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Harvey Dents EP Energy’s 3Q Volumes; 2017 Guidance Still on Track

Houston-based EP Energy Corp. said full-year production remains on track, despite losing roughly 900 boe/d during the third quarter because of impacts from Hurricane Harvey.

Nearly one-third of the quarterly output lost was from the Eagle Ford Shale in South Texas, where Harvey came ashore in late August.

EP works in four onshore areas: the Eagle Ford, the Permian Basin’s Wolfcamp in West Texas, the Altamont field in the Uinta Basin of northeastern Utah and the Haynesville Shale in North Louisiana.

Producing and field facilities sustained no damage from Harvey, and drilling operations continued throughout the storm, EP said. However, a short-term reduction in sales volumes resulted from temporary losses of downstream infrastructure and markets.

Consistent with previous guidance, the company is expecting total production this year of 81,000 boe/d, including 45,000 b/d of oil in the third quarter 2017, even with hurricane impacts.

Annual volumes are forecast be 80,000-85,000 boe/d, with oil output of 46,000-48,000 b/d, also consistent with previous guidance.

Total 2017 capital expenditures also remains at $550-600 million.

Several onshore operators were impacted by Harvey, based on preliminary third quarter reports. Pioneer Natural Resources Co.vsaid its natural gas volumes took a hit from the storm. Noble Energy Inc. and Encana Corp. said Harvey led to the loss of output from Permian and Eagle Ford operations. Chesapeake Energy Corp. revised down its full-year 2017 production guidance by roughly 2% in part because of Harvey. Permian-focused Callon Petroleum Co. also revised down its 3Q2017 and full-year guidance, while Occidental Petroleum Corp. also reduced guidance.

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