Operational Update from Athlon Energy

Zacks

Athlon Energy Inc. (ATHL), an upstream operator, has provided its fourth-quarter and full-year 2013 operational update along with its outlook for 2014. The company has also reported its recent acquisition update separately.

Production

Athlon Energy produced roughly 14,689.0 barrels of oil equivalent per day (BOE/D) during Oct–Dec 2013, reflecting a 69.0% hike from 8,710.0 BOE/D in the year-ago quarter. In the quarter ended Dec 2013, oil output came in at 8,905.0 barrels per day, an 83.0% increase from fourth-quarter 2012.

For full-year 2013, Athlon Energy’s volume stood at 12,213.0 BOE/D, representing an increase of roughly 73.0% from 7,047.0 BOE/D of output in 2012. During 2013, the company produced 7,349.0 barrels per day of oil, an 85.0% rise from the 2012 level.

Athlon Energy added that impressive operating activities aided the quarter’s results, which was however partially offset by an extreme fall in temperature during the period.

Drilling Activities

Athlon Energy drilled net 45 vertical wells in the last quarter of 2013. The company utilized seven vertical rigs for the quarter’s drilling operations. The rigs were more efficient than the previous ones and significantly lowered the drilling time. Moreover, during 2013, Athlon Energy drilled net 165 wells.

Outlook

Athlon Energy is planning to invest roughly $595.0 million in 2014 for drilling activities.
Moreover, the company projects its 2014 production to lie in the 19,750.0–20,750.0 BOE/D range.

Acquisition

Athlon Energy reveals that it has inked a purchase and sale deal with an undisclosed seller.

Per the contract, Athlon Energy is expected to acquire roughly 5,645 net acres of land in the northern Midland Basin. The company will likely pay $88.0 million cash for the purchases. Athlon Energy added that the assets are anticipated to have 2.9 million BOE of proved reserves and are producing roughly 750 BOE/D presently.

Zacks Rating

Fort Worth, Texas-based Athlon Energy currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S equity market over the next one to three months.

Meanwhile, one can consider better-ranked players in the oil and gas exploration and production sector like Linn Co LLC (LNCO), Warren Resources Inc. (WRES) and Clayton Williams Energy Inc. (CWEI). All the stocks sport a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on CWEI
Read the Full Research Report on LNCO
Read the Full Research Report on WRES
Read the Full Research Report on ATHL


Zacks Investment Research

View Comments (0)