Petroleum Development Earnings: Profit Swings Up and Beats Street Expectations

Petroleum Development Corporation (NASDAQ:PETD) reversed to a profit in the first quarter, beating Wall Street estimates. 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 First Quarter

Results: Reported a profit of $15.8 million (66 cents per diluted share) in the quarter. Petroleum Development Corporation had a net loss of $19.9 million or a loss 85 cents per share in the year-earlier quarter.

Revenue: Rose 93.1% to $100.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Petroleum Development Corporation reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 26 cents per share. It fell short of the average revenue estimate of $105.3 million.

Quoting Management: James Trimble, President and Chief Executive Officer, stated, “We experienced an excellent first quarter from both an operational and financial standpoint. Net production exceeded our expectations due to solid operational execution and warmer weather in the western region. We continued to increase our percentage of liquids production as oil and natural gas liquids increased to 36% of our total net production in the quarter compared to 27% for the 2011 first quarter. We also strengthened our balance sheet and created liquidity to fund our 2012 capital budget with the proceeds from the sale of our remaining Permian Basin assets and the $25 million increase in our borrowing base under our revolving credit facility.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 11 cents versus a mean estimate of net income of 20 cents per share.

After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $32.6 million, or $1.37 per share, in the third quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 18 cents per share, up from 6 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from 45 cents per to share to 93 cents.

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

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