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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