Edge Petroleum has difficult yearadmin
Edge Petroleum Corp. said Thursday that fourth-quarter net income was $2.9 million or 16 cents per diluted share, on revenue of $24.9 million, compared with net income of $13.3 million, or 74 cents per share, on revenue of $42.3 million, for the same period in 2005.
The Houston-based energy company said fourth-quarter results were impacted by its mark-to-market derivative contracts, falling gas prices and its December acquisition of the Chapman Ranch field from Houston-based Anadarko Petroleum Corp. (NYSE: APC) for $25 million.
Analysts polled by Thomson Financial expected Edge to have net income of 25 cents.
For the full year, the company had a net loss of $41.3 million, or $2.38 per diluted share, on record revenue of $129.7 million, compared with a net income of $33.4 million, or $1.87 per share, on revenue of $121.2 million, in 2005.
“2006 was a difficult year for Edge, yet we were able to capitalize on our strategies and create the opportunity for a very successful future,” said Michael Long, executive vice president and chief financial officer for Edge. “The two primary drivers of our revenue moved in opposite directions during 2006. Production volumes increased to a record 17.3 billion cubic feet equivalent, up 5 percent over last year, however, natural gas prices fell on the NYMEX from a December 2005 high of $15 to a low of $4 in early October 2006.”