By Ben Fox Rubin
Plains Exploration & Production Co.'s (PXP) fourth-quarter
profit soared as the oil-and-gas exploration company's oil revenue
surged.
Freeport-McMoRan Copper & Gold Inc. (FCX) in December agreed
to buy McMoRan Exploration Co. (MMR) and Plains Exploration--two
oil companies with which it shares close ties--for roughly $9
billion in cash and stock. The deal marked a shift for the mining
giant towards U.S. energy exploration. The transactions are
expected to close in the second quarter.
Plains has been shifting to higher-priced crude and natural gas
liquids as natural gas prices have been languishing near record
lows. The company recently agreed to buy BP PLC's (BP, BP.LN)
deepwater Gulf of Mexico oil and gas properties for $5.55 billion,
in line with a strategy to focus on mature oil fields with existing
reserves.
Plains reported income of $218.6 million, or $1.65 a share, up
from $97.7 million, or 69 cents a share, a year earlier. Excluding
unrealized gains on investment in McMoRan Exploration stock and
other impacts, per-share earnings rose to 41 cents from 20
cents.
Revenue was up 68% to $869.2 million.
Analysts polled by Thomson Reuters had recently forecast
per-share earnings of 47 cents on revenue of $775 million.
Oil sales were up 91% at $798 million, while gas sales shrank
27% to $70.3 million.
Average realized sales prices, before derivative impacts, were
up 7.2% for oil and down 3.3% for gas.
Shares closed at $45.55 on Wednesday and were inactive
premarket. The stock is up 29% over the past three months on the
recent acquisition activity.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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