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Maximizing Value in Community Development
|Forestar Announces Oil and Gas Cost and Capital Reduction Initiatives and Updates Segment Earnings Guidance|
Prior to completion of the previously-announced review of strategic
alternatives, including a review of the oil and gas business, the
Company has implemented a number of initiatives to significantly reduce
oil and gas operating costs and capital expenditures. As a result, 2015
oil and gas operating expenses are expected to be reduced by
approximately 50% compared with 2014, principally driven by closure of
the Company’s office in
Fourth quarter 2014 oil and gas segment earnings are expected to be
negatively impacted by the decline in oil prices, despite total oil and
gas production in 2014 of almost 1.3 million BOE, a 20% increase
compared with 2013. Forestar’s oil and gas segment expects to incur an
operating loss in fourth quarter 2014 principally due to at least
Forestar’s Board of Directors and management team are fully engaged in exploring strategic alternatives to enhance shareholder value, including a thorough review and evaluation of the oil and gas business.
This release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast,” and other words and terms of similar meaning. These statements reflect management’s current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements, including but are not limited to: general economic, market, or business conditions; changes in commodity prices; opportunities (or lack thereof) that may be presented to us and that we may pursue; fluctuations in costs and expenses including development costs; demand for new housing, including impacts from mortgage credit rates or availability; lengthy and uncertain entitlement processes; cyclicality of our businesses; accuracy of accounting assumptions; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond our control. Except as required by law, we expressly disclaim any obligation to publicly revise any forward-looking statements contained in this news release to reflect the occurrence of events after the date of this news release.
Forestar Group Inc.