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Oil Search share price lower on guidance update

The Oil Search Limited (ASX: OSH) share price is marginally lower today after the LNG producer flagged that September quarter production and revenue had fallen significantly on the prior quarter.

The group blamed the disappointing quarter on an issue at its PNG LNG Project impacting the rate at which liquid gas could be loaded due to a damaged mooring chain at an offshore loading facility. This reportedly hurt liquid loading rates through August and September. 

As a result Oil Search has downgraded full year production guidance to between 27 mmboe to 29 mmboe (million barrels of oil equivalent), compared to between 28 mmboe and 31 mmboe originally. Unit production costs are now forecast to be between US$12/boe to US$13/boe. 

The group also lowered capital expenditure guidance as certain investments have been delayed, while others have been reclassified. 

Oil Search shares are down 16% over the past year on the back of its operational hiccups. Other leading players for LNG bulls to consider include Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO).

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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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