Forest Oil Corp. (FST, Financial) filed Quarterly Report for the period ended 2009-03-31.
Forest Oil Corporation is engaged in the acquisition exploration development production and marketing of natural gas and crude oil in North America. Forest Oil's principal reserves and producing properties are located in the United States in the Gulf of Mexico Louisiana Texas Oklahoma and Wyoming and in Canada in Alberta and the Northwest Territories (company press release). Forest Oil Corp. has a market cap of $1.97 billion; its shares were traded at around $20.32 with a P/E ratio of 4.9 and P/S ratio of 1.2. Forest Oil Corp. had an annual average earning growth of 4.8% over the past 10 years.
The markets for oil and natural gas have been volatile historically and are likely to remain volatile in the future. Oil spot prices reached historical highs in July 2008, peaking at more than $145 per barrel, and natural gas spot prices reached near historical highs in July 2008, peaking at more than $13 per MMBtu. These prices have declined significantly since that time and may continue to fluctuate widely in the future. The prices we receive for our oil and natural gas depend upon factors beyond our control, including among others:
As of April 30, 2009, the principal amount of our outstanding consolidated debt was approximately $3.0 billion, which amount included approximately $936 million outstanding under our combined U.S. and Canadian credit facilities. Our level of indebtedness has several important effects on our business and operations; among other things, it may:
Read the The complete ReportFST is in the portfolios of David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Forest Oil Corporation is engaged in the acquisition exploration development production and marketing of natural gas and crude oil in North America. Forest Oil's principal reserves and producing properties are located in the United States in the Gulf of Mexico Louisiana Texas Oklahoma and Wyoming and in Canada in Alberta and the Northwest Territories (company press release). Forest Oil Corp. has a market cap of $1.97 billion; its shares were traded at around $20.32 with a P/E ratio of 4.9 and P/S ratio of 1.2. Forest Oil Corp. had an annual average earning growth of 4.8% over the past 10 years.
Highlight of Business Operations:
Our financial condition, operating results, and future rate of growth depend upon the prices that we receive for our oil and natural gas. Prices also affect our cash flow available for capital expenditures and our ability to access funds under our bank credit facilities and through the capital markets. The amount available for borrowing under our bank credit facilities is subject to a global borrowing base, which is determined by our lenders taking into account our estimated proved reserves and is subject to periodic redeterminations based on pricing models determined by the lenders at such time. The recent decline in oil and natural gas prices has adversely impacted the value of our estimated proved reserves and, in turn, the market values used by our lenders to determine our global borrowing base. If commodity prices remain at these current low levels for the remainder of 2009, or decrease further, it will have similar adverse effects on our reserves and global borrowing base. Further, because we have elected to use the full-cost accounting method, we must perform each quarter a "ceiling test" that is impacted by declining commodity prices. Significant price declines could cause us to take one or more ceiling test write-downs, which would be reflected as non-cash charges against current earnings. For example, as a result of the dramatic declines in oil and natural gas prices in the second half of 2008, we recorded a non-cash ceiling test write-down of $2.4 billion for the three months and year ended December 31, 2008. The write-down resulted in a charge to net earnings and the recording of a net loss in 2008. Further, we recorded an additional non-cash ceiling test write-down of $1.6 billion for the three months ended March 31, 2009. See "Lower oil and gas prices and other factors have resulted, and in the future may result, in ceiling test write-downs and other impairments of our asset carrying values."The markets for oil and natural gas have been volatile historically and are likely to remain volatile in the future. Oil spot prices reached historical highs in July 2008, peaking at more than $145 per barrel, and natural gas spot prices reached near historical highs in July 2008, peaking at more than $13 per MMBtu. These prices have declined significantly since that time and may continue to fluctuate widely in the future. The prices we receive for our oil and natural gas depend upon factors beyond our control, including among others:
As of April 30, 2009, the principal amount of our outstanding consolidated debt was approximately $3.0 billion, which amount included approximately $936 million outstanding under our combined U.S. and Canadian credit facilities. Our level of indebtedness has several important effects on our business and operations; among other things, it may:
Read the The complete ReportFST is in the portfolios of David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
