Rice Energy notches $129M profit in 1st quarter
Cecil-based Rice Energy Inc. reversed a loss from a year ago with a $129.5 million profit in the first quarter, as it went public to pay off debt and expand its production in the Marcellus and Utica shale plays.
The company on Tuesday posted earnings of $1.03 a share in the three months ended March 31, compared with a loss $6.8 million, or 5 cents per share, in the same period a year earlier. Revenue rose to $90.5 million from $13.2 million.
The results follow similar news this month from most companies pulling gas from the Marcellus and Utica. Drillers credited increased production from more wells and better prices during cold weather for big jumps in profits over last year.
Since going public in January at $21 per share, Rice's stock has surged on investor optimism about the drilling industry. The stock closed up $1.65, or 5.72 percent, at $30.49.
“Our development is on time and on budget, and continues to generate really good results,” Rice CEO Daniel J. Rice IV said during a conference call with analysts.
The company disclosed on Tuesday that it bought out joint-venture partner Alpha Natural Resources Inc. at the same time it went public in January, a deal that helped boost its bottom line. It resulted in a onetime gain of $203 million in the quarter.
The federal Energy Information Administration this week predicted continued increases in Marcellus gas production through at least June.
Rice officials said they would continue growing production in the Marcellus while exploring several wells in the deeper Utica shale in Ohio. The company increased gas production by 135 percent and brought several wells online in the first quarter.
David Conti is a Trib Total Media staff writer. Reach him at 412-388-5802 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Stocks stake claim in record territory
- Westinghouse in talks for potential $20B deal in Turkey
- Small retailers at intersection of social networks, foot traffic
- 153-year-old Venango well pumps out oil, history
- Iron ore price decline hurts U.S. Steel’s cost advantage over rivals
- In ‘StockCity,’ real investing like game
- U.S. Steel reorganizes operating units
- Business Council for Peace program works to export profits, peace
- Westmoreland County’s Excela Health rethinks patient debts
- Pennsylvania unemployment rate drops to six-year low
- Test-tube tuna may be sea change