McMoRan Exploration Posts 1Q Loss

NEW ORLEANS (AP) — McMoRan Exploration Co., an independent petroleum producer, on Monday posted a first-quarter loss, citing falling sales volumes and prices along with a net charge of $18 million related to nonrecurring items.

Its shares declined $1.40, or 24 percent, to $4.50 in morning trading, amid a drop in the broader market.

The New Orleans-based company reported a loss of $63.2 million, or 90 cents per share, compared with earnings of $32 million, or 46 cents per share, a year earlier.

Results include special items such as a $39 million charge related to certain fields reducing their net carrying value to fair value and a $16.2 million charge for an exploration expense linked to exploration wells which were determined to be noncommercial in the first-quarter. The company also recognized an $18.1 million mark-to-market gain on oil and gas derivative contracts and an $18.7 million gain from insurance proceeds related to the September 2008 hurricanes. These nonrecurring items amounted to a net charge of $18 million.

Analysts polled by Thomson Reuters, on average, predicted a loss of 43 cents per share. Analysts typically exclude one-time items.