Forest Oil Swings to Loss

Results include a $2.4 billion charge that the company referred to as an 'oil and gas property impairment.'
Author:
Publish date:

Forest Oil

(FST)

reported a net loss of $1.4 billion, or $14.50 per share in the fourth quarter, compared with net income of $27.6 million, or 32 cents per share during the same period last year.

Forest's quarterly results were affected by various non-cash impairments, including a $2.4 billion charge that the company referred to as an "oil and gas property impairment." Adjusted for these items, Forest generated net income of $30.6 million, down 56% compared to last year's period. Forest generated adjusted EBITDA of $254.6 million, down 4% compared to last year's results.

Forest's results beat analyst estimates for earnings, but they missed analyst estimates for quarterly revenue.

Meanwhile, the integrated energy space tumbled lower during Monday's trading session, nudged by falling energy commodity prices.

BP

(BP) - Get Report

slid 3.6% to $38.65 per share,

ConocoPhillips

(COP) - Get Report

fell 4.7% to $37.58 per share,

Chevron

(CVX) - Get Report

dropped 3.3% to $62.94 per share,

Royal Dutch Shell

(RDS.A)

fell 3.9% to $45.69 per share, and

Exxon Mobil

(XOM) - Get Report

dropped 2.7% to $69.30 per share.

The front month West Texas crude futures contract fell $1.29 to settle at $38.44 per barrel, while natural gas edged two cents higher to settle at $4.097 per million British thermal units.

Shares of Forest Oil were down 8.1%, at $14.50 per share in after-hours trading.