Double Eagle Petroleum Co. today reported record financial results for the full-year 2008. Net income attributable to common shareholders totaled $6,658,000, or $0.73 per diluted share, as compared to a net loss of $(13,413,000), or $(1.47) per share, for 2007. The company noted that the net income attributable to common stock in 2008 included an unrealized gain of $2,631,000 relating to economic hedges, which is recorded at fair value at each period end.
Total revenues for 2008 increased a stunning 188% to $49,578,000, compared with 2007â€™s numbers. Production-related revenue increased 175% to $46,635,000. This increase in production revenue was driven mainly by a combination of an increase in the average realized gas price with record production volumes at the companyâ€™s operated wells in the Catalina Unit.
Double Eagleâ€™s gross operating margin, excluding depreciation, depletion and amortization (”DD&A”), was 66.6% for the full-year 2008. The impressive percentage is attributed to increase realized gas prices and increased production and operating efficiency at the Company-operated Catalina Unit.
Richard Dole, Chairman, President and CEO of Double Eagle commented, “I am very proud of the Company’s performance in 2008. We have achieved record financial and production results, and have realized significant improvements in operating efficiency at our Catalina Unit. We are operating in a highly volatile and uncertain market, and our focus in 2009 will be maintaining and controlling our liquidity.”