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Related Companies Constellation Energy Group Inc (CEG) Constellation Energy Partners (CEP)

Related Documents Earnings Release (ER) Constellation Energy Partners 9/30/2009, filed on 11/6/2009

Related Articles 6/26/2009 Constellation Energy Partners completes borrowing base review, suspends distribution 5/11/2009 Constellation Energy Partners' Q1'09 net income jumps

Constellation Energy Partners LLC on Nov. 6 reported a third-quarter 2009 net loss of $9.1 million, or 40 cents per share, compared to net income of $26.9 million, or $1.21 per share, for the same quarter of 2008.

Results for the third quarter of 2009 include a net loss from mark-to-market activities of $6.4 million, the partnership said.

The Thomson First Call mean estimate for the quarter, based on a sampling of three analysts, was a loss of 24 cents per share, according to SNL Financial.

Total revenues for the quarter fell to $24.3 million from $59.7 million in the prior-year quarter. Total operating expenses totaled $29.9 million for the most recent quarter, up from $29.4 million in the prior-year period, the partnership reported.

The partnership reported third-quarter 2009 adjusted EBITDA of $16.6 million, compared to $18.8 million in the same quarter of 2008.

Partnership provides estimates for remainder of 2009

The partnership said it expects capital spending for 2009 to come in below forecast at between $23 million and $25 million, down from original estimates for spending of $28 million to $33 million.

Net production is forecast to range between 17 Bcfe and 18.5 Bcfe for 2009. Based on the mix of wells completed for the year to date and capital spending plans for the remainder of the year, the partnership anticipates that full-year production will be at the low end of the range. Operating expenses for 2009 are forecast to be between $57.5 million and $63.5 million, and the company anticipates it will finish the year in that range.

In addition, Constellation Energy Partners said it maintained hedges on 2.3 Bcfe of the partnership's Midcontinent production for the balance of the year at an average price of $7.14 per Mcfe and an additional 1.2 Bcfe of production for the balance of the year at an average price of $8.01 per Mcfe.

The partnership said it anticipates that distributions will remain suspended until debt levels are reduced and market conditions again warrant resumption of capital spending at maintenance levels.

Constellation Energy Partners was formed and is partly owned by Constellation Energy Group Inc.