Forestar Group Inc. (NYSE: FOR) today reported first quarter 2014 net
income of approximately $8.3 million, or $0.19 per diluted share
outstanding, compared with first quarter 2013 net income of
approximately $4.0 million, or $0.11 per diluted share outstanding.
“During first quarter, record residential lot sales activity was fueled
by growing builder demand for lots in high quality locations. We also
increased lot development activities in existing communities in response
to higher demand, with the majority of lots being developed already
under contract with homebuilders. Multifamily market conditions remained
strong in our target markets, and we continue to grow our multifamily
business, finishing the quarter with four projects under construction
and adding two new sites to our development pipeline. We continued to
strengthen our real estate portfolio through the acquisition of our
partner's interest in Lantana, an award-winning community near Dallas.
Oil and gas activity continued to be negatively impacted by severe
weather conditions in North Dakota, however, production in the Bakken
and Three Forks formations in North Dakota and the Lansing-Kansas City
formation in Kansas and Nebraska is expected to accelerate going
forward. We are focused on executing and delivering our Growing
FORward strategic initiatives to grow through strategic and
disciplined investment and increase returns,” said Jim DeCosmo,
president and chief executive officer of Forestar Group.
First Quarter 2014 Significant Highlights
-
Sold 974 developed residential lots, including 367 bulk lot sales, up
over 118% compared with first quarter 2013, with 831 acres of
residential tract sales
-
Oil production up over 16% compared with first quarter 2013, with 21
new gross wells drilled reaching total depth in first quarter 2014
Forestar manages its operations through three business segments: real
estate, oil and gas and other natural resources.
REAL ESTATE
First Quarter 2014 Significant Highlights (Includes Ventures)
-
Sold 9,329 acres of undeveloped land for over $2,100 per acre
-
Sold 974 developed residential lots, including 367 bulk lot sales from
two non-core communities; over 1,400 lots under option contracts with
homebuilders
-
Sold 831 acres of residential tracts for over $1,800 per acre
-
Acquired partner's interest in Lantana master-planned community near
Dallas for $8 million
Segment Financial Results:
|
($ in millions)
|
|
|
|
1Q 2014
|
|
|
|
1Q 2013
|
|
|
|
4Q 2013
|
|
|
Segment Revenues
|
|
|
|
$
|
65.5
|
|
|
|
$
|
78.7
|
|
|
|
$
|
77.7
|
|
|
Segment Earnings
|
|
|
|
$
|
23.6
|
|
|
|
$
|
19.4
|
|
|
|
$
|
27.7
|
|
First quarter 2014 real estate segment earnings were higher compared
with first quarter 2013 principally due to increased undeveloped land
sales and higher residential lot sales. In first quarter 2014,
undeveloped land sales increased compared with first quarter 2013
principally due to a sale of over 8,400 acres for approximately $1,850
per acre, generating segment earnings of approximately $13.2 million.
Residential lot and tract sales included two bulk transactions totaling
367 lots and 831 acres of residential tracts associated with two
non-core communities in Georgia. Excluding these bulk transactions,
average lot prices and margins were up 7% compared with first quarter
2013. First quarter 2014 real estate segment results also included $2.3
million in charges associated with additional costs at two multifamily
venture projects. In addition, first quarter 2013 real estate segment
earnings included $10.9 million associated with the sale of Promesa, a
multifamily community in Austin. Real estate segment earnings decreased
in first quarter 2014 compared with fourth quarter 2013 primarily due to
lower residential and commercial tract sales.
OIL AND GAS
First Quarter 2014 Significant Highlights (Includes Ventures)
-
Oil production up over 16% compared with first quarter 2013,
principally due to working interest investments primarily targeting
the Bakken/Three Forks and the Lansing-Kansas City formations
-
21 new gross oil and gas wells drilled and reaching total depth; 18
Bakken gross wells waiting on completion at quarter-end
-
Leased over 1,700 net mineral acres principally in Texas to third
parties
Segment Financial Results:
|
($ in millions)
|
|
|
|
1Q 2014
|
|
|
|
1Q 2013
|
|
|
|
4Q 2013
|
|
|
Segment Revenues
|
|
|
|
$
|
17.6
|
|
|
|
$
|
15.5
|
|
|
|
$
|
18.9
|
|
|
Segment Earnings
|
|
|
|
$
|
0.8
|
|
|
|
$
|
5.1
|
|
|
|
$
|
1.0
|
|
Oil and gas segment earnings decreased in first quarter 2014 compared
with first quarter 2013 principally due to higher exploration,
production and operating expenses, and lower production volumes and
delay rental revenues from our owned mineral interests, which were
partially offset by higher working interest production volumes. Oil and
gas segment earnings decreased in first quarter 2014 compared with
fourth quarter 2013 principally due to lower royalty revenues related to
our owned mineral interests.
OTHER NATURAL RESOURCES
First Quarter 2014 Significant Highlights (Includes Ventures)
-
Sold over 57,100 tons of fiber for $15.77 per ton
-
Recreational leasing remains strong
Segment Financial Results:
|
($ in millions)
|
|
|
|
1Q 2014
|
|
|
|
1Q 2013
|
|
|
|
4Q 2013
|
|
|
Segment Revenues
|
|
|
|
$
|
1.6
|
|
|
|
|
$
|
3.3
|
|
|
|
$
|
1.8
|
|
|
Segment Earnings
|
|
|
|
|
($0.5
|
)
|
|
|
|
$
|
1.3
|
|
|
|
$
|
3.7
|
|
First quarter 2014 other natural resources segment earnings decreased
compared with first quarter 2013 principally due to lower fiber sales
volumes. Fourth quarter 2013 other natural resources segment earnings
include a $3.8 million gain associated with the termination of a timber
lease in connection with the sale of over 2,400 acres from the Ironstob
venture near Atlanta.
OUTLOOK
"Demand for residential lots remains robust in our core markets and we
continue to invest in lot development in our existing communities to
meet builder demand. We anticipate residential lot sales in 2014 to be
approximately 2,300 lots, up over 20% compared with 2013. In first
quarter 2014, we added interest in approximately 1,100 potential future
lots to our community development pipeline through acquisitions. Our
multifamily team continues to build a solid pipeline of multifamily
development sites, with our multifamily venture project in Austin
essentially complete, over 50% leased and on target for sale in 2014.
Our multifamily venture project in Denver is almost 60% complete and
currently pre-leasing, and our wholly-owned multifamily project near
Dallas is almost 30% complete and on schedule to begin leasing in fourth
quarter 2014. In first quarter 2014, we formed a venture for the
development of our multifamily site in Nashville, which is now under
construction, and we plan to begin construction on sites in Littleton,
Colorado and Charlotte, North Carolina over the next two quarters. In
2014 we have acquired two multifamily sites in Austin, with construction
anticipated to begin on both projects in 2015. We will continue to
evaluate and acquire additional residential and multifamily sites to
further develop our real estate pipeline.
“In oil and gas, we continue to invest in exploration and drilling
activity, growing production, reserves and value. We estimate 2014 oil
and gas production will exceed 1.3 million BOE (barrel of oil
equivalent), an over 25% increase compared with 2013 levels. During
first quarter, we continued to see drilling activity negatively impacted
by severe weather conditions in North Dakota, with only three gross
Bakken/Three Forks wells that reached total depth at year-end 2013 (3%
average working interest) having initial production during the quarter
with approximately 18 gross Bakken/Three Forks wells (8% average working
interest) waiting on completion at quarter end. We anticipate drilling
activity in the Bakken/Three Forks will accelerate over the next several
quarters as weather conditions improve and operators further shift to
pad drilling, which is expected to result in additional production
growth. In addition, exploration and drilling activity in Kansas and
Nebraska continued to increase during first quarter, with combined
exploration success rates of approximately 40%. We acquired additional
leasehold acreage in the Lansing-Kansas City formation in the first four
months of 2014, bringing our total leasehold position in Kansas and
Nebraska to over 255,000 net mineral acres, further developing a solid
pipeline of drilling prospects in the Central Uplift formation. As a
result of the slower start to exploration and drilling activity in 2014,
we would expect our oil and gas capital investments to be in the range
of $125-135 million for 2014, compared with our original estimate of
approximately $200 million.
“We continue to see significant opportunities for growth through
disciplined investments in our real estate and oil and gas businesses.
We are focused on increasing return on assets, strengthening our
portfolio and executing our Growing FORward strategic
initiatives,” concluded Mr. DeCosmo.
The Company will host a conference call on May 7, 2014 at 10:00 a.m. ET
to discuss results of first quarter 2014. The meeting may be accessed
through webcast or by conference call. The webcast may be accessed
through Forestar’s Internet site at www.forestargroup.com.
To access the conference call, listeners calling from North America
should dial 1-866-825-3209 at least 15 minutes prior to the start of the
meeting. Those wishing to access the call from outside North America
should dial 1-617-213-8061. The password is Forestar. Replays of the
call will be available for two weeks following the completion of the
live call and can be accessed at 1-888-286-8010 in North America and at
1-617-801-6888 outside North America. The password for the replay is
13154120.
About Forestar Group
Forestar Group Inc. operates in three business segments: real estate,
oil and gas and other natural resources. At the end of first quarter
2014, the real estate segment owns directly or through ventures almost
119,000 acres of real estate located in ten states and 13 markets in the
U.S. The real estate segment has 12 real estate projects representing
approximately 25,400 acres currently in the entitlement process, and 71
entitled, developed and under development projects in eight states and
13 markets encompassing over 11,800 acres, comprised of almost 18,800
planned residential lots and approximately 2,100 commercial acres. The
oil and gas segment includes approximately 863,000 net acres of oil and
gas mineral interests, with approximately 590,000 acres of fee ownership
located principally in Texas, Louisiana, Alabama, and Georgia and almost
273,000 net acres of leasehold interests principally located in
Nebraska, Kansas, Oklahoma, North Dakota and Texas. These leasehold
interests include about 8,000 net mineral acres in the core of the
prolific Bakken and Three Forks formations. The other natural resources
segment includes sale of wood fiber and management of our recreational
leases, and approximately 1.5 million acres of groundwater resources,
including a 45% nonparticipating royalty interest in groundwater
produced or withdrawn for commercial purposes from approximately 1.4
million acres in Texas, Louisiana, Georgia and Alabama and about 20,000
acres of groundwater leases in central Texas. Forestar’s address on the
World Wide Web is www.forestargroup.com.
Forward Looking Statements
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; cyclically 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.
|
|
(UNAUDITED)
|
|
|
|
Business Segments
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
(In thousands)
|
|
Revenues:
|
|
|
|
|
|
Real estate (a)
|
|
$65,480
|
|
|
$
|
78,689
|
|
|
Oil and gas
|
|
17,554
|
|
|
|
15,504
|
|
|
Other natural resources
|
|
1,571
|
|
|
|
3,278
|
|
|
Total revenues
|
|
$84,605
|
|
|
$
|
97,471
|
|
|
Segment earnings (loss):
|
|
|
|
|
|
Real estate
|
|
$23,575
|
|
|
$
|
19,446
|
|
|
Oil and gas
|
|
807
|
|
|
|
5,127
|
|
|
Other natural resources
|
|
(528
|
)
|
|
|
1,252
|
|
|
Total segment earnings
|
|
23,854
|
|
|
|
25,825
|
|
|
Items not allocated to segments:
|
|
|
|
|
|
General and administrative expense
|
|
(5,168
|
)
|
|
|
(4,958
|
)
|
|
Share-based compensation expense (b)
|
|
(313
|
)
|
|
|
(10,415
|
)
|
|
Interest expense
|
|
(5,503
|
)
|
|
|
(4,539
|
)
|
|
Other corporate non-operating income
|
|
122
|
|
|
|
31
|
|
|
Income before taxes
|
|
12,992
|
|
|
|
5,944
|
|
|
Income tax expense
|
|
(4,658
|
)
|
|
|
(1,993
|
)
|
|
Net income attributable to Forestar Group Inc.
|
|
$8,334
|
|
|
$
|
3,951
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
Basic
|
|
$0.20
|
|
|
$
|
0.11
|
|
|
Diluted
|
|
$0.19
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (in millions):
|
|
|
|
|
|
Basic
|
|
35.6
|
|
|
|
35.3
|
|
|
Diluted (c)
|
|
43.9
|
|
|
|
35.7
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Supplemental Financial Information:
|
|
2014
|
|
|
|
2013
|
|
|
|
|
(In thousands)
|
|
Cash and cash equivalents
|
|
$
|
147,979
|
|
|
$
|
86,653
|
|
|
|
|
|
|
|
|
Borrowings under credit facility
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Convertible senior notes, net of discount
|
|
|
100,716
|
|
|
|
97,593
|
|
|
Tangible equity unit notes, net of discount
|
|
|
23,201
|
|
|
|
—
|
|
|
Other debt (d)
|
|
|
21,495
|
|
|
|
31,027
|
|
|
Total debt
|
|
$
|
345,412
|
|
|
$
|
328,620
|
|
_____________________
(a) Real estate includes construction revenue incurred as a
general contractor associated with the development of two multifamily
venture properties. Construction revenue in first quarter 2014 was $3.2
million compared to $6.1 million in first quarter 2013. Also, first
quarter 2013 real estate revenue includes $41 million from the sale of
Promesa, a wholly-owned multifamily community we developed in Austin.
(b) First quarter 2014 share-based compensation expense
decreased principally as result of a 16 percent decrease in our stock
price since year-end 2013, compared with a 26 percent increase in our
stock price in first quarter 2013 since year-end 2012, which impacted
the value of vested cash-settled awards.
(c) First quarter 2014 weighted average diluted shares
outstanding includes 7.9 million associated with our tangible equity
units issued during the fourth quarter of 2013.
(d) Consists principally of consolidated venture non-recourse
debt. Excludes approximately $91.1 million of unconsolidated venture
debt and approximately $3.7 million of outstanding letters of credit.
|
|
|
|
|
FORESTAR GROUP INC.
|
|
REAL ESTATE SEGMENT
|
|
PERFORMANCE METRICS
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
2014
|
|
|
2013
|
|
REAL ESTATE
|
|
|
|
|
|
Owned, Consolidated & Equity Method Ventures:
|
|
|
|
|
|
Residential Lots Sold
|
|
|
974
|
|
|
446
|
|
Revenue per Lot Sold
|
|
$
|
42,605
|
|
$
|
51,885
|
|
Commercial Acres Sold
|
|
|
—
|
|
|
3
|
|
Revenue per Commercial Acre Sold
|
|
$
|
—
|
|
$
|
382,741
|
|
Undeveloped Acres Sold
|
|
|
9,329
|
|
|
919
|
|
Revenue per Acre Sold
|
|
$
|
2,113
|
|
$
|
2,949
|
|
Owned & Consolidated Ventures:
|
|
|
|
|
|
Residential Lots Sold
|
|
|
836
|
|
|
355
|
|
Revenue per Lot Sold
|
|
$
|
40,161
|
|
$
|
52,460
|
|
Commercial Acres Sold
|
|
|
—
|
|
|
3
|
|
Revenue per Commercial Acre Sold
|
|
$
|
—
|
|
$
|
382,741
|
|
Undeveloped Acres Sold
|
|
|
9,329
|
|
|
919
|
|
Revenue per Acre Sold
|
|
$
|
2,113
|
|
$
|
2,949
|
|
Ventures Accounted For Using the Equity Method:
|
|
|
|
|
|
Residential Lots Sold
|
|
|
138
|
|
|
91
|
|
Revenue per Lot Sold
|
|
$
|
57,410
|
|
$
|
49,642
|
|
Commercial Acres Sold
|
|
|
—
|
|
|
—
|
|
Revenue per Commercial Acre Sold
|
|
$
|
—
|
|
$
|
—
|
|
Undeveloped Acres Sold
|
|
|
—
|
|
|
—
|
|
Revenue per Acre Sold
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER 2014
|
|
REAL ESTATE PIPELINE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
Undeveloped
|
|
In
Entitlement
Process
|
|
Entitled
|
|
Developed &
Under
Development
|
|
Total Acres (a)
|
|
Undeveloped Land
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
75,455
|
|
|
|
|
|
|
|
|
|
Ventures
|
|
6,730
|
|
|
|
|
|
|
|
82,185
|
|
Residential
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
|
|
22,722
|
|
|
7,795
|
|
670
|
|
|
|
Ventures
|
|
|
|
|
|
1,129
|
|
149
|
|
32,465
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
|
|
2,668
|
|
|
1,064
|
|
524
|
|
|
|
Ventures
|
|
|
|
|
|
324
|
|
160
|
|
4,740
|
|
Total Acres
|
|
82,185
|
|
25,390
|
|
|
10,312
|
|
1,503
|
|
119,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Residential Lots
|
|
|
|
|
|
16,280
|
|
2,512
|
|
18,792
|
_____________________
(a) In addition, at first quarter-end 2014, Forestar owns a
58% interest in a venture which controls approximately 14,000 acres of
undeveloped land in Georgia with minimal investment. Excludes acres
associated with fully developed commercial and income producing
properties.
|
|
|
|
|
FORESTAR GROUP INC.
|
|
OIL AND GAS SEGMENT
|
|
PERFORMANCE METRICS
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
2014
|
|
|
2013
|
|
Leasing Activity from Owned Mineral Interests
|
|
|
|
|
|
Acres Leased
|
|
|
1,741
|
|
|
310
|
|
Average Bonus / Acre
|
|
$
|
343
|
|
$
|
316
|
|
Delay Rentals Received
|
|
$
|
—
|
|
$
|
458,000
|
|
Oil & Gas Production
|
|
|
|
|
|
Royalty Interests (a)
|
|
|
|
|
|
Gross Wells
|
|
|
547
|
|
|
543
|
|
Oil Production (Barrels)
|
|
|
32,700
|
|
|
48,300
|
|
Average Oil Price ($ / Barrel)
|
|
$
|
85.38
|
|
$
|
85.93
|
|
Gas Production (MMcf)
|
|
|
286.1
|
|
|
377.2
|
|
Average Gas Price ($ / Mcf)
|
|
$
|
3.69
|
|
$
|
3.04
|
|
BOE Production (b)
|
|
|
80,400
|
|
|
111,000
|
|
Average Price ($ / BOE)
|
|
$
|
47.87
|
|
$
|
47.64
|
|
Working Interests
|
|
|
|
|
|
Gross Wells
|
|
|
476
|
|
|
431
|
|
Oil Production (Barrels)
|
|
|
139,300
|
|
|
99,600
|
|
Average Oil Price ($ / Barrel)
|
|
$
|
87.60
|
|
$
|
90.76
|
|
Gas Production (MMcf)
|
|
|
200.4
|
|
|
216.6
|
|
Average Gas Price ($ / Mcf)
|
|
$
|
5.34
|
|
$
|
3.67
|
|
BOE Production (b)
|
|
|
172,700
|
|
|
135,800
|
|
Average Price ($ / BOE)
|
|
$
|
76.86
|
|
$
|
72.47
|
|
Total Oil & Gas Interests
|
|
|
|
|
|
Gross Wells (c)
|
|
|
1,014
|
|
|
965
|
|
Oil Production (Barrels)
|
|
|
157,000
|
|
|
133,400
|
|
Average Oil Price ($ / Barrel)
|
|
$
|
91.40
|
|
$
|
95.39
|
|
NGL Production (Barrels)
|
|
|
15,000
|
|
|
14,500
|
|
Average NGL Price ($ / Barrel)
|
|
$
|
43.11
|
|
$
|
31.98
|
|
Total Oil Production (Barrels)
|
|
|
172,000
|
|
|
147,900
|
|
Average Total Oil Price ($ / Barrel)
|
|
$
|
87.18
|
|
$
|
89.19
|
|
Gas Production (MMcf)
|
|
|
486.5
|
|
|
593.8
|
|
Average Gas Price ($ / Mcf)
|
|
$
|
4.37
|
|
$
|
3.27
|
|
BOE Production (b)
|
|
|
253,100
|
|
|
246,800
|
|
Average Price ($ / BOE)
|
|
$
|
67.64
|
|
$
|
61.30
|
|
Average Daily Production
|
|
|
|
|
|
BOE per Day
|
|
|
|
|
|
Royalty Interests
|
|
|
893
|
|
|
1,233
|
|
Working Interests
|
|
|
1,919
|
|
|
1,509
|
|
Total
|
|
|
2,812
|
|
|
2,742
|
|
Working Interests BOE per Day
|
|
|
|
|
|
North Dakota
|
|
|
810
|
|
|
524
|
|
Kansas/Nebraska
|
|
|
539
|
|
|
328
|
|
Texas, Louisiana and Other
|
|
|
570
|
|
|
657
|
|
Total
|
|
|
1,919
|
|
|
1,509
|
_____________________
(a) Includes our share of venture activity in which we own a
50% interest. Our share of natural gas production is 52.7 MMcf in first
quarter 2014 and 70.2 MMcf first quarter 2013.
(b) BOE – Barrels of oil equivalent (converting natural gas
to oil at 6 Mcfe / Bbl).
(c) Includes wells operated by third-party lessees/operators.
Represent wells in which we own a royalty or working interest in a
producing well. Excludes nine working interest wells in first quarter
2014 and 2013 as we also own a royalty interest in these wells.
|
|
|
|
|
FORESTAR GROUP INC.
|
|
OIL AND GAS SEGMENT
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
2014
|
|
2013
|
|
Well Activity
|
|
|
|
|
|
Mineral Interests Owned (a)
|
|
|
|
|
|
Net Acres Held By Production
|
|
36,000
|
|
|
29,000
|
|
Gross Wells Drilled
|
|
—
|
|
|
—
|
|
Productive Gross Wells
|
|
547
|
|
|
543
|
|
Mineral Interests Leased
|
|
|
|
|
|
Net Acres Held By Production (b)
|
|
37,000
|
|
|
30,000
|
|
Gross Wells Drilled
|
|
21
|
|
|
22
|
|
Productive Gross Wells (b)
|
|
467
|
|
|
422
|
|
Total Well Activity
|
|
|
|
|
|
Net Acres Held By Production
|
|
73,000
|
|
|
59,000
|
|
Gross Wells Drilled
|
|
21
|
|
|
22
|
|
Productive Gross Wells
|
|
1,014
|
|
|
965
|
_____________________
(a) Includes wells operated by third-party lessees/operators.
Represent wells in which we own a royalty or working interest in a
producing well. Excludes nine working interest wells at first
quarter-end 2014 and 2013 as we also own a royalty interest in these
wells.
(b) Excludes 8,000 net acres and 1,181 wells in which we have
an overriding royalty interest.
FORESTAR GROUP INC.
OIL AND GAS SEGMENT
MINERAL
INTERESTS
MINERAL INTERESTS OWNED (a)
Forestar’s oil and gas segment includes approximately 590,000 owned net
mineral acres principally located in Texas, Louisiana, Georgia and
Alabama.
|
State
|
|
Unleased
|
|
Leased
|
|
Held By
Production
|
|
Total (b)
|
|
|
|
|
|
(Net acres)
|
|
Texas
|
|
206,000
|
|
|
19,000
|
|
|
27,000
|
|
|
252,000
|
|
Louisiana
|
|
125,000
|
|
|
10,000
|
|
|
9,000
|
|
|
144,000
|
|
Georgia
|
|
152,000
|
|
|
—
|
|
|
—
|
|
|
152,000
|
|
Alabama
|
|
40,000
|
|
|
—
|
|
|
—
|
|
|
40,000
|
|
California
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
Indiana
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
|
525,000
|
|
|
29,000
|
|
|
36,000
|
|
|
590,000
|
_____________________
(a) Represents net acres and includes ventures.
MINERAL INTERESTS LEASED
Forestar’s oil and gas segment includes approximately 273,000 net
mineral acres of leasehold interests principally located in Nebraska,
Kansas, Oklahoma, North Dakota and Texas, predominantly as result of our
September 28, 2012 acquisition of Credo Petroleum.
|
State
|
|
Undeveloped
|
|
Held By
Production (a)
|
|
Total
|
|
Nebraska
|
|
159,000
|
|
|
5,000
|
|
|
164,000
|
|
Kansas
|
|
26,000
|
|
|
5,000
|
|
|
31,000
|
|
Oklahoma
|
|
18,000
|
|
|
17,000
|
|
|
35,000
|
|
Alabama
|
|
8,000
|
|
|
—
|
|
|
8,000
|
|
Texas
|
|
10,000
|
|
|
2,000
|
|
|
12,000
|
|
North Dakota
|
|
4,000
|
|
|
4,000
|
|
|
8,000
|
|
Other
|
|
11,000
|
|
|
4,000
|
|
|
15,000
|
|
|
|
236,000
|
|
|
37,000
|
|
|
273,000
|
_____________________
(a) Excludes approximately 8,000 net acres of overriding royalty
interests.
|
|
|
|
|
FORESTAR GROUP INC.
|
|
OTHER NATURAL RESOURCES SEGMENT
|
|
PERFORMANCE METRICS
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
2014
|
|
|
2013
|
|
Fiber Sales
|
|
|
|
|
|
Pulpwood tons sold
|
|
|
28,200
|
|
|
120,600
|
|
Average pulpwood price per ton
|
|
$
|
9.66
|
|
$
|
9.76
|
|
Sawtimber tons sold
|
|
|
28,900
|
|
|
70,900
|
|
Average sawtimber price per ton
|
|
$
|
21.71
|
|
$
|
22.36
|
|
|
|
|
|
|
|
Total tons sold
|
|
|
57,100
|
|
|
191,500
|
|
Average stumpage price per ton (a)
|
|
$
|
15.77
|
|
$
|
14.43
|
|
|
|
|
|
|
|
Recreational Activity
|
|
|
|
|
|
Average recreational acres leased
|
|
|
115,200
|
|
|
122,700
|
|
Average price per leased acre
|
|
$
|
9.24
|
|
$
|
9.15
|
_____________________
(a) Average stumpage price per ton is based on gross revenues
less cut and haul costs.
FORESTAR GROUP INC.
PROJECTS IN ENTITLEMENT
A summary of our real estate projects in the entitlement process (a) at
first quarter-end 2014 follows:
|
Project
|
|
County
|
|
Market
|
|
Project Acres (b)
|
|
California
|
|
|
|
|
|
|
|
Hidden Creek Estates
|
|
Los Angeles
|
|
Los Angeles
|
|
700
|
|
Terrace at Hidden Hills
|
|
Los Angeles
|
|
Los Angeles
|
|
30
|
|
|
|
|
|
|
|
|
|
Georgia
|
|
|
|
|
|
|
|
Ball Ground
|
|
Cherokee
|
|
Atlanta
|
|
500
|
|
Crossing
|
|
Coweta
|
|
Atlanta
|
|
230
|
|
Fincher Road
|
|
Cherokee
|
|
Atlanta
|
|
3,890
|
|
Fox Hall
|
|
Coweta
|
|
Atlanta
|
|
960
|
|
Garland Mountain
|
|
Cherokee/Bartow
|
|
Atlanta
|
|
350
|
|
Martin’s Bridge
|
|
Banks
|
|
Atlanta
|
|
970
|
|
Mill Creek
|
|
Coweta
|
|
Atlanta
|
|
770
|
|
Wolf Creek
|
|
Carroll/Douglas
|
|
Atlanta
|
|
12,230
|
|
Yellow Creek
|
|
Cherokee
|
|
Atlanta
|
|
1,060
|
|
|
|
|
|
|
|
|
|
Texas
|
|
|
|
|
|
|
|
Lake Houston
|
|
Harris/Liberty
|
|
Houston
|
|
3,700
|
|
Total
|
|
|
|
|
|
25,390
|
_____________________
(a) A project is deemed to be in the entitlement process when
customary steps necessary for the preparation of an application for
governmental land-use approvals, like conducting pre-application
meetings or similar discussions with governmental officials, have
commenced, or an application has been filed. Projects listed may have
significant steps remaining, and there is no assurance that entitlements
ultimately will be received.
(b) Project acres, which are the total for the project
regardless of our ownership interest, are approximate. The actual number
of acres entitled may vary.
FORESTAR GROUP INC.
REAL ESTATE PROJECTS
A summary of activity within our projects in the development process,
which includes entitled (a), developed and under development
real estate projects, at first quarter-end 2014 follows:
|
|
|
|
|
|
|
Residential Lots (c)
|
|
Commercial Acres (d)
|
|
Project
|
|
County
|
|
Interest
Owned (b)
|
|
Lots Sold
Since
Inception
|
|
Lots
Remaining
|
|
Acres
Sold
Since
Inception
|
|
Acres
Remaining (f)
|
|
Projects we own
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Joaquin River
|
|
Contra Costa/Sacramento
|
|
100
|
%
|
|
—
|
|
—
|
|
—
|
|
288
|
|
Colorado
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo Highlands
|
|
Weld
|
|
100
|
%
|
|
—
|
|
164
|
|
—
|
|
—
|
|
Johnstown Farms
|
|
Weld
|
|
100
|
%
|
|
264
|
|
348
|
|
2
|
|
7
|
|
Pinery West
|
|
Douglas
|
|
100
|
%
|
|
45
|
|
41
|
|
20
|
|
94
|
|
Stonebraker
|
|
Weld
|
|
100
|
%
|
|
—
|
|
603
|
|
—
|
|
—
|
|
Tennessee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morgan Farms
|
|
Williamson
|
|
100
|
%
|
|
30
|
|
143
|
|
—
|
|
—
|
|
Texas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arrowhead Ranch
|
|
Hays
|
|
100
|
%
|
|
—
|
|
387
|
|
—
|
|
6
|
|
Bar C Ranch
|
|
Tarrant
|
|
100
|
%
|
|
292
|
|
813
|
|
—
|
|
—
|
|
Barrington Kingwood
|
|
Harris
|
|
100
|
%
|
|
113
|
|
67
|
|
—
|
|
—
|
|
Cibolo Canyons
|
|
Bexar
|
|
100
|
%
|
|
815
|
|
751
|
|
130
|
|
20
|
|
Harbor Lakes
|
|
Hood
|
|
100
|
%
|
|
212
|
|
237
|
|
2
|
|
19
|
|
Hunter’s Crossing
|
|
Bastrop
|
|
100
|
%
|
|
451
|
|
59
|
|
38
|
|
65
|
|
La Conterra
|
|
Williamson
|
|
100
|
%
|
|
181
|
|
149
|
|
—
|
|
58
|
|
Lakes of Prosper
|
|
Collin
|
|
100
|
%
|
|
54
|
|
231
|
|
—
|
|
—
|
|
Lantana
|
|
Denton
|
|
100
|
%
|
|
972
|
|
790
|
|
9
|
|
3
|
|
Maxwell Creek
|
|
Collin
|
|
100
|
%
|
|
896
|
|
103
|
|
10
|
|
—
|
|
Oak Creek Estates
|
|
Comal
|
|
100
|
%
|
|
176
|
|
471
|
|
13
|
|
—
|
|
Parkside
|
|
Collin
|
|
100
|
%
|
|
—
|
|
200
|
|
—
|
|
—
|
|
Stoney Creek
|
|
Dallas
|
|
100
|
%
|
|
195
|
|
559
|
|
—
|
|
—
|
|
Summer Creek Ranch
|
|
Tarrant
|
|
100
|
%
|
|
895
|
|
379
|
|
35
|
|
44
|
|
Summer Lakes
|
|
Fort Bend
|
|
100
|
%
|
|
573
|
|
557
|
|
56
|
|
—
|
|
Summer Park
|
|
Fort Bend
|
|
100
|
%
|
|
35
|
|
163
|
|
28
|
|
62
|
|
The Colony
|
|
Bastrop
|
|
100
|
%
|
|
447
|
|
702
|
|
22
|
|
31
|
|
The Preserve at Pecan Creek
|
|
Denton
|
|
100
|
%
|
|
502
|
|
292
|
|
—
|
|
7
|
|
Village Park
|
|
Collin
|
|
100
|
%
|
|
699
|
|
57
|
|
3
|
|
2
|
|
Westside at Buttercup Creek
|
|
Williamson
|
|
100
|
%
|
|
1,482
|
|
15
|
|
66
|
|
—
|
|
Other projects (9)
|
|
Various
|
|
100
|
%
|
|
1,662
|
|
446
|
|
133
|
|
7
|
|
Georgia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seven Hills
|
|
Paulding
|
|
100
|
%
|
|
737
|
|
353
|
|
26
|
|
113
|
|
The Villages at Burt Creek
|
|
Dawson
|
|
100
|
%
|
|
—
|
|
1,715
|
|
—
|
|
57
|
|
Other projects (17)
|
|
Various
|
|
100
|
%
|
|
223
|
|
2,870
|
|
—
|
|
705
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other projects (3)
|
|
Various
|
|
100
|
%
|
|
500
|
|
453
|
|
—
|
|
—
|
|
|
|
|
|
|
|
12,451
|
|
14,118
|
|
593
|
|
1,588
|
|
|
|
|
|
|
|
Residential Lots (c)
|
|
Commercial Acres (d)
|
|
Project
|
|
County
|
|
Interest
Owned (b)
|
|
Lots Sold
Since
Inception
|
|
Lots
Remaining
|
|
Acres
Sold
Since
Inception
|
|
Acres
Remaining (f)
|
|
Projects in entities we consolidate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City Park
|
|
Harris
|
|
75
|
%
|
|
1,299
|
|
470
|
|
50
|
|
115
|
|
Timber Creek
|
|
Collin
|
|
88
|
%
|
|
—
|
|
614
|
|
—
|
|
—
|
|
Willow Creek Farms II
|
|
Waller/Fort Bend
|
|
90
|
%
|
|
90
|
|
315
|
|
—
|
|
—
|
|
Other projects (2)
|
|
Various
|
|
Various
|
|
9
|
|
198
|
|
—
|
|
129
|
|
Georgia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Georgian
|
|
Paulding
|
|
75
|
%
|
|
535
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
1,933
|
|
1,597
|
|
50
|
|
244
|
|
Total owned and consolidated
|
|
|
|
|
|
14,384
|
|
15,715
|
|
643
|
|
1,832
|
|
Projects in ventures that we account for using the equity method
|
|
|
|
|
|
|
|
|
|
|
|
Texas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entrada
|
|
Travis
|
|
50
|
%
|
|
—
|
|
821
|
|
—
|
|
—
|
|
Fannin Farms West
|
|
Tarrant
|
|
50
|
%
|
|
324
|
|
24
|
|
—
|
|
12
|
|
Harper’s Preserve
|
|
Montgomery
|
|
50
|
%
|
|
314
|
|
1,379
|
|
8
|
|
51
|
|
Lantana - Rayzor Ranch
|
|
Denton
|
|
25
|
%
|
|
1,163
|
|
—
|
|
16
|
|
42
|
|
Long Meadow Farms
|
|
Fort Bend
|
|
38
|
%
|
|
1,258
|
|
544
|
|
183
|
|
120
|
|
Southern Trails
|
|
Brazoria
|
|
80
|
%
|
|
735
|
|
256
|
|
—
|
|
—
|
|
Stonewall Estates
|
|
Bexar
|
|
50
|
%
|
|
337
|
|
53
|
|
—
|
|
—
|
|
Other projects (2)
|
|
Various
|
|
Various
|
|
—
|
|
—
|
|
—
|
|
15
|
|
Total in ventures
|
|
|
|
|
|
4,131
|
|
3,077
|
|
207
|
|
240
|
|
Combined total
|
|
|
|
|
|
18,515
|
|
18,792
|
|
850
|
|
2,072
|
_____________________
(a) A project is deemed entitled when all major discretionary
governmental land-use approvals have been received. Some projects may
require additional permits and/or non-governmental authorizations for
development.
(b) Interest owned reflects our net equity interest in the
project, whether owned directly or indirectly. There are some projects
that have multiple ownership structures within them. Accordingly,
portions of these projects may appear as owned, consolidated or
accounted for using the equity method.
(c) Lots are for the total project, regardless of our
ownership interest. Lots remaining represent vacant developed lots, lots
under development and future planned lots and are subject to change
based on business plan revisions.
(d) Commercial acres are for the total project, regardless of
our ownership interest, and are net developable acres, which may be
fewer than the gross acres available in the project.
(e) Excludes acres associated with commercial and income
producing properties.
A summary of our significant commercial and income producing properties
at first quarter-end 2014 follows:
|
Project
|
|
Market
|
|
Interest
Owned (a)
|
|
Type
|
|
Acres
|
|
Description
|
|
Radisson Hotel
|
|
Austin
|
|
100
|
%
|
|
Hotel
|
|
2
|
|
413 guest rooms and suites
|
|
Eleven (b)
|
|
Austin
|
|
25
|
%
|
|
Multifamily
|
|
3
|
|
257-unit luxury apartment
|
|
360° (b)
|
|
Denver
|
|
20
|
%
|
|
Multifamily
|
|
4
|
|
304-unit luxury apartment
|
|
Midtown Cedar Hill (b)
|
|
Dallas
|
|
100
|
%
|
|
Multifamily
|
|
13
|
|
354-unit luxury apartment
|
|
Acklen (b)
|
|
Nashville
|
|
30
|
%
|
|
Multifamily
|
|
4
|
|
320-unit luxury apartment
|
_____________________
(a) Interest owned reflects our total interest in the
project, whether owned directly or indirectly.
(b) Construction in progress.
Copyright Business Wire 2014