The Oil Search Ltd (ASX: OSH) share price is trading at $3.96 at the time of writing, rising over 2% higher for the day after spending the past week losing ground.
Last week, Oil Search released its fourth quarter report for the period ended 31 December 2020.
Let's take a look at how the Papua New Guinea-focused oil and gas explorer has been performing recently.
Record production and developments progressing
Oil Search reported a record annual PNG LNG production rate of 8.8 million tonnes per annum (MTPA) (gross).
The PNG LNG Project is a world-class liquefied natural gas development that commenced operations in 2014. Oil Search claims that the project has transformed the company into a regionally significant oil and gas producer with a long-term, low cost, high quality LNG revenue stream.
In last week's update, Oil Search also announced the progression of parliamentary approvals for its PNG LNG project, with the PNG Parliament passing all remaining amendments to the Acts for Papua LNG fiscal stability. The PNG Government noted it was looking forward to imminent discussions with the project operator regarding project progress.
The company also stated that its Alaska resources were upgraded by 33% following an independent certification.
Oil Search December quarter financial highlights
Total fourth quarter revenue from LNG, gas, oil and condensate sales was $259.5 million, up 37% from the prior quarter.
As of 31 December 2020, Oil Search held liquidity of US$1.44 billion, comprising US$540.8 million in cash and US$895.6 million in undrawn credit facilities.
The company spent US$33.3 million on exploration and evaluation expenditure activities during the quarter. Expenditure on property, plant and equipment was US$4.3 million for the period.
2021 guidance for Oil Search
Oil Search advised that 2021 production is expected to be lower than 2020 because of scheduled service programmes for the PNG LNG plant. These services have been timed in with a major maintenance shutdown that occurs every four years to minimise production impact.
Investment expenditure is expected to be in line with 2020.
Over the past year, the Oil Search share price has crashed close to 45%, leaving the company with a market capitalisation of $8.2 billion on current prices.
