Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced financial and operational results from continuing operations for the third quarter of 2012.
Forest noted the following results for the three months ended September 30, 2012:
- Average net sales volumes of 339 MMcfe/d organically increased 5% from the third quarter of 2011 and 1% from the second quarter of 2012
- Average oil net sales volumes of 8.9 MBbls/d organically increased 29% from the third quarter of 2011 and 7% from the second quarter of 2012
- Adjusted net earnings of $12 million compared to $29 million in the corresponding 2011 period
- Adjusted EBITDA of $134 million compared to $142 million in the corresponding 2011 period
- Adjusted discretionary cash flow of $97 million compared to $106 million in the corresponding 2011 period
Due primarily to a non-cash ceiling test write-down of $330 million and an $80 million impairment charge, Forest reported a net loss of $459 million, or $(3.97) per share, for the three months ended September 30, 2012.
Patrick R. McDonald, President and CEO, stated, “During the third quarter Forest made significant progress towards achieving the strategic objectives that we have communicated to our shareholders. Our divestiture program is off to a good start, with approximately $277 million in sales closed or pending. We will continue to focus on other non-core divestitures to improve our financial position and flexibility. We opportunistically took advantage of favorable high-yield market conditions to complete a $500 million Senior Notes offering, with proceeds used to redeem 50% of our outstanding Senior Notes due 2014. Importantly, our capital program is now closely aligned with our expected cash flow. Forest entered the fourth quarter operating five drilling rigs, all targeting oil or liquids-rich opportunities in our three core development areas. These actions have resulted in measurable achievements designed to better position Forest for the long-term.