Forest Oil Drops 9% on Weak Guidance

Shares of Forest Oil FST are seeing increased weakness during Tuesday's trading session after the company updated its capital and drilling program, as well as sales volumes and overall guidance. Forest Oil's net sales volumes are expected to average 320 – 330 MMcfe/d (67% natural gas, 17% oil, and 16% natural gas liquids) during the second half of the year. Natural gas volumes are forecasted to average 215 – 220 MMcf/d, oil volumes are forecasted to average 9,100 – 9,400 Bbls/d and natural gas liquids volumes are forecasted to average 8,500 – 8,800 Bbls/d. Capital Expenditures: Forest intends to invest between $190 million and $210 million for capital activities (excluding capitalized interest, capitalized stock-based compensation, and asset retirement obligations incurred) during the second half of the year. Tuesday, shares of Forest Oil are trading down about 7.3 percent, at about $6.32 per share.