(RTTNews.com) – Exco Resources Inc. (XCO) on Monday reported a loss for the third quarter, reflecting lower revenues as well as a write-down of its oil and natural gas properties. Both revenues and adjusted earnings missed analysts’ estimates.
Oil, natural gas and natural gas liquids or NGLs production for the third quarter was 47 Bcfe, or 512 Mmcfe per day, down 6 percent from 544 Mmcfe per day in the year-ago period.
Haynesville/Bossier production in the quarter declined 8 percent from the year-ago period as the company reduced its operated drilling rig count from 22 in 2011 to five currently.
However, due to increased drilling in the Marcellus shale, production increased 35 percent in the company’s Appalachia region. Permian production was flat compared to last year.
Average sales price for oil rose 1 percent in the quarter, while the average sales price for natural gas liquids, natural gas, and natural gas equivalent declined from last year.
Exco Resources’ net loss for the third quarter was $346.17 million or $1.62 per share, compared to net income of $84.95 million or $0.39 per share in the year-ago period.
The latest quarter’s results included a $318.04 million non-cash ceiling test write-down of oil and natural gas properties.
Adjusted net income for the quarter was $0.13 per share, compared to $0.15 per share last year. On average, analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the quarter. Analysts’ estimates typically exclude special items.
Revenues for the quarter declined 32 percent to $141.62 million from $207.27 million in the prior year quarter and missed analysts’ consensus estimate of $174.38 million.
Looking ahead, Douglas Miller, Exco’s Chief Executive Officer said, “We are finalizing the redetermination of our borrowing base and expect the October 2012 redetermination will result in a $1.3 billion borrowing base. We continue to review monetization and joint venture opportunities on our conventional and midstream assets and also are reviewing a number of acquisition opportunities in the currently active producing property market.”
XCO closed Friday’s trading at $8.19, up $0.04 or 0.49 percent on a volume of 2.02 million shares.
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