SRC Energy Issues Preliminary Fourth Quarter 2017 Results; Operations Update; Initial 2018 Guidance; Fourth Quarter 2017 Earnings and Conference Call Dates
Production and Average Realized Pricing Summary
Three Months Ended | |||||||||
12/31/2017 | 9/30/2017 | Sequential % Chg. |
12/31/2016 | ||||||
Average Daily Volumes | 3-Stream | 2-Stream | |||||||
Daily Production (BOE/day) | 45,658 | 40,378 | 13% | 13,269 | |||||
Liquids % | 69% | 67% | 58% | ||||||
Product Price Received | |||||||||
Crude Oil ($/Bbl) * | $48.80 | $41.89 | 16% | $40.94 | |||||
Natural Gas Liquids ($/Bbl) | $20.81 | $17.32 | 20% | NA |
|||||
Natural Gas ($/Mcf) | $2.21 | $2.35 | -6% | $3.18 | |||||
Differentials | |||||||||
NYMEX WTI * | $(6.57 | ) | $(6.29 | ) | 4% | $(8.20 | ) | ||
NYMEX Henry Hub | $(0.69 | ) | $(0.64 | ) | 8% | $0.14 | |||
Unit Costs | |||||||||
Lease Operating Expense ($/BOE) | $1.54 | $1.17 | 32% | $4.08 | |||||
* Adjusted to include transportation and gathering expense. |
For the fourth quarter ended
2017 Preliminary Year-End Reserves
Proved developed reserves and total proved reserves at year-end 2017 increased 389% and 144%, respectively, over year-end 2016 proved reserves as shown in the following table:
YEAR-OVER-YEAR RESERVES | |||||||||||||
2017 | 2016 * | ||||||||||||
Reserve Category | Oil (MMbbls) |
Gas (Bcf) |
NGL (MMbbls) |
Net MMBOE |
Net MMBOE |
Change % |
|||||||
Proved Developed | 27 | 219 | 24 | 88 | 18 | 389 | % | ||||||
Proved Undeveloped | 43 | 341 | 40 | 139 | 75 | 85 | % | ||||||
Total Proved | 70 | 560 | 64 | 227 | 93 | 144 | % | ||||||
* 2016 year-end reserves are reported in 2-stream equivalents |
Capital Expenditures
Drilling and completion capital expenditures for the year ended
Operations Update
During the quarter ended
The table below details all recent activity:
Gross Well Count by Zone |
||||||
Pad Name | Lateral Length | Avg. WI | Niobrara | Codell | Status | |
Beebe | 12 ML | 100 | % | 7 | 5 | TTS |
Leffler | 12 LL | 90 | % | 7 | 5 | TTS |
Ag | 12 LL | 89 | % | 7 | 5 | Stimulating |
Falken | 12 LL, 6 SL | 94 | % | 11 | 7 | WOC |
Goetzel | 12 ML | 92 | % | 8 | 4 | WOC |
Boomerang | 12 ML, 4LL | 83 | % | 10 | 6 | Drilling |
Donn | 13 LL | 91 | % | 8 | 5 | Drilling |
TTS - Turned to sales | WOC - Waiting on completion |
Preliminary 2018 Guidance
The Company expects full year 2018 production to be between 48,000 BOE/d and 52,000 BOE/d with oil making up 47% - 50% of production. The pace of completion activity is anticipated to be skewed towards the latter half of 2018 to align with natural gas processing capacity additions. Total drilling and completion capital expenditures are projected to be between
Management Comment
Mr. Peterson added, “As it relates to midstream infrastructure, 2018 will be a year of change. Multiple gas processing facilities as well as oil gathering assets are currently under construction or are on the drawing boards as midstream companies respond to the growing needs.” He concluded, “As good stewards of SRC’s capital, we intend to maintain our strong balance sheet and operational flexibility, while focusing on delivering favorable returns on capital for our shareholders.”
Fourth Quarter 2017 Earnings Release and Call
SRC plans to issue its fourth quarter earnings release on
SRC will host a conference call on
To participate in this call please dial:
International Dial-in Number: (201) 493-6747
Webcast URL: http://srcenergy.equisolvewebcast.com/q4-2017
Replay Information:
Conference ID #: 411931
Replay Dial-In (Toll Free US &
Replay Dial-In (International): 201-612-7415
Expiration Date:
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 and attendees:
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About
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 fourth quarter, full-year 2017 and 2018 results, including capital expenditures, costs, drilling and completion activities, midstream activities, differentials and production. 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 recent or future acquisitions; the volatility of the Company's stock price; and the other factors described in the “Risk Factors” sections of the Company’s filings with the
Company Contact:
Tel 720-616-4308
E-mail: jrichardson@srcenergy.com
Source: SRC Energy Inc.