Forest Oil Announces Second Quarter 2011 Results

The decrease in net earnings, EBITDA, and discretionary cash flow, each as adjusted, was primarily due to lower average natural gas prices (including the effects of derivatives) and net sales volumes, partially offset by higher oil and natural gas liquids prices (including the effects of derivatives).

Net Sales Volumes, Average Realized Prices, and Revenues

The following table details the components of Forest Remainco’s net sales volumes, average realized prices, and revenues for the three months ended June 30, 2011:

									Forest Remainco
									Three Months Ended June 30, 2011
									Gas									Oil										NGLs										Total
Net Sales Volumes									(MMcf/d)									(MBbls/d)										(MBbls/d)										(MMcfe/d)
Net Sales Volumes										241.2									6.5										9.0										334.7
Average Realized Prices									Gas ($/Mcf)									Oil ($/Bbl)										NGLs ($/Bbl)										Total ($/Mcfe)
Average realized prices not including realized derivative gains and losses									$	4.00								$	103.34									$	45.41									$	6.13
Realized gains (losses) on NYMEX derivatives										0.73									(10.27	)									(9.17	)									0.07
Average realized prices including realized derivative gains and losses									$	4.72								$	93.07									$	36.24									$	6.20
Revenues (in thousands)									Gas									Oil										NGLs										Total
Revenues not including realized derivative gains and losses									$	87,780								$	61,485									$	37,328									$	186,593
Realized gains (losses) on NYMEX derivatives										15,922									(6,110	)									(7,541	)									2,271
Revenues including realized derivative gains and losses									$	103,702								$	55,375									$	29,787									$	188,864

Total Cash Costs

Forest Remainco’s total cash costs for the three months ended June 30, 2011, increased 32% to $116 million, compared to $88 million in the corresponding 2010 period. Total cash costs per-unit for the three months ended June 30, 2011, increased 51% to $3.80 per Mcfe, compared to $2.51 per Mcfe in the corresponding 2010 period. The increase in total cash costs per-unit was primarily the result of the Canadian dividend tax associated with the restructuring of Forest’s Canadian business immediately prior to the initial public offering of Lone Pine.

« First ‹ Previous 1 2 3 4 5 6 7 8 9 ... Next › Last »