By Tess Stynes
Plains Exploration & Production Co. (PXP) swung to a
first-quarter profit as the oil explorer posted sharply higher
revenue and production.
Freeport-McMoRan Copper & Gold Inc. (FCX) is acquiring
Plains Exploration and parts of McMoRan Exploration Co. (MMR) 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
U.S. energy exploration.
Plains has been shifting to higher-priced crude and natural gas
liquids as natural gas prices have been languishing near record
lows.
Plains Exploration reported a profit of $31.8 million, or 17
cents a share, compared with a year-earlier loss of $73.3 million,
or 64 cents. Excluding hedging impacts and other items, adjusted
earnings were up at $1.05 from 58 cents. Revenue more than doubled
to $1.23 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 82 cents on revenue of $1.15 billion.
Daily sales volumes averaged 170,400 barrels of oil equivalent,
compared with 87,900 BOE.
Shares closed Wednesday at $45.15 and were inactive premarket.
The stock is down 3.8% this year.
Write to Tess Stynes at tess.stynes@dowjones.com
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