13 - $14 2009 Capital Expenditures (in millions) $60 - $80 Liquidity Update
During the second quarter of 2009, the Company continued to increase its liquidity position by generating $38 million of discretionary cash flow, while spending only $15 million in capital expenditures. In addition, the Company completed a public common stock offering that resulted in net proceeds of approximately $38 million. As of June 30, 2009, the Company's working capital balance was approximately $126 million, which represents a 213% increase since December 31, 2008.
Operations Update
The Company participated in 28 gross (1.90 net) non-operated wells in the Fayetteville shale during the second quarter of 2009 and currently has three non-operated rigs working in this area.
The Company performed three recompletions at its Ship Shoal 72 field during the second quarter of 2009. The total gross cost for the recompletion work was approximately $600,000 and increased the Company's total gross production from this field by approximately 11 MMcfe per day. Additionally, approximately 40% of the incremental production was oil, which should benefit the returns of these recompletion opportunities.
The Company expects to spud its Whistling Straits prospect during the third quarter of 2009. The well is located in the Company's Turtle Bayou field where it has had multiple high impact discoveries over the past 10 years. The Company has a 24% working interest in the well.
