Robust Oil and Gas Sales Swing Parallel Petroleum to 2nd-Quarter Profit
Thursday, August 10th 2006
Oil and natural-gas producer Parallel Petroleum Corp. on Wednesday posted a second-quarter profit, reversing a year-ago loss, as sales of oil and gas more than doubled on increased production volume and higher oil prices.
The company, which drills oil and gas from onshore fields in the U.S., said earnings totaled $2.5 million, or 7 cents per share, in the recent quarter. A year ago, the company posted a loss of $1.4 million, or 4 cents per share, after paying preferred dividends of $128,000.
Sales surged to $26.3 million from $12.3 million a year ago.
Oil production increased 37 percent to 298,000 barrels, while natural gas production expanded to 1.7 million cubic feet from 700,000 cubic feet in the year-earlier quarter. The growth amounted to 75 percent increased in average daily production volume, the company said.
Parallel realized an average oil price of $63.17 a barrel, up from $46.97. Its average gas price per thousand cubic feet declined year over year to $6.25 from $6.78.
Analysts polled by Thomson Financial expected earnings of 17 cents per share on sales of $23.9 million.
Shares of Parallel Petroleum fell 10 cents to end at $26.25 on the Nasdaq.
