Dallas, Texas 03/03/2014 (FINANCIALSTRENDS) – Forest Oil Corporation(NYSE:FST) a Denver based oil and gas company which develops, explores and produces natural gas, oil and natural gas liquid has reported its earnings for the forth-quarter of the fiscal year 2013. Upon announcement of the earnings, the share prices of this oil production company slid by over 36%.
Forest Oil Corporation(NYSE:FST) fourth quarter results reported $88.5 million revenue. This fell short of the expected Wall estimation by $96.3 million. The company was expected to return earnings of $0.02, however, the company failed to meet it. The cause of the slide downward was the 1,363 Bcfe for a year, much higher than the 625 Bcfe of the previous year.
Forest Oil Corporation(NYSE:FST) has noted a fall in the reserves due to the divestures the company adopted for800 Bcfe. When investors realised that this decline was very high, the impact was on the stock prices. Again, investor sentiment was influenced by the increase in the weak revenue as well as earnings the stock saw drop. However, analysts hope to see higher profits as the stock is expected to ride higher by the end of this year. The journey in next 9 months is likely to see marginal volatility, relate analysts.
Forest Oil Corporation(NYSE:FST) though not reportedly one of the better or bigger oil and gas exploration sites, it has been successful in seeing much action thus forth. However, energy stock is doing very well across the sector. The key in the US stock market has been the possibility of the balanced investments which will offset the profitability and production. As FST continues to explore the US oil and natural gas fields extensively, besides acquiring other sites which have rich reserves.
Forest Oil Corporation(NYSE:FST) is expected to perform better in the later part of year, resulting in stock prices surging to historic high.
