Pogo looking to acquire properties by year-end

Exploration and production independent Pogo Producing is hoping to make “one or two” small acquisitions by the end of the year, Paul Van Wagenen, Pogo’s chief executive officer, said in an Oct. 14 conference call with analysts.

Pogo, the first U.S.-based independent to report 2003 third-quarter earnings, also is considering several larger acquisitions, Van Wagenen said. The company operates in the U.S., Thailand and Hungary.

Van Wagenen provided no specifics on any of Pogo’s acquisition plans, but said the company would “continue to look very aggressively at acquisitions. We are seeing an increase in the quality and quantity of some possible acquisitions available over the last month or two.”

On the earnings front, the Houston-based independent reported a 2003 third-quarter profit of $67.6 million or $1.07 per share, beating analysts’ expectations by 12 cents per share. In the year ago quarter, when commodity prices were much lower, Pogo had net income of $31.6 million or 52 cents per share. Revenues were $277.9 million compared to $207.8 million.

Pogo also reported an 18 percent increase in liquids production, from 55,242 barrels per day in last year’s third quarter to 65,288 barrels per day in this year’s third quarter. Natural gas production was 284.5 million cubic feet per day in the 2003 third quarter versus 284.2 million cubic feet per day for the same period last year. Compared to the 2003 second quarter, however, Pogo’ net income fell 15.1 percent. Liquids production fell 5.5 percent, while gas output declined 5.7 percent.