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Trading Boosts Barrett's 1Q99 Results

Trading Boosts Barrett's 1Q99 Results

Barrett Resources was one of the few independent producers able to emerge from the first quarter with an increase in earnings compared to last year and it achieved the growth through gas trading operations. Revenues from Barrett's trading division soared 136% to $176 million in 1Q99 from 1Q98 and the division reported a gross profit of $15.1 million compared to $4.9 million for the prior year first quarter. First quarter trading volumes increased 156% to 96 Bcf, or about 1.07 Bcf/d. Barrett reported net income of $7.7 million, or 24 cents per diluted share, compared to $6.2 million, or 19 cents per diluted share, for 1Q98.

"The Company successfully capitalized on a significant Rocky Mountain gas storage position enhanced by favorable winter gas prices and key pipeline transportation positions. The expertise of our marketing group continues to make Barrett an industry leader in supply and market services for the Rocky Mountain Region," said CEO William J. Barrett. The company's total revenues grew $89 million from the prior year first quarter to $221 million.

Meanwhile, Barrett's production revenues declined 20% to $44 million due to a 16% and a 25% decrease in gas and oil prices, respectively. Gas production increased 1% to 258 MMcf/d while oil production fell 35% to 4,650 b/d.

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