Riviera Resources Raises Third Quarter 2018 Upstream Guidance, Revises Up Its EBITDA Range on Its First Midstream Processing Plant and Announces Third Quarter 2018 Earnings Conference Call
The Company highlights the following updates to third quarter 2018 guidance:
- Production guidance has been raised by approximately 4.5% primarily due to higher non-op activity in the
Anadarko Basinand less downtime across many of our asset areas.
- Adjusted EBITDAX of
$12 millionversus previous guidance of $4 milliondriven by higher upstream production and lower severance costs.
- The Company’s consolidated cash balance at the end of the quarter is estimated to be approximately
$157 million, approximately $57 millionhigher than previous guidance. The higher cash balance was driven by lower capital spending, higher adjusted EBITDAX and more cash being returned from LINN Energy, Inc.(“LNGG”) due to an earlier consolidation of LNGG with Roan Resources, LLCthan had previously been forecasted.
Blue Mountain Midstream Business Updates
Blue Mountain’s existing arrangements provide for mitigation of the basis exposure with an expected elimination of the basis exposure not later than the first quarter of 2020. However, due to current exposure to widening basis, the mid-point of the Company's guidance with respect to third quarter 2018 other revenues related to the Blue Mountain Midstream business has been lowered by approximately
Updated Third Quarter 2018 Guidance
The information below provides investors with updated third quarter 2018 guidance estimates.
|Net Production (MMcfe/d)||275 – 305||296 – 309|
|Natural gas (MMcf/d)||225 – 250||238 – 248|
|Oil (Bbls/d)||1,300 – 1,500||1,400 – 1,500|
|NGL (Bbls/d)||6,900 – 7,700||8,200 – 8,600|
|Other revenues, net (in thousands) (1)||$ 9,000 - $ 13,000||$ 9,000 - $ 11,000|
|Blue Mountain Midstream business||$ 3,000 - $ 6,000||$ 2,250 - $ 2,500|
|Other||$ 6,000 - $ 7,000||$ 6,750 - $ 8,500|
|Costs (in thousands)||$ 48,000 – $ 54,000||$ 50,000 – $ 55,000|
|Lease operating expenses||$ 23,000 – $ 25,000||$ 22,000 – $ 24,000|
|Transportation expenses||$ 19,000 – $ 21,000||$ 21,000 – $ 23,000|
|Taxes, other than income taxes||$ 6,000 – $ 8,000||$ 7,000 – $ 8,000|
|Adjusted general and administrative expenses (2)||$ 22,000 – $ 24,000||$ 26,000 – $ 27,000|
|General and administrative- severance expenses||$ 12,000 – $ 14,000||$ 7,500 – $ 8,500|
|Targets (Mid-Point) (in thousands)|
|Adjusted EBITDAX||$ 4,000(3)||$ 12,000(4)|
|Oil and natural gas capital||$ 16,000||$ 7,500|
|Blue Mountain Midstream capital||$ 29,000||$ 22,500|
|Total capital||$ 50,000||$ 34,000|
|Cash balance as of 9/30/2018 (in thousands)||$ 100,000||$ 157,000|
|Weighted Average NYMEX Differentials|
|Natural gas (MMBtu)||($ 0.47) – ($ 0.38)||($ 0.37) – ($ 0.33)|
|Oil (Bbl)||($ 5.05) – ($ 4.55)||$ 3.25– $ 3.75|
|NGL price as a % of crude oil price||36% – 41%||42% – 44%|
(1) Includes other revenues and margin on marketing activities
(2) Excludes share-based compensation expenses and severance expenses
(3) Includes a reduction to Adjusted EBITDAX for certain non-recurring estimated G&A expenses, including severance expenses of
(4) Includes a reduction to Adjusted EBITDAX for certain non-recurring estimated G&A expenses, including severance expenses of
Third Quarter Earnings Release / Form 10 Q
The Company will host a conference call
Investors and analysts are invited to participate in the call by dialing (877) 706-1090, or (857) 270-6216 for international calls using Conference ID: 6034478. Interested parties may also listen over the internet at www.rivieraresourcesinc.com.
A replay of the call will be available on the Company’s website.
News Release for Informational Purposes Only
This news release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Company’s common stock. The Company's previously announced cash tender offer is being made solely by the Company’s Offer to Purchase and the related Letter of Transmittal relating to the tender offer, as they may be amended or supplemented, that have been distributed to stockholders and filed with the
Statements made in this press release that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to our ability to consummate the tender offer, financial and operational performance and results, low or declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities and the regulatory environment. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “Risk Factors” in the Company’s Registration Statement on Form S-1, Quarterly Report on Form 10-Q and other public filings. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.
Source: Riviera Resources, Inc.