Business
Compton reports first quarter 2010 results
Compton reports first quarter 2010 results
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\n May 12, 2010 (Canada NewsWire Group) -- Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) reports its financial and operating results for the first quarter ended March 31, 2010.\nThe full text of Management's Discussion and Analysis ("MD&A") and the Corporation's audited consolidated financial statements can be found on the Corporation's website at www.comptonpetroleum.com, at www.sedar.com and at www.sec.gov.\n\nQ1 2010 in Review\n\nSummary of Results:\n\n\n >\n\n\nAchievements:\n\n\n >\n\n\nThroughout the first quarter of 2010, Management maintained its philosophy of living within cash flow, taking a prudent approach in its capital investment decisions and focusing its development strategy to optimize asset value, emphasize cost reduction, and carefully manage its capital structure. Compton focused its field activities on optimizing production from existing wells and drilling processes in order to improve operating efficiencies and well economics.\n"The first quarter operating results have exceeded our expectations due to improved well performance and lower costs," said Tim Granger, President and Chief Executive Officer. "As a result, we expect to be at the upper end of our volume guidance with lower capital, operating and administrative costs than anticipated. Our efforts over the past quarters to realign business processes are now being realized, resulting in improved capital efficiencies for our shareholders. We expect that continued work throughout the remainder of 2010 will further demonstrate the value of our asset base."\n\nFinancial Review\n\n\n >\n\n\nRevenue increased in the first quarter of 2010 due to higher realized commodity prices, particularly liquids prices, despite reduced sales volumes compared to the first quarter of 2009. The reduction in sales volumes also impacted cash flow, which was 8% lower in the first quarter of 2010 compared to the same period in 2009.\nNet earnings increased in 2010 to $17.0 million from a loss of $17.4 million in the first quarter of 2009 due to non-cash unrealized foreign exchange and risk management gains. Operating loss increased in the first quarter of 2010 compared to 2009 due to reduced production volumes and depletion and depreciation expenses.\nCapital spending, before acquisitions and divestitures, decreased by 13% in the first ...