This Day On The Street
Continue to site
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

Contango Reports Fiscal Second Quarter Results

Contango Oil & Gas Company (NYSE MKT: MCF) reported net income for the quarter ended December 31, 2012 of approximately $2.6 million, or $.17 per basic and diluted share, compared to net income for the same period last year of approximately $19.5 million, or $1.27 per basic and diluted share.

Joseph J. Romano, the Company’s President and Chief Executive Officer, said, “Our earnings this quarter are still being impacted by the two dry holes at Eagle and Fang we drilled the preceding quarter. We incurred $6.3 million in exploration expenses for the quarter related to these two wells, along with $5.7 million of impairment charges related to writing down our reserves at Ship Shoal 263. Lower sales prices as well as production downtime for maintenance also contributed to the decrease in earnings. We received $5.23/Mcfe for the quarter ended December 31, 2012 as compared to $6.18/Mcfe for the quarter ended December 31, 2011.

“Our significant Dutch and Mary Rose fields continue to produce consistent with our forecast. The Company’s balance sheet continues to be very strong. We have no debt, $100 million of working capital, and $7.0 million per month of anticipated cash flow available for exploration. We are presently looking to balance our inventory of offshore prospects with the opportunity to participate further in predictable, high quality, onshore resource plays. We plan to drill our next offshore well in mid-2013 when permits on our Ship Shoal 255 prospect are anticipated to be approved.”

Our offshore reserves as of December 31, 2012 were approximately 221.1 billion cubic feet equivalent (“Bcfe”). These reserves are approximately 27.0 Bcfe less than our proved reserves as of September 30, 2012. The major contributors to this decrease include normal production of 6.7 Bcfe during the quarter, a 5.1 Bcfe decrease in our Ship Shoal 263 reserves estimates, and a 14.0 Bcfe decrease in our Vermilion 170 reserves estimates, as determined by our reservoir engineer.

1 of 4

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.99 -0.02%
FB $99.54 -0.21%
GOOG $678.11 -0.68%
TSLA $148.25 0.18%
YHOO $26.82 -0.85%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs