Lower gas prices squeeze Alberta Energy

Allen Baker

Alberta Energy Co. Ltd. reported record gas sales for the third quarter, but dramatically lower prices cut into profits. The company recorded earnings of $190 million (Canadian), down 21 percent from the figure a year earlier.

Third-quarter daily gas sales were 1.4 billion cubic feet, up 27 percent from the figure a year earlier. The figure is up a whisper from the second quarter, but profits dropped from C$215 million then. Meanwhile, AEC injected 70 million cubic feet daily into storage for the quarter, getting ready for the winter heating season. That brings stored reserves to 22 billion cubic feet.

AEC got an average of C$3.37 for its gas in the third quarter, down 37 percent from a year earlier. With the lower prices for its gas , the company chose to perform maintenance projects that reduced volumes about 50 million cubic feet daily.

AEC’s oil and gas liquids production rose 13 percent over the prior year’s third quarter to 136,000 barrels daily.

In the quarter, Alberta Energy drilled 173 wells in North America, 149 of them in western Canada, and had a 99 percent success rate. The company also drilled a dozen wells in Ecuador, all successful. Revenues were C$1.52 billion, down 4 percent from the prior year’s third quarter, when the company took in C$1.58 billion