Independent energy company Edge Petroleum Corp. said Thursday it swung to a fourth-quarter loss, hurt by the commodity price volatility and higher costs.
The company posted a loss of $6.4 million, or 22 cents per share, compared with a year-ago profit of $2.9 million, or 16 cents per share.
Revenue jumped 44 percent to $35.9 million, from $24.9 million in the year-ago quarter. Sales were boosted by increased production, the company said. Production rose to 5.8 billions of cubic feet equivalent, from 4 billions of cubic feet equivalent a year earlier.
Analysts were expecting a profit of 7 cents per share on revenue of $43.6 million, according to a poll by Thomson Financial.
"The volatility in commodity prices, particularly for oil, continues to have a major impact on our reported earnings as a result of mark-to-market accounting which we follow," Executive Vice President and Chief Financial Officer Michael G. Long said in a statement.
When a company marks to market, they adjust the value of assets on their books to reflect current market conditions.
The company said it was also weighed down on costs from increased staff, higher rent, and professional service fees.
For the full year, the company posted a loss of $1 million, or 4 cents per share, compared with a loss of $41.3 million, or $2.38 per share, in 2006.
Revenue rose 24 percent to $160.9 million.
Edge said it's continuing its review of strategic alternatives, noting it's "working quickly" toward a potential merger or sale.
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