Petroleum Development Corp Earnings Cheat Sheet: Beats Wall Street Expectations

Petroleum Development Corporation (NASDAQ:PETD) reported net income above Wall Street’s expectations for the third quarter. 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 Third Quarter

Results: Net income for Petroleum Development Corporation rose to $32.6 million ($1.38 per share) vs. $3.4 million (17 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose more than twofold to $145 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PETD reported adjusted net income of 28 cents per share. By that measure, the company beat the mean estimate of 2 cents per share. It beat the average revenue estimate of $100.4 million.

Quoting Management: James Trimble, President and Chief Executive Officer, stated, “Our third quarter results were strong, and from a business development perspective we were particularly pleased. We acquired the rights of up to 40,000 net acres in the Utica Shale play in southeastern Ohio, we announced PDCM’s acquisition of 90,000 acres prospective for the Marcellus Shale in West Virginia, and we announced the planned divestitures of our NECO, Permian basin and certain non-core assets. We engaged in a process to secure a joint venture partner in the Utica Shale play. Proceeds generated from the anticipated asset divestitures and the successful conscription of a joint venture partner will be utilized to strengthen our balance sheet, improve our liquidity position, and fund a portion of our 2012 developmental capital program. We expect our divestitures to occur in the fourth quarter of 2011 and the first quarter 2012.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with a loss of 10 cents versus a mean estimate of net income of 3 cents per share.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 44.8% to $92.9 million from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 2 cents per share, down from 13 cents ninety days ago. For the fiscal year, the average estimate has moved from a loss of one cent a share to a loss of 27 cents over the last ninety days.

Competitors to Watch: Pinnacle Gas Resources, Inc. (PINN), Questar Corporation (NYSE:STR), BreitBurn Energy Partners L.P. (NASDAQ:BBEP), Legacy Reserves LP (NASDAQ:LGCY), PostRock Energy Corp. (NASDAQ:PSTR), Marathon Oil Corporation (NYSE:MRO), Crusader Energy Group Inc. (CKGRQ), Hess Corp. (NYSE:HES), Pioneer Southwest Energy Partners L.P. (NYSE:PSE), and NGAS Resources, Inc. (NASDAQ:NGAS).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)