PetroQuest Energy Inc. (PQ, Financial) filed Quarterly Report for the period ended 2010-09-30.
Petroquest Energy Inc. has a market cap of $419.8 million; its shares were traded at around $6.64 with a P/E ratio of 17.5 and P/S ratio of 1.8. PQ is in the portfolios of NWQ Managers of NWQ Investment Management Co, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
Prices Including the effects of our hedges, average gas prices per Mcf for the three and nine month periods ended September 30, 2010 were $4.65 and $4.87, respectively, as compared to $5.56 and $5.67 for the respective 2009 periods. Average oil prices per Bbl for the three and nine months ended September 30, 2010 were $76.57 and $77.38, respectively, as compared to $75.32 and $64.41, respectively, for the 2009 periods. Stated on an Mcfe basis, unit prices received during the quarter and nine months ended September 30, 2010 were 7% and 5% lower than the prices received during the comparable 2009 periods.
Expenses Lease operating expenses for the three month period ended September 30, 2010 increased to $9,742,000 as compared to $9,665,000 during the 2009 period primarily as a result of unanticipated maintenance costs. Per unit lease operating expenses totaled $1.23 per Mcfe during the three month period ended September 30, 2010 as compared to $1.21 per Mcfe during the 2009 period. Lease operating expenses for the nine month period ended September 30, 2010 decreased to $28,457,000 as compared to $29,171,000 during the 2009 period. Per unit lease operating expenses totaled $1.24 per Mcfe during the nine month period ended September 30, 2010 as compared to $1.09 per Mcfe during the 2009 period. Per unit lease operating expenses increased and absolute lease operating expenses decreased during the first nine months of 2010 as compared to the 2009 period primarily due to the overall reduction in produced volumes. Lower insurance costs also contributed to the decrease in absolute lease operating expenses for the nine months ended September 30, 2010. We expect that lease operating expenses in the fourth quarter of 2010 will be lower than third quarter 2010 due to reduced maintenance costs. Lease operating expenses in 2011 are expected to generally approximate lease operating expenses in 2010.
Approximately $455,000 of share based compensation in the third quarter of 2010 was the result of the voluntary early cancellation of certain stock options and accelerated recognition of associated compensation expense. We capitalized $2,621,000 and $9,147,000 of general and administrative costs during the three and nine month periods ended September 30, 2010 and $1,916,000 and $6,143,000 of such costs during the comparable 2009 periods. We expect that 2010 general and administrative expenses will be higher than 2009 expenses due to increased employee related costs, including increased staffing due to the Woodford Shale joint development agreement.
Depreciation, depletion and amortization (DD&A) expense on oil and gas properties for the three and nine months ended September 30, 2010 totaled $14,429,000, or $1.82 per Mcfe, and $42,648,000, or $1.85 per Mcfe, respectively, as compared to $17,643,000, or $2.21 per Mcfe, and $67,268,000, or $2.52 per Mcfe, during the comparable 2009 periods. The declines in our DD&A per Mcfe were primarily the result of the ceiling test write-downs of a substantial portion of our proved oil and gas properties during 2009 as a result of lower commodity prices, the impact of the Woodford Shale joint development agreement, as well as reserve additions during 2010 from our Woodford operations. We expect DD&A per Mcfe for the fourth quarter of 2010 to generally approximate the third quarter of 2010 rate.
Interest expense, net of amounts capitalized on unevaluated properties, totaled $3,147,000 and $7,336,000 during the quarter and nine months ended September 30, 2010 as compared to $3,531,000 and $10,095,000 during the 2009 periods. We capitalized $1,562,000 and $6,285,000 of interest during three and nine month periods of 2010 and $2,113,000 and $6,350,000 during the 2009 periods. We have reduced the outstanding borrowings under our bank credit facility from $100 million at September 30, 2009 to zero at September 30, 2010. We also retired our 10 3/8% Senior Notes due 2012 during August 2010 in connection with the issuance of our 10% Senior Notes due 2017, which will result in a further decrease in our interest expense for the remainder of 2010.
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Petroquest Energy Inc. has a market cap of $419.8 million; its shares were traded at around $6.64 with a P/E ratio of 17.5 and P/S ratio of 1.8. PQ is in the portfolios of NWQ Managers of NWQ Investment Management Co, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
The above sales and average sales prices include additions related to the settlement of gas hedges of $4,550,000 and $20,996,000 and the settlement of oil hedges of zero and $1,167,000 for the three months ended September 30, 2010 and 2009, respectively. The above sales and average sales prices include additions related to the settlement of gas hedges of $10,837,000 and $57,415,000 and the settlement of oil hedges of zero and $4,682,000 for the nine months ended September 30, 2010 and 2009, respectively.Prices Including the effects of our hedges, average gas prices per Mcf for the three and nine month periods ended September 30, 2010 were $4.65 and $4.87, respectively, as compared to $5.56 and $5.67 for the respective 2009 periods. Average oil prices per Bbl for the three and nine months ended September 30, 2010 were $76.57 and $77.38, respectively, as compared to $75.32 and $64.41, respectively, for the 2009 periods. Stated on an Mcfe basis, unit prices received during the quarter and nine months ended September 30, 2010 were 7% and 5% lower than the prices received during the comparable 2009 periods.
Expenses Lease operating expenses for the three month period ended September 30, 2010 increased to $9,742,000 as compared to $9,665,000 during the 2009 period primarily as a result of unanticipated maintenance costs. Per unit lease operating expenses totaled $1.23 per Mcfe during the three month period ended September 30, 2010 as compared to $1.21 per Mcfe during the 2009 period. Lease operating expenses for the nine month period ended September 30, 2010 decreased to $28,457,000 as compared to $29,171,000 during the 2009 period. Per unit lease operating expenses totaled $1.24 per Mcfe during the nine month period ended September 30, 2010 as compared to $1.09 per Mcfe during the 2009 period. Per unit lease operating expenses increased and absolute lease operating expenses decreased during the first nine months of 2010 as compared to the 2009 period primarily due to the overall reduction in produced volumes. Lower insurance costs also contributed to the decrease in absolute lease operating expenses for the nine months ended September 30, 2010. We expect that lease operating expenses in the fourth quarter of 2010 will be lower than third quarter 2010 due to reduced maintenance costs. Lease operating expenses in 2011 are expected to generally approximate lease operating expenses in 2010.
Approximately $455,000 of share based compensation in the third quarter of 2010 was the result of the voluntary early cancellation of certain stock options and accelerated recognition of associated compensation expense. We capitalized $2,621,000 and $9,147,000 of general and administrative costs during the three and nine month periods ended September 30, 2010 and $1,916,000 and $6,143,000 of such costs during the comparable 2009 periods. We expect that 2010 general and administrative expenses will be higher than 2009 expenses due to increased employee related costs, including increased staffing due to the Woodford Shale joint development agreement.
Depreciation, depletion and amortization (DD&A) expense on oil and gas properties for the three and nine months ended September 30, 2010 totaled $14,429,000, or $1.82 per Mcfe, and $42,648,000, or $1.85 per Mcfe, respectively, as compared to $17,643,000, or $2.21 per Mcfe, and $67,268,000, or $2.52 per Mcfe, during the comparable 2009 periods. The declines in our DD&A per Mcfe were primarily the result of the ceiling test write-downs of a substantial portion of our proved oil and gas properties during 2009 as a result of lower commodity prices, the impact of the Woodford Shale joint development agreement, as well as reserve additions during 2010 from our Woodford operations. We expect DD&A per Mcfe for the fourth quarter of 2010 to generally approximate the third quarter of 2010 rate.
Interest expense, net of amounts capitalized on unevaluated properties, totaled $3,147,000 and $7,336,000 during the quarter and nine months ended September 30, 2010 as compared to $3,531,000 and $10,095,000 during the 2009 periods. We capitalized $1,562,000 and $6,285,000 of interest during three and nine month periods of 2010 and $2,113,000 and $6,350,000 during the 2009 periods. We have reduced the outstanding borrowings under our bank credit facility from $100 million at September 30, 2009 to zero at September 30, 2010. We also retired our 10 3/8% Senior Notes due 2012 during August 2010 in connection with the issuance of our 10% Senior Notes due 2017, which will result in a further decrease in our interest expense for the remainder of 2010.
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