Resolute Energy Mulls Acquisitions
Aug 12 14
Resolute Energy Corporation (NYSE:REN) is looking for acquisition opportunities. Nick Sutton, Chief Executive Officer of Resolute Energy said that in turn enhances our ability to continue to accelerate drilling, but also to make appropriate strategic acquisitions on the side. Primary focus is going to be on drilling but we will pay attention to acquisitions, particularly on things that are right there in our neighborhood, and are additive from an inventory as well as a strategic, or an efficiency standpoint, operational efficiencies.
Resolute Energy Corporation Reports Unaudited Consolidated Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Production Guidance for the Third and Fourth Quarters of 2014
Aug 11 14
Resolute Energy Corporation reported unaudited consolidated earnings and operating results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported total revenue of USD 88,459,000 against USD 89,116,000 a year ago. Income from operations was USD 6,932,000 against USD 14,727,000 a year ago. Loss before income taxes was USD 22,801,000 against income before income taxes of USD 14,402,000 a year ago. Net loss was USD 16,120,000 or USD 0.22 per basic and diluted share against net income of USD 9,023,000 or USD 0.14 per basic and diluted share a year ago. The company generated USD 35.7 million of adjusted EBITDA, or USD 31.88 per Boe, a 13% decrease from the prior year period during which the company generated USD 41.3 million of adjusted EBITDA, or USD 34.61 per Boe. The decrease in adjusted EBITDA resulted primarily from decreased production largely attributable to the sale of the North Dakota properties offset by increased commodity pricing. The company incurred oil and gas related capital expenditures of approximately USD 47.3 million in the second quarter of 2014. Total adjusted revenue for the quarter was USD 81.2 million, including the effect of commodity derivative settlement losses of USD 7.3 million. During the second quarter of 2013 Resolute had total adjusted revenue of USD 82.2 million, including commodity derivative settlement losses of USD 6.9 million.
For the six months, the company reported total revenue of USD 179,337,000 against USD 168,013,000 a year ago. Income from operations was USD 18,007,000 against USD 24,739,000 a year ago. Loss before income taxes was USD 27,455,000 against income before income taxes of USD 9,550,000 a year ago. Net loss was USD 19,668,000 or USD 0.27 per basic and diluted share against net income of USD 5,974,000 or USD 0.09 per basic and diluted share a year ago. Adjusted EBITDA was USD 76,838,000 against USD 71,783,000 a year ago. The company generated USD 76.8 million of adjusted EBITDA, or USD 34.09 per Boe, a 7% increase from the prior year period. During the comparable prior year period, the company generated USD 71.8 million of adjusted EBITDA, or USD 32.05 per Boe. The increase in Adjusted EBITDA resulted primarily from increased commodity pricing and increased production from the drilling of additional wells in both the Permian Basin and Wyoming properties, offset by production losses due to the sale of the company's North Dakota properties. The company incurred oil and gas related capital expenditures of approximately USD 83.3 million. These capital investments were directed principally toward the company's ongoing tertiary recovery projects in Aneth Field and drilling and completion projects in the Permian Basin and the Powder River Basin. Total adjusted revenue for the six months of 2014 was USD 167.3 million, including realized commodity derivative settlement losses of USD 12.0 million. For the six months of 2013, Resolute had total adjusted revenue of USD 154.2 million, including commodity derivative settlement losses of USD 13.8 million.
For the quarter, the company reported total production of 1,120 MBoe compared to 1,193 MBoe a year ago. Daily rate was 12,311 Boe compared to 13,107 Boe a year ago. Pro forma for the sale of the North Dakota properties, production for the quarter ended June 30, 2014, increase 1%, to 1,119 MBoe, as compared to 1,106 MBoe during the prior year comparable period.
For the six months, the company reported total production of 2,254 MBoe compared to 2,240 MBoe a year ago. Daily rate was 12,454 Boe compared to 12,374 Boe a year ago. Pro forma production was increased to 2,249 MBoe, or 9%, from the 2,067 MBoe produced during the first six months of 2013.
The company expects to drill additional Delaware Basin horizontal Wolfcamp wells in the third and fourth quarters. In Big Spring project area in Howard County, offset operators continue to achieve impressive results with their horizontal drilling and the company anticipates commencing horizontal drilling on acreage in the near future.