Montage Resources Corporation (NYSE:MR) (the “Company” or
“Montage Resources”) today has provided updated operational and
financial guidance in response to current market conditions.
Updated 2020 Plan Highlights:
- Revised full year capital spend of between $145 - $165 million,
an approximate 23% reduction at the midpoint versus the previously
spend of between $190 - $210 million
- Reaffirms full year production of between 570 – 590 MMcfe per
day, primarily driven by expected outperformance in first quarter
2020 production, further improved cycle times for remaining 2020
turn-to-sales, and gassier 2020 well mix
- Strategic shift in activity levels which reduces the Ohio
Marcellus weighted activity and increases the Utica Dry Gas
weighted activity versus the previously announced capital spending
plan
John Reinhart, President and CEO, commented on the Company’s
updated capital plan and guidance, “With a solid balance sheet,
peer-leading cash operating margins and minimal long-term
commitments, Montage will remain flexible and nimble as we continue
to optimize development and monitor market conditions. The Company
has a proven track record of adjusting activity and delivering cost
savings to maximize cash flow. By strategically shifting
operational activity and the production mix, we expect to continue
to achieve an extremely high level of capital efficiency with the
approximate 23% capital savings while maintaining our overall
production, based on the respective guidance midpoints, and
subsequently allowing the Company to capture any potential benefits
of the more constructive natural gas macro environment in the
second half of 2020 and 2021. In addition, we are continuing to act
opportunistically in the current commodity price environment and
tactically add additional downside protection to our cash flows by
actively managing our hedge book. Finally, incremental cost savings
initiatives are being implemented across our operations as part of
the commitment to focus on targeting free cash flow generation,
which includes further drilling and completion unit cost reductions
as well as operating and corporate overhead expense
reductions.”
2020 Capital Expenditure
Budget
The updated capital expenditure budget for 2020 of approximately
$145 - $165 million is based upon a front-loaded one rig drilling
program. This capital budget is allocated approximately 90% for
drilling and completions activities and approximately 10% for land
and other expenditures. Development activity is concentrated in the
Company’s stacked pay area within the Ohio Marcellus and Utica Dry
gas areas located in Monroe County, Ohio. The updated capital
budget assumes the drilling of between 12 to 16 gross horizontal
shale wells, the completion of 13 to 17 gross horizontal shale
wells and between 12 to 16 gross horizontal shale wells turned to
sales, with approximately 65% of the capital spend weighted toward
the first half of 2020. The Company anticipates approximately 75%
of the wells drilled to be in the Company’s Ohio Utica acreage and
approximately 25% in the Ohio Marcellus acreage area, which is a
meaningful shift from the 35% Utica Dry/65% Marcellus split in the
previous capital spending plan.
Net production volumes for 2020 are expected to be between 570
to 590 MMcfe per day with approximately 82% of 2020 production from
natural gas and approximately 18% from oil and natural gas liquids.
The projected production profile for 2020 remains significantly
above the Company’s firm transportation commitments and provides
multiple options regarding development activity, while also
allowing the Company to continue to maximize its realized natural
gas price from a balanced portfolio of sales points both in-basin
and out-of-basin.
Guidance
The Company is reiterating first quarter 2020 guidance and
updating its full year 2020 guidance (changes in italics) as
set forth in the table below:
Q1 2020
FY 2020
Change to FY 2020
Mid-Point
Production MMcfe/d
585 - 600
570 - 590
% Gas
79% - 81%
81% - 83%
2%
% NGL
11% - 13%
10% - 12%
(1%)
% Oil
7% - 9%
6% - 8%
(1%)
Gas Price Differential ($/Mcf)1,2
$(0.10) - $(0.20)
$(0.20) - $(0.30)
Oil Differential ($/Bbl)1
$(7.75) - $(8.75)
$(7.00) - $(8.00)
$0.75
NGL Prices (% of WTI)1
30% - 35%
30% - 40%
2.5%
Cash Production Costs ($/Mcfe)3
$1.25 - $1.35
$1.25 - $1.35
Cash G&A ($mm)4
$9 - $11
$31 - $35
($2)
CAPEX ($mm)
$145 - $165
($45)
1
Excludes impact of hedges
2
Excludes the cost of firm
transportation
3
Includes lease operating, transportation,
gathering and compression, production and ad valorem taxes
4
Non-GAAP financial measure which excludes
stock-based compensation expense and merger related expenses, see
reconciliation to the most comparable GAAP measure under “Cash
General and Administrative Expense” in this press release
Cash General and Administrative
Expenses
Cash general and administrative expenses is a non-GAAP financial
measure used by the Company to provide a measure of administrative
expenses used by many investors and in published research in making
investment decisions and evaluating operational trends of the
Company. See the table below for a reconciliation of Cash General
and Administrative Expenses and General and Administrative
Expenses:
Guidance
$ thousands
For the Three Months
Ending
March 31, 2020
For the Year Ending
December 31, 2020
General and administrative expenses,
estimated to be reported
$10,000-$14,000
$37,000-$44,000
Stock-based compensation expenses
(1,000 - 2,000)
(6,000 - 8,000)
Cash general and administrative
expenses
$9,000-$12,000
$31,000-$36,000
Merger-related expenses
(0 - 1,000)
(0 - 1,000)
Cash general and administrative expenses,
excluding merger-related expenses
$9,000-$11,000
$31,000-$35,000
About Montage Resources
Montage Resources is an exploration and production company with
approximately 195,000 net effective core undeveloped acres
currently focused on the Utica and Marcellus Shales of Southeast
Ohio, West Virginia and North Central Pennsylvania. For more
information, please visit the Company’s website at
www.montageresources.com.
Forward-Looking
Statements
This press release contains “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
included in this press release, including statements regarding
Montage Resources’ strategy, future operations, financial position,
estimated revenues and income/losses, projected costs and capital
expenditures, and prospects, and plans and objectives of management
are forward-looking statements. When used in this press release,
the words “plan,” “endeavor,” “will,” “would,” ”should,” “could,”
“believe,” “anticipate,” “intend,” “estimate,” “expect,”
“continue,” “position,” “potential,” “committed,” “target,
”project” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. These forward-looking
statements are based on Montage Resources’ current expectations and
assumptions about future events and are based on currently
available information as to the outcome and timing of future
events. When considering forward-looking statements, you should
keep in mind the risk factors and other cautionary statements
described under the heading “Risk Factors” in Montage Resources’
Annual Report on Form 10-K for the fiscal year ended December 31,
2019 filed with the Securities and Exchange Commission on March 10,
2020 (the “2019 Annual Report”) and in Montage Resources’ other
filings and reports with the Securities and Exchange
Commission.
Forward-looking statements may include, but are not limited to,
statements about business strategy; reserves; general economic
conditions; financial strategy, liquidity and capital required for
developing its properties and timing related thereto; realized
natural gas, NGLs and oil prices; timing and amount of future
production of natural gas, NGLs and oil; hedging strategy and
results; future drilling plans; competition and government
regulations, including those related to hydraulic fracturing; the
anticipated benefits under commercial agreements; marketing of
natural gas, NGLs and oil; leasehold and business acquisitions; the
costs, terms and availability of gathering, processing,
fractionation and other midstream services; the costs, terms and
availability of downstream transportation services; credit markets;
uncertainty regarding future operating results, including initial
production rates and liquid yields in type curve areas; and plans,
objectives, expectations and intentions contained in this press
release that are not historical, including, without limitation, the
guidance set forth herein.
Montage Resources cautions you that all these forward-looking
statements are subject to risks and uncertainties, most of which
are difficult to predict and many of which are beyond the Company’s
control, incident to the exploration for and development,
production, gathering and sale of natural gas, NGLs and oil. These
risks include, but are not limited to, legal and environmental
risks, drilling and other operating risks, regulatory changes,
commodity price volatility and declines in the price of natural
gas, NGLs, and oil, inflation, lack of availability of drilling,
production and processing equipment and services, counterparty
credit risk, the uncertainty inherent in estimating natural gas,
NGLs and oil reserves and in projecting future rates of production,
cash flow and access to capital, the timing of development
expenditures, and the other risks described under the heading “Risk
Factors” in the 2019 Annual Report and in Montage Resources’ other
filings and reports with the Securities and Exchange
Commission.
All forward-looking statements, expressed or implied, included
in this press release are expressly qualified in their entirety by
this cautionary statement and are based on assumptions that Montage
Resources believes to be reasonable but that may not prove to be
accurate. This cautionary statement should also be considered in
connection with any subsequent written or oral forward-looking
statements that Montage Resources or persons acting on its behalf
may issue. Except as otherwise required by applicable law, Montage
Resources disclaims any duty to update any forward-looking
statements to reflect new information or events or circumstances
after the date of this press release. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200325005671/en/
Montage Resources Corporation Douglas Kris, Investor Relations
469-444-1736 dkris@mresources.com
Montage Resources (NYSE:MR)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Montage Resources (NYSE:MR)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024