Forest Oil Corp Misses Estimates; Updates Guidance (FST)

Forest Oil Corp.

reports Q3 earnings of $0.37 versus consensus of $0.45. Forest Oil Corp. reports revenues of $210 million versus consensus of $237.65 million. Revenues increased 18.6% year over year. Forest Oil increased Fourth Quarter 2010 Net Sales Volumes Guidance Range to 470 - 480 MMcfe/d and 2010 Net Sales Volumes Guidance Range to 450 - 455 MMcfe/d. H. Craig Clark, President and CEO, stated, "The Texas Panhandle continues to outperform our expectations. Our extensive wellbore database has provided information that enables us to expand the play both geographically and throughout multiple zones. During the quarter, our first operated well in the Canadian Southeast field was completed at an average 24-hour initial production rate of 16 MMcfe/d with a 40% liquids cut. This well, and six others which were drilled in multiple zones during the quarter, expanded our successful results achieved in the play, yielding an average 24-hour initial production rate of 27 MMcfe/d.” “As a direct result, Forest's updated net sales volumes guidance for the fourth quarter of 2010 represents organic growth of 20% from the fourth quarter of 2009. Our forecasted liquids production in the fourth quarter of 2010 has also increased to 28% of total production from 22% in the first quarter of 2010. The ability to grow organically at double digit rates, driven by liquids production, while keeping net debt flat, demonstrates the quality of our asset base and the capital efficiency of our drilling program."