will fall short of its prior fiscal 2006 earnings expectations, the company announced after the close of trading on Monday.
The disappointing news sent shares lower in late trading. The stock recently shed $2.16, or 6.9%, to $29.15.
The Houston-based energy firm lowered its EPS range to $2.80 to $3.20. Previously, the company said earnings would be in the high end of its $3.20-to-$3.70-a-share range. Thomson First Call analysts had expected the company to make a profit of $3.43 a share for the year.
The company also narrowed its range on the top line. Now, the company expects sales between $930 million and $970 million, shortening the range from $900 million to $1 billion. That's significantly lower than what consensus anticipated at $1.44 billion.
"The main reason for the revised guidance is lower production volumes caused by both third-party pipeline shut-ins and production management integration following the closing of the acquisition of Remington Oil and Gas. These latter integration issues are now largely behind us," Martin Ferron, president and CEO, said in a statement. "Most of the production shortfall is due to factors beyond our control, as are prevailing spot commodity prices, which are below the low end of our previous expectations."
Ferron said the company will update its 2007 guidance in early December.