EP Energy Expands Operations

June 17, 2015 Elizabeth Alford

Chesapeake Released 2015 Q1 — EP Energy Expands in Texas

Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley.

EP Energy currently holds over 91,000 acres in the Eagle Ford with activity in La Salle and Atascosa counties. In addition to adding 8,300 square feet of work, the $1.3 million construction project will likely add new jobs to the area.

The company reported strong first quarter results for its Eagle Ford operations and touted improved well performance and significantly lowering well costs. Additionally, about two-thirds of the Q1 capital was allocated to the Eagle Ford program.

“We also continue to see execution improvements. We have reduced our average drilling cycle times from 10 days to 9 days and this is in an asset that we have been drilling in for over five years. Our 40-acre development is driving cost efficiencies, due to the use of three and four well pads. Importantly this development is improving our reserve recoveries per section which results in improved returns from our capital program.”

— Clay Carrell - COO

Q1 Highlights for Eagle Ford:

Completed 38 wells across its Eagle Ford program
Grew oil production to 38.0 MBbls/d, a 20 percent increase compared with the same period in 2014
Total equivalent production was 54.7 MBoe/d, an 18 percent increase compared with the same period in 2014
Reducing the midpoint of our per unit cost ranges by over 5%
Reduced the average drilling cycle times from 10 days to 9 days

Eagle Ford Shale Drives Carrizo's Q1

June 3, 2015 Elizabeth Alford

Carrizo Oil announced its first quarter earnings and reveal a production growth driven by activity in the Eagle Ford

Eagle Ford Highlights

Carrizo’s first quarter activity in the Eagle Ford includes 23 gross operated wells waiting on completion. These wells equate to potential crude oil production of more than 7,500 barrels per day. For the same period, the company drilled 14 gross (12.2 net) operated wells during the first quarter, and completed 16 gross (14.5 net) wells. Crude oil production from the play was approximately 18,700 Bbls/d for the quarter.

“We remain focused on cost savings in the current environment, and continue to make good progress on this front. Currently, we have achieved drilling cost reductions of more than 10% and completion cost reductions of nearly 25% from late 2014 levels, putting us ahead of the forecast we provided in January.”

— S.P. "Chip" Johnson, IV, Carrizo's President and CEO

Q1 Highlights:

Oil Production of 21,373 Bbls/d, 42% above the first quarter of 2014

Total Production of 34,595 Boe/d, 30% above the first quarter of 2014

Loss From Continuing Operations of $21.5 million, or ($0.46) per diluted share, and Adjusted Net Income of $6.4 million, or $0.14 per diluted share

Adjusted EBITDA of $101.8 million

Raising 2015 crude oil production growth target to 18%

Carrizo currently has 81,000 net acres with mineral leases and leasing activities located primarily in La Salle County with smaller positions in Atascosa, Frio, and McMullen Counties.

Repsol Moves into the Eagle Ford

June 2, 2015 Elizabeth Alford

Rosetta-Noble Merger — Repsol Acquires Talisman

Repsol completed its acquisition of Talisman Energy last month and became one of the largest companies in the energy sector worldwide.

Related: Talisman Energy Cuts Jobs

The deal brings Repsol into the Eagle Ford and allows them to gain 59,000 net acres of south Texas land. It is still unclear how this merger will affect those Eagle Ford shale operations. In a conference call on May 10th, Repsol said that Talisman’s assets had been consolidated into its upstream division, but they were not ready to reveal further details about their plans.

The announcement comes days after Talisman released strong first quarter results.

“Talisman delivered solid operational and financial results in the first quarter of 2015 against a backdrop of significantly lower commodity prices and our strategic decision to cut capital investment,’ said Hal Kvisle, President and CEO. ‘Production from ongoing operations averaged 360,000 boe/d in the quarter, up slightly from the first quarter of 2014, and cash flow(1) was $605 million for the quarter, supported in large part by hedging settlements.”

First Quarter Highlights:

Production averaged 360,000 boe/d in the first quarter of 2015, up 2% from the first quarter of 2014.
Cash flow was $605 million, up 19% from the previous quarter
Capital spending was $436 million, down 48% from last quarter and 43% from the first quarter of 2014
Operating cost was $439 million, down 17% from the previous quarter and 15% from the first quarter of 2014.

Penn Virginia Invests in the Eagle Ford

May 28, 2015 Elizabeth Alford

Penn Virginia Corp. released its first quarter update last week, showing its Eagle Ford operations the big star.

Realated: Penn Virginia Upper Eagle Ford Production Taking Off

Since moving into the Eagle Ford in 2010, Penn Virginia has focused a great deal of its resources on the area. For the first quarter of 2015, the Eagle Ford accounted for 87% of the company's production (21,390 BOEPD of 24,721 BOEPD). Looking ahead, 96% of 2015 spending will go towards Eagle Ford development.

Q1 Highlights

Total production increased 17% over the first quarter of 2014
25% Decrease in Average Eagle Ford Well Cost Since Early Fourth Quarter 2014
Decrease for unit production costs: $10.68 per BOE from $11.52 per BOE.
Over the past 12 months, 23 Upper Eagle Ford wells have been brought on line

“While continuing to increase production, our primary focus has been on cutting well costs and improving our operational execution,” said H. Baird Whitehead, President and Chief Executive Officer of Penn Virginia, in a conference call following the release. “With 23 wells completed over the past 12 months, we feel that we have successfully de-risked the Upper Eagle Ford across much of our acreage and have achieved excellent average results.”

As of October 2014, Penn Virginia had approximately 145,500 gross acres in the Eagle Ford Shale play in Gonzales and Lavaca Counties, Texas. Read more about Penn Virginia in the Eagle Ford

Matador Still Keen on the Eagle Ford

May 26, 2015 Elizabeth Alford

Matador Resources announced first quarter earnings and set hopes for further Eagle Ford activity.

In an earnings call on May 7th, Matador executives discussed the company’s $50.2 million loss for the first quarter of 2015, a drastic change from the $16.4 million profit reported one year ago.

Low oil prices have taken a toll on the company's earnings and caused them to temporarily suspend operations in the Eagle Ford Shale.

“We are looking, hopefully that circumstances will suggest to be acting again in the Eagle Ford in 2016. We are very open to acquiring and are in the process of acquiring some additional acreage there (EFS) to build up our inventory. We feel we’ve got 250 or so wells to drill over there with welcome deals if some people have expiring acreage that they would like for us to be interested in. We’ve got a lot of good locations left there and we are really high on the Eagle Ford still.”

— Joe Foran - CEO

Q1 Highlights:

Company growth: Up from 400 barrels of oil per day to over 11,000 barrels a day
Reduced operating costs 30% to 40% through vendor adjustments and reducing number of days on wells and complete them better and then our gas lift system on production.
Production continues to meet & exceed our expectations and for the first time in our history, we produce more than 2 million BOEs in a single quarter, recording production of 2.1
Completed the merger with HEYCO that included 29 new employees in Roswell, New Mexico.