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Energy Partners are an independent oil and natural gas exploration and production company. Our current operations are concentrated in the shallow to moderate depth waters in the Gulf of Mexico focusing on the areas offshore Louisiana as well as the deepwater Gulf of Mexico in depths less than 5,000 feet.
Energy Partners fourth quarter revenues climb 48% as oil and gas production recovers
Energy Partners (NYSE:EPL) reported a 58% jump in fourth quarter revenues compared to the corresponding period in 2008 as production rose strongly. The oil and gas exploration and production group reported revenues of US$56.8 million in Q4 2009, largely thanks to a combination of the completion of restoration work on the company’s production assets in the Gulf of Mexico, which were impaired in 2008 by Hurricanes Gustav and Ike.
The company still reported a net loss of US$21 million in Q4 2009, and loss per share diluted share of 53 cents, largely due to a pre-tax non-cash unrealized losses on derivative instruments and property impairments. Excluding unrealized losses on derivatives and the non-cash impairment costs, Energy Partners reported a net loss of $1.4 million or 4 cents per diluted share.
For full year 2009, revenue totaled US$191.6 million, and EBITDAX and discretionary cash flow were US$101.8 million and $71.0 million, respectively.
"With our improved balance sheet and liquidity position following our reorganization less than six months ago, we have focused on and made significant strides in realigning our cost structure and generating greater cash flow by stepping up our development activity levels where we have concentrated on high quality projects,” Gary C. Hanna, the Company's CEO, stated. “We have already seen the positive effects of our efforts in our production levels, which are projected to grow in the first quarter of 2010 over those realized in the fourth quarter of 2009.
Production in Q4 2009 averaged 13,712 barrels oil equivalent (Boe) per day. Oil production averaged 6,091 barrels of oil per day and natural gas production averaged 45.7 million cubic feet (Mmcf) per day. Fourth quarter production was 58% ahead of Q4 2008. Full year 2009 production increased 14% to 14,899 Boe per day.
Price realizations (before the impact of derivative instruments) averaged approximately US$55 per barrel of oil and US$3.99 per Mcf of natural gas in 2009.
As of December 31, 2009, the Energy Partners net debt of US$50.6 million. Net debt is expected to fall below US$30 million by end of Q1 2010.
Proved reserves at year-end 2009 stood at 19.9 million barrels of oil and 67.4 billion cubic feet of natural gas.
"Since our new management team has been in place and began drilling operations just a few months ago in December 2009, I am pleased with our outcome to date. We have aligned our capital program to be balanced over a number of projects with high return potential and to have a blended low risk profile. I am excited about the numerous, high quality development projects we have lined up as we continue to execute on our front-loaded initial 2010 capital budget,” Hanna added.
