SRC Energy Issues Preliminary First Quarter 2019 Results; Provides an Operations Update and Updates 2019 Production Guidance
22 Abril 2019 - 5:23PM
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 first quarter 2019
operating results, provides an operations update, updates 2019
production guidance, and announces its first quarter 2019 earnings
release and conference call dates.
PRELIMINARY FINANCIAL & OPERATIONS
SUMMARY |
|
Three Months Ended |
|
3/31/2019 |
12/31/2018 |
% Chg. |
3/31/2018 |
Average Daily Volumes |
|
|
|
Total Production
(BOE) |
|
65,771 |
|
|
59,821 |
|
10 |
% |
|
45,397 |
|
Oil
% |
|
50 |
% |
|
47 |
% |
|
|
50 |
% |
Product Price Received |
|
|
|
|
Crude Oil ($/Bbl) * |
$ |
48.33 |
|
$ |
52.56 |
|
-8 |
% |
$ |
56.01 |
|
Natural Gas Liquids ($/Bbl) |
$ |
12.59 |
|
$ |
19.66 |
|
-36 |
% |
$ |
19.15 |
|
Natural Gas ($/Mcf) * |
$ |
2.52 |
|
$ |
2.68 |
|
-6 |
% |
$ |
2.14 |
|
Differentials |
|
|
|
|
NYMEX WTI * |
$ |
(6.50 |
) |
$ |
(6.52 |
) |
-nil- |
|
$ |
(6.88 |
) |
NYMEX Henry Hub * |
$ |
(0.63 |
) |
$ |
(0.96 |
) |
-34 |
% |
$ |
(0.86 |
) |
Unit Costs |
|
|
|
|
Lease Operating Expense ($/BOE) |
$ |
2.93 |
|
$ |
2.44 |
|
20 |
% |
$ |
1.93 |
|
Activity Summary |
|
|
|
|
D&C Capital Expenditures ($MM) |
$ |
110 |
|
$ |
175 |
|
-37 |
% |
$ |
111 |
|
Operated Wells drilled (gross/net) |
|
28/24 |
|
|
28/25 |
|
|
|
28/24 |
|
Operated Wells Completed (gross/net) |
|
18/16 |
|
|
38/31 |
|
|
|
12/11 |
|
|
|
|
|
|
* Includes transportation and gathering
expense |
|
|
For the quarter ended March 31, 2019 production was positively
impacted by the continued performance of new wells turned to
production, non-operated production volumes and sustained
performance from wells associated with the second closing of the
GCII acquisition. Furthermore, DCP’s system has maintained
consistent throughput during the winter months.
Lower natural gas liquids product pricing during the quarter
ended March 31, 2019 were impacted by a redistribution of volume
from Mont Belvieu to Conway, a market with lower price
realizations, in order to insulate against processing throughput
curtailment.
Lease operating expense for the quarter ended March 31, 2019 was
elevated due to seasonal increased costs associated with winter
operations. In addition, vertical wells have an inherently
higher per unit operating cost, and the Company increased its
vertical well count with the recent GCII second closing.
MidstreamSRC looks forward to the additional
processing capacity on DCP’s O’Connor 2 plant becoming available
late in the 2nd quarter. It is anticipated that the
additional 200 MMcf/d of processing will take several weeks to ramp
to full capacity in the 3rd quarter. Once these additional
volumes have been absorbed with adequate time to balance across
DCP’s entire system, we expect the 100 MMcf/d of bypass will then
be introduced.
2019 Guidance UpdateThe Company’s initial
production guidance for 2019 included a level of conservatism,
given the political environment and uncertainty on the timing of
DCP Midstream’s O’Connor 2 plant. Subsequently, some of these
uncertainties have been reduced with the passage of SB-181 and the
additional confidence that construction of the O’Connor 2 plant
appears to be on schedule. Consequently, SRC updates its average
daily production guidance for the year from the range 59-62 MBoe/d
to the range 63-66 MBoe/d. This production increase adjusts
for the strong first quarter of 2019, while continuing to reflect
the slower cadence of wells expected to be completed and turned to
sales for the remainder of the year, as well as anticipated gas
processing allocations. No other components of SRC’s original
2019 guidance require adjustment. Management
CommentLynn A. Peterson, Chairman and CEO of SRC
commented, "Our Company has gotten off to a great start in
2019. Most importantly we continue to see strong well
performance, improving midstream capacity and Senate Bill 181 was
recently signed into law by Colorado’s governor, which should help
bring certainty of our operations to investors. While SRC
does not support all parts of the bill, the Company is moving
forward with its operations, while recognizing that significant
work remains with respect to the COGCC rulemaking process. We
highlight that all of our acreage is in Weld County, which is a
strong supporter of our industry. We will continue to work
together to create a greater Colorado as well as a stronger oil and
gas industry."
First Quarter 2019 Earnings Release and CallSRC
plans to issue its first quarter earnings release on Wednesday,
May 1, 2019 after the close of trading on the New York Stock
Exchange.
SRC will host a conference call on Thursday, May 2, 2019 at
10:00 a.m. Eastern time (8:00 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/30055/indexl.html
Replay Information:
Conference ID #: 13690162Replay Dial-In (Toll Free US
& Canada): 877-660-6853Replay Dial-In
(International): 201-612-7415Expiration Date:
5/16/19
Upcoming Investor ConferencesPresentations
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 and
attendees:
JP Morgan 2018 Energy Conference - June
18-20, 2019 New York, NYBarclays CEO Energy-Power
Conference – September 3-4, 2019 New York, NY
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
StatementsThis 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 first
quarter and full-year 2019 results, including capital expenditures,
costs, drilling and completion activities, midstream activities and
production, the timing and impact of additional midstream
facilities and the effect of SB 181 and related rules. 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 first quarter of 2018 are preliminary and
subject to change as the Company finalizes its financial statements
for the quarter.
Company Contact:
John Richardson (Investor Relations Manager)
SRC Energy Inc.
Tel 720-616-4308
E-mail: jrichardson@srcenergy.com
SRC Energy (AMEX:SRCI)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
SRC Energy (AMEX:SRCI)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024