Lexington-based NGAS reports loss: natural gas' Lower Price cited in drop

Tue. November 03, 2009; Posted: 08:15 PM

Nov 03, 2009 (The Lexington Herald-Leader - McClatchy-Tribune Information Services via COMTEX) -- NGAS | Quote | Chart | News | PowerRating -- Lexington-based NGAS Resources, which explores for and produces natural gas, reported Tuesday a net loss of $112,472 for its third quarter. Results would have been worse if not for a one-time gain of $3.4 million related to the sale of certain gas-gathering assets.

The loss in the quarter contrasts with a profit of $945,185 in the same period a year ago.

The drop was driven by "significantly lower commodity prices," CEO William S. Daugherty said in a statement.

Revenue for the quarter totaled $11.2 million, down 53 percent from $23.6 million a year ago.

Daugherty said that despite the difficult economic climate, the company has made progress on several initiatives.

The company said that while production volumes increased 5 percent, it suffered from an average natural gas price of $5.67 per Mcf, or thousand cubic feet, compared to $9.80 per Mcf last year.

NGAS benefited from a 27 percent year-over-year drop in selling, general and administrative expenses during the quarter. That was primarily due to the timing and extent of marketing costs for sponsored drilling partnerships, the company said.

The company also noted that it closed the sale of its remaining interest in a part of its Appalachian gas-gathering system. All of the proceeds have been used to reduce debt, which was reduced by $45 million in the quarter, the company said.

Reach Scott Sloan at (859) 231-1447 or 1-800-950-6397, Ext. 1447.

To see more of the Lexington Herald-Leader, or to subscribe to the newspaper, go
to http://www.kentucky.com. Copyright (c) 2009, The Lexington Herald-Leader, Ky.
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.

For full details on NGAS Resources Inc (NGAS) click here. NGAS Resources Inc (NGAS) has Short Term PowerRatings of 4. Details on NGAS Resources Inc (NGAS) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.