PetroQuest cuts production outlook, '08 capex budget
(Reuters) - Oil and gas producer PetroQuest Energy Inc (PQ.N) cut its third-quarter production outlook, citing the impact from hurricanes, and its capital expenditure budget for 2008 due to the recent decline in commodity prices and the impact from hurricane related deferred production.
Several other natural gas companies like Chesapeake Energy (CHK.N), Petrohawk Energy (HK.N), and SandRidge Energy (SD.N) have cut their capital expenditure budget and production outlook in recent weeks citing the fall in natural gas prices.
PetroQuest estimates that 1.2 billion cubic feet of natural gas equivalent (Bcfe) of net production was deferred from the third quarter of 2008 as a result of down-time caused by Hurricanes Gustav and Ike.
The Lafayette, Louisiana-based company lowered its third quarter production outlook to a range of 86 to 90 million cubic feet of natural gas equivalent per day (MMcfe/d), down from its prior forecast of 96 to 102 MMcfe/d.
PetroQuest now expects its 2008 capital expenditure outlook to be in the range of $265 million to $285 million. It had earlier forecast it to be between $270 million and $300 million.
The company also announced that on October 2, 2008 it closed a $300 million bank credit facility with JPMorgan Chase Bank, N.A.
Shares of the company fell more than 15 percent to $10.12 in morning trade on the New York Stock Exchange.
(Reporting by Hezron Selvi in Bangalore; Editing by Jarshad Kakkrakandy)
