BANGALORE, Jan 19 - Oil and gas explorer McMoRan Exploration Co (MMR.N) posted a narrower-than-expected quarterly loss, helped by higher production and lower costs, sending its shares up as much as 4 percent. The company said it expects capital expenditures to be about $240 million in 2010, well above $138 million, spent in 2009.
However, McMoRan forecast average daily production of 200 MMcfe/d in the first quarter, and 180 MMcfe/d for the full year, lower than 202 MMcfe/d, reported in 2009.
The company said it expects lower production in 2010 because of declines in its traditional Gulf of Mexico wells.
"We expect significant reserves to come from Davy Jones over time and then from our other successes including Blueberry Hill as we go forward," said Co-Chairman Richard Adkerson in a conference call with analysts said.
Last week, McMoRan and its partner Energy XXI Ltd (EXXI.O) unveiled a gas discovery in the shallow waters of the Gulf of Mexico, sending their shares soaring and rekindling excitement about the region's potential as a major energy source. [ID:nSGE60A0J6]
"Though 2009 year-end reserves have been revised down materially to 272 billion cubic feet of natural gas equivalent (bcfe) from 344.8 bcfe in 2008, this shortfall should be more than made up from Davy Jones discovery which was logged last week," Jefferies and Co analysts wrote in a note to clients.
McMoRan operates the Davy Jones prospect, and has a 32.7 percent working interest, while Energy XXI has 15.8 percent working interest.
NARROWER Q4 LOSS
For the quarter, McMoRan posted a net loss applicable to common stock of $9.5 million, or 11 cents a share, compared with a loss of $314.6 million, or $4.46 a share, last year.
Revenue rose about 14 percent to $132 million.
Analysts on average had expected the company to post a quarterly loss of 28 cents a share on revenue of $135.7 million, according to Thomson Reuters I/B/E/S.
For the fourth quarter of 2008, the company recorded impairment charges of $291.8 million.
Fourth-quarter production averaged 209 million cubic feet of natural gas equivalent per day (mmcfe/d), up 29 percent over last year.
Shares of New Orleans-based company were up 3 percent at $14.43 Tuesday afternoon. The stock has risen 66 percent in the last three months.
However, McMoRan forecast average daily production of 200 MMcfe/d in the first quarter, and 180 MMcfe/d for the full year, lower than 202 MMcfe/d, reported in 2009.
The company said it expects lower production in 2010 because of declines in its traditional Gulf of Mexico wells.
"We expect significant reserves to come from Davy Jones over time and then from our other successes including Blueberry Hill as we go forward," said Co-Chairman Richard Adkerson in a conference call with analysts said.
Last week, McMoRan and its partner Energy XXI Ltd (EXXI.O) unveiled a gas discovery in the shallow waters of the Gulf of Mexico, sending their shares soaring and rekindling excitement about the region's potential as a major energy source. [ID:nSGE60A0J6]
"Though 2009 year-end reserves have been revised down materially to 272 billion cubic feet of natural gas equivalent (bcfe) from 344.8 bcfe in 2008, this shortfall should be more than made up from Davy Jones discovery which was logged last week," Jefferies and Co analysts wrote in a note to clients.
McMoRan operates the Davy Jones prospect, and has a 32.7 percent working interest, while Energy XXI has 15.8 percent working interest.
NARROWER Q4 LOSS
For the quarter, McMoRan posted a net loss applicable to common stock of $9.5 million, or 11 cents a share, compared with a loss of $314.6 million, or $4.46 a share, last year.
Revenue rose about 14 percent to $132 million.
Analysts on average had expected the company to post a quarterly loss of 28 cents a share on revenue of $135.7 million, according to Thomson Reuters I/B/E/S.
For the fourth quarter of 2008, the company recorded impairment charges of $291.8 million.
Fourth-quarter production averaged 209 million cubic feet of natural gas equivalent per day (mmcfe/d), up 29 percent over last year.
Shares of New Orleans-based company were up 3 percent at $14.43 Tuesday afternoon. The stock has risen 66 percent in the last three months.
