Plains Exploration Swings to 1st-Quarter Profit; Revenue Surges

   By Tess Stynes 
 

Plains Exploration & Production Co. (PXP) swung to a first-quarter profit as the oil explorer posted sharply higher revenue and production.

Freeport-McMoRan Copper & Gold Inc. (FCX) is acquiring Plains Exploration and parts of McMoRan Exploration Co. (MMR) that the copper mining company doesn't already own in a cash-and-stock deal initially valued at a combined $9 billion, along with about $11 billion in assumed debt. The deal marked a shift for the mining giant--which has close ties with the two oil companies--towards U.S. energy exploration.

Plains has been shifting to higher-priced crude and natural gas liquids as natural gas prices have been languishing near record lows.

Plains Exploration reported a profit of $31.8 million, or 17 cents a share, compared with a year-earlier loss of $73.3 million, or 64 cents. Excluding hedging impacts and other items, adjusted earnings were up at $1.05 from 58 cents. Revenue more than doubled to $1.23 billion.

Analysts polled by Thomson Reuters most recently projected earnings of 82 cents on revenue of $1.15 billion.

Daily sales volumes averaged 170,400 barrels of oil equivalent, compared with 87,900 BOE.

Shares closed Wednesday at $45.15 and were inactive premarket. The stock is down 3.8% this year.

Write to Tess Stynes at [e-mail]

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