Analyst Lifts PetroQuest '09, '10 Outlook

NEW YORK (AP) — Despite a reduced production outlook, an analyst boosted his 2009 and 2010 profit estimates for independent oil and natural gas producer PetroQuest Energy Inc. Friday, due to significantly lower-than-expected costs.

Jefferies & Co. analyst Subash Chandra raised his full-year profit estimates for 2009 and 2010 to 48 cents per share and 45 cents per share, up from earlier estimates of 41 cents per share and 39 cents per share, respectively.

Still, Chandra noted that production remains low as the company tries to improve its liquidity by slashing spending on operating activities. The company estimated third quarter production of 82.5 million cubic feet equivalent per day, down 12 percent from the second quarter and below Chandra's expectations of 89 MMcfe/d.

Chandra rates PetroQuest "Hold" with a $4 price target. Shares of the company fell 6 cents to $4.26 in afternoon trading.