Warren Resources Inc. (WRES, Financial) filed Quarterly Report for the period ended 2010-03-31.
Warren Resources Inc. has a market cap of $231.8 million; its shares were traded at around $3.28 with and P/S ratio of 3.7. WRES is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jim Simons of Renaissance Technologies LLC.
During the first quarter of 2010, the Company had net income of $7.2 million (which included $1.1 million of unrealized gains on derivative financial instruments). This compares to the first quarter of 2009 when the Company incurred a net loss of $6.6 million (which included $87,000 of unrealized losses on derivative financial instruments). At March 31, 2010, current assets were $14.2 million more than current liabilities. Currently, the Company has a borrowing base of $120 million and $85 million outstanding under the Credit Facility.
* Does not include estimated interest of $3.1 million less than one year, $5.2 million 1-3 years, $0.4 million 3-5 years and $1.3 million thereafter.
Oil and gas sales. Revenue from oil and gas sales increased $10.0 million in the first quarter of 2010 to $21.6 million, an 87% increase compared to the same quarter in 2009. This increase resulted from an increase in realized energy prices. The average realized price per barrel of oil for the three months ended March 31, 2010 and 2009 was $70.52 and $35.14, respectively. Additionally, the average realized price per Mcf of gas for the three months ended March 31, 2010 and 2009 was $5.50 and $2.89, respectively. Net oil production for the three months ended March 31, 2010 and 2009 was 223 Mbbls and 253 Mbbls, respectively. Net gas production for the three months ended March 31, 2010 and 2009 was 1.1 Bcf and 0.9 Bcf, respectively.
Lease operating expense. Lease operating expense for the first quarter of 2010 decreased 18% to $7.2 million ($3.00 per Mcfe) compared to $8.8 million ($3.61 per Mcfe) in the comparable period of 2009. Primarily, this decrease resulted from reduced lease operating expenses in our Atlantic Rim Project resulted from shutting in uneconomic wells and reduced workovers on wells. Additionally, this decrease resulted from reduced field expenses in our California oil properties.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense decreased $0.5 million for the first quarter of 2010 to $4.8 million, a 10% decrease compared to the corresponding quarter last year. This decrease reflects a reduction in estimated future development costs which reduced overall depletion expense. This decrease was partially offset by an increase in the depletion rate related to proved reserves in the full cost pool. The 2010 depletion rate decreased to $1.99 per mcfe compared to $2.18 per mcfe in 2009.
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Warren Resources Inc. has a market cap of $231.8 million; its shares were traded at around $3.28 with and P/S ratio of 3.7. WRES is in the portfolios of NWQ Managers of NWQ Investment Management Co, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our cash and cash equivalents increased $0.5 million to $17.8 million during the three months ended March 31, 2010. This resulted from cash provided from operating activities of $8.0 million offset by cash used in financing activities of $5.6 million and cash used in investing activities of $1.9 million.During the first quarter of 2010, the Company had net income of $7.2 million (which included $1.1 million of unrealized gains on derivative financial instruments). This compares to the first quarter of 2009 when the Company incurred a net loss of $6.6 million (which included $87,000 of unrealized losses on derivative financial instruments). At March 31, 2010, current assets were $14.2 million more than current liabilities. Currently, the Company has a borrowing base of $120 million and $85 million outstanding under the Credit Facility.
* Does not include estimated interest of $3.1 million less than one year, $5.2 million 1-3 years, $0.4 million 3-5 years and $1.3 million thereafter.
Oil and gas sales. Revenue from oil and gas sales increased $10.0 million in the first quarter of 2010 to $21.6 million, an 87% increase compared to the same quarter in 2009. This increase resulted from an increase in realized energy prices. The average realized price per barrel of oil for the three months ended March 31, 2010 and 2009 was $70.52 and $35.14, respectively. Additionally, the average realized price per Mcf of gas for the three months ended March 31, 2010 and 2009 was $5.50 and $2.89, respectively. Net oil production for the three months ended March 31, 2010 and 2009 was 223 Mbbls and 253 Mbbls, respectively. Net gas production for the three months ended March 31, 2010 and 2009 was 1.1 Bcf and 0.9 Bcf, respectively.
Lease operating expense. Lease operating expense for the first quarter of 2010 decreased 18% to $7.2 million ($3.00 per Mcfe) compared to $8.8 million ($3.61 per Mcfe) in the comparable period of 2009. Primarily, this decrease resulted from reduced lease operating expenses in our Atlantic Rim Project resulted from shutting in uneconomic wells and reduced workovers on wells. Additionally, this decrease resulted from reduced field expenses in our California oil properties.
Depreciation, depletion and amortization. Depreciation, depletion and amortization expense decreased $0.5 million for the first quarter of 2010 to $4.8 million, a 10% decrease compared to the corresponding quarter last year. This decrease reflects a reduction in estimated future development costs which reduced overall depletion expense. This decrease was partially offset by an increase in the depletion rate related to proved reserves in the full cost pool. The 2010 depletion rate decreased to $1.99 per mcfe compared to $2.18 per mcfe in 2009.
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