NEW YORK (TheStreet) -- Forest Oil Corporation (FST) was plummeting 38.08% to $2.00 Wednesday after the company reported fourth-quarter earnings that came up short of analysts' expectations and announced a significant decline in its end-of-year reserves estimate.
The company reported earnings per share of 2 cents for the quarter, which just missed the consensus estimate of 3 cents from analysts polled by Thomson Reuters. The company also missed on revenue at $88.49 million, which came up well short of analysts' expectations of $96.31 million.
Furthermore, Forest Oil reported that its estimates as of Dec. 31, 2013 proved reserves of 625 billions of cubic feet equivalent (Bcfe), which were 66% proved developed, compared to 1,363 Bcfe at December 31, 2012, which were 69% proved developed. The decrease was attributed to 800 Bcfe of asset divestitures in 2013 partially offset by extensions and discoveries of 148 Bcfe.
TheStreet Ratings team rates FOREST OIL CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FOREST OIL CORP (FST) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow."