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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Contango Reports First Quarter Results

Below are the Company’s results of operations for the three months ended September 30, 2012 and 2011:

         
Three Months Ended
September 30,
2012         2011
(thousands, except per share amounts)
REVENUES:
Natural gas, oil and liquids sales $ 29,765   $ 44,203  
Total revenues 29,765   44,203  
EXPENSES:
Operating expenses 6,464 5,889
Exploration expenses 44,984 24
Depreciation, depletion and amortization 9,566 10,956
Impairment of natural gas and oil properties 8,410

-

General and administrative expenses 2,580   2,248  
Total expenses 72,004   19,117  
 
Gain from investments in affiliates, net of tax of $88 164

-

Other income/(expense) (12 ) (77 )
 
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (42,087 ) 25,009
Income tax benefit (provision) 14,538   (9,423 )
NET INCOME (LOSS) FROM CONTINUING OPERATIONS (27,549 ) 15,586
Discontinued operations, net of income taxes

-

  (682 )
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (27,549 ) $ 14,904  
NET INCOME (LOSS) PER SHARE:
Basic
Continuing operations $ (1.80 ) $ 0.99
Discontinued operations

-

  (0.04 )
Total $ (1.80 ) $ 0.95
Diluted
Continuing operations $ (1.80 ) $ 0.99
Discontinued operations

-

  (0.04 )
Total $ (1.80 ) $ 0.95
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 15,292   15,639  
Diluted 15,292   15,642  
 

Below is a summary of the Company’s production data, average sales price received, and selected data per thousand cubic feet equivalent, for the three months ended September 30, 2012 and 2011:

         
Three Months Ended September 30,
2012         2011         Change
(thousands, except percent change, average sales
price and selected data per Mcfe)
Production:
Natural gas (million cubic feet) 4,767 5,159 (8 )%
Oil and condensate (thousand barrels) 101 131 (23 )%
Natural gas liquids (thousand gallons) 6,287 5,710 10 %
Total (million cubic feet equivalent) 6,271 6,761 (7 )%
 
Natural gas (million cubic feet per day) 51.8 56.1 (8 )%
Oil and condensate (thousand barrels per day) 1.1 1.4 (23 )%
Natural gas liquids (thousand gallons per day) 68.3 62.1 10 %
Total (million cubic feet equivalent per day) 68.2 73.5 (7 )%
Average Sales Price:
Natural gas (per thousand cubic feet) $ 2.95 $ 4.28 (31 )%
Oil and condensate (per barrel) $ 105.31 $ 105.55 *
Natural gas liquids (per gallon) $ 0.80 $ 1.44 (44 )%
Total (per thousand cubic feet equivalent) $ 4.74 $ 6.54 (28 )%
Selected Data per Mcfe:
Lease operating expenses $ 1.03 $ 0.87 18 %
General and administrative expenses $ 0.41 $ 0.33 24 %
Depreciation, depletion and amortization of natural gas and oil properties $ 1.50 $ 1.60 (6 )%
 
* Less than 1%
 

Contango is a Houston-based, independent natural gas and oil company. The Company’s business is to explore, develop, produce and acquire natural gas and oil properties onshore and offshore in the Gulf of Mexico. Additional information can be found on our web page at www.contango.com.

This press release contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on Contango’s current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", “projects”, "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward looking statements in that they reflect estimates based on certain assumptions that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Contango’s operations or financial results are included in Contango’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs