FST » Topics » Accounts Receivable

These excerpts taken from the FST 10-K filed Mar 2, 2009.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,  
 
  2008   2007  
 
  (In Thousands)
 

Oil and gas sales

  $ 94,911     150,258  

Joint interest billings

    46,357     44,810  

Other

    16,376     7,011  

Allowance for doubtful accounts

    (418 )   (462 )
           
 

Total accounts receivable

  $ 157,226     201,617  
           

        Forest's accounts receivable are primarily from purchasers of the Company's oil and natural gas production and from other exploration and production companies which own working interests in the properties that the Company operates. This industry concentration could adversely impact Forest's overall credit risk, because the Company's customers and working interest owners may be similarly affected by changes in economic and financial market conditions, commodity prices, and other conditions. Forest's oil and gas production is sold to various purchasers in accordance with the Company's credit policies and procedures. These policies and procedures take into account, among other things, the creditworthiness of potential purchasers and concentrations of credit risk. Forest generally requires letters of credit or parental guarantees for receivables from parties that are deemed to have sub-standard credit or other financial concerns, unless the Company can otherwise mitigate the

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Table of Contents

(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)


perceived credit exposure. Forest believes that the loss of one or more of the Company's current oil and gas purchasers would not have a material adverse effect on the Company's ability to sell its production, because any individual purchaser could be readily replaced by another purchaser, absent a broad market disruption.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,  
 
  2008   2007  
 
  (In Thousands)
 

Oil and gas sales

  $ 94,911     150,258  

Joint interest billings

    46,357     44,810  

Other

    16,376     7,011  

Allowance for doubtful accounts

    (418 )   (462 )
           
 

Total accounts receivable

  $ 157,226     201,617  
           

        Forest's accounts receivable are primarily from purchasers of the Company's oil and natural gas production and from other exploration and production companies which own working interests in the properties that the Company operates. This industry concentration could adversely impact Forest's overall credit risk, because the Company's customers and working interest owners may be similarly affected by changes in economic and financial market conditions, commodity prices, and other conditions. Forest's oil and gas production is sold to various purchasers in accordance with the Company's credit policies and procedures. These policies and procedures take into account, among other things, the creditworthiness of potential purchasers and concentrations of credit risk. Forest generally requires letters of credit or parental guarantees for receivables from parties that are deemed to have sub-standard credit or other financial concerns, unless the Company can otherwise mitigate the

68


Table of Contents

(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)


perceived credit exposure. Forest believes that the loss of one or more of the Company's current oil and gas purchasers would not have a material adverse effect on the Company's ability to sell its production, because any individual purchaser could be readily replaced by another purchaser, absent a broad market disruption.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,  
 
  2008   2007  
 
  (In Thousands)
 

Oil and gas sales

  $ 94,911     150,258  

Joint interest billings

    46,357     44,810  

Other

    16,376     7,011  

Allowance for doubtful accounts

    (418 )   (462 )
           
 

Total accounts receivable

  $ 157,226     201,617  
           

        Forest's accounts receivable are primarily from purchasers of the Company's oil and natural gas production and from other exploration and production companies which own working interests in the properties that the Company operates. This industry concentration could adversely impact Forest's overall credit risk, because the Company's customers and working interest owners may be similarly affected by changes in economic and financial market conditions, commodity prices, and other conditions. Forest's oil and gas production is sold to various purchasers in accordance with the Company's credit policies and procedures. These policies and procedures take into account, among other things, the creditworthiness of potential purchasers and concentrations of credit risk. Forest generally requires letters of credit or parental guarantees for receivables from parties that are deemed to have sub-standard credit or other financial concerns, unless the Company can otherwise mitigate the

68


Table of Contents

(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)


perceived credit exposure. Forest believes that the loss of one or more of the Company's current oil and gas purchasers would not have a material adverse effect on the Company's ability to sell its production, because any individual purchaser could be readily replaced by another purchaser, absent a broad market disruption.

Accounts Receivable



        The components of accounts receivable include the following:








































































































 
 December 31,  
 
 2008  2007  
 
 (In Thousands)
 

Oil and gas sales

 $94,911  150,258 

Joint interest billings

  46,357  44,810 

Other

  16,376  7,011 

Allowance for doubtful accounts

  (418) (462)
      
 

Total accounts receivable

 $157,226  201,617 
      




        Forest's accounts receivable are primarily from purchasers of the Company's oil and natural gas production and from other exploration and
production companies which own working interests in the properties that the Company operates. This industry concentration could adversely impact Forest's overall credit risk, because the Company's
customers and working interest owners may be similarly affected by changes in economic and financial market conditions, commodity prices, and other conditions. Forest's oil and gas production is sold
to various purchasers in accordance with the Company's credit policies and procedures. These policies and procedures take into account, among other things, the creditworthiness of potential purchasers
and concentrations of credit risk. Forest generally requires letters of credit or parental guarantees for receivables from parties that are deemed to have sub-standard credit or other
financial concerns, unless the Company can otherwise mitigate the



68









HREF="#bg49701a_main_toc">Table of Contents



(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)






perceived
credit exposure. Forest believes that the loss of one or more of the Company's current oil and gas purchasers would not have a material adverse effect on the Company's ability to sell its
production, because any individual purchaser could be readily replaced by another purchaser, absent a broad market disruption.



Accounts Receivable



        The components of accounts receivable include the following:








































































































 
 December 31,  
 
 2008  2007  
 
 (In Thousands)
 

Oil and gas sales

 $94,911  150,258 

Joint interest billings

  46,357  44,810 

Other

  16,376  7,011 

Allowance for doubtful accounts

  (418) (462)
      
 

Total accounts receivable

 $157,226  201,617 
      




        Forest's accounts receivable are primarily from purchasers of the Company's oil and natural gas production and from other exploration and
production companies which own working interests in the properties that the Company operates. This industry concentration could adversely impact Forest's overall credit risk, because the Company's
customers and working interest owners may be similarly affected by changes in economic and financial market conditions, commodity prices, and other conditions. Forest's oil and gas production is sold
to various purchasers in accordance with the Company's credit policies and procedures. These policies and procedures take into account, among other things, the creditworthiness of potential purchasers
and concentrations of credit risk. Forest generally requires letters of credit or parental guarantees for receivables from parties that are deemed to have sub-standard credit or other
financial concerns, unless the Company can otherwise mitigate the



68









HREF="#bg49701a_main_toc">Table of Contents



(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)






perceived
credit exposure. Forest believes that the loss of one or more of the Company's current oil and gas purchasers would not have a material adverse effect on the Company's ability to sell its
production, because any individual purchaser could be readily replaced by another purchaser, absent a broad market disruption.



These excerpts taken from the FST 10-K filed Feb 28, 2008.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,
 
 
  2007
  2006
 
 
  (In Thousands)

 
Oil and gas sales   $ 150,258   89,082  
Joint interest billings     44,810   27,891  
Other     7,011   8,814  
Allowance for doubtful accounts     (462 ) (341 )
   
 
 
  Total accounts receivable   $ 201,617   125,446  
   
 
 

Accounts Receivable



        The components of accounts receivable include the following:























































































 
 December 31,
 
 
 2007
 2006
 
 
 (In Thousands)

 
Oil and gas sales $150,258 89,082 
Joint interest billings  44,810 27,891 
Other  7,011 8,814 
Allowance for doubtful accounts  (462)(341)
  
 
 
 Total accounts receivable $201,617 125,446 
  
 
 




This excerpt taken from the FST 10-K filed Feb 28, 2007.

Accounts Receivable

The components of accounts receivable include the following:

 

 

December 31,

 

 

 

2006

 

2005

 

 

 

(In Thousands)

 

Oil and gas sales

 

$

89,082

 

136,973

 

Joint interest billings

 

27,891

 

38,595

 

Other

 

8,814

 

4,103

 

Allowance for doubtful accounts

 

(341

)

(1,547

)

Total accounts receivable

 

$

125,446

 

178,124

 

 

62




(1)   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

This excerpt taken from the FST 10-K filed Mar 16, 2006.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,
 
 
  2005
  2004
 
 
  (In Thousands)

 
Oil and natural gas sales   $ 136,973   122,923  
Joint interest billings     38,595   21,599  
Other     4,103   8,780  
Allowance for doubtful accounts     (1,547 ) (1,375 )
   
 
 
    $ 178,124   151,927  
   
 
 
This excerpt taken from the FST 10-K filed Mar 15, 2005.

Accounts Receivable

        The components of accounts receivable include the following:

 
  December 31,
 
 
  2004
  2003
 
 
  (In Thousands)

 
Oil and natural gas sales   $ 122,923   84,219  
Marketing revenue (ProMark)       36,624  
Joint interest billings     21,599   28,447  
Other     8,780   9,954  
Less: Allowance for doubtful accounts     (1,375 ) (290 )
   
 
 
    $ 151,927   158,954  
   
 
 
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