Houston-based Riviera Resources LLC announced it would raise its guidance for the second quarter of the year thanks in large part to strong production in Oklahoma and Louisiana.
The company reported Tuesday a 6% increase in its production guidance for the quarter thanks to better well results in the STACK, aka the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties. The boost also stems in part from better well performance in Northern Louisiana.
Riviera’s updated net production guidance for the quarter is 280-290 MMcfe/d, up from the previous guidance of 255-285 MMcfe/d.
Within that production estimate, natural gas production is expected to total 230-240 MMcf/d, oil production is to reach 1,875-2000 b/d and natural gas liquids output is to come in at 6,300-6,400 b/d.
The better-than-expected well performance in the STACK region has been thematic among other producers as well, supporting confidence in the region’s long-term production prospects.
Last November, Marathon Oil Corp. stated intentions to ramp up investments in the STACK and SCOOP (South Central Oklahoma Oil Province) areas.
"We view those as kind of the foundational elements moving into 2019, and we would intend to hang our appraisal and delineation work around those two development areas,” said Marathon CEO Lee Tillman on the November investor call.
Shifting corporate straggles announced in first-quarter earnings calls this year among some producers caused speculation over Oklahoma’s future as a production hot zone.
Riviera’s strategy has involved selling off legacy assets over the first half of this year, which has coincided with a reduction of its overall capital spending plan.
The company’s guidance update included notice that it closed its deal to sell legacy assets in Michigan for roughly $39 million, slightly lower than the $41 million it had expected to net when the deal was first announced.
Riviera did not include updates on its sale of properties in the Hugoton Basin of southwestern Kansas, announced in late April. The Kansas properties comprised the company’s largest producing asset, which it agreed to sell to an undisclosed buyer for $31 million.
Riviera was spun off from Houston-based Linn Energy Inc. in August 2018.