Petroleum Development Corp Earnings: Loss Narrows

Petroleum Development Corporation’s (NASDAQ:PETD) fourth quarter loss narrowed due mainly to positive revenue growth. Petroleum Development Corporation is an independent energy company engaged in the exploration, development, production, and marketing of oil and natural gas.

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Petroleum Development Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $8.4 million (loss of 35 cents per diluted share) from $18.1 million (loss of 86 cents per share) in the same quarter a year earlier.

Revenue: Rose 79% to $99.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Petroleum Development Corporation reported an adjusted net loss of 25 cents per share. By that measure, the company fell short of mean estimate of 19 cents per share. It beat the average revenue estimate of $117.1 million.

Quoting Management: James Trimble, President and Chief Executive Officer, stated, “PDC turned in a very solid performance in 2011. We exceeded our production guidance and delivered cash flow at the high end of our guidance range. Additionally, we successfully de-risked our horizontal Niobrara position in the core Wattenberg Field and increased our liquid-rich mix of proved reserves to 34%. We reached an agreement for the 2012 divestiture of our Permian assets for a premium valuation. The proceeds from this divestiture will contribute to the funding of our 2012 capital expenditures and enable us to maintain our balance sheet and liquidity strength. Additionally in 2012, we will be focused on accelerating our liquid-rich horizontal Niobrara development program, and de-risking our Utica Shale acreage while pursuing a JV partner.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 28 cents versus a mean estimate of net income of 2 cents per share.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $32.6 million in the third quarter and a profit of $9.2 million in the second quarter.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 9 cents per share to 6 cents. At 26 cents per share, the average estimate for the fiscal year has risen from 21 cents sixty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com