Endeavour International Corporation (NYSE:END) 4Q Results Sends Stock Spinning Down

Posted by admin March 6, 2014 0 Comment 735 views

Endeavour International Corporation (NYSE:END), the development stage oil and gas firm saw its market valuation wiped out by close to 1/4th during trading on 5th March on the back of disastrous results reported from its 4Q and full year 2013 operations. The small capped oil firm with oil reserves spread across the U.S and U.K reported that its net losses for the quarter had almost tripled to a jaw dropping $24.7 million. To put this in perspective, its 4Q12 losses were $7.7 million.

4Q Highlights

The net income dip was offset by a small increase in sales volume during 4Q.  In 4Q, Endeavour International Corporation (NYSE:END) had achieved sales of 13,648 barrels of oil equivalent per day. This compared favourably with the 11,541 barrels of oil equivalent it had sold in 4Q12.  Production also saw a substantive increase in the reporting quarter. Its 4Q production went up by close to 12 percent to reach 12,422 barrels of oil per day, well above the 10,300 barrels of oil that had been produced in 4Q12.

Silver Lining

The earnings call was also filled with other positive indicators which the investment community has decided to ignore. Endeavour International Corporation (NYSE:END) reported that it had managed to get its Rochelle Field oil reserve into production, while successfully sold out previously identified nonperforming assets, including beefing up its “Monetary Production Payment” fund by $25 million during the quarter.

CEO Spin

Endeavour International Corporation (NYSE:END), chairman, chief executive officer and president William L. Transier tried to put a positive spin on the earnings call by  saying that, “With the Rochelle situation resolved, we will continue our focus on reducing cost of capital and deleveraging our balance sheet.  The reorganization and consolidation of our UK offices completed last year, combined with the reduced cost of capital from our refinancing effort in January, result in over $30 million in annual cash savings.”

Write Your Comment