(Source: MARKETWIRE)Mariner Energy, Inc. (NYSE: ME) today reported third quarter 2009 financial and operating results. The company reported net income of $4.2 million for the three-month period ended September 30, 2009, with diluted earnings per share (EPS) of $0.04. For the same period in the prior year, Mariner reported net income of $64.7 million with diluted EPS of $0.73. During the three-month period ended September 30, 2009, the company incurred certain hurricane-related lease operating expenses and certain other general and administrative expenses that negatively impacted income before taxes by approximately $15.4 million. The company reported operating cash flow of approximately $403.6 million for the nine months ended September 30, 2009 (see reconciliation of this non-GAAP measure below).

Third quarter and fourth quarter to date highlights include:

--  Exploration success in deepwater at Green Canyon 490 (Wide Berth),
    encountering approximately 130 feet of net pay.  Mariner holds a 56.25%
    working interest.
--  Exploration success on the shelf at South Marsh Island 10,
    encountering approximately 87 feet of net pay.  Mariner holds a 100%
    working interest.
--  Net production for third quarter was up slightly from second quarter
    2009 to 33.3 billion cubic feet of natural gas equivalent (Bcfe).
--  Start up of production on two deepwater fields: Green Canyon 646
    (Daniel Boone) and Viosca Knoll 821, with current gross daily production
    rates of approximately 7,000 barrels of oil equivalent (BOE) and 1,000 BOE,
    respectively.  Mariner holds a 40% working interest in Daniel Boone and a
    30% working interest in VK 821.
--  Acquisition of a 50% working interest in the deepwater discovery on
    East Breaks 597 (Balboa), with estimated gross proved and probable reserves
    of 7 - 8 million barrels of oil equivalent.  Mariner has assumed operations
    and commenced development on the project.  Production could begin as early
    as fourth quarter 2010.
--  Completion of an eight-block deepwater acreage trade with Anadarko
    Petroleum Company in the Heidelberg area and a farm-in to Anadarko's
    deepwater Keathley Canyon 875 (Lucius) prospect, which is currently
    drilling.
--  Continued growth in the Permian Basin with success in seven wells,
    including three exploration wells further delineating our Deadwood field.
    At quarter's end, Mariner's net acreage position in the Permian Basin
    exceeded 123,000 acres.
--  Affirmation of the company's $800 million borrowing base under its $1
    billion revolving credit facility and further reduction of debt under the
    facility during the third quarter from approximately $145 million to
    approximately $70 million.
--  Receipt of additional hurricane reimbursements, bringing the total
    year to date to approximately $68 million at October 31, 2009, with
    additional reimbursements expected prior to year end.
    

"During the third quarter, production increased in the deepwater and onshore, but construction delays temporarily deferred growth from the shelf. Mariner's capital spending for 2009 should be less than half of 2008's, but we expect to achieve a year-over-year production increase of approximately 10% to 128 - 130 Bcfe, as well as strong cash flow and excellent liquidity. We have continued to expand and diversify our opportunity set, most recently in the deepwater and onshore, including our entry into unconventional resources," said Scott D. Josey, Mariner's Chairman, Chief Executive Officer and President.

THIRD QUARTER 2009 RESULTS

For the three-month period ended September 30, 2009, Mariner reported net income of $4.2 million, or $0.04 per basic and diluted share. This compares with net income of $64.7 million and basic and diluted earnings per share of $0.74 and $0.73, respectively, for the same three-month period in the prior year. The lower year-over-year results are due primarily to lower commodity prices.

Net production for third quarter 2009 was 33.3 billion cubic feet of natural gas equivalent (Bcfe), up 23% compared with 27.1 Bcfe for third quarter 2008. Total natural gas net production for third quarter 2009 was 24.1 billion cubic feet (Bcf), compared with 18.4 Bcf for the same period in the prior year. Total net oil production for third quarter 2009 was 1.1 million barrels (MMBbls), compared with 1.1 MMBbls for the same period in 2008. Natural gas liquids (NGL) net production for third quarter 2009 was 0.4 MMBbls, compared with 0.4 MMBbls for third quarter 2008.

For third quarter 2009, Mariner's average realized natural gas price was $5.39 per thousand cubic feet (Mcf) compared with $10.50 per Mcf for the same period in 2008. Mariner's average realized oil price was $73.15 per barrel (Bbl) for third quarter 2009, compared with $92.97 per Bbl for third quarter 2008. The average realized NGL price was $36.85 per Bbl for third quarter 2009, compared with $61.05 per Bbl for the same period in 2008. Average realized prices reflect settlements during the period under Mariner's hedging program.

OPERATIONAL UPDATE

Offshore

Mariner drilled five offshore wells in the third quarter 2009, two of which were successful:

                               Working     Water
Well Name          Operator    Interest  Depth (Ft)        Location
--------------   ------------  --------  ----------   ------------------
Vermillion 380
 A3 ST1            Mariner        100.0%        340   Conventional Shelf
South Timbalier
 316 A6 ST1      W&T Offshore        33%        450   Conventional Shelf

Unsuccessful wells during the third quarter included Mariner's deepwater prospects at Arden (Garden Banks 949) and Tiger (East Breaks 494) and the deep shelf prospect at Sherwood (High Island 133).

Subsequent to the end of third quarter 2009, Mariner drilled two wells, both of which were successful:

                                Working    Water
Well Name            Operator   Interest Depth (Ft)       Location
------------------ ------------ -------- ---------- ----------------------
Green Canyon 490#1
 (Wide Berth)         Mariner      56.25%     3,700 Conventional Deepwater
South Marsh Island
 10 #4                Mariner        100%        70 Conventional Shelf

Onshore

In the third quarter of 2009, Mariner drilled seven wells in the Permian Basin, all of which were successful. As of September 30, 2009, four rigs were operating on Mariner's Permian Basin properties.

CONFERENCE CALL TO DISCUSS RESULTS

A conference call has been scheduled for 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Friday, November 6, 2009, to discuss third quarter 2009 financial and operating results.

To participate in the call, please dial one of the numbers listed below at least 10 minutes prior to the scheduled start time:

      Callers from the United States and Canada:      +1 (800) 299-6183
      Callers from International locations:           +1 (617) 801-9713.

The conference passcode for both numbers is 6725 8155.

The call also will be webcast live over the Internet and can be accessed through the Investor Information section of Mariner's website at http://www.mariner-energy.com.

A telephonic replay of the call will be available through November 16, 2009 by dialing (888) 286-8010 or (617) 801-6888, pass code 8892 8703. An archive of the webcast will be available shortly after the call on Mariner's website through December 31, 2009.

About Mariner Energy, Inc.

Mariner Energy, Inc.