SRC Energy Inc. Issues Preliminary Fourth Quarter 2018 Results and Provides 2019 Guidance
06 Fevereiro 2019 - 7:00PM
SRC Energy Inc. (NYSE American: SRCI) (“SRC” or the “Company”), an
oil and gas exploration and production company focused in the
Denver-Julesburg Basin, today issues preliminary fourth quarter
2018 operating results and year-end 2018 reserves, issues 2019
guidance and announces its fourth quarter 2018 earnings release and
conference call dates. The following table summarizes the
Company's preliminary financial and operational results for these
periods:
FINANCIAL & OPERATIONS
SUMMARY |
|
|
|
|
|
|
3 Months Ended |
12 Months Ended |
Sequential % Chg. |
|
|
|
12/31/2018 |
12/31/2018 |
12/31/2017 |
12/31/2017 |
Average Daily Volumes |
|
|
|
Total Production (BOE) |
59,821 |
50,543 |
34,194 |
48% |
Oil % |
47% |
45% |
47% |
|
Product Price Received |
|
|
|
|
Crude Oil ($/Bbl) * |
$52.56 |
$57.79 |
$44.35 |
30% |
Natural Gas Liquids ($/Bbl) |
$19.66 |
$19.12 |
$17.10 |
12% |
Natural Gas ($/Mcf) * |
$2.68 |
$2.09 |
$2.33 |
(10)% |
Differentials |
|
|
|
|
NYMEX WTI * |
$(6.52) |
$(7.15) |
$(6.58) |
9% |
NYMEX Henry Hub * |
$(0.96) |
$(1.00) |
$(0.67) |
49% |
Unit Costs |
|
|
|
|
Lease Operating Expense ($/BOE) |
$2.44 |
$2.35 |
$1.56 |
51% |
Activity Summary |
|
|
|
|
D&C Capital Expenditures ($MM) |
$175 |
$584 |
$462 |
|
Total Capital Expenditures ($MM) ** |
$196 |
$766 |
$1,139 |
|
Operated Wells Drilled (gross/net) |
28/25 |
117/106 |
115/103 |
|
Operated Wells Completed (gross/net) |
38/31 |
127/112 |
115/102 |
|
* Includes transportation and gathering expense
** Excludes capitalized interest, capitalized G&A &
other |
OIL AND NATURAL GAS RESERVES |
|
2018 |
2017 |
|
Reserves Category |
Oil (MMbbls) |
Gas (Bcf) |
NGL (MMbbls) |
Net MMBOE |
Net MMBOE |
Sequential % Chg. |
Proved
Developed |
37 |
324 |
36 |
128 |
88 |
45% |
Proved |
51 |
448 |
53 |
178 |
139 |
28% |
Total Proved |
88 |
772 |
89 |
306 |
227 |
35% |
|
|
|
|
|
|
|
2019 Guidance
The Company’s 2019 budget was developed using a flat $50 NYMEX
oil and $3 Henry Hub natural gas price assumption, anticipated gas
processing expansion in the D-J Basin and assumed continued gas
processing allocations as the system reaches designed
capacity. Importantly, this budget has been developed to
balance operating cash flows with total corporate expenditures and
is expected to generate free cash flow. Under this plan,
total capital expenditures in 2019 are projected to be between $425
million and $450 million, comprised primarily of operated drilling
and completion costs, limited leasehold acquisition costs and
selected non-operated drilling and completion costs. This
capital program is expected to deliver a year over year increase in
production of approximately 20%. Both the drilling and
completion cadences will be interrupted during the year in an
effort to align production growth with the Basin’s gas processing
expansion.
2019 Guidance |
Production
(Boe/d) |
59,000 - 62,000 |
Oil % |
42% - 45% |
Total Capital
Expenditures ($mil) |
$425 - $450 |
Production Taxes |
9% - 10% |
Lease Operating Expense
($/boe) |
$2.50 - $2.75 |
Wells Drilled
(gross/net) |
99 / 90 |
Wells Completed
(gross/net) |
68 / 62 |
Oil
Differential * |
$7.00 - $8.00 |
* Includes all transportation and gathering costs
from the wellhead to the settlement point |
Management Comment
Lynn A. Peterson, Chairman and CEO of SRC Energy Inc.,
commented, “SRC’s operations soundly delivered on its 2018
expectations, while navigating through several macro issues beyond
our direct control. While the year saw progress in the
continued expansion of midstream infrastructure, gas processing
capacity in the Basin still lags production and directly impacts
our operations. Commodity volatility has impacted the entire
energy sector and investor focus has shifted from growth to
sustainable free cash flow and financial discipline.
Continued uncertainties surrounding Colorado politics have caused
ongoing concerns within the investment community. However,
from an operational standpoint our team has done an exceptional job
working within the Weld County communities where we operate, and
SRC’s development activities have not been materially impacted by
the political winds."
Peterson continued, "The Company’s 2019 budget and guidance that
we announced today takes into consideration the issues noted above
and is designed to deliver value to our shareholders while
maintaining SRC's sound financial position and continuing to
develop our high-quality inventory. We continue to work with
all elected officials and remain optimistic about our vibrant
industry.”
Fourth Quarter 2018 Earnings Release and
Call
SRC plans to issue its fourth quarter earnings release on
Wednesday, February 20, 2019 after the close of trading on the
New York Stock Exchange. SRC will host a conference call on
Thursday, February 21, 2019 at 11:00 a.m. Eastern time (9:00
a.m. Mountain time) to discuss the results. The call will be
conducted by Chairman and CEO Lynn A. Peterson, CFO James
Henderson, Chief Development Officer Nick Spence, Chief Operations
Officer Mike Eberhard and Manager of Investor Relations John
Richardson. A Q&A session will immediately follow the
discussion of the results for the quarter.
To participate in this call please dial:
Domestic Dial-in Number: (877) 407-9122International
Dial-in Number: (201) 493-6747Webcast:
https://78449.themediaframe.com/dataconf/productusers/srci/mediaframe/28662/indexl.html
Replay Information:
Conference ID #: 411931Replay Dial-In (Toll Free US &
Canada): 877-660-6853Replay Dial-In (International):
201-612-7415Expiration Date: 3/7/2019
Upcoming Investor Conferences
Presentations provided in conjunction with these events will be
available on SRC's website at www.srcenergy.com the morning of the
respective presentation. Members of SRC senior management
will participate in the following hosted investor events, please
refer to the Company’s website for specific presentation dates:
Credit Suisse Annual Energy
Summit - February 11, 2019 - Vail, COJP
Morgan High Yield Conference - February 25, 2019 - Miami,
FLSimmons Annual Energy Conference - February 27,
2019 - Las Vegas, NVScotia Howard Weil Energy Conference
- March 26, 2019 - New Orleans, LA
About SRC Energy Inc.
SRC Energy Inc. is a domestic oil and natural gas exploration
and production company. SRC's core area of operations is in the
Wattenberg Field of the Denver-Julesburg Basin. The Company's
corporate offices are located in Denver, Colorado. More company
news and information about SRC is available at
www.srcenergy.com.
Important Cautions Regarding Forward Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact
are forward-looking statements. The use of words such as
"believes", "expects", "anticipates", "intends", "plans",
"estimates", "should", "likely", “guidance” or similar expressions
indicates a forward-looking statement. Forward-looking statements
herein include statements regarding expected 2019 results,
including production, product mix, capital expenditures and
projects, expenses, prices, pace of development, midstream capacity
and cash generation. These statements are subject to risks
and uncertainties and are based on the beliefs and assumptions of
management, and information currently available to management. The
actual results could differ materially from a conclusion, forecast
or projection in the forward-looking information. Certain material
factors or assumptions were applied in drawing a conclusion or
making a forecast or projection as reflected in the forward-looking
information. The identification in this press release of factors
that may affect the Company's future performance and the accuracy
of forward-looking statements is meant to be illustrative and by no
means exhaustive. All forward-looking statements should be
evaluated with the understanding of their inherent uncertainty.
Factors that could cause the Company's actual results to differ
materially from those expressed or implied by forward-looking
statements include, but are not limited to: the success of the
Company's exploration and development efforts; the price of oil and
gas; worldwide economic situation; change in interest rates or
inflation; willingness and ability of third parties to honor their
contractual commitments; the Company's ability to raise additional
capital, as it may be affected by current conditions in the stock
market and competition in the oil and gas industry for risk
capital; the Company's capital costs, which may be affected by
delays or cost overruns; costs of production; environmental and
other regulations, as the same presently exist or may later be
amended; the Company's ability to identify, finance and integrate
any future acquisitions; the volatility of the Company's stock
price; the possibility that additional midstream facilities will
not be constructed within anticipated time periods or that such
facilities will not have the anticipated effect on operations; and
the other factors described in the “Risk Factors” sections of the
Company’s filings with the Securities and Exchange Commission, all
of which are incorporated by reference in this release.
Results presented for the fourth quarter of 2018 and full-year 2018
are preliminary and subject to change as the Company finalizes its
financial statements for the relevant periods.
Company Contact:
John Richardson (Investor Relations Manager)
SRC Energy Inc.
Tel 720-616-4308
E-mail: jrichardson@srcenergy.com
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