Plains Exploration's Loss Narrows

Revenue rises 28%.
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Plains Exploration

(PXP)

, a developer of oil and gas properties, announced that its second-quarter loss narrowed.

The company lost $7.1 million, or 9 cents a share, in the quarter, compared with loss of $47.33 million, or 61 cents a share, a year ago. Adjusted for items, the company earned 95 cents a share. Analysts polled by Thomson First Call were estimating earnings of 90 cents a share for the latest quarter.

Second-quarter revenue rose 28.1% from a year-ago period to $278.4 million as against analysts' expectation of $274.9 million. Second-quarter oil sales rose 53.7% to $250.1 million. Second-quarter gas sales declined 48.8% to $27.6 million due to decline in gas production.

Sales volumes during the second quarter were 61,700 barrels of oil equivalent a day compared with second quarter 2005 sales volumes of 65,200 BOEPD. Sales volumes were lower year-over-year primarily due to asset sales in the second quarter 2005.

Total production costs were $13.65 a BOE in the second quarter compared with $11.34 a BOE in 2005. This increase was primarily due to lower volumes and higher lease operating costs, general cost increases from service providers, higher electricity costs and increased expenditures for repairs, maintenance and well workovers.

The company's shares were up 34 cents at $44.33.

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