Lexington-based NGAS Resources, which explores for and produces natural gas, reported Tuesday a net loss of $112,472 for its third quarter. Results would have been worse if not for a one-time gain of $3.4 million related to the sale of certain gas-gathering assets.
The loss in the quarter contrasts with a profit of $945,185 in the same period a year ago.
The drop was driven by "significantly lower commodity prices," CEO William S. Daugherty said in a statement.
Revenue for the quarter totaled $11.2 million, down 53 percent from $23.6 million a year ago.
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Daugherty said that despite the difficult economic climate, the company has made progress on several initiatives.
The company said that while production volumes increased 5 percent, it suffered from an average natural gas price of $5.67 per Mcf, or thousand cubic feet, compared with $9.80 per Mcf last year.
NGAS benefited from a 27 percent year-over-year drop in selling, general and administrative expenses during the quarter. That was primarily due to the timing and extent of marketing costs for sponsored drilling partnerships, the company said.
The company also noted that it closed the sale of its remaining interest in a part of its Appalachian gas-gathering system. All of the proceeds have been used to reduce debt, which was cut by $45 million in the quarter, the company said.