February 22, 2010 / 2:21 PM / in 8 years

UPDATE 1-Encore Acquisition adj Q4 profit beats mkt estimates

* Q4 adj EPS $0.29 vs est $0.15

* Revenue rises more than 32 percent

* Says result helped by higher wellhead oil price

Feb 22 (Reuters) - Onshore oil and gas producer Encore Acquisition Co EAC.N, which to being bought by Denbury Resources Inc (DNR.N), posted an adjusted fourth quarter profit that handily beat market estimates, as the company benefited from higher crude prices.

For the latest quarter, the company posted a net loss of $21.6 million, or 40 cents a share, compared with a net income of $229.0 million, or $4.32 a share, a year ago.

Excluding items, the company reported an income of 29 cents. On that basis, analysts on average had expected 15 cents a share, according to Thomson Reuters I/B/E/S.

Total revenue at the company, whose properties are located in the Rockies, the Mid-Continent, and the Permian Basin, rose more than 32 percent to $221.6 million, which was ahead of estimates of $219.7 million.

The company said average wellhead oil price, or the net price it receives for oil production, rose 46 percent to $67.94 per barrel. The average wellhead oil price was helped by a higher NYMEX oil price.

In November Denbury, agreed to buy Encore for $3.2 billion, to create one of North America’s largest oil production and exploration companies. [ID:nN01400606]

Stock of Fort Worth, Texas-based Encore, which has risen more than 116 percent in the last one year, closed at $49.98 Friday on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Savio D‘Souza)

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