Petroquest Energy Inc. (PQ)

[Timothy Smith]

@Sps50 - I am a buyer in the $4 level or possibly higher depending how this bounce plays here. I like Mid Cap long term upside potential here.

Looking specifically at US producers who are making plans now to ramp up NGL production facilities and build out connectivity to pipeline infrastructure in the US, I think this is a great opportunity to get in on the ground floor.

PQ has been hit hard by sell-offs in the last two years but its assets appear to be vastly undervalued in my opinion.

Look for further guidance from management regarding activity in the Mississippian Lime formation as this play has the potential to be one of PQ's larger catalysts in the coming quarters.

[sps50]

New to this board I am. WoW ! There is 7.4% shorting on PQ as of today! Everything I see looks good but heavy hands holding it down. Better earnings than last year's loss, than last quarter (+50%), significant hedging on oil AND gas at $3.63 per NR, pipes ready to hook up next week, wells ready to come online in 60 days, major drilling program, etc.

What is not to like, Market players? Can you explain for me?

[sps50]

Good news with a better future and some want to abandon? Looks like a good long term play...

[ECole]

Interesting read

Acquisition-Of-Shallow-Water-Gulf-Of-Mexico-Assets-And-Acceleration-Of-Its-Onshore-Programs

http://www.earningsimpact.com/Transcript/81737/PQ/PetroQuest-Energy-Announces-Acquisition-Of-Shallow-Water-Gulf-Of-Mexico-Assets-And-Acceleration-Of-Its-Onshore-Programs

[Timothy Smith]

PetroQuest Energy Announces Second Quarter Results And Updates Guidance And Hedging

Aug 2, 2012 5:30:00 AM
LAFAYETTE, La., Aug. 2, 2012 /PRNewswire/ -- PetroQuest Energy, Inc. (NYSE: PQ) announced today that the Company recorded a net loss available to common stockholders for the quarter ended June 30, 2012 of $54,520,000, or $0.87 per share, compared to second quarter 2011 net loss available to common stockholders of $3,045,000, or $0.05 per share. For the first six months of 2012, the Company reported a net loss available to common stockholders of $73,128,000, or $1.17 per share, compared to a net loss available to common stockholders of $1,148,000, or $0.02 per share, for the 2011 period. The Company recorded non-cash ceiling test write-downs of $53,485,000 and $73,596,000 during the second quarter and six month periods of 2012, respectively, as a result of the impact of low natural gas prices on the future discounted net cash flows from its estimated proved reserves.

Discretionary cash flow for the second quarter of 2012 was $20,068,000, as compared to $27,009,000 for the comparable 2011 period. For the first six months of 2012, discretionary cash flow was $39,716,000, compared to discretionary cash flow of $52,120,000 for the first six months of 2011. See the attached schedule for a reconciliation of net cash flow provided by operating activities to discretionary cash flow.

Production for the second quarter of 2012 was 8.4 Bcfe, compared to 7.4 Bcfe for the comparable period of 2011. For the first six months of 2012, production was 16.6 Bcfe, compared to 14.7 Bcfe for the comparable period of 2011. Stated on an Mcfe basis, unit prices including the effects of hedges for the second quarter of 2012 were $3.97 per Mcfe, as compared to $5.69 per Mcfe in the second quarter of 2011. For the first six months of 2012, unit prices including the effects of hedges, were $4.19 per Mcfe, as compared to $5.66 per Mcfe for the first six months of 2012. Oil and gas sales during the second quarter of 2012 were $33,376,000, as compared to $41,920,000, in the second quarter of 2011. For the first six months of 2012, oil and gas sales were $69,373,000 compared to oil and gas sales of $83,466,000 for the first six months of 2011.

Lease operating expenses ("LOE") for the second quarter of 2012 decreased to $9,085,000, as compared to $10,206,000 in the second quarter of 2011. LOE per Mcfe was $1.08 for the second quarter of 2012, as compared to $1.38 in the second quarter of 2011. For the first six months of 2012, lease operating expenses decreased to $1.13 per Mcfe from $1.34 per Mcfe in the comparable period of 2011. The decreases in lease operating expenses for the 2012 periods are primarily due to cost savings associated with the Company's Woodford saltwater disposal systems.

Depreciation, depletion and amortization ("DD&A") on oil and gas properties for the second quarter of 2012 was $1.84 per Mcfe, as compared to $1.95 per Mcfe in the second quarter of 2011. For the first six months of 2012, DD&A on oil and gas properties was $1.84 per Mcfe compared to $1.91 per Mcfe for the comparable period of 2011. The decrease in DD&A during the second quarter of 2012, as compared to the second quarter of 2011, was primarily the result of the ceiling test write-down recorded during the first quarter of 2012, as well as the impact of the Company's discovery at its Broussard Estates No. 2 well in south Louisiana in June 2012.

Interest expense for the second quarter of 2012 increased to $2,413,000, as compared to $2,255,000 in the second quarter of 2011. For the first six months of 2012, interest expense was $4,683,000, compared to $4,949,000 for the comparable period of 2011.

Production taxes for the second quarter of 2012 were ($1,917,000), as compared to ($538,000) in the second quarter of 2011. For the first six months of 2012, production taxes were ($768,000) compared to $624,000 for the comparable period of 2011. During the second quarter of 2012, the Company recorded a receivable of $2.7 million for refunds expected to be received relative to severance tax previously paid on horizontal wells drilled in Oklahoma.

General and administrative expenses during the quarter and six months ended June 30, 2012 totaled $5,999,000 and $11,578,000, respectively, as compared to expenses of $4,280,000 and $8,678,000 during the comparable 2011 periods. The increase in general and administrative expenses for the 2012 periods is primarily due to higher employee related expenses, including non-cash stock compensation costs totaling $3,838,000 during the first six months of 2012 as compared to $1,917,000 during the 2011 period.

The following table sets forth certain information with respect to the oil and gas operations of the Company for the three and six month periods ended June 30, 2012 and 2011:





Three Months Ended


Six Months Ended


June 30,


June 30,


2012
2011


2012
2011
Production:










Oil (Bbls)
116,037
140,049


257,312
315,313
Gas (Mcf)
6,945,466
5,995,945


13,674,781
11,773,285
Ngl (Mcfe)
763,302
533,067


1,356,437
1,073,537
Total Production (Mcfe)
8,404,990
7,369,306


16,575,090
14,738,700
Total Daily Production (Mmcfe)
92.4
81.0


91.1
81.4












Sales:










Total oil sales
$ 12,831,097
$ 15,722,784


$ 28,340,054
$ 32,895,484
Total gas sales
15,457,658
21,490,412


30,737,611
40,616,107
Total ngl sales
5,087,135
4,706,280


10,295,240
9,953,890
Total oil and gas sales
$ 33,375,890
$ 41,919,476


$ 69,372,905
$ 83,465,481












Average sales prices:










Oil (per Bbl)
$ 110.58
$ 112.27


$ 110.14
$ 104.33
Gas (per Mcf)
2.23
3.58


2.25
3.45
Ngl (per Mcfe)
6.66
8.83


7.59
9.27
Per Mcfe
3.97
5.69


4.19
5.66












The above sales and average sales prices include increases (reductions) to revenue related to the settlement of gas hedges of $3,230,000 and $186,000, oil hedges of $415,000 and ($289,000) and NGL hedges of $232,000 and zero for the three months ended June 30, 2012 and 2011, respectively. The above sales and average sales prices include increases (reductions) to revenue related to the settlement of gas hedges of $5,385,000 and $386,000, oil hedges of $362,000 and ($389,000) and NGL hedges of $232,000 and zero for the six months ended June 30, 2012 and 2011, respectively.

The following initiates guidance for the third quarter of 2012:





Guidance for
Description
3rd Quarter 2012




Production volumes (MMcfe/d)
92 - 97




Percent Gas
80%
Percent Oil
8%
Percent NGL
12%




Expenses:


Lease operating expenses (per Mcfe)
$1.10 - $1.15
Production taxes (per Mcfe)
$0.10 - $0.15
Depreciation, depletion and amortization (per Mcfe)
$1.70 - $1.80
General and administrative (in millions)*
$5.5 - $6.0
Interest expense (in millions)
$2.4 - $2.7




*Includes non-cash stock compensation estimate of $1.8 million






The following updates guidance for the full year of 2012:





Guidance for
Description
Full Year 2012




Production volumes (MMcfe/d)
92 - 97




Percent Gas
79%
Percent Oil
9%
Percent NGL
12%












Expenses:


Lease operating expenses (per Mcfe)
$1.10 - $1.15
Production taxes (per Mcfe)
$0.04 - $0.06
Depreciation, depletion and amortization (per Mcfe)
$1.75 - $1.85
General and administrative (in millions)*
$22 - $23
Interest expense (in millions)
$9.5 - $10.5
2012 Capital Expenditures (in millions)
$110 - $115




*Includes non-cash stock compensation estimate of $6.8 million








Hedging Update

The Company recently initiated the following commodity hedging transactions:







Instrument








Production Period


Type


Daily Volumes


Price
Gas:












Jul 12 - Dec 12


Swap


20,000 Mmbtu


$2.73
2013


Three Way Collar


10,000 Mmbtu


$2.00 - $3.00 - $4.09














After executing the above transactions, the Company has approximately 8.0 Bcf of gas volumes hedged for the remainder of 2012 with an average floor price of $3.13 per Mcf and 3.7 Bcf of gas volumes hedged for 2013.

About the Company

PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in Oklahoma, Texas, the Gulf Coast Basin, Arkansas and Wyoming. PetroQuest's common stock trades on the New York Stock Exchange under the ticker PQ.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our ability to find oil and natural gas reserves that are economically recoverable, the volatility of oil and natural gas prices and significantly depressed natural gas prices since the middle of 2008, the uncertain economic conditions in the United States and globally, the declines in the values of our properties that have resulted in and may in the future result in additional ceiling test write-downs, our ability to replace reserves and sustain production, our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in prospect development and property acquisitions or dispositions and in projecting future rates of production or future reserves, the timing of development expenditures and drilling of wells, hurricanes and other natural disasters, changes in laws and regulations as they relate to our operations, including our fracing operations in shale plays or our operations in the Gulf of Mexico, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements.

Click here for more information: "http://www.petroquest.com/news.html?=BizID=1690&1=1";







PETROQUEST ENERGY, INC.
Consolidated Balance Sheets (Amounts in Thousands)
(unaudited)








June 30,
December 31,


2012
2011
ASSETS




Current assets:




Cash and cash equivalents
$ 9,599
$ 22,263
Revenue receivable
12,476
15,860
Joint interest billing receivable
37,991
47,445
Hedge asset
4,814
6,418
Prepaid drilling costs
2,163
2,900
Drilling pipe inventory
2,259
4,070
Other current assets
3,399
2,965
Total current assets
72,701
101,921
Property and equipment:




Oil and gas properties:




Oil and gas properties, full cost method
1,666,929
1,600,546
Unevaluated oil and gas properties
76,709
70,408
Accumulated depreciation, depletion and amortization
(1,369,941)
(1,265,603)
Oil and gas properties, net
373,697
405,351
Gas gathering assets
4,177
4,177
Accumulated depreciation and amortization of gas gathering assets
(1,943)
(1,794)
Total property and equipment
375,931
407,734
Other assets, net of accumulated depreciation and amortization




of $8,837 and $8,066, respectively
8,399
6,511
Total assets
$ 457,031
$ 516,166
LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable to vendors
$ 61,711
$ 50,750
Advances from co-owners
22,526
33,867
Oil and gas revenue payable
12,412
13,764
Accrued interest and preferred stock dividend
6,166
6,167
Asset retirement obligation
1,034
3,110
Other accrued liabilities
4,898
8,250
Total current liabilities
108,747
115,908
Bank debt
17,500
-
10% Senior Notes
150,000
150,000
Asset retirement obligation
28,758
27,317
Hedge liability
317
-
Deferred income taxes
-
551
Commitments and contingencies




Stockholders' equity:




Preferred stock, $.001 par value; authorized 5,000




shares; issued and outstanding 1,495 shares
1
1
Common stock, $.001 par value; authorized 150,000




shares; issued and outstanding 62,380 and 62,148




shares, respectively
62
62
Paid-in capital
274,061
270,606
Accumulated other comprehensive income
3,023
4,031
Accumulated deficit
(125,438)
(52,310)
Total stockholders' equity
151,709
222,390
Total liabilities and stockholders' equity
$ 457,031
$ 516,166












PETROQUEST ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in Thousands, Except Per Share Data)










Three Months Ended


Six Months Ended


June 30,


June 30,


2012
2011


2012
2011
Revenues:










Oil and gas sales
$ 33,376
$ 41,920


$ 69,373
$ 83,466
Gas gathering revenue
37
55


81
112


33,413
41,975


69,454
83,578












Expenses:










Lease operating expenses
9,085
10,206


18,750
19,709
Production taxes
(1,917)
(538)


(768)
624
Depreciation, depletion and amortization
15,762
14,657


30,992
28,719
Ceiling test write-down
53,485
12,973


73,596
18,907
General and administrative
5,999
4,280


11,578
8,678
Accretion of asset retirement obligation
517
427


1,017
1,179
Interest expense
2,413
2,255


4,683
4,949


85,344
44,260


139,848
82,765












Other income (expense):










Other income
123
197


272
277
Derivative expense
(375)
-


(375)
-


(252)
197


(103)
277












Income (loss) from operations
(52,183)
(2,088)


(70,497)
1,090












Income tax expense (benefit)
1,049
(330)


61
(329)












Net income (loss)
(53,232)
(1,758)


(70,558)
1,419












Preferred stock dividend
1,288
1,287


2,570
2,567












Net loss available to common stockholders
$ (54,520)
$ (3,045)


$ (73,128)
$ (1,148)












Earnings per common share:










Basic










Net loss per share
$ (0.87)
$ (0.05)


$ (1.17)
$ (0.02)
Diluted










Net loss per share
$ (0.87)
$ (0.05)


$ (1.17)
$ (0.02)












Weighted average number of common shares:










Basic
62,363
61,917


62,289
61,793
Diluted
62,363
61,917


62,289
61,793


















PETROQUEST ENERGY, INC.
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in Thousands)






Six Months Ended


June 30,


2012
2011
Cash flows from operating activities:




Net income (loss)
$ (70,558)
$ 1,419
Adjustments to reconcile net income (loss) to net cash provided by




operating activities:




Deferred tax expense (benefit)
61
(329)
Depreciation, depletion and amortization
30,992
28,719
Ceiling test writedown
73,596
18,907
Accretion of asset retirement obligation
1,017
1,179
Share based compensation expense
3,838
1,917
Amortization costs and other
395
308
Non-cash derivative expense
375
-
Payments to settle asset retirement obligations
(2,450)
(513)
Changes in working capital accounts:




Revenue receivable
3,384
3,719
Prepaid drilling and pipe costs
2,548
5,507
Joint interest billing receivable
8,962
(13,976)
Accounts payable and accrued liabilities
4,602
(3,358)
Advances from co-owners
(11,341)
18,235
Other
(3,153)
(1,843)
Net cash provided by operating activities
42,268
59,891
Cash flows used in investing activities:




Investment in oil and gas properties
(75,825)
(69,006)
Sale of oil and gas properties
275
-
Sale of unevaluated oil and gas properties
6,083
-
Net cash used in investing activities
(69,467)
(69,006)
Cash flows used in financing activities:




Net payments for share based compensation
(383)
(896)
Deferred financing costs
(12)
(16)
Payment of preferred stock dividend
(2,570)
(2,569)
Proceeds from bank borrowings
45,000
-
Repayment of bank borrowings
(27,500)
-
Net cash provided by (used in) financing activities
14,535
(3,481)
Net decrease in cash and cash equivalents
(12,664)
(12,596)
Cash and cash equivalents, beginning of period
22,263
63,237
Cash and cash equivalents, end of period
$ 9,599
$ 50,641
Supplemental disclosure of cash flow information:




Cash paid during the period for:




Interest
$ 7,871
$ 8,291
Income taxes
$ 15
$ 1












PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)














Three Months Ended


Six Months Ended




June 30,


June 30,




2012
2011


2012
2011
Net loss


$ (53,232)
$ (1,758)


$ (70,558)
$ 1,419














Reconciling items:












Deferred tax expense (benefit)


1,049
(330)


61
(329)
Depreciation, depletion and amortization


15,762
14,657


30,992
28,719
Ceiling test writedown


53,485
12,973


73,596
18,907
Non-cash derivative expense


375
-


375
-
Accretion of asset retirement obligation


517
427


1,017
1,179
Share based compensation expense


1,915
885


3,838
1,917
Amortization costs and other


197
155


395
308
Discretionary cash flow


20,068
27,009


39,716
52,120
Changes in working capital accounts


9,917
14,623


5,002
8,284
Settlement of asset retirement obligations


(1,668)
-


(2,450)
(513)














Net cash flow provided by operating activities


$ 28,317
$ 41,632


$ 42,268
$ 59,891




















Note:
Management believes that discretionary cash flow is relevant and useful information, which is commonly used by analysts, investors and other interested parties in the oil and gas industry as a financial indicator of an oil and gas company's ability to generate cash used to internally fund exploration and development activities and to service debt. Discretionary cash flow is not a measure of financial performance prepared in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation or as an alternative to net cash flow provided by operating activities. In addition, since discretionary cash flow is not a term defined by GAAP, it might not be comparable to similarly titled measures used by other companies.




SOURCE PetroQuest Energy, Inc.


----------------------------------------------
Matt Quantz
Manager - Corporate Communications
[phone]

[Penny Roger$]

~ Wednesday! $PQ ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $PQ ~ Earnings expected on Wednesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=PQ&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=PQ&p=W&b=3&g=0&id=p54550695994



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<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=PQ >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

[ChitForBrains]

That's a strange amount of acres, but since it said parts of Kansas it isn't the Pawnee Nation of Oklahoma (which is 28,000 acres). So about $850/acre to lease (or buy from another oil company).

Eagle Ford are going from 1K to 8K per acre.

[la izzy]

i think this will be a good one to hold


The Associated PressSeptember 15, 2011, 11:56AM ETtext size: TT


PetroQuest acquires Oklahoma tract



09/15/2011

LAFAYETTE, La.

PetroQuest Energy Inc. has acquired about 28,000 acres in the Mississippi Lime formation, an oil and gas-bearing deposit that stretches through northern Oklahoma and southern sections of Kansas.

The company said it paid $24 million for the tract, which is in Pawnee County, Okla.

Lafayette-based PetroQuest focuses mainly on land exploration and production in Wyoming, Texas and Louisiana and in the shallow waters of the Gulf of Mexico.

Shares of PetroQuest rose 14 cents to $7.56 in afternoon trading Thursday.

[OilStockReport]

Here is a little explanation as to why the numbers were so disappointing.



http://www.fool.com/investing/general/2011/06/15/why-petroquest-energys-earnings-arent-so-hot.aspx

[OilStockReport]

I see some upside potential here...

PetroQuest Energy (PQ) is a balanced oil and gas producer. This company's chart looks good over the past three months. PetroQuest has a 28% CAGR over the past twelve years with respect to production growth. The twelve year CAGR on reserve growth is 25%. As of the end of 2010, this company has had a success rate of 94%. PetroQuest has 45000 net acres in the Woodford shale, and 16000 net acres in the Fayetteville shale. The Arkoma Basin has been kind to PetroQuest. Since 2005 it has seen a CAGR of 41% with reserves and 33% with production. PetroQuest has 1600 net acres in the Eagle Ford. Three gross wells will be drilled here in 2011 and PetroQuest is aggressively seeking more acreage. Twelve percent of the 2011 capital budget is being spent here. In east Texas, PetroQuest's 23900 net acres are in SE Carthage field. A total of seven gross operated wells will be planned for this year. PetroQuest is increasing its exposure to liquids. In 2010, PetroQuest had liquids production of 21% of the total. This was 10% better than in 2009, and 2011 should see production growth of an addition 10%. PetroQuest also has shallow water assets in the Gulf of Mexico. Going forward, the Woodford JV will continue to produce liquidity, while the Niobrara and Eagle Ford add significant upside, depending on well results.

P/E Ratio- 13.9

Price to Sales- 2.86

Price to Tangible Book- 2.23

[OilStockReport]

Numbers are looking good and well positioned for the new year. I think we will see strong growth in production numbers and possible acquisition or merger plans.

Production Oil and gas production decreased 14% in the first nine months of 2010, as compared to the 2009 period, as a result of reduced capital spending during 2009. In addition, during the second quarter of 2010, we experienced unanticipated shut-ins at our Ship Shoal 72 and Main Pass 74 fields due to facility maintenance and third party pipeline repairs. Production at both fields has been fully restored. We expect total 2010 production to be slightly lower than volumes produced during 2009. Because of our increased drilling program and drilling success in 2010, we expect 2011 production volumes to increase from 2010 amounts.

Gas production during the three and nine month periods ended September 30, 2010 decreased 5% and 16%, respectively, from the comparable periods in 2009. The decreases in gas production were primarily the result of reduced capital spending during 2009 and normal production declines in Oklahoma, where initial production rates are higher than the sustained rates over the life of the wells. The unanticipated shut-ins at Ship Shoal Block 72 and Main Pass Block 74 also contributed to the production decrease in the nine months ended September 30, 2010.

Oil production during the three and nine month periods ended September 30, 2010 increased 39% and 9% from the 2009 periods due to the restoration of production at our Ship Shoal 225 field after repairs and a recompletion following Hurricanes Katrina and Rita. In addition, our oil production rates have increased from the drilling success of our Lynlakes prospect in June 2010 and recompletions at our Ship Shoal 72 field.

Revenue Including the effects of hedges, oil and gas sales during the quarter and nine months ended September 30, 2010 decreased 8% and 18% to $46,229,000 and $135,631,000, respectively, as compared to oil and gas sales of $50,182,000 and $164,792,000 during the 2009 periods. The decreased revenue during 2010 was primarily the result of lower production and a decrease in hedge settlements realized during the first nine months of 2010 as compared to 2009. As a result of the impact of the settlements of our higher valued hedge positions on 2009 oil and gas sales as compared to the expected impact of our 2010 hedge positions, we expect oil and gas revenue to decline during the fourth quarter of 2010 as compared to 2009.

[OilStockReport]

Glad to have picked up some shares cheaply the other day. I see PQ getting ready to make a move to the next level.

Overview

PetroQuest Energy, Inc. is an independent oil and gas company engaged in the exploration, development, acquisition and production of oil and gas reserves in the Arkoma Basin, East Texas, South Louisiana and the shallow waters of the Gulf of Mexico shelf. We seek to grow our production, proved reserves, cash flow and earnings at low finding and development costs through a balanced mix of exploration, development and acquisition activities. From the commencement of our operations in 1985 through 2002, we were focused exclusively in the Gulf Coast Basin with onshore properties principally in southern Louisiana and offshore properties in the shallow waters of the Gulf of Mexico shelf. During 2003, we began the implementation of our strategic goal of diversifying our reserves and production into longer life and lower risk onshore properties. As part of the strategic shift to diversify our asset portfolio and lower our geographic and geologic risk profile, we refocused our opportunity selection processes to reduce our average working interest in higher risk projects, shift capital to higher probability of success onshore wells and mitigate the risks associated with individual wells by expanding our drilling program across multiple basins.

Utilizing the cash flow generated by our higher margin Gulf Coast Basin assets, we have successfully diversified into onshore, longer life assets, including the Woodford and Fayetteville shales in Oklahoma and Arkansas and the Southeast Carthage field in Texas. Beginning in 2003, with our acquisition of the Southeast Carthage Field, through 2009, we have invested approximately $650 million into growing our longer life assets. During the six year period ended December 31, 2009, we have more than doubled our estimated proved reserves to 179 Bcfe and realized a 97% drilling success rate on 551 gross wells drilled. We have continued to focus our efforts on properties we control. At December 31, 2009, we operated approximately 75% of our total estimated proved reserves and managed the drilling and completion activities on an additional 15% of such reserves. We have grown our production to 86.4 MMcfe per day for the quarter ended September 30, 2010. At September 30, 2010, 85% of our estimated proved reserves and 54% of our third quarter 2010 production were derived from our longer life assets.

During late 2008, in response to declining commodity prices and the global financial crisis, we shifted our focus from increasing production and reserves to building liquidity and strengthening our balance sheet. As a result of our significant operational control over our drilling prospects, we were able to reduce our capital expenditures, including capitalized interest and overhead, by 83% from $357.8 million in 2008 to $59.1 million in 2009. In addition, we reduced our lease operating expenses, production taxes and general and administrative costs, by a combined 23% from 2008 to 2009. Finally, in June 2009 we completed a public offering of 11.5 million shares of our common stock, receiving net proceeds of approximately $38 million. As a result of these and other liquidity building efforts, we have repaid $130 million of borrowings outstanding under our bank credit facility since August 2009. As of September 30, 2010, we had no borrowings outstanding under this facility.

Having achieved our 2009 goals of building liquidity and strengthening our balance sheet, in 2010 we have refocused on the key elements of our business strategy with the goal of growing our reserves and production in a fiscally prudent manner. To that end, in May 2010, we entered into a joint development agreement with WSGP Gas Producing LLC (WSGP), a subsidiary of NextEra Energy Resources, LLC, whereby WSGP acquired 50% of our Woodford proved undeveloped reserves as well as the right to earn 50% of our undeveloped Woodford acreage position through a two phase drilling program. We received $57.4 million in cash at closing, net of $2.6 million in transaction fees, and will receive an additional $14 million on November 30, 2011. If certain production performance metrics are achieved we will receive an additional $14 million in the future, which we estimate could occur during 2011. Additionally, WSGP will fund a share of our future drilling costs under a drilling program. The additional capital provided by this agreement will allow us to accelerate the pace of our development of the Woodford Shale and pursue opportunities in other basins.
During August 2010, we issued $150 million in principal amount of 10% Senior Notes due 2017 (the “Notes”) in a public offering. The net proceeds of the offering, together with cash on hand, were used to fund the tender offer and consent solicitation and redemption of the Company’s 10 3 / 8 % Senior Notes due 2012. In connection with the retirement of the 10 3 / 8 % Senior Notes in August 2010, the maturity date of our bank credit facility was automatically extended to October 2, 2013.

[OilStockReport]

Nice correction in the market today down 7% here. Should make for a nice rebound in the next session or few.

[makesumgravy]

$200,000,000 re: S-3

Debt Securities
Common Stock
Preferred Stock
Depositary Shares
Warrants
Purchase Contracts
Units

Guarantees of Non-Convertible Debt
Securities of PetroQuest Energy, Inc.
by:
PetroQuest Energy, L.L.C.
TDC Energy LLC




We may offer from time to time debt securities, shares of our common stock, shares of our preferred stock, depositary shares, warrants, purchase contracts and units. Any non-convertible debt securities we issue under this prospectus may be guaranteed by our subsidiaries.

The aggregate initial offering price of the securities that we offer will not exceed $200,000,000. We will offer the securities in amounts, at prices and on terms to be determined at the time of the offering.

Our common stock is quoted on the New York Stock Exchange under the symbol “PQ.” The last reported sale price of our common stock on April 3, 2009 was $2.60 per share.

We will provide the specific terms of the offering in supplements to this prospectus. You should read this prospectus and any supplement carefully before you invest. This prospectus may not be used to offer and sell our securities unless accompanied by a prospectus supplement.

Investing in our securities involves significant risks that are described in the “Risk Factors” section beginning on page 5 of this prospectus.

[makesumgravy]

Recent S-3 filing 4-6-09
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6530779

As filed with the Securities and Exchange Commission on April 6, 2009
Registration No. 333-
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549




Form S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933




PetroQuest Energy, Inc.
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation or organization) 72-1440714
(I.R.S. Employer Identification No.)





400 E. Kaliste Saloom Road, Suite 6000
Lafayette, Louisiana 70508
[phone]
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Charles T. Goodson
Chairman, President and Chief Executive Officer
PetroQuest Energy, Inc.
400 E. Kaliste Saloom Road, Suite 6000
Lafayette, Louisiana 70508
[phone]
(Name, address, including zip code, and telephone number, including area code, of agent for service)




Copies to:


Daniel G. Fournerat
Executive Vice President, General Counsel and Secretary
PetroQuest Energy, Inc.
400 E. Kaliste Saloom Road, Suite 6000
Lafayette, Louisiana 70508
Telephone: [phone]
Telecopy: [phone] Robert G. Reedy
E. James Cowen
Porter & Hedges, L.L.P.
1000 Main, 36th Floor
Houston, Texas 77002
Telephone: [phone]
Telecopy: [phone]





Approximate date of commencement of proposed sale to the public: From time to time after this registration statement becomes effective.

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. o

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. þ

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. o

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o

(Do not check if a smaller reporting company)






--------------------------------------------------------------------------------


Table of Contents


CALCULATION OF REGISTRATION FEE


Title of Each Class of
Proposed Maximum
Amount of

Securities to Be Registered(1) Aggregate Offering Price(2) Registration Fee
Debt Securities(3)
Common Stock, par value $.001 per share(4)
Preferred Stock, par value $.001 per share
Depositary Shares(5)
Warrants
Purchase Contracts
Units
Guarantees of the Non-Convertible Debt Securities(6)
Total $200,000,000 $11,160(7)(8)




(1) The securities registered consist of $200,000,000 of an indeterminate number or amount of Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, Units and Guarantees, as may be issued from time to time at indeterminate prices. In no event will the aggregate initial offering price of all securities issued from time to time pursuant to this registration statement exceed $200,000,000 or the equivalent thereof in foreign currencies, foreign currency units or composite currencies. This registration statement also covers an indeterminate amount of securities as may be issued in exchange for, or upon conversion or exercise of, as the case may be, the securities registered hereunder.


(2) The proposed maximum aggregate offering price has been estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) of the Securities Act of 1933, as amended, or the Securities Act.


(3) If any Debt Securities are issued at an original issue discount, then the offering price of the Debt Securities shall be in such amount as shall result in an aggregate initial offering price not to exceed $200,000,000 less the offering price of any security previously issued hereunder.


(4) Includes one preferred share purchase right, or the Rights, for each share of common stock. Pursuant to Rule 457(g) of the Securities Act, no separate fee is payable in connection with the Rights.


(5) Such indeterminate number of Depositary Shares to be evidenced by Depositary Receipts issued pursuant to a deposit agreement. In the event that the registrant elects to offer to the public fractional interests in shares of Preferred Stock registered hereunder, Depositary Receipts will be distributed to those persons purchasing the fractional interests and the shares of Preferred Stock will be issued to the depositary under the deposit agreement.


(6) Subsidiaries of PetroQuest Energy, Inc. named as co-registrants may fully, irrevocably and unconditionally guarantee on an unsecured basis the non-convertible debt securities of PetroQuest Energy, Inc. Pursuant to Rule 457(n) of the Securities Act, no separate fee is payable in connection with the Guarantees.


(7) Calculated in accordance with Rule 457(o) of the Securities Act.


(8) This registration statement includes Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, Units and Guarantees with an aggregate offering price of $125,250,000 that were previously covered by registration statement no. 333-131955. Pursuant to Rule 415(a)(6) of the Securities Act, the $13,401.75 filing fee previously paid in connection with such unsold Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, Units and Guarantees will continue to be applied to such unsold Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, Units and Guarantees. As a result, a filing fee of $4,171.05 is being paid herewith. Pursuant to Rule 415(a)(6), the offering of Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, Units and Guarantees covered by registration statement no. 333-131955 will be deemed terminated as of the date of effectiveness of this registration statement.





The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission acting pursuant to said Section 8(a), may determine

[LGL8054]

insider buying
Green Stephen H (Senior VP - Exploration) 200,000 .93 186,000 2009-03-09
Smith Dalton F Iii (Senior VP - Bus Develop) 5,200 .95 4,940 2009-03-09
Mixon Art M Iii (Exec VP - Explor and Prod) 4,500 1.03 4,635 2009-03-09
Clement James Bond (Senior VP and CAO) 3,000 .85 2,550 2009-03-09
Fournerat Daniel G (Exec VP and General Counsel) 5,000 .92 4,595 2009-03-09
Zehnder William Todd (Exec VP, CFO and Treasurer) 10,000 3,066.61 30,666,130 2009-03-09
Stover Mark K (Exec VP - Corp Development) 10,000 1.02 10,199 2009-03-09
Stover Mark K (Exec VP - Corp Development) 5,000 1.99 9,943 2009-03-05
Fournerat Daniel G (Exec VP and General Counsel) 5,000 2.07 10,340 2008-03-04
Mixon Art M Iii (Exec VP - Explor and Prod) 4,500 2.15 9,675 2009-03-04

[mike306oh]

The charts can't look better. Nice move over the last weeks.

Mike

[Picassa]

Production Guidance Update

The Company is increasing its first quarter 2009 production guidance to approximately 110 - 112 MMcfe per day from its previously issued guidance of 105-110 MMcfe per day.

Hedging Update

The Company initiated the following commodity hedging transaction during March 2009:

Instrument
Production Period Type Daily Volumes Price
Natural Gas:
April - Dec 2009 Swap 7,500 Mmbtu $4.40

After executing the above transaction, the Company has approximately 17.4 Bcfe of hedged volumes for the remainder of 2009 with an average floor of $7.34 per Mcf and $100 per barrel. Based on the midpoint of the Company's previously issued 2009 production guidance, approximately 67% of the 2009 production has been hedged.

[Picassa]

Liquidity Update

The Company estimates that its cash balance as of February 28, 2009 was approximately $30 million, an increase of approximately $6 million since December 31, 2008. The Company expects to continue to increase its cash position through internally generated cash flow. In addition, the Company estimates that its hedge contracts as of February 28, 2009 were valued at approximately $58 million.

[Picassa]

PetroQuest Energy Updates Borrowing Base and Liquidity Status, Increases First Quarter 2009 Production Guidance, and Provides Hedging Update

http://finance.yahoo.com/news/PetroQuest-Energy-Updates-prnews-14722228.html

[Picassa]

PetroQuest (PQ) reported numbers yesterday below analyst expectations with a loss of $155M for 4Q08. Earnings were impacted by a $247M hit on reserve write-down ($155 M on a post-tax basis).

The stock is currently trading 16% lower and 92% of its peak. This seems to be unwarranted given good prospects. The company has guided for higher volumes for FY09 (90-100 M mcfe/d vs 92.6 M mcfe/d in 2008) with 60% hedged at $8 per mcfe

The hedge at $8 per mcfe for 60% of the volumes leaves the company's projected capex of $80-100M adequately protected.

PQ could be one of the key beneficiaries of rise in gas prices from current levels. Pointers towards higher gas prices include higher futures prices and current under-investment in drilling that will reduce volumes as we go through the year. A sample of this is PQ with volumes guided to decline from 105-110M mcfe/d in 1Q09 to 90-100 M mcfe/d in FY09. This could be partly due to seasonality in gas demand with 1Q and 4Q being the highest demand periods.

Rough estimates for FY09 based on current gas prices point to $0.45 of earnings and $30-35 M of free cash flow. Upsides to these numbers exist from higher oil and gas prices.

It's worth a look given improved risk-reward.

[mike306oh]

Still going, and going... Not bad!

Mike

[CoinCounter]

PQ starting to get some attention today!

[Stock-n-Seeds]

Some very large insider purchases in the past few days.

http://www.finviz.com/quote.ashx?t=pq

[mike306oh]

Had it in my radar, but I just gor in. $-s look good, what gives?

Mike

[sidesh0wb0b]

yes, a good friends wedding.....and this pic was after we had already tossed back a few drinks at the reception! lol
def a great time had by all

[frenchee]

Looks like an excellent time had by all. Wedding?

[sidesh0wb0b]

i would be on your far left holding the wine
:)

[frenchee]

SSB,

In your siggy picture, which gent are you?

[sidesh0wb0b]

hey there frenchee, u keep popping up everywhere i find an alerted stock! lol

http://biz.yahoo.com/e/080307/pq8-k.html

[frenchee]

PetroQuest Energy Updates Fourth Quarter 2007 Production Guidance, Announces 2007 Proved Oil and Gas Reserves, Updates Operating Activities, Provides 2008 Production and Capital Expenditures Guidance, Updates Hedging Activities and Provides Acquisitions Update


LAFAYETTE, La., Jan. 31 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. (NYSE: PQ) announced today that the Company is updating its fourth quarter 2007 production guidance to approximately 85.3 MMcfe per day from its previously issued guidance of 83-89 MMcfe per day.

The Company ended 2007 with approximately 157 Bcfe of proved oil and gas reserves, a new Company record. Approximately 91% of the proved reserves were natural gas, and approximately 61% were located in long-lived basins. Additionally, approximately 69% of the proved reserves were proved developed.

Based primarily on the Company's anticipated record 2007 production rate, PetroQuest expects to post Company-record revenues, cash flows and net income for 2007. A news release announcing complete fourth quarter and year-end results and a conference call with investors and analysts is scheduled for February 20, 2008.


Reserves


The following sets forth an analysis of the Company's estimated quantities
of net proved oil and gas reserves (oil and NGL converted to MMcfe at the rate
of six MMcf per MBbl):


Natural Gas
Oil and NGL
(MBbls) (MMcfe) (MMcfe)
Estimated Net Proved reserves as of
December 31, 2006 2,731 118,153 134,539
Revisions of previous estimates 365 12,629 14,819
Extensions, discoveries and other
additions 115 39,014 39,704
Purchase of producing properties 237 175 1,597
Sale of reserves (26) (2,537) (2,693)
Production (1,080) (24,966) (31,446)
Estimated Net Proved reserves as of
December 31, 2007 2,342 142,468 156,520



At December 31, 2007, the Company's independent petroleum engineers estimated the net present value, excluding income taxes ("PV-10"), of these reserves was $541 million, using prices ($6.52 per Mcfe and $96.83 per barrel) in effect as of year-end 2007 and discounted at 10%. This amount includes a reduction for estimated plugging and abandonment costs that is also reflected as a liability on PetroQuest's balance sheet at December 31, 2007, in accordance with Statement of Financial Accounting Standards No. 143.


Operations Update
A total of 20 successful wells were drilled in the Arkoma Basin during the fourth quarter of 2007 resulting in an 91% success rate. The Company drilled six horizontal Woodford Shale wells during the fourth quarter, four of which were operated. The average initial production rate for these four operated wells was 3.2 MMcf per day. After year-end, the Company completed one additional operated well in the Woodford Shale that is currently flowing at approximately 2.1 MMcf per day after two weeks of production. The Company also participated in the drilling and completion of twelve successful horizontal Fayetteville Shale wells during the fourth quarter, the majority of which are in the early stages of production. Initial production rates for these wells have ranged from less than 1 MMcf per day to over 3 MMcf per day. Drilling continues in the Arkoma Basin with two operated rigs drilling horizontal Woodford Shale wells as well as concurrent non-operated activity in the Woodford Shale and Fayetteville Shale. Current plans call to add a third operated rig in the Woodford Shale within the next two to three months.

PetroQuest participated in the drilling and completion of 10 wells in the East Texas Basin during the fourth quarter of 2007, the majority of which are in the Carthage Field. As previously announced, the Company drilled the first well at its Weekley prospect during the fourth quarter.

In the Gulf Coast Basin, the Company's Brittas Bay prospect reached total depth of approximately 13,900 feet logging approximately 35 feet true vertical depth of net productive sands. The Company is currently completing the well which is expected to begin producing within three months at a gross rate of approximately 5 MMcfe per day. PetroQuest has an approximate 27% net revenue interest in the well.

The Company's Pelican Point prospect is currently drilling and is expected to reach total depth in approximately two weeks. The Company has a 28% working interest in the well.


Production Guidance
The Company is projecting its 2008 net production to average approximately 94-100 MMcfe per day and expects approximately 45% of the estimated production to come from long-lived areas of Arkansas, Oklahoma and Texas. Additionally, the Company is projecting its first quarter 2008 net production to average approximately 86-92 MMcfe per day.


Capital Expenditures Guidance
The Company's drilling capital budget for 2008 is approximately $200 to $220 million depending on commodity prices, drilling success and related completion and facility costs. Current plans call for approximately 75% of the capital budget to be incurred in our long-lived areas.


Hedging Update
The Company initiated certain commodity hedging transactions in the form of costless collars during January 2008. The following sets forth the transaction details:




Instrument
Production Period Type Daily Volumes Price

Natural Gas:
February - December 2008 Costless Collar 7,500 Mmbtu $7.50 - 8.98

Crude Oil:
February - June 2008 Costless Collar 400 Bbls 85.00 - 115.00



After executing the above transaction, the Company has approximately 11 Bcfe of hedges for 2008. Based on the production guidance above, approximately 31% of the Company's expected production has been hedged.


Acquisitions Update
In January 2008, the Company completed the purchase of a private company's interest in the Weekley prospect targeting the Buda formation in East Texas. As a result of the purchase, the Company is now the operator of the Weekley prospect and holds an approximate 85% working interest. The acquisition closed on January 17, 2008 for a total consideration of approximately $20 million. The acquisition added approximately 2.4 Bcfe and a 50% working interest in approximately 16,000 gross acres. Additionally, the Company acquired 50% of the Weekley prospect well drilled during the fourth quarter of 2007 which is currently flowing approximately 1,000 Boe per day. The Company currently estimates 10 to 15 additional locations exist on the acreage.


Management's Comment
"We expect to achieve Company records for production, reserves, cash flow and net income for the third consecutive year. In terms of our continued diversification efforts, this past year was a particularly successful one for the Company as we have significantly increased our presence in the Arkoma Basin with our entrance into the Fayetteville Shale and in East Texas with our promising Buda development," said Charles T. Goodson, Chairman, Chief Executive Officer and President. "In 2007, we doubled our reserves in the Arkoma Basin and we are forecasting reserves will increase there at a much more significant rate during 2008."

[frenchee]

What's the current insider scoop TGTL2005?

[frenchee]

Huge negative divergence between Force Index trend and price trend. Short candidate--see daily charts in iBox.

[frenchee]

Insiders still buying? TIA

[REVOLUTION2012]

The insiders are buying BIG TIME.

9 + 10 of August = 200K X 10$ = 2M$

[frenchee]

DING, DING, DING, buy alert for PQ now in effect...

[frenchee]

Recommendation from Street.com

We rate PETROQUEST ENERGY INC (PQ) a BUY. This is driven by a few notable strengths, which we believe
should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
robust revenue growth, solid stock price performance and expanding profit margins. We feel these strengths
outweigh the fact that the company has had sub par growth in net income.
HIGHLIGHTS
The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior,
revenues rose by 19.9%. This growth in revenue does not appear to have trickled down to the company's
bottom line, displayed by a decline in earnings per share.
Compared to its closing price of one year ago, PQ's share price has jumped by 36.02%, exceeding the
performance of the broader market during that same time frame. We feel that the stock's sharp appreciation
over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its
industry. The other strengths this company shows, however, justify the higher price levels.
PETROQUEST ENERGY INC has exprienced a steep decline in earnings per share in the most recent quarter in
comparison to its performance from the same quarter a year ago. This company has reported somewhat
volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal
year, PETROQUEST ENERGY INC increased its bottom line by earning $0.49 versus $0.44 in the prior year. This
year, the market expects an improvement in earnings ($0.70 versus $0.49).
The gross profit margin for PETROQUEST ENERGY INC is currently very high, coming in at 70.70%. Regardless
of PQ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed
results of the gross profit margin, the net profit margin of 0.70% trails the industry average.
Net operating cash flow has decreased to $7.78 million or 20.75% when compared to the same quarter last
year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is
significantly lower.

[frenchee]

Sell Alert for PQ

When PQ closes below its 5-day EMA, sell or short is indicated...