Higher production volumes weren’t enough to halt the earnings decline stemming from substantially reduced prices among independent oil and gas producers in the third quarter, according to Energy Performance Review, which maintains a line-of-business financial and operating database.

Fifty-six major independent oil and gas producers, including independent companies and operating divisions of larger companies, reported earnings before special items totaling $2.3 billion, or $4.79 per barrel-equivalent sold, for the third quarter of 2001, off 40% from $3.9 billion, or $8.39 per boe, posted for the second quarter of the year, and off 31% from $3.4 billion, or $7.68 per boe, posted for the third quarter of 2000.

Revenues totaling $12.8 billion were off 16% from the prior quarter and off 6% from the prior-year quarter.

Nine-month results for the 56 companies were boosted by record income posted for the first quarter of the year. Earnings before special items totaling $11.8 billion, or $8.31 per boe, were up more than half from the 2000 period, and revenues totaling $47 billion were up more than 40%.

The primary factor in results for the third quarter was a continued decline in oil and gas prices. Average domestic crude oil realization was off 11% from the 2000 period, to $23.63 per barrel, natural gas was off 16%, to $3.14, and gas liquids was off 23%, to $14.67 per barrel. These declines were partly offset by increased volumes — worldwide natural gas volumes up 12% and worldwide crude oil and total liquids volumes up 7%.

Price realization for the nine-month period was about flat for crude, but up more than half for natural gas, reflecting the strong spike in gas prices posted for the first quarter of the year.

The Energy Performance Review is a line-of-business financial and operating database featuring more than 200 companies and operations. Data are shown by individual company and combined to show line-of-business and regional trends. Major lines of business include oil and gas exploration and production, oil products refining and marketing, coal production, gas and power generation and marketing, natural gas distribution and electricity distribution. See www.energyperformancereview.com.

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