GMX Resources Crushes Earnings Estimates, Q1 Production Guidance Between 3.2 Bcfe and 3.3 Bcfe (GMXR)
3/12/2010-GMX Resources (NASDAQ: GMXR) reported Q4 EPS of $0.20, excluding non-recurring items, surpassing consensus estimates of $0.09 by a wide margin.
Revenues for the quarter rose 6.1% year-over-year to $25.6 million, topping the consensus estimates of $24.9 million.
For the first-quarter, the company forecasts production between 3.2 Bcfe and 3.3 Bcfe.
Ken L. Kenworthy, Jr. Chairman and Chief Executive Officer, remarked, "2009 was an anomalous year in many respects for GMXR. Unfortunately, we needed to re-state several earlier periods and had mixed financial results for 2009. We had the good fortune of being in the right play and capably transitioning from a vertical CVS developer to H/B Hz developer. Our hedges allowed us to achieve a $6.61 per Mcf sales price, and reduce the economic impact of falling prices. The potential of the H/B play was confirmed in the form of growing production with only 1 rig, drilling 12 H/B Hz wells in 2009 at a CAPEX of $178 million vs. 7 rigs and drilling 89 CVS wells at a CAPEX of $323 million in 2008. By reducing our drilling and completion costs 54% during the year we also managed to deliver best results with our most successful well, the Mia Austin #1H. The well began production in early February and will produce 0.23 Bcf in its 1st month, a 40% improvement when compared to our best completions. It is one of the highest producing wells in East Texas and it along with the surrounding successful wells confirms the opportunity we have on our property base."
Write to Chip Brian at cbrian@tradethetrend.com
---------------------------------------------------------------------------------------------
SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com
Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup
