The CO 2 business produced fourth quarter segment earnings before DD&A and certain items of $337 million, up 20 percent from $281 million for the same period in 2011. For the year, CO 2 produced $1.326 billion of segment earnings before DD&A and certain items, up 21 percent from $1.094 billion in 2011, but short of its published annual budget for 26 percent growth due to lower NGL prices. NGL prices were about 22 percent lower than budgeted.
“Our CO 2 business had a remarkable year and would have achieved its budget if it weren’t for low NGL prices,” Kinder said. “For 2012, growth was driven by increased oil production at SACROC and the Katz Field, record NGL production at the Snyder Gasoline Plant and slightly higher oil prices versus 2011. Growth in the fourth quarter was led by strong volumes at SACROC, with oil production reaching over 30,000 barrels per day, and record NGL production.”
Oil production at the SACROC Unit increased to 30.6 thousand barrels per day (MBbl/d) in the fourth quarter, up 10 percent from 27.8 MBbl/d for the same period last year, and above plan for the year. Production continued to be relatively stable at the Yates Field, which produced 20.8 MBbl/d in the fourth quarter, about a 5 percent decline compared to the same period last year, but above third quarter production and just slightly below plan for the full year. Production at the Katz Field was 1.8 MBbl/d in the fourth quarter, up significantly from 1.0 MBbl/d for the same period last year, but flat with the third quarter and well below its annual plan. The average West Texas Intermediate (WTI) crude oil price for the full year was $94.21, slightly higher than the budgeted projection of $93.75.