Forest Oil Corporation Reports Unaudited Consolidated Earnings and Operational Results for the Second Quarter Ended June 30, 2014; Maintains Financial and Operational Guidance for the Full Year of 2014
Aug 11 14
Forest Oil Corporation reported unaudited consolidated earnings and operational results for the second quarter ended June 30, 2014. For the quarter, the company reported total revenues of $60,435,000, loss before income taxes of $82,795,000, net loss of $82,717,000 or $0.71 per basic and diluted share against total revenues of $11,814,000, income before income taxes of $33,227,000, net earnings were $33,439,000 or $0.28 per basic and diluted share a year ago. Net cash provided by operating activities was $4,887,000 compared to $76,090,000 a year ago. Capital expenditures for property and equipment: Exploration, development, leasehold, and acquisition costs were $48,406,000 compared to $103,434,000 a year ago. Capital expenditures for property and equipment: Other property and equipment were $1,274,000 compared to $847,000 a year ago. Total capital expenditures was $52,464,000 compared to $45,888,000 a year ago.
For the period, the company total average net sales volumes was 99.6 MMcfe/d.
Incorporating the operational results for the first half of 2014 and maintaining a disciplined capital program ahead of the proposed merger with Sabine Oil & Gas will result in spending less capital and in a corresponding reduction in the number of wells drilled during the second half of 2014. Accordingly, the company is adjusting its 2014 full-year guidance as follows: Drilling and completion capital is expected to be in a range of $220 million to $230 million (excluding capitalized interest, capitalized stock-based compensation, and asset retirement obligations incurred) for 2014 as compared to a previous range of $260 million to $270 million. This will fund a three rig program in the Ark-La-Tex and a one rig program in the Eagle Ford. The total capital budget is expected to be in a range of $240 million to $250 million compared to a previous range of $290 million to $310 million. Average net sales volumes are expected to be in a range of 105 -- 110 MMcfe/d for 2014. The liquids component of its equivalent production is expected to average approximately 33% of the average net sales volumes. Production expense, which includes lease operating expense, ad valorem taxes, production taxes, and product processing, gathering and transportation, is expected to average $1.95 to $2.05 per Mcfe compared to a previous range of $1.55 to $1.65 per Mcfe. Depreciation, depletion and amortization expense is expected to be $2.30 to $2.40 per Mcfe compared to a previous range of $2.45 to $2.65 per Mcfe.
The Law Office of Robbins Arroyo LLP Announces Class Action Lawsuit against Forest Oil Corporation and Sabine Oil & Gas LLC
Jun 16 14
Shareholder rights attorneys at Robbins Arroyo LLP announced that the firm filed a class action lawsuit on June 13, 2014, in the U.S. District Court for the District of Colorado, on behalf of the shareholders of Forest Oil Corporation against Forest Oil, its Board of Directors, and Sabine Oil & Gas LLC, for, violations of sections 14(a) and 20(a) of the U.S. Securities and Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 14a-9 promulgated thereunder. The complaint arises out of a May 6, 2014 press release announcing that Forest Oil had entered into a definitive merger agreement with Sabine, pursuant to which Forest Oil shareholders would receive 0.1 shares of Sabine, a privately held company, for each share of Forest Oil owned (proposed transaction). The complaint seeks injunctive relief on behalf of the named plaintiffs and all other similarly situated shareholders of Forest Oil as of May 6, 2014. The named plaintiffs are represented by Robbins Arroyo LLP. The named plaintiffs allege that certain of the defendants, in connection with the Proposed Transaction, breached or aided and abetted the other defendants' breaches of their duties and obligations owed to Forest Oil shareholders. The complaint further alleges that, in an attempt to secure shareholder approval of the proposed transaction, the defendants filed a materially false and misleading registration statement on Form S-4 with the U.S. Securities and Exchange Commission in violation of the Exchange Act and their duties of candor and full disclosure. The omitted and/or misrepresented information is believed to be material to Forest Oil shareholders' ability to make an informed decision whether to approve the Proposed Transaction.