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Roan Resources, Inc. Provides Positive Update to 2Q’19 Guidance and Provides Operational Update

OKLAHOMA CITY--(BUSINESS WIRE)--

Roan Resources, Inc. (ROAN) (“Roan” or the “Company”) announced it is positively updating guidance for the second quarter of 2019.

Specifically, the Company anticipates second quarter production to exceed 50 thousand barrels of oil equivalent (MBoe) per day, which compares to adjusted guidance of approximately 49 MBoe/d, when accounting for ethane rejection(1).

Additionally, due to drilling and completion costs continuing to trend lower, the Company is projecting CAPEX to come in approximately 10% below original second quarter guidance of $155 million.

The Mad Play unit, along with the Mayes wells from the Earl and Victory Slide units, continue to be strong producing wells. Updated results for these wells are as follows:

  • 4-well Mad Play unit had an average per well 30-day IP rate of 1,602 Boe/d (44% oil, 20% NGLs, 36% gas) from a normalized 10,000-foot lateral
  • 3 Mayes wells from the Earl unit had an average per well 30-day IP of 1,466 Boe/d (39% oil, 24% NGLs, 37% gas) from a normalized 10,000-foot lateral
  • 2 Mayes wells from the Victory Slide pad had an average per well 30-day IP rate of 1,109 Boe/d (71% oil, 14% NGLs, 15% gas) from a normalized 10,000-foot lateral

The Company anticipates 14 gross operated wells to be turned to first sales during June and July. These wells are spaced and being completed in accordance with the Company’s improved development program of 2019 and anticipates strong performance results from this group of wells.

“We remain focused on executing on our development program and achieving free cash flow by the fourth quarter of 2019 while still growing production 20-25% year over year,” said Joseph A. Mills, Roan’s Executive Chairman of the Board. “With respect to operations, based on preliminary results, our second quarter production results are outperforming on a lower capital spend. We are expecting several strong wells to come online through July that will further exemplify the meaningful operational optimizations the Company has made. In addition, the Company remains very engaged with the strategic initiative process with its advisors and has executed multiple NDA’s with interested parties.”

 

1)

The Company elected to reject ethane in the month of June, which impacts monthly volumes by approximately 3.3 MBoe/d. Previous second quarter guidance of 50 MBoe/d incorporated ethane recovery in June.

 

About Roan Resources

Roan is an independent oil and natural gas company headquartered in Oklahoma City, OK focused on the development, exploration and acquisition of unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma.

For more information, please visit www.RoanResources.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.

Cautionary Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements which contain our current expectations about future results. These forward-looking statements are based on certain assumptions and expectations made by the Company, which reflect management’s experience, estimates and perception of historical trends, current conditions and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in the Company’s filings with the Securities and Exchange Commission, including its Current Report on Form 8-K, filed September 24, 2018 and any subsequently filed quarterly reports on Form 10-Q or current reports on Form 8-K.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, or incidental to the development, production, gathering and sale of oil, natural gas and NGLs. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks.

Should one or more of the risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

All forward-looking statements, expressed or implied, included in this release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this release.

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