Plains Exploration & Production Company (PXP) filed Quarterly Report for the period ended 2009-09-30.
PLAINS EXPLORATION & PRODUCTION COMPANY is an independent oil and gas company primarily engaged in the activities of acquiring developing exploring and producing oil and gas properties primarily in the United States. The Company owns oil and gas properties with principal operations in the Los Angeles and San Joaquin Basins onshore California; the Santa Maria Basin offshore California; the Piceance and Wind River Basins in the Rocky Mountains; the Permian Basin in West Texas and New Mexico; the Anadarko Basin in the Texas Panhandle and the South Texas and Gulf Coast regions including the Gulf of Mexico. Plains Exploration & Production Company has a market cap of $3.72 billion; its shares were traded at around $27.12 with a P/E ratio of 6.4 and P/S ratio of 1.5. Plains Exploration & Production Company had an annual average earning growth of 25.5% over the past 5 years.
Highlight of Business Operations:
Oil revenues decreased $279.2 million to $249.6 million for 2009 from $528.8 million for 2008 reflecting lower average realized prices ($234.9 million) and lower sales volumes ($44.3 million). Our average realized price for oil decreased $45.74 to $57.26 per Bbl for 2009 from $103.00 per Bbl for 2008. Oil sales volumes decreased 8.4 MBbls per day to 47.4 MBbls per day in 2009 from 55.8 MBbls per day in 2008, primarily reflecting the impact of our divestments in 2008 (5.5 MBbls per day).
Gas revenues decreased $119.6 million to $62.4 million in 2009 from $182.0 million in 2008 due to a decrease in realized prices ($117.8 million) and decreased sales volumes ($1.8 million). Our average realized price for gas was $3.18 per Mcf in 2009 compared to $9.01 per Mcf in 2008. Gas sales volumes decreased from 219.5 MMcf per day in 2008 to 213.7 MMcf per day in 2009, primarily reflecting the impact of our divestments in 2008 (43.1 MMcf per day). Excluding the impact of our divestments, increased production from the Haynesville Shale and Flatrock properties is responsible for a 21% increase in sales volumes for the three months ended September 30, 2009 compared to the same period a year ago.
Depreciation, depletion and amortization, or DD&A. DD&A expense decreased $38.2 million, to $101.8 million in 2009 from $140.0 million in 2008. The decrease is attributable to our oil and gas depletion, primarily due to a lower per unit rate ($26.2 million) and decreased production ($10.8 million). Our oil and gas unit of production rate decreased to $12.66 per BOE in 2009 compared to $15.71 per BOE in 2008. The decrease primarily reflects the 2008 year-end impairment of our oil and gas properties, which reduced our DD&A rate in subsequent periods.
Oil revenues decreased $905.3 million to $625.8 million for 2009 from $1.5 billion for 2008 reflecting lower average realized prices ($803.6 million) and lower sales volumes ($101.7 million). Our average realized price for oil decreased $52.19 to $47.24 per Bbl for 2009 from $99.43 per Bbl for 2008. Oil sales volumes decreased 7.7 MBbls per day to 48.5 MBbls per day in 2009 from 56.2 MBbls per day in 2008, primarily reflecting the impact of our divestments in 2008 (7.1 MBbls per day).
Gas revenues decreased $336.2 million to $192.2 million in 2009 from $528.4 million in 2008 due to a decrease in realized prices ($319.7 million) and decreased sales volumes ($16.5 million). Our average realized price for gas was $3.56 per Mcf in 2009 compared to $9.00 per Mcf in 2008. Gas sales volumes decreased from 214.1 MMcf per day in 2008 to 197.9 MMcf per day in 2009, primarily reflecting the impact of our divestments in 2008 (57.5 MMcf per day). Excluding the impact of our divestments, increased production from the Haynesville Shale and Flatrock properties is responsible for a 26% increase in sales volumes in the first nine months of 2009 compared to the same period a year ago.
Depreciation, depletion and amortization, or DD&A. DD&A expense decreased $130.9 million, to $280.7 million in 2009 from $411.6 million in 2008. The decrease is attributable to our oil and gas DD&A, primarily due to a lower per unit rate ($97.5 million) and decreased production ($34.4 million). Our oil and gas unit of production rate decreased to $11.89 per BOE in 2009 compared to $15.72 per BOE in 2008. The decrease primarily reflects the 2008 year-end impairment of our oil and gas properties, which has reduced our depletion rate in subsequent periods.
PXP is in the portfolios of George Soros of Soros Fund Management LLC, PRIMECAP Management, John Keeley of Keeley Fund Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
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