Warren Resources Inc.produced 980,300 bbl of oil last year, a 12% decline from 2014, the company said in its year-end earnings release. Natural gas production, however, increased to 28 Bcf last year, up from 16.1 Bcf in 2014. The 74% increase reflected the company’s first full year of Marcellus Shale production after it acquiredCitrus Energy Corp. in mid-2014 (see Shale Daily,July 8, 2014). Warren said low commodity prices drove declines in 2015 results. Revenue was down to $88.4 million in 2015 from $150.7 million the prior year. The company reported a full-year net loss of $619.9 million (minus $7.55/share), compared to net income of $24 million (31 cents) in 2014. The loss was largely attributed to a $578.3 million property impairment charge. The company’s average oil price declined to $41.14/bbl, compared to $86.02/bbl in 2014, while its average natural gas price declined to $1.55/Mcf, compared to $3.06/Mcf in 2014. Warren has defaulted on an interest payment for its 9% senior unsecured notes and is in currently in the process of trying to restructure its debt. It has warned investors of bankruptcy twice since February in separate news releases (see Shale Daily,March 14). In addition to the Marcellus Shale in Pennsylvania, the company has waterflood oilfield recovery operations in California and coalbed methane assets in Wyoming.
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Ohio pure-play Eclipse Resources Corp. is planning to hunker down this year with a focus on preserving capital and protecting its asset base to ensure not just its “survival” but “prominence when the commodity cycle inevitably returns,” CEO Benjamin Hulburt said Thursday during the company’s year-end earnings call.
Continuing its plans to divest noncore assets and generate more cash for its balance sheet, Range Resources Corp. said Friday it has agreed to sell 11,000 non-operated acres in Bradford County, PA, to an undisclosed operator for $112 million.
ExxonMobil Corp. added 1 billion boe of proved oil and natural gas reserves in 2015, which replaced 67% of production and included a 219% replacement ratio for crude oil and other liquids, the supermajor said Friday. However, natural gas reserves fell, reflecting lower prices.
Warren Resources Inc. said Tuesday that if it can’t reach an out-of-court agreement with its creditors and noteholders about restructuring its debt, the company will likely have to seek Chapter 11 bankruptcy protection.
Range Resources Corp. on Wednesday confirmed that it has laid off another 55 employees in response to the commodities downturn, announcing job cuts that primarily affect the workforce in Southwest Pennsylvania, where its core operations in the Marcellus Shale are located.
Warren Resources Inc.has decided not to make a $7.5 million semi-annual interest payment that was due Monday on its 9% senior unsecured notes. The company said it has sufficient liquidity to pay the $300 million notes, of which $167.3 million is outstanding and due by 2022, but is restructuring its balance sheet. Failure to pay the interest does not result in default, Warren said, but if the payment is not made within 30 days the company would default. In that event, Warren would also default under its first and second lien credit facilities. The company has hired Jefferies LLC as a financial adviser to help with the balance sheet restructuring.
On Wednesday the U.S. Bankruptcy Court in Delawareapproved the sale of Quicksilver Resources Inc.’s U.S. oil/gas assets for $245 million to Tulsa-based private equity firm BlueStone Natural Resources II(see Shale Daily, Jan. 25). The sale was consummated in a bankruptcy court-approved auction that Quicksilver held earlier this month. The sale included U.S. oil and natural gas assets located primarily in the Barnett Shale in the Fort Worth Basin of North Texas, as well as assets in the Delaware Basin in West Texas that are concentrated in Pecos County, TX, and to a lesser extent Crockett and Upton counties. Quicksilver’s Canadian assets are not part of the bankruptcy and will be sold separately, the company said.
Recently formed Austin, TX-based Luxe Energy LLC has acquired undeveloped acreage and producing oil/gas properties in Reeves and Ward Counties, TX, from Endeavor Energy Resources LP and Finley Resources Inc. in separate deals. The acquisitions are Luxe’s first in the Delaware.
In California generally and for Edison International’s Southern California Edison Co. (SCE) utility particularly, the future role of natural gas in power generation is dwindling in response to a long-standing state water ban causing the closing or repowering of coastal gas-fired plants and more recently from the state’s aggressive climate change policies. Reliability needs, however, will keep some gas-fired generation in the mix for some time.