Forestar Group Inc. (NYSE: FOR) today reported full year 2013 net income of approximately $29.3 million, or $0.80 per diluted share, compared with full year 2012 net income of approximately $12.9 million, or $0.36 per diluted share outstanding. Full year 2013 results include a previously unrecognized tax benefit of approximately $6.3 million, or $0.17 per share, related to qualified timber gains. Full year 2012 results include after-tax expenses of approximately ($4.1) million, or ($0.12) per share, associated with acquisition of CREDO Petroleum Corporation, and an after-tax loss of ($2.9) million, or ($0.08) per share, associated with loss on extinguishment of debt related to amendment and extension of our term loan.
“During 2013, housing markets continued to strengthen, and we experienced the highest level of residential lot sales and margins since 2006. In addition, residential tract sales strengthened, reflecting robust builder demand for lot positions. Commercial tract sales also increased, commensurate with a broadening real estate recovery. Multifamily demand, which has led the way in this housing recovery, remained solid in our target markets.
“Oil and gas investments and production continued to increase in the Bakken/Three Forks formations in North Dakota and in the Lansing-Kansas City formation in Kansas and Nebraska. In addition, total proved reserves increased nearly 52% to 8.5 million BOE (barrel of oil equivalent) despite producing almost 1.1 million BOE during 2013, which represents a strong pipeline of future opportunities to accelerate oil and gas production and returns,” said Jim DeCosmo, president and chief executive officer of Forestar Group.
Full Year 2013 Significant Highlights (Includes Ventures)Real Estate
- Sold 1,883 developed residential lots, with margins up 28% compared with 2012
- Sold over 6,810 acres of undeveloped land for $3,385 per acre
- Sold 171 commercial acres for over $197,000 per acre
- Sold 1,617 acres of residential tracts for nearly $14,200 per acre
- Sold Promesa, a stabilized multifamily community for $41.0 million, generating earnings of $10.9 million
- Oil production up nearly 88% compared with 2012, principally due to the acquisition of CREDO Petroleum and additional investments principally targeting the Bakken/Three Forks and Lansing-Kansas City formations
- 83 new productive gross oil and gas wells; 18 wells waiting on completion and drilling at year-end
- Leased nearly 9,200 net mineral acres to third parties principally in Texas for nearly $2.5 million
- Sold over 609,500 tons of fiber for $15.88 per ton
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