GASTAR EXPLORATION LTD (GST, Financial) filed Quarterly Report for the period ended 2011-09-30.
Gastar Exploration has a market cap of $227.3 million; its shares were traded at around $3.51 with and P/S ratio of 5.3.
During the three months ended September 30, 2011, approximately 92% of our natural gas production was hedged. The realized effect of hedging on natural gas sales was an increase of $2.4 million in natural gas and oil revenues resulting in an increase in total price realized from $3.37 per Mcf to $4.69 per Mcf. The realized hedge impact includes a benefit of $432,000 for amortization of prepaid call sale premiums. Excluding the non-cash amortization, the realized effect of hedging was an increase in revenues of $2.0 million, which was comprised of $2.9 million of NYMEX hedge gains offset by $68,000 of regional basis losses and payment of deferred put premiums of $861,000. For the remainder of 2011, we have costless three way collar hedges for approximately 3,300 MMBtu/d with a weighted average floor of $6.00, short put of $4.00 and a ceiling of $7.00. In addition, we have put spread hedges for approximately 16,000 MMBtu/d with a weighted average floor of $6.06 and a short put of $4.12 and fixed price swaps for 2,000 MMBtu/d at $6.11. Currently, these hedge positions represent approximately 99% of our estimated future 2011 natural gas production. During the three months ended September 30, 2010, the realized effect of hedging on natural gas sales was an increase of $1.5 million in natural gas and oil revenues resulting in an increase in total price realized from $3.39 per Mcf to $4.09 per Mcf. The 2010 realized hedge impact included $159,000 of amortization of prepaid call sale and put purchase premiums.
Depreciation, depletion and amortization. We reported depreciation, depletion and amortization (DD&A) expense of $3.7 million for the three months ended September 30, 2011 up from $2.7 million for the three months ended September 30, 2010. The increase in DD&A expense was the result of a 50% increase in the DD&A rate per Mcfe offset by an 8% decrease in production. The DD&A rate for the three months ended September 30, 2011 was $1.92 per Mcfe compared to $1.28 per Mcfe for the same period in 2010. The increase in the rate is primarily due to higher proved costs associated with recent East Texas wells drilled and additional allocation of undeveloped East Texas leasehold costs from unproved to proved properties based on recent drilling results. Additionally, the September 30, 2010 DD&A rate was reduced by the gathering system sales proceeds credited to proved property costs in the fourth quarter of 2009.
Revenues. Natural gas, oil and NGL revenues were $28.1 million for the nine months ended September 30, 2011, up from $22.2 million for the nine months ended September 30, 2010. The increase in revenues was the result of a 19% increase in weighted average prices, primarily resulting from increased oil prices and higher oil and NGL volumes for the 2011 period, and a 7% increase in volumes. Average daily production on an equivalent basis was 20.7 MMcfe/d for the nine months ended September 30, 2011 compared to 19.4 MMcfe/d for the same period in 2010. Oil and NGL daily production represented approximately 4% of total production for the nine months ended September 30, 2011 compared to 1% of daily production for the prior year nine month period.
effect of hedging was an increase in revenues of $5.4 million, which was comprised of $8.1 million of NYMEX hedge gains offset by $552,000 of regional basis losses and payment of deferred put premiums of $2.2 million. During the nine months ended September 30, 2010, the realized effect of hedging on natural gas sales was an increase of $2.0 million in natural gas and oil revenues resulting in an increase in total price realized from $3.74 per Mcf to $4.13 per Mcf. The 2010 realized hedge impact included $1.6 million of amortization of prepaid call sale and put purchase premiums.
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Gastar Exploration has a market cap of $227.3 million; its shares were traded at around $3.51 with and P/S ratio of 5.3.
Highlight of Business Operations:
Revenues. Our revenues are primarily derived from the production of natural gas in the United States. Total natural gas, oil and NGL revenues were $9.6 million for the three months ended September 30, 2011, up from $8.7 million for the three months ended September 30, 2010. The increase in revenues was the result of a 20% increase in weighted average prices, primarily resulting from increased oil prices and higher oil and NGL volumes for the 2011 period, offset by an 8% decrease in volumes. Average daily production on an equivalent basis was 20.9 MMcfe/d for the three months ended September 30, 2011 compared to 22.6 MMcfe/d for the same period in 2010. Oil and NGL daily production represented approximately 4% of total production for the three months ended September 30, 2011 compared to 1% of daily production for the prior year three month period.During the three months ended September 30, 2011, approximately 92% of our natural gas production was hedged. The realized effect of hedging on natural gas sales was an increase of $2.4 million in natural gas and oil revenues resulting in an increase in total price realized from $3.37 per Mcf to $4.69 per Mcf. The realized hedge impact includes a benefit of $432,000 for amortization of prepaid call sale premiums. Excluding the non-cash amortization, the realized effect of hedging was an increase in revenues of $2.0 million, which was comprised of $2.9 million of NYMEX hedge gains offset by $68,000 of regional basis losses and payment of deferred put premiums of $861,000. For the remainder of 2011, we have costless three way collar hedges for approximately 3,300 MMBtu/d with a weighted average floor of $6.00, short put of $4.00 and a ceiling of $7.00. In addition, we have put spread hedges for approximately 16,000 MMBtu/d with a weighted average floor of $6.06 and a short put of $4.12 and fixed price swaps for 2,000 MMBtu/d at $6.11. Currently, these hedge positions represent approximately 99% of our estimated future 2011 natural gas production. During the three months ended September 30, 2010, the realized effect of hedging on natural gas sales was an increase of $1.5 million in natural gas and oil revenues resulting in an increase in total price realized from $3.39 per Mcf to $4.09 per Mcf. The 2010 realized hedge impact included $159,000 of amortization of prepaid call sale and put purchase premiums.
Depreciation, depletion and amortization. We reported depreciation, depletion and amortization (DD&A) expense of $3.7 million for the three months ended September 30, 2011 up from $2.7 million for the three months ended September 30, 2010. The increase in DD&A expense was the result of a 50% increase in the DD&A rate per Mcfe offset by an 8% decrease in production. The DD&A rate for the three months ended September 30, 2011 was $1.92 per Mcfe compared to $1.28 per Mcfe for the same period in 2010. The increase in the rate is primarily due to higher proved costs associated with recent East Texas wells drilled and additional allocation of undeveloped East Texas leasehold costs from unproved to proved properties based on recent drilling results. Additionally, the September 30, 2010 DD&A rate was reduced by the gathering system sales proceeds credited to proved property costs in the fourth quarter of 2009.
Revenues. Natural gas, oil and NGL revenues were $28.1 million for the nine months ended September 30, 2011, up from $22.2 million for the nine months ended September 30, 2010. The increase in revenues was the result of a 19% increase in weighted average prices, primarily resulting from increased oil prices and higher oil and NGL volumes for the 2011 period, and a 7% increase in volumes. Average daily production on an equivalent basis was 20.7 MMcfe/d for the nine months ended September 30, 2011 compared to 19.4 MMcfe/d for the same period in 2010. Oil and NGL daily production represented approximately 4% of total production for the nine months ended September 30, 2011 compared to 1% of daily production for the prior year nine month period.
effect of hedging was an increase in revenues of $5.4 million, which was comprised of $8.1 million of NYMEX hedge gains offset by $552,000 of regional basis losses and payment of deferred put premiums of $2.2 million. During the nine months ended September 30, 2010, the realized effect of hedging on natural gas sales was an increase of $2.0 million in natural gas and oil revenues resulting in an increase in total price realized from $3.74 per Mcf to $4.13 per Mcf. The 2010 realized hedge impact included $1.6 million of amortization of prepaid call sale and put purchase premiums.
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