Penn Virginia Corporation Announces First Quarter 2015 Results and Provides Updates of 2015 Guidance and OperationsFont size: A | A | A
4:06 PM ET 5/11/15 | GlobeNewswire
16% Sequential Growth in Total Production and 23% Sequential Growth in Eagle Ford Production
25% Decrease in Average Eagle Ford Well Cost Since Early Fourth Quarter 2014
Continued Solid Well Results From the Upper Eagle Ford (Marl) and Lower Eagle Ford
Borrowing Base of $425 Million and Relaxed Leverage Covenants
Penn Virginia Corporation (NYSE:PVA) today reported financial results for the three months ended March 31, 2015 and provided updates of its operations and 2015 capital plan and guidance.
First quarter 2015 results compared, as applicable, to fourth quarter 2014 results were as follows:
-- Total production during the first quarter was 2.2 million barrels of oil equivalent (MMBOE), or 24,721 barrels of oil equivalent (BOE) per day (BOEPD), a 16% sequential increase compared to 21,314 BOEPD. -- Total production increased 17% over the first quarter of 2014 and 29%, pro forma to exclude volumes from Mississippi properties sold in July 2014.
-- Total production increased 17% over the first quarter of 2014 and 29%, pro forma to exclude volumes from Mississippi properties sold in July 2014.
-- Eagle Ford production was 21,390 BOEPD, a 23% sequential increase compared to 17,459 BOEPD.
-- Realized oil and gas prices were $71.79 per barrel and $3.14 per Mcf, compared to $77.99 per barrel and $4.03 per Mcf, including oil and gas derivatives.
-- Product revenues were $110.6 million, compared to $111.8 million, including oil and gas derivatives.
-- Drilling and completion costs in the Eagle Ford, including facilities, have decreased by approximately $2.5 million per well, or 25%, from early fourth quarter 2014.
-- Unit production costs, including lease operating expense, gathering, processing and transportation expenses and production and ad valorem taxes, decreased to $10.68 per BOE from $11.52 per BOE.
-- Adjusted EBITDAX, a non-GAAP (generally accepted accounting principles) measure, was $77.6 million, compared to $84.8 million.
-- As a result of our active Upper Eagle Ford drilling program, 11 wells were turned in line since the end of 2014. -- Over the past 12 months, 23 Upper Eagle Ford wells have been brought on line with an initial potential (IP) rate of 1,223 BOEPD and a 30-day average rate, for the 21 applicable wells, of 942 BOEPD.
-- Over the past 12 months, 23 Upper Eagle Ford wells have been brought on line with an initial potential (IP) rate of 1,223 BOEPD and a 30-day average rate, for the 21 applicable wells, of 942 BOEPD.
-- The borrowing base under our revolving credit facility (Revolver) was recently re-determined to $425 million. -- Maximum leverage ratio covenant was relaxed through maturity in September 2017 and a new covenant was added for senior secured debt.
-- Maximum leverage ratio covenant was relaxed through maturity in September 2017 and a new covenant was added for senior secured debt.
-- At March 31, 2015, both ratios were well within the applicable covenants.
-- At March 31, 2015, our pro forma financial liquidity was approximately $265 million after accounting for the borrowing base re-determination.
Definitions of non-GAAP financial measures and reconciliations of these non-GAAP financial measures to GAAP-based measures appear later in this release.
Finally a Deal Reached Amid Oil's Price Slump -- Market TalkFont size: A | A | A
6:50 AM ET 5/11/15 | Dow Jones
6:50 EDT - In one of the biggest US oil-patch deals since the crude-price slump, Noble (NBL) will be getting into the Eagle Ford and Permian shale plays through its planned $2.1B all-stock deal for Rosetta (ROSE). The Texas plays, says NBL CEO Dave Stover, "are premier unconventional resource plays, two of the most economic in the US." The acquisition will immediately boost NBL's earnings, he adds. NBL's stock, down 30% the past year, has fallen only half as much as ROSE's. The latter's shareholders, which would own 10% of NBL at closing, would see a 38% premium versus Friday's close, with the $26.62 price a level ROSE hasn't traded at in 5 months.
The fact that nitrogen fertilizer demand in North America exceeds North American supply by greater than 60% (according to Fertecon - see page 30 of CF's most recent investor presentation) is a materially different dynamic than that of the other nutrients. For phosphates and potash, North America is a supplier to the world with North American supply exceeding North American demand by 120% for potash on average over the last five years (according to Potash - see website) and US supply of phosphates exceeding domestic demand by 40% on average over the last three quarters (according to Mosaic's historical "US Phosphate Statistics" reports that can be found on the web). Given the pronounced move of the US dollar vs. the currencies of various export markets for potash and phosphates, the companies with the majority of their sales and EBITDA coming from the combination of potash and phosphates (namely Mosaic and Potash) will be suffering very different headwinds than the pure play North American nitrogen manufacturers who have the ability to sell all their production in the North America market. in short, Mosaic and Potash Corp operate in a saturated domestic market while CF needs to grow to meet North American deman