Earthstone Energy executives express optimism that they can increase their Eagle Ford activity this summer as crude prices continue to move higher.
Related: Earthstone Reports ‘Decent’ Q4
The Woodlands-based company announced a challenging first quarter that included a 7% decrease in production. The company made crucial due to decisions to defer certain capital expenditures throughout the quarter due to weaknesses brought on by crude prices.
2016 Q1 highlights:
- Average daily production of 3,576 Boepd
- Total revenue of $8.9 million, which includes the effects of realized hedges
- Lease operating expense decreased 30% relative to the first quarter of 2015
- Adjusted EBITDAX(1) of $1.9 million
Eagle Ford Operations
Approximately 60% of Earthstone’s operated Eagle Ford acreage is held by production. The Company has 12 gross Eagle Ford locations waiting on completion from four units.
For the rest of 2016, the company has allotted $4.0 million to spend on the Eagle Ford.
Last week, Earthstone announced it had completed their acquisition of Lynden Energy Corp anticipating production of approximately 4,900 barrels of oil equivalent per day.