Most components of revenues in the first quarter of 2009 were oil and gas sales which declined about 12% when compared to the year-ago quarter because of lower natural gas, oil and natural gas liquids commodity prices. This reduction was partly counterbalanced by increases in sales volumes of natural gas, oil and natural gas liquids because of the oil and gas properties that Isramco bought on March 27, 2008.
This increase in the net income was mainly because of the impact of derivatives, increases in sales volumes of natural gas, oil and natural gas liquids due to the acquisition in March 2008 of oil and gas interests which were partly equalized by sustained lower natural gas, oil and natural gas liquids sales revenues because of lower prices, higher lease operating expenses, higher depreciation, depletion and amortization expenses and higher interest expense due to the acquisition.
