McMoRan Exploration Co. (MMR, Financial) filed Amended Quarterly Report for the period ended 2010-09-30.
Mcmoran Exploration Co. has a market cap of $1.58 billion; its shares were traded at around $16.58 with and P/S ratio of 3.6. MMR is in the portfolios of T Boone Pickens of BP Capital, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Our current production volume is comprised of approximately 75 percent natural gas and 25 percent oil. As a result, our revenues are generally more sensitive to changes in the market price of natural gas than to changes in the market price of oil. North American natural gas averaged $4.24 per MMbtu during the third quarter of 2010. The spot price for natural gas was $4.09 per MMbtu on November 8, 2010. The average oil price for the third quarter of 2010 was $76.09 per barrel and the spot price for oil was $87.06 per barrel on November 8, 2010. Future oil and natural gas prices are subject to change and these changes are not within our control (see Part 1, Item 1A. “Risk Factors” included in our 2009 Form 10-K).
Our operating loss of $57.4 million for the nine months ended September 30, 2010 reflects (a) impairment charges of $82.0 million for certain fields to reduce their net carrying value to fair value; and (b) $7.5 million in charges to exploration expense primarily related to the Blueberry Hill appraisal well. These charges are offset by (a) a $14.8 million gain associated with our share of a partial payment for insured losses related to the September 2008 hurricanes; (b) $4.2 million of net gains on oil and gas derivative contracts (Note 4); and (c) a $3.5 million gain on the sale of an oil and gas property.
Our third quarter 2009 operating loss of $35.5 million reflects (a) impairment charges of $11.2 million for certain fields to reduce their net carrying value to fair value and (b) $7.3 million in charges to exploration expense primarily relating to the Sherwood exploration well which was determined to be non-productive. These charges are offset by $0.7 million of net gains on oil and gas derivative contracts (Note 4).
Our operating loss for the nine months ended September 30, 2009 of $171.9 million reflects (a) impairment charges of $64.8 million for certain fields to reduce their net carrying value to fair value and (b) $61.7 million in charges to exploration expense primarily relating to exploration wells which were determined to be non-productive. These charges are offset by (a) an $18.7 million gain associated with our share of the initial receipt of insurance proceeds related to the September 2008 hurricanes and (b) $16.6 million of net gains on oil and gas derivative contracts (Note 4).
Our oil and natural gas sales volumes totaled 45.6 Bcfe and 54.6 Bcfe in the nine months ended September 30, 2010 and 2009, respectively. The decrease in sales volume is primarily related to the anticipated declining production curve associated with maturing properties as well as timing delays for certain well recompletion and development activities. Average realizations received for both oil and natural gas sold during the nine months ended September 30, 2010 increased 37 percent for oil and 23 percent for natural gas compared to amounts received in 2009 (see “—North American Natural Gas and Oil Market Environment” above). Revenues from plant products totaled $34.3 million in the nine months ended September 30, 2010 compared with $19.8 million in the prior year period. Our service revenues totaled $11.6 million in the nine months ended September 30, 2010 and $8.5 million in the same period for 2009.
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Mcmoran Exploration Co. has a market cap of $1.58 billion; its shares were traded at around $16.58 with and P/S ratio of 3.6. MMR is in the portfolios of T Boone Pickens of BP Capital, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
During the nine months ended September 30, 2010, we invested $160.3 million on capital-related projects primarily associated with our exploration activities. Our exploration, development and other capital expenditures for 2010 are expected to approximate $220 million, including approximately $140 million in exploration costs and $80 million in development costs. During the nine months ended September 30, 2010, we incurred $70.8 million of abandonment expenditures, net of prepayments by third parties. We plan to spend approximately $110 million in 2010 for the abandonment and removal of oil and gas structures in the Gulf of Mexico, including $50 million associated with hurricane damage reclamation for which we expect reimbursement under our insurance program.Our current production volume is comprised of approximately 75 percent natural gas and 25 percent oil. As a result, our revenues are generally more sensitive to changes in the market price of natural gas than to changes in the market price of oil. North American natural gas averaged $4.24 per MMbtu during the third quarter of 2010. The spot price for natural gas was $4.09 per MMbtu on November 8, 2010. The average oil price for the third quarter of 2010 was $76.09 per barrel and the spot price for oil was $87.06 per barrel on November 8, 2010. Future oil and natural gas prices are subject to change and these changes are not within our control (see Part 1, Item 1A. “Risk Factors” included in our 2009 Form 10-K).
Our operating loss of $57.4 million for the nine months ended September 30, 2010 reflects (a) impairment charges of $82.0 million for certain fields to reduce their net carrying value to fair value; and (b) $7.5 million in charges to exploration expense primarily related to the Blueberry Hill appraisal well. These charges are offset by (a) a $14.8 million gain associated with our share of a partial payment for insured losses related to the September 2008 hurricanes; (b) $4.2 million of net gains on oil and gas derivative contracts (Note 4); and (c) a $3.5 million gain on the sale of an oil and gas property.
Our third quarter 2009 operating loss of $35.5 million reflects (a) impairment charges of $11.2 million for certain fields to reduce their net carrying value to fair value and (b) $7.3 million in charges to exploration expense primarily relating to the Sherwood exploration well which was determined to be non-productive. These charges are offset by $0.7 million of net gains on oil and gas derivative contracts (Note 4).
Our operating loss for the nine months ended September 30, 2009 of $171.9 million reflects (a) impairment charges of $64.8 million for certain fields to reduce their net carrying value to fair value and (b) $61.7 million in charges to exploration expense primarily relating to exploration wells which were determined to be non-productive. These charges are offset by (a) an $18.7 million gain associated with our share of the initial receipt of insurance proceeds related to the September 2008 hurricanes and (b) $16.6 million of net gains on oil and gas derivative contracts (Note 4).
Our oil and natural gas sales volumes totaled 45.6 Bcfe and 54.6 Bcfe in the nine months ended September 30, 2010 and 2009, respectively. The decrease in sales volume is primarily related to the anticipated declining production curve associated with maturing properties as well as timing delays for certain well recompletion and development activities. Average realizations received for both oil and natural gas sold during the nine months ended September 30, 2010 increased 37 percent for oil and 23 percent for natural gas compared to amounts received in 2009 (see “—North American Natural Gas and Oil Market Environment” above). Revenues from plant products totaled $34.3 million in the nine months ended September 30, 2010 compared with $19.8 million in the prior year period. Our service revenues totaled $11.6 million in the nine months ended September 30, 2010 and $8.5 million in the same period for 2009.
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