Forest Oil Corporation (FST) reported its third-quarter 2009 earnings of 48 cents per share, compared with the Zacks Consensus Estimate of 53 cents and a year-ago profit of $1.26. Before adjusting one-time items, earnings were $1.53 per share. The results came in below expectations mainly due to lower sales volumes.

Sales volumes for the quarter came in at 476 MMcfe/d (77% natural gas), down 9% from 520 MMcfe/d in the corresponding 2008 period. The decrease in production was due to deferred and divested volumes.

During the quarter, production expenses decreased approximately 24% year-over-year to $1.17 per Mcfe, mainly on the back of a fall in production. Unit general and administrative expenses for the quarter was essentially flat year-over-year to 28 cents per Mcfe, while depreciation and depletion expenses for the quarter decreased 48% year-over-year to $1.49 per Mcfe due mainly to a non-cash ceiling test write-down of oil and gas

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