McMoRan Exploration Co. (MMR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Mcmoran Exploration Co. has a market cap of $981.91 million; its shares were traded at around $10.63 with and P/S ratio of 2.26. MMR is in the portfolios of T Boone Pickens of BP Capital, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Our current production volume is comprised of approximately 75 percent natural gas and 25 percent oil. As a result, our revenues are generally more sensitive to changes in the market price of natural gas than to changes in the market price of oil. North American natural gas averaged $5.03 per MMbtu during the first quarter of 2010 compared to $4.49 per MMbtu during the first quarter of 2009. The spot price for natural gas was $4.02 per MMbtu on May 7, 2010. Natural gas prices continue to be impacted by weak industrial demand and abundant supply. The average oil price for the first quarter of 2010 was $78.61 per barrel compared to $43.30 per barrel for the comparable period of 2009. The spot price for oil was $75.11 per barrel on May 7, 2010. In comparison, as of December 31, 2009, the spot prices for natural gas and oil were $5.58 per MMbtu and $79.36 per barrel, respectively. Future oil and
Our first quarter 2010 operating loss of $41.3 million reflects (a) impairment charges of $57.0 million for certain fields to reduce their net carrying value to fair value; (b) $9.7 million in charges related to stock-based compensation expense; (c) $4.6 million in charges to exploration expense related to the Blueberry Hill appraisal well; and (d) $3.7 million of net gains on oil and gas derivative contracts.
Our first quarter 2009 operating loss of $49.1 million reflects (a) impairment charges of $39.0 million for certain fields to reduce their net carrying value to fair value; (b) $16.2 million in charges to exploration expense primarily relating to the Tom Sauk and Gladstone East exploration wells which were determined to be non-productive; (c) $18.9 million of net gains on oil and gas derivative contracts; (d) an $18.7 million gain associated with our share of the initial receipt of insurance proceeds related to the September 2008 hurricanes; and (e) $6.3 million in charges related to stock-based compensation expense.
General and administrative expense totaled $13.7 million in the first quarter of 2010 and $12.4 million in the first quarter of 2009. The increase in these costs is primarily related to higher stock-based compensation expense in 2010. Stock based compensation costs included in general and administrative expense increased to $4.9 million in the first quarter of 2010 from $3.1 million in the first quarter of 2009 (see “Stock-Based Compensation” below).
Our stock based compensation for the first quarter of 2010 increased from amounts charged to expense in the comparable period last year primarily as a result of the higher market price on the date of grant. On February 1, 2010, our Board of Directors granted a total of 1,766,500 stock options to our employees at an exercise price of $15.73 per share, including immediately exercisable options for an aggregate of 445,000 shares. Options representing 400,000 of these 445,000 shares were issued to our Co-Chairmen in lieu of cash compensation in 2010. The weighted average per share value of these options granted during the first quarter of 2010 was $10.30. We recorded $6.7 million in charges related to immediately vested stock options in the first quarter of 2010. These charges included the compensation costs associated with the immediately exercisable options and the compensation costs related to stock options granted to retiree-eligible employees, which resulted in one-year s compensation expense being immediately recognized at the effective date of the stock option grant. On February 2, 2009, our Board of Directors granted a total of 1,815,500 stock options to our employees at an exercise price of $6.44 per share. The weighted average per share value of the options granted during the first quarter of 2009 was $3.97. We
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Mcmoran Exploration Co. has a market cap of $981.91 million; its shares were traded at around $10.63 with and P/S ratio of 2.26. MMR is in the portfolios of T Boone Pickens of BP Capital, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We intend to remain focused on preserving our liquidity and managing our capital and operating needs while we pursue opportunities within our deep gas and ultra-deep gas exploration program, including the active development and exploitation of our recently announced Davy Jones ultra-deep discovery. Implementing our business strategy will require significant expenditures during 2010 and beyond. During the first quarter of 2010, we invested $40.8 million on capital-related projects primarily associated with our exploration activities. Our exploration, development and other capital expenditures for 2010 are expected to approximate $240 million, including approximately $170 million in exploration costs and $70 million in development costs. We also plan to spend approximately $100 million in 2010 to abandon and remove oil and gas structures in the Gulf of Mexico, a portion of which is associated with the removal of structures damaged during the 2005 and 2008 hurricane seasons. We expect to recover a substantial amount of the costs associated with the 2008 hurricane losses from our insurance program.Our current production volume is comprised of approximately 75 percent natural gas and 25 percent oil. As a result, our revenues are generally more sensitive to changes in the market price of natural gas than to changes in the market price of oil. North American natural gas averaged $5.03 per MMbtu during the first quarter of 2010 compared to $4.49 per MMbtu during the first quarter of 2009. The spot price for natural gas was $4.02 per MMbtu on May 7, 2010. Natural gas prices continue to be impacted by weak industrial demand and abundant supply. The average oil price for the first quarter of 2010 was $78.61 per barrel compared to $43.30 per barrel for the comparable period of 2009. The spot price for oil was $75.11 per barrel on May 7, 2010. In comparison, as of December 31, 2009, the spot prices for natural gas and oil were $5.58 per MMbtu and $79.36 per barrel, respectively. Future oil and
Our first quarter 2010 operating loss of $41.3 million reflects (a) impairment charges of $57.0 million for certain fields to reduce their net carrying value to fair value; (b) $9.7 million in charges related to stock-based compensation expense; (c) $4.6 million in charges to exploration expense related to the Blueberry Hill appraisal well; and (d) $3.7 million of net gains on oil and gas derivative contracts.
Our first quarter 2009 operating loss of $49.1 million reflects (a) impairment charges of $39.0 million for certain fields to reduce their net carrying value to fair value; (b) $16.2 million in charges to exploration expense primarily relating to the Tom Sauk and Gladstone East exploration wells which were determined to be non-productive; (c) $18.9 million of net gains on oil and gas derivative contracts; (d) an $18.7 million gain associated with our share of the initial receipt of insurance proceeds related to the September 2008 hurricanes; and (e) $6.3 million in charges related to stock-based compensation expense.
General and administrative expense totaled $13.7 million in the first quarter of 2010 and $12.4 million in the first quarter of 2009. The increase in these costs is primarily related to higher stock-based compensation expense in 2010. Stock based compensation costs included in general and administrative expense increased to $4.9 million in the first quarter of 2010 from $3.1 million in the first quarter of 2009 (see “Stock-Based Compensation” below).
Our stock based compensation for the first quarter of 2010 increased from amounts charged to expense in the comparable period last year primarily as a result of the higher market price on the date of grant. On February 1, 2010, our Board of Directors granted a total of 1,766,500 stock options to our employees at an exercise price of $15.73 per share, including immediately exercisable options for an aggregate of 445,000 shares. Options representing 400,000 of these 445,000 shares were issued to our Co-Chairmen in lieu of cash compensation in 2010. The weighted average per share value of these options granted during the first quarter of 2010 was $10.30. We recorded $6.7 million in charges related to immediately vested stock options in the first quarter of 2010. These charges included the compensation costs associated with the immediately exercisable options and the compensation costs related to stock options granted to retiree-eligible employees, which resulted in one-year s compensation expense being immediately recognized at the effective date of the stock option grant. On February 2, 2009, our Board of Directors granted a total of 1,815,500 stock options to our employees at an exercise price of $6.44 per share. The weighted average per share value of the options granted during the first quarter of 2009 was $3.97. We
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