PetroQuest Energy Inc. (PQ, Financial) filed Quarterly Report for the period ended 2009-06-30.
PetroQuest Energy Inc. is an oil and gas exploration and production company primarily focused on growing its reserves and shareholder value through a combination of drilling development locations and high potential exploration prospects along and in the Gulf of Mexico. PetroQuest Energy Inc. has a market cap of $258.3 million; its shares were traded at around $4.25 with a P/E ratio of 6.4 and P/S ratio of 0.8. PetroQuest Energy Inc. had an annual average earning growth of 49.9% over the past 5 years.
Prices. Including the effects of our hedges, average oil prices per barrel for the quarter and six months ended June 30, 2009 were $67.90 and $59.64, respectively, as compared to $112.48 and $102.75, respectively, for the 2008 periods. Average gas prices per Mcf for the quarter and six months ended June 30, 2009 were $5.95 and $5.72, respectively, as compared to $9.64 and $9.06 for the respective 2008 periods. Stated on an Mcfe basis, unit prices received during the quarter and six months ended June 30, 2009 were 40% and 39% lower than the prices received during the comparable 2008 periods.
Expenses. Lease operating expenses for the three- and six-month periods ended June 30, 2009 decreased to $8,373,000 and $19,506,000, respectively, as compared to $9,900,000 and $20,097,000, respectively, during the 2008 periods. Per unit operating expenses totaled $0.98 and $1.05, per Mcfe during the three- and six-month periods of 2009, respectively, as compared to $1.18 and $1.23 per Mcfe during the 2008 periods. The decrease in lease operating expenses was primarily due to the decline in costs of services and materials in the markets in which we operate as the demand for such materials and services has weakened as a result of the substantial decline in commodity prices and the overall condition of the oil and gas industry and the global economy.
General and administrative expenses during the quarter and six months ended June 30, 2009 decreased 41% and 27% to $4,197,000 and $9,022,000, respectively, as compared to expenses of $7,149,000 and $12,316,000 during the comparable 2008 periods. We capitalized $2,195,000 and $4,227,000, respectively of general and administrative costs during the three- and six-month periods ended June 30, 2009 and $4,178,000 and $6,527,000 during the comparable 2008 periods. The decline in general and administrative expense during the 2009 periods was in part due to lower non-cash share based compensation during the three and six month periods ended June 30, 2009, as compared to the corresponding 2008 periods. In addition, during May 2008, we incurred compensation expense of approximately $2.5 million, or approximately $1.2 million net of capitalization, related to the election to pay employee taxes on the vesting of certain restricted stock grants. There was no similar expense incurred during 2009. Overall, we expect that general and administrative costs during 2009 will continue to be less than 2008 amounts.
Depreciation, depletion and amortization (DD&A) expense on oil and gas properties for the quarter and six months ended June 30, 2009 totaled $18,087,000, or $2.11 per Mcfe, and $49,625,000, or $2.66 per Mcfe, respectively, as compared to $30,930,000, or $3.67 per Mcfe, and $59,987,000, or $3.68 per Mcfe, during the 2008 periods. The decline in our DD&A per Mcfe was the result of the ceiling test write-down of a substantial portion of our proved oil and gas properties during 2008 and the first quarter of 2009 as a result of lower commodity prices. Assuming commodity prices remain at current levels, we would expect our DD&A per Mcfe for the remainder of 2009 to approximate first half 2009 levels.
Interest expense, net of amounts capitalized on unevaluated properties, totaled $3,388,000 and $6,564,000, respectively, during the quarter and six months ended June 30, 2009 as compared to $2,390,000 and $4,889,000 during the 2008 periods. The increase in interest expense during the 2009 periods is due to the increase in bank debt outstanding. We capitalized $2,208,000 and $4,237,000 of interest during the three- and six-month periods of 2009 and $2,511,000 and $4,801,000 during the respective 2008 periods.
Read the The complete ReportPQ is in the portfolios of Lee Ainslie of Maverick Capital, NWQ Managers of NWQ Investment Management Co.
PetroQuest Energy Inc. is an oil and gas exploration and production company primarily focused on growing its reserves and shareholder value through a combination of drilling development locations and high potential exploration prospects along and in the Gulf of Mexico. PetroQuest Energy Inc. has a market cap of $258.3 million; its shares were traded at around $4.25 with a P/E ratio of 6.4 and P/S ratio of 0.8. PetroQuest Energy Inc. had an annual average earning growth of 49.9% over the past 5 years.
Highlight of Business Operations:
The above sales and average sales prices include additions (reductions) related to the settlement of gas hedges of $22,441,000 and ($7,787,000) and the settlement of oil hedges of $1,470,000 and ($2,121,000) for the three months ended June 30, 2009 and 2008, respectively. The above sales and average sales prices include additions (reductions) related to the settlement of gas hedges of $36,419,000 and ($7,613,000) and the settlement of oil hedges of $3,515,000 and ($2,937,000) for the six months ended June 30, 2009 and 2008, respectively.Prices. Including the effects of our hedges, average oil prices per barrel for the quarter and six months ended June 30, 2009 were $67.90 and $59.64, respectively, as compared to $112.48 and $102.75, respectively, for the 2008 periods. Average gas prices per Mcf for the quarter and six months ended June 30, 2009 were $5.95 and $5.72, respectively, as compared to $9.64 and $9.06 for the respective 2008 periods. Stated on an Mcfe basis, unit prices received during the quarter and six months ended June 30, 2009 were 40% and 39% lower than the prices received during the comparable 2008 periods.
Expenses. Lease operating expenses for the three- and six-month periods ended June 30, 2009 decreased to $8,373,000 and $19,506,000, respectively, as compared to $9,900,000 and $20,097,000, respectively, during the 2008 periods. Per unit operating expenses totaled $0.98 and $1.05, per Mcfe during the three- and six-month periods of 2009, respectively, as compared to $1.18 and $1.23 per Mcfe during the 2008 periods. The decrease in lease operating expenses was primarily due to the decline in costs of services and materials in the markets in which we operate as the demand for such materials and services has weakened as a result of the substantial decline in commodity prices and the overall condition of the oil and gas industry and the global economy.
General and administrative expenses during the quarter and six months ended June 30, 2009 decreased 41% and 27% to $4,197,000 and $9,022,000, respectively, as compared to expenses of $7,149,000 and $12,316,000 during the comparable 2008 periods. We capitalized $2,195,000 and $4,227,000, respectively of general and administrative costs during the three- and six-month periods ended June 30, 2009 and $4,178,000 and $6,527,000 during the comparable 2008 periods. The decline in general and administrative expense during the 2009 periods was in part due to lower non-cash share based compensation during the three and six month periods ended June 30, 2009, as compared to the corresponding 2008 periods. In addition, during May 2008, we incurred compensation expense of approximately $2.5 million, or approximately $1.2 million net of capitalization, related to the election to pay employee taxes on the vesting of certain restricted stock grants. There was no similar expense incurred during 2009. Overall, we expect that general and administrative costs during 2009 will continue to be less than 2008 amounts.
Depreciation, depletion and amortization (DD&A) expense on oil and gas properties for the quarter and six months ended June 30, 2009 totaled $18,087,000, or $2.11 per Mcfe, and $49,625,000, or $2.66 per Mcfe, respectively, as compared to $30,930,000, or $3.67 per Mcfe, and $59,987,000, or $3.68 per Mcfe, during the 2008 periods. The decline in our DD&A per Mcfe was the result of the ceiling test write-down of a substantial portion of our proved oil and gas properties during 2008 and the first quarter of 2009 as a result of lower commodity prices. Assuming commodity prices remain at current levels, we would expect our DD&A per Mcfe for the remainder of 2009 to approximate first half 2009 levels.
Interest expense, net of amounts capitalized on unevaluated properties, totaled $3,388,000 and $6,564,000, respectively, during the quarter and six months ended June 30, 2009 as compared to $2,390,000 and $4,889,000 during the 2008 periods. The increase in interest expense during the 2009 periods is due to the increase in bank debt outstanding. We capitalized $2,208,000 and $4,237,000 of interest during the three- and six-month periods of 2009 and $2,511,000 and $4,801,000 during the respective 2008 periods.
Read the The complete ReportPQ is in the portfolios of Lee Ainslie of Maverick Capital, NWQ Managers of NWQ Investment Management Co.
