Gastar Misses on Top and Bottom Lines
Independent energy company Gastar Exploration reported third-quarter results yesterday after the markets closed, showing that it posted net revenues of $23.8 million, a robust 60.5% increase from the same period in the previous year, and ahead of the $26.3 million Capital IQ consensus estimate.
While adjusted attributable net income came in at $1.6 million, or $0.03 per share, a marked improvement from $2,000, or break-even performance in the same period in 2012, it was a nickel-per-share worse than the CapIQ estimates of $0.08 per share.
Like many in the industry, Gastar is moving more into the more profitable business of natural gas liquids and for the first time in the company's history, liquids revenues accounted for more than half of total revenues. Having divested its East Texas assets, the independent energy company has practically eliminated all dry gas production while bringing in more liquid assets with an acquisition of the West Edmond Hunton Lime Unit in Oklahoma that it should close on this month.
Gastar Exploration didn't provide earnings guidance for the coming quarter though it said it expected its net average production in the period would be 49 million to 52 million cubic feet equivalent per day with liquids accounting for 35% to 38% of the production. Analysts, though, anticipate Gastar will post earnings of $0.12 per share in the fourth quarter on revenues of $29.7 million.
The article Gastar Misses on Top and Bottom Lines originally appeared on Fool.com.
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