This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forestar Group Inc. Reports First Quarter 2012 Results

Forestar Group Inc. (NYSE: FOR):

Accelerating Value Realization By Increasing Oil Production and Growing Net Asset Value By Capitalizing on Strategic Growth Opportunities

“During first quarter, oil and natural gas revenues continued to gain momentum, driven primarily by increased oil production in the Upper Wilcox formation located in Beauregard Parish, Louisiana. Residential lot sales activity continued to reflect year-over-year improvement due to low finished lot inventories and relatively stable demand in the major markets of Texas. We also closed the previously announced sale of our interest in the Palisades West commercial venture in Austin, Texas for $32 million. In addition, we completed the previously announced acquisition of the entire interest in 17 projects from the CL Realty and TEMCO ventures with Cousins Properties. These results are consistent with our Triple in FOR strategic initiatives to accelerate value realization and grow net asset value through strategic and disciplined investments,” said Jim DeCosmo, president and chief executive officer of Forestar Group.

First Quarter Significant Highlights

Minerals – Oil & Gas
  • Oil production up over 115% compared with first quarter 2011 and up almost 40% from fourth quarter 2011
  • Four new oil and gas wells completed; 534 active wells producing oil and natural gas operated by exploration and production lessees at quarter-end

Real Estate
  • Sold 285 finished residential lots, a 33% increase compared with first quarter 2011 – Almost 1,200 lots under option contracts
  • Sold seven acres of impervious cover development rights in Texas for over $1 million, resulting in over $900,000 in segment earnings; leaving about 90 acres available for sale

Strategic Initiatives
  • Closed the previously announced sale of our 25% interest in Palisades West for $32.0 million, generating a gain on sale of $11.7 million.
  • Completed the previously announced acquisition of the entire interest in 17 real estate assets from the CL Realty and TEMCO ventures, two ongoing ventures with Cousins Properties, for a net investment of approximately $23.5 million.

Forestar Group Inc. (NYSE: FOR) today reported first quarter 2012 net income of approximately $2.8 million, or $0.08 per diluted share, compared with a first quarter 2011 net loss of ($2.5) million, or ($0.07) per share outstanding.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs