Plains Exploration & Production Company Reports Operating Results (10-Q)
Plains Exploration & Production Company has a market cap of $3.82 billion; its shares were traded at around $27.4 with a P/E ratio of 5.1 and P/S ratio of 3.2. PXP is in the portfolios of Westport Asset Management, George Soros of Soros Fund Management LLC, PRIMECAP Management, Stanley Druckenmiller of Duquesne Capital Management, LLC, John Keeley of Keeley Fund Management, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Oil revenues increased $119.4 million to $276.0 million for 2010 from $156.6 million for 2009 primarily reflecting higher average realized prices. Our average realized price for oil increased $32.59 per Bbl to $67.82 per Bbl for 2010 from $35.23 per Bbl for 2009. The increase is primarily attributable to an increase in the NYMEX oil price, which averaged $78.88 per Bbl in 2010 versus $43.31 per Bbl in 2009. Oil sales volumes decreased 4.2 MBbls per day to 45.2 MBbls per day in 2010 from 49.4 MBbls per day in 2009, primarily reflecting decreased production in our onshore and offshore California properties.
Gas revenues increased $36.4 million to $107.7 million in 2010 from $71.3 million in 2009 due to an increase in sales volumes ($22.7 million) and an increase in realized prices ($13.7 million). Our average realized price for gas was $5.00 per Mcf in 2010 compared to $4.19 per Mcf in 2009. Gas sales volumes increased from 188.8 MMcf per day in 2009 to 239.3 MMcf per day in 2010, primarily reflecting increased production from our Haynesville Shale properties. Our realized price for gas increased primarily due to an increase in the NYMEX natural gas price, which averaged $5.27 per MMBtu in 2010 versus $4.87 per MMBtu in 2009.
Depreciation, depletion and amortization. DD&A expense increased $34.3 million, to $122.4 million in 2010 from $88.1 million in 2009. The increase is attributable to our oil and gas DD&A, primarily due to a higher per unit rate ($28.4 million) and increased production ($5.4 million). Our oil and gas unit of production rate increased to $15.33 per BOE in 2010 compared to $11.49 per BOE in 2009.
Our borrowing base under our senior revolving credit facility was $1.13 billion, $1.129 billion of which was available at March 31, 2010. Our borrowing base was adjusted from $1.22 billion to $1.13 billion in recognition of our issuance of the 7 5/8% Senior Notes due 2020 in March 2010. On April 12, 2010, we entered into an amendment to our senior revolving credit facility. The amendment increased the borrowing base to $1.3 billion from $1.13 billion. In addition, the amendment allows us to increase our investments in certain subsidiaries and joint ventures. Our senior revolving credit facility contains a $250 million limit on letters of credit, a $50 million commitment for swingline loans and matures on November 6, 2012. As of March 31, 2010, we had $1.2 million in letters of credit outstanding.
Net cash used in investing activities of $227.5 million in 2010 primarily reflects additions to oil and gas properties of $267.0 million, offset by a $51.1 million cash inflow associated with an adjustment to the final settlement of the $1.1 billion payment to Chesapeake Energy Corporation in September 2009 related to the prepayment of the Haynesville drilling carry. Net cash provided by investing activities of $872.0 million in 2009 primarily reflects derivative settlements received of $1.3 billion, partially offset by additions to oil and gas properties of $416.4 million.
Net cash provided by financing activities of $64.7 million in 2010 primarily reflects proceeds from the $300 million offering of 75/8 % Senior Notes partially offset by the net reduction in borrowings under our senior revolving credit facility of $230.0 million. Net cash used in financing activities of $973.0 million in 2009 primarily reflects the $1.3 billion net reduction in borrowings under our senior revolving credit facility partially offset by proceeds from the $365 million offering of 10% Senior Notes.
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