Plains Exploration second quarter profits soar
Plains Exploration & Production Co (NYSE: PXP), an oil and gas company, said sales rose 41% in the second-quarter helped by higher production and prices.
Revenue climbed to $514 million in the second-quarter ending June 30. This compares with $364.5 million in the same period last year.
Net income spiked to $124.8 million, or 87 cents per diluted share, compared to $45.3 million, or 32 cents per diluted share, a year ago.
Excluding one-time items, earnings were 54 cents per share.
Analysts, on average, had projected earnings of 53 cents, on revenue of $495 million, according to Thomson Reuters.
Average daily sales volumes at the company rose 15% to 97.7 thousand barrels of oil equivalent (BOE), while average daily liquid volumes grew 7%.
The company said it executed a new marketing contract for its California crude production with ConocoPhillips (NYSE: COP), in August. Currently, PXP sells 65% of its California crude oil to ConocoPhillips, it added.
It also executed an agreement with a third party purchaser to sell a large portion of its Eagle Ford crude oil using a Light Louisiana Sweet based pricing mechanism.
Separately, PXP said the two most recent initial production test rates for the Carmody Trust 1H and the Carmody Trust 2H wells, both situated in Karnes County, Texas, achieved a preliminary production rate of 1,396 and 1,523 BOE per day, respectively.
The Houston, Texas-based company owns oil and gas properties in the United States with principle operations in Onshore California, Offshore California and regions such as: the Gulf Coast Region, the Mid-Continent Region and the Rocky Mountains.
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