Plains Exploration swings to 1Q profit; revenue surges
BY TESS STYNES
HOUSTON -- Plains Exploration & Production swung to a 1Q profit as the oil explorer posted sharply higher revenue and production.
Freeport-McMoRan Copper & Gold is acquiring Plains Exploration and parts of McMoRan Exploration that the copper mining company doesn't already own in a cash-and-stock deal initially valued at a combined $9 billion, along with about $11 billion in assumed debt. The deal marked a shift for the mining giant, which has close ties with the two oil companies towards United States energy exploration.
Plains has been shifting to higher priced crude and NGL as natural gas prices have been languishing near record lows.
Plains Exploration reported a profit of $31.8 million compared with a year-earlier loss of $73.3 million.
Analysts polled by Thomson Reuters most recently projected earnings of 82 cents on revenue of $1.15 billion.
Sales volumes averaged 170,400 boepd, compared with 87,900 boepd.
Dow Jones Newswires