Lexington-based NGAS Resources, which explores for and produces natural gas, reported Thursday a net loss of $3.2 million for its fourth quarter and a loss of $7.7 million for the full year.
Full-year results would have been worse if not for a one-time gain of more than $3 million related to the sale of certain gas-gathering assets.
The loss in the fourth quarter (11 cents a share) contrasts with a profit of $306,639, or 1 cent a share, in the same period a year ago. The loss for the full year (27 cents a share) compared with a profit of $2.9 million, or 11 cents a share, in 2008.
The losses were driven by reduced drilling activity and lower commodity prices, according to a company news release.
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Revenue for the fourth quarter totaled $14.8 million, down 32.1 percent from $21.8 million in the fourth quarter of 2008. For the full year, revenue was $57.8 million, down 31.5 percent from $84.4 million in 2008.
President and CEO William S. Daugherty noted in a press release the company made progress in 2009 on several initiatives including restructuring its debt and reducing it by the sale of certain assets.
The company said average daily production fell 2.9 percent in the fourth quarter compared to a year earlier. It also saw the average realized natural gas price fall from $7.62 per Mcf, or thousand cubic feet, in the fourth quarter of 2008 to $5.73 per Mcf in the most recent quarter.
For the full year, average daily production fell 6.4 percent compared with 2008. Prices fell from $8.89 per Mcf in 2008 to $6.17 in 2009.