Impairments slam Parallel numbers
Houston-based Parallel Petroleum saw losses plunge deeper in its full-year and fourth-quarter results on a $300.5 million impairment on its oil and gas properties.
The company reported a net loss of $131.9 million, or $3.18 per diluted share, compared with a $4.7 million, or 12 cents per diluted share.
Losses were partially offset by a $32 million pre-tax gain on derivatives.
Revenues in the period rose to $182.5 million from $116 million in 2007, while costs and expenses rose to $392.8 million from $67.1 million previously. The company reported an operating loss of $210.2 million from $49 million in 2007.
For the fourth quarter of 2008, Parallel reported a net loss of $158.6 million, or $3.81 per diluted share, compared with a net loss of $8.3 million, or 21 cents per diluted share, in the same period in 2007.
Losses were partially offset by a $59.9 million pre-tax gain on derivates.
Quarterly revenues fell from $36.1 million to $26.3 million previously as costs and expenses soared to $322.7 million from $18.7 million. Operating income fell from $17.3 million to an operating loss of $296.2 million.
For the quarter, Parallel reported a 14% year-on-year increase in production to an average 6707 barrels of oil per day.
The company said earlier this month it would slash its 2009 capital expenditure to $29.1 million from $118.8 million previously announced in November. It said the cutback reflected reduced costs at its Barnett Shale gas project following a farm-out agreement with Chesapeake Energy and reduced activity at its operations in New Mexico and the Texas Permian basin.