Forestar manages its operations through three business segments: Mineral Resources, Real Estate and Fiber Resources.

MINERAL RESOURCES
  • Oil production up over 115% compared with first quarter 2011 and up almost 40% compared with fourth quarter 2011
  • Four new wells completed by exploration and production lessees, 534 producing wells at quarter-end, up 38 compared with first quarter 2011
  • Leased over 800 net mineral acres in Texas and received $1.1 million in delay rental payments
  • Invested $1.8 million in non-operating working interest in a new well in Louisiana

Segment Financial Results:
($ in millions)     1Q 2012       1Q 2011       4Q 2011
 
Segment Revenues $ 9.4 $ 7.3 $ 6.8
 
Segment Earnings $ 5.9 $ 5.6 $ 3.7

Mineral resources segment earnings increased in first quarter 2012 compared with first quarter 2011 principally due to increased oil production and higher oil prices, which were partially offset by decreased lease bonus revenues and incremental personnel costs. Mineral resources segment earnings increased in first quarter 2012 compared with fourth quarter 2011 primarily due to increased oil production.

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