St. Mary Swings To Net Loss

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On May 4, 2009, St. Mary Land & Exploration(SM Quote) reported that for Q1 FY09 it swung to a net loss of $87.62 million or $1.41 per share from a net profit of $94.97 million or $1.48 per share a year ago. Adjusted net loss for the quarter was $448,000 or $0.01 per share compared to a profit of $72.96 million or $1.14 per share. The latest quarterly results missed the most recent consensus estimate of $0.15 per share.

Total operating revenues and other income plunged 45.0% to $199.22 million from $362.10 million, hurt by lower average realized prices. Oil and gas production revenue dropped 58.0% to $130.42 million from $310.43 million. Meanwhile, the company lost $599,000 on the sale of proved properties. Marketed gas system revenues were down 29.7% to $13.78 million from $19.60 million in Q1 FY08.

Average realized oil sales price, net of hedging, fell 42.1% to $44.16 per barrel, while gas prices reduced 29.3% to $6.14 per thousand cubic feet (Mcf). Total production remained flat at 28.40 billion cubic feet of natural gas equivalent (Bcfe), reflecting a strong performance in the mid-continent and Permian regions. The daily oil and gas production increased 1.1% to 315.00 million cubic feet of gas equivalent per day (MMcfe/d). The gas production volumes rose 2.0% to 205.70 million cubic feet per day (MMcfpd). Oil production volumes edged down 0.5% to 18.20 million barrels per day (MBbls) in Q1 FY09.

Looking ahead, SM expects its Q2 FY09 oil and gas production to be in the range of 26.50 Bcfe to 28.00 Bcfe. For FY09, oil and gas production is expected to be in the range of 103.00 Bcfe to 106.00 Bcfe.