Page 17 - NorthAmOil Week 30

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM the ongoing uncertainty and challenges quarter, the value of hedging contracts was
surrounding the COVID-19 pandemic. The reduced from levels recorded at March 31.
Antero Resources reports combination of a successful asset sale program changes in derivatives and other items, WPX
Excluding the forward mark-to-market
with repurchasing debt at a discount and
second-quarter 2020 significant capital efficiencies have materially posted adjusted net income from continuing
improved Antero’s credit profile and outlook.”
operations (a non-GAAP financial measure)
financial and operating Resources said, “Over the last nine months income of $0.12 per share. A reconciliation
Glen Warren, CFO and president of Antero in second-quarter 2020 of $69mn, or
results we have delivered on our commitment to accompanies this press release.
Adjusted EBITDAX (a non-GAAP
reduce debt through a combination of asset
Antero Resources today announced its second sales and debt repurchased at a discount. financial measure) hit a record $400mn in the
quarter 2020 financial and operational results. This successful debt repurchase program has quarter, up 15% from $347mn a year ago. A
The relevant condensed consolidated financial resulted in an $888mn reduction in near-term reconciliation accompanies this press release.
statements are included in Antero’s Quarterly maturities. Further, we have completed 69 of Cash flow from operations – inclusive of
Report on Form 10-Q for the quarter ended our 105 projected wells for the year and expect hedge impact – was $276mn in the second
June 30, 2020. drilling and completion capital spend to be quarter, down 24% vs. a year ago due in part
Paul Rady, chairman and chief executive substantially lower during the second half of to significant decreases in commodity prices
officer of Antero Resources commented: the year. The low capital spend projected for and working capital changes.
“We have made considerable progress the second half of 2020 is expected to result The weighted average gross sales price
towards our $750 to $1 billion asset sale in over $175mn in Free Cash Flow based during second-quarter 2020 – prior to
target having closed $531mn of transactions on today’s strip prices, providing additional revenue deductions – was $21.85 per barrel
to date. The asset sale proceeds received to liquidity for debt retirement. Longer term, we for oil (down 62% vs. a year ago), $1.40 per
date have enabled Antero to reduce total are committed to maximising free cash flow mcf for natural gas (down 20%) and $7.65 per
debt by $365mn since the start of the bond and further reducing total debt.” barrel for NGL (down 44%).
repurchase program in the fourth quarter of ANTERO RESOURCES, July 29, 2020 Free cash flow from operations (a non-
2019, capturing a meaningful discount on GAAP financial measure) in the second
our outstanding senior notes and significantly WPX energy reports 2Q quarter was $166mn. A reconciliation
addressing our upcoming debt maturities. accompanies this press release. WPX now
On the operating front, we continue to see 2020 results expects to generate approximately $200mn
momentum on well cost savings, setting a of free cash flow in 2020, up from its prior
new quarterly record with an average of 8.7 WPX Energy reported an unaudited second- estimate of $150mn.
completion stages per day. We also set a U.S. quarter loss from continuing operations WPX ENERGY, July 29, 2020
horizontal well record during the quarter, attributable to common shareholders of
drilling 11,253 lateral feet in a 24-hour period. $414mn, or a loss of $0.74 per share on a
These well cost savings helped to deliver our diluted basis. MIDSTREAM
lowest quarterly drilling and completion The loss was driven by a $275mn net
capital spend since the company’s IPO in loss on derivatives primarily from non-cash CER issues CAD40,000
2013 and drove well costs to below $700 forward mark-to-market changes in the
per lateral foot in May and June. We are company’s hedge book and lower overall administrative monetary
incredibly proud of all of our employees who commodity prices. As underlying forward
have safely delivered these results despite commodity prices began to improve in the penalty to Trans-Northern
Pipeline

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pipelines. We regulate natural gas, oil, and
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and abandoned.

Week 30 30•July•2020 www. NEWSBASE .com P17