Thank you and good morning everyone. Welcome to the McMoRanExploration third quarter 2007 conference call. This is an exciting measure forMcMoRan as we inform on our first accommodate results following the acquisition ofthe Gulf of Mexico Shelf properties from Newfield during the third quarter. Ourresults were released earlier this morning and a copy of the press release isavailable on our website at mcmoran com.
Our conference label today is being broadcast live on theInternet and anyone may listen to the call by accessing our website homepageand clicking on the webcast link for the conference call. As usual we haveseveral slides to add our comments this morning. We’ll be referring tothe slides during the call and you can access those slides by using the webcastlink on mcmoran com. In addition to analysts and investors the financial presshas also been invited to comprehend to today’s call and a replay of the webcastwill be available on our website later today.
Before we begin today’s comments. I would desire to remindeveryone that today’s press release and certain of our comments on the callinclude forward-looking statements. gratify refer to the cautionary languageincluded in our touch release and presentation materials and to the riskfactors described in our SEC filings.
On the call with me today are McMoRan’s Co-Chairmen. Jim BobMoffett and Richard Ackerson. I’ll alter a brief summary of our results and thenturn the label over to Richard who will be reviewing the slide materials postedon the website and then we will change state the call for questions.
Today McMoRan reported net loss of $52.2 million. $1.50 pershare for the third quarter of 2007 compared with a net loss of $19 million,$0.67 per overlap for the third quarter of 2006. Our third quarter 2007 financialand operating results consider the acquired Newfield properties beginning onAugust 6. 2007. The results of the acquired properties from the July 1. 2007effective go out through the closing date are reflected as acquire priceadjustments on McMoRan’s balance sheet.
Our net loss from continuing operations for the thirdquarter of 2007 totaled $51 million that included $37 million in explorationexpense comprised of $12.5 million for the acquisition of seismic data relatedto the acquired Newfield acreage and $20.4 million for non-productiveexploratory well costs primarily associated with the Caswell at South TimbalierBlock 98.
We also recorded an impairment charge of $13.6 million towrite-off the remaining schedule determine of the beat Ridge field and a gain of $10.7million for non-cash mark-to-market accounting adjustments associated with ourderivative contracts.
As we previously reported in connection with the acquisitionof the Newfield properties we entered into derivative contracts to hedgeapproximately 80% of our estimated proved producing volumes for the period from2008 through 2010 through a combination of swaps and puts. Our third quarterrevenues include the acquired properties as I said beginning on the August 6closing go out.
The oil and gas revenues totaled $131 million compared to$57.8 million during the third accommodate of 2006. Since the August 6 closingdate the Newfield properties contributed $95.4 million of oil and gas revenuesto McMoRan. And for the full third accommodate since July 1 the Newfield propertiesgenerated oil and gas revenues of $164.3 million.
Our third quarter production including results from theNewfield properties since August 6 averaged $185 million a day net to McMoRan,compared with $75 million a day in the third accommodate of the year ago period. Ona pro forma basis our production averaged $289 million cubic feet equivalentsper day and that included just over $240 million cubic feet equivalents naturalgas per day from the Newfield properties since July 1st and $48 million a dayfrom legacy McMoRan properties. This was slightly below the previous estimatesthat we reported of $300 million a day primarily as a result of the exerciseof preferential rights associated with one of the acquired properties.
Our third quarter realizations for gas were $6.17 per Mcf in2007. This compared with $6.51 in the year ago accommodate. And for oil wereceived an average of $75.08 per lay in the third quarter of ‘07 comparedwith $65.11 in the year ago period.
I would now like to turn the label over to Richard who willbe providing additional details on the Newfield transaction drilling program,including the recent Flatrock discovery and also our outlook.
Thanks. Kathleen. It’s obviously a big big quarter for ushaving completed the Newfield acquisition. As Kathleen said we closed thattransaction on August the 6. The effective date for transferring production wasJuly 1. Big expansion of scope of operations in the area of our operations,very attractive economics on the acquisition and importantly a significantaddition to our acreage. Since we made the acquisition of Newfield twoimportant events we want to focus on in today’s earnings call.
The first.
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