Forest 2Q earnings slide on lower prices and volumes

Steve Sutherlin, PNA managing editor

Forest Oil Corp. said Aug. 7 its net earnings for second quarter 2002 were $11 million or 23 cents per share, down 78 percent from $50.6 million or $1.05 per share in the second quarter of 2001. The result was an improvement over a net loss of $1.8 million or 4 cents per share in the first quarter of 2002.

Earnings declines in the 2002 quarter compared to the corresponding periods of 2001 resulted from lower sales prices for natural gas and liquids, and lower production volumes in the United States largely due to property sales in the Gulf of Mexico, the company said.

Improved results in second quarter 2002 over first quarter 2002 were due to increased prices and higher production volumes from a Gulf of Mexico recompletion program and from new wells brought on production at South Marsh Island.

Revenues for the second quarter of 2002 were $197.6 million, down 28 percent from $275.6 million in the same period last year.

Worldwide production of 38 billion cubic feet equivalent in second quarter 2002 was off 12 percent from 43.2 bcfe in second quarter 2001.

During the second quarter of 2002, the company said, it drilled a total of 26 gross wells with a 70 percent success rate.