Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced financial and operational results for the fourth quarter and full-year 2012 and provided year-end estimated proved reserves. References to pro forma results excludes asset sales completed during 2012 and the South Texas divestiture that closed on February 15, 2013.
Forest noted the following results for the three months ended December 31, 2012:
- Average net sales volumes of 309 MMcfe/d; at the mid-point of previously provided guidance
- Average oil net sales volumes of 8.7 MBbls/d; pro forma increase of 47% from the fourth quarter of 2011
- Average liquids net sales volumes of 17.9 MBbls/d; pro forma increase of 21% from the fourth quarter of 2011
- Adjusted net earnings of $17 million compared to $20 million in the corresponding 2011 period
- Adjusted EBITDA of $132 million compared to $139 million in the corresponding 2011 period
- Adjusted discretionary cash flow of $93 million compared to $104 million in the corresponding 2011 period
Due primarily to a non-cash ceiling test write-down of $279 million and debt extinguishment costs of $36 million, Forest reported a net loss of $287 million, or $(2.48) per share, for the three months ended December 31, 2012.
Patrick R. McDonald, President and CEO, stated, “Forest has made measurable progress in executing a strategic realignment of operational and financial priorities. On a pro forma basis, fourth quarter oil volumes increased 47% compared to the fourth quarter of 2011, liquids made up approximately 35% of our equivalent volumes, and we expect continued oil and liquids growth in 2013. Our estimated oil reserves increased 27% during 2012 and comprise 15% of estimated proved reserves at year-end 2012 as compared with 9% at year-end 2011 pro forma for divestitures.
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