Key Developments: Forest Oil Corp (FST)
4.88USD
22 May 2013
$-0.16 (-3.17%)
$5.04
$5.04
$5.14
$4.80
5,328,774
4,478,172
$9.32
$4.05
Latest Key Developments (Source: Significant Developments)
Forest Oil Corp Issues FY 2013 Production Guidance; Comments On H1 2013 And H2 2013 Production Guidance
Forest Oil Corp announced that it expects fiscal 2013 net sales volumes to average 220 MMcfe/d to 230 MMcfe/d, excluding average net sales volumes associated with the South Texas property divestiture that closed on February 15, 2013, and is estimated to be comprised of approximately 60% natural gas and 40% liquids (20% oil and 20% natural gas liquids). The Company currently projects average oil net sales volumes to grow organically in excess of 30% in 2013 as compared to fiscal 2012 (adjusting for the impact of asset sales) and for the liquids component to increase from approximately 35% of average equivalent net sales volumes in the first quarter of 2013 to approximately 45% in the fourth quarter of 2013. Based on current projections and planned activity, the Company believes that second half of 2013 average net sales volumes will be higher than first half of 2013 average net sales volumes on a pro forma basis. Forest's average net sales volumes guidance does not include approximately 25-30 MMcfe/d in the first quarter of 2013 associated with the South Texas property divestiture. Full Article
Forest Oil Corp Announces Closing Of Its South Texas Property Divestiture
Forest Oil Corp announced that it closed the previously announced sale of its properties in South Texas for net cash proceeds of approximately $307 million, after customary adjustments to reflect an effective date of January 1, 2013 and the hold-back of certain properties, valued at approximately $14 million, for which required consents-to-assign have not yet been obtained. A subsequent closing on these hold-back properties is expected to occur within 90 days. The proceeds from this sale will be used to redeem the remaining $300 million principal amount outstanding of the Company`s 8.5% Senior Notes due 2014. In connection with the closing of this transaction, the global borrowing base under Forest`s credit facilities has been reduced to $900 million. Full Article
Forest Oil Corp Announces Agreement To Sell South Texas Properties
Forest Oil Corp announced that it has entered into a definitive agreement to sell all of properties located in South Texas, excluding Eagle Ford Shale oil properties, for after-tax cash proceeds of $325 million. The transaction is expected to close on or before February 15, 2013, with an effective date of January 1, 2013. Forest intends to use the proceeds from this divestiture to pay down debt and retains all of its natural gas hedges. Full Article
Forest Oil Corp Announces Pricing Of Private Offering Of $500 Million Of 7.5% Senior Notes Due 2020
Forest Oil Corp announced that it has priced its private offering to eligible purchasers of $500 million of 7.5% Senior Notes due 2020 (“the Senior Notes). The Senior Notes were priced at par. This represents a $200 million increase from our initial proposed offering of $300 million in Senior Notes. The Senior Notes will be guaranteed by Forest Oil Permian Corporation, a subsidiary of Forest. The offering is expected to close on September 17, 2012, subject to customary closing conditions. Forest intends to use a portion of the net proceeds from the offering of approximately $490.2 million (after deducting the initial purchasers’ discount and estimated expenses) to fund the proposed redemption of 50% of the aggregate principal amount of its outstanding 8.5% Senior Notes due 2014, and the balance to reduce borrowings under its bank credit facility. The principal amount outstanding of the 2014 Notes is $600 million. Pending the proposed redemption of the 2014 notes, the portion of the net proceeds necessary to fund that redemption will be used to temporarily reduce borrowings under Forest’s bank credit facility or for general corporate purposes. Full Article
Forest Oil Corp Revises H2 2012 Production Guidance
Forest Oil Corp announced that for the second half of 2012, it expects net sales volumes to average approximately 330-340 MMcfe/d (66% natural gas and 34% oil and natural gas liquids). This represents an increase of 3% compared to the previous guidance of 320-330 MMcfe/d (67% natural gas and 33% oil and natural gas liquids) provided on July 9, 2012. Full Article
Forest Oil Corp Names Patrick R. McDonald As President And Chief Executive Officer
Forest Oil Corp announced that the Company’s Board of Directors has completed executive search process and named Patrick R. McDonald as President and Chief Executive Officer, effective immediately. Mr. McDonald has served as Interim Chief Executive Officer since June 21, 2012. Full Article
Forest Oil Corp Enters Into Agreement To Sell East Texas Natural Gas Gathering Assets To Subsidiary Of Tristate Midstream II, LLC
Forest Oil Corp announced that it has entered into an agreement to sell the majority of its East Texas natural gas gathering assets to a subsidiary of Tristate Midstream II, LLC for proceeds of $34 million. Forest can also earn up to $9 million of additional performance payments contingent on future activity. In conjunction with the sale, Forest has entered into a ten-year natural gas gathering agreement with the buyer under which Forest will commit its production from its existing and future operated wells located within five miles of the current configuration of the gathering system. The transaction is expected to close on October 31, 2012. Forest intends to use the net proceeds from the sale to repay a portion of the outstanding borrowings under its bank credit facilities. Full Article
Forest Oil Corporation Issues H2 2012 Production Guidance
Forest Oil Corporation announced that for the second half of 2012, it expects net sales volumes to average 320 -- 330 MMcfe/d (67% natural gas, 17% oil, and 16% natural gas liquids), natural gas volumes to average 215 -- 220 MMcf/d, oil volumes are forecasted to average 9,100 -- 9,400 Bbls/d and natural gas liquids volumes are forecasted to average 8,500 -- 8,800 Bbls/d. Full Article
Forest Oil Corporation Appoints Patrick R. McDonald As Interim Chief Executive Officer
Forest Oil Corporation announced that the Company’s Board of Directors has appointed Patrick R. McDonald, to serve as Interim Chief Executive Officer, effective immediately. Mr. McDonald succeeds H. Craig Clark as Chief Executive Officer. Mr. Clark was appointed as President and Chief Executive Officer and as a director of Forest in July 2003. The Board has initiated a search process for a permanent Chief Executive Officer, and has retained Spencer Stuart, a leading executive recruiting firm, to assist in the process. In connection with Spencer Stuart’s review of candidates, Mr. McDonald has asked not to be considered for a permanent role. Full Article
Forest Oil Corporation Issues FY 2012 Production Guidance
Forest Oil Corporation announced that for fiscal 2012, it expects total net sales volumes of 350 MMcfe/d to 355 MMcfe/d, which represents an annual organic growth rate of approximately 5% to 6%. Full Article
Forest Oil loss widens on lower natural gas production
May 6 - Forest Oil Corp's quarterly loss widened due to decline in natural gas sales volumes after the oil and gas producer shifted its focus to exploration of higher-margin oil properties.
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