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Delphi Energy Reports Second Quarter 2017 Results

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CALGARY, Alberta, Aug. 02, 2017 (GLOBE NEWSWIRE) -- Delphi Energy Corp. ("Delphi" or the "Company") is pleased to announce its financial and operational results for the quarter ended June 30, 2017 and to provide an update on plans for the remainder of 2017.

Based on strong results from drilling and completions in the first half of 2017, Delphi will continue to execute an accelerated capital program for its liquid-rich Bigstone Montney property through the remainder of 2017.  

Second Quarter 2017 Highlights

  • Produced an average of 9,420 barrels of oil equivalent per day ("boe/d") based on field estimates during the 55 days of the second quarter of 2017 which were not affected by the turnaround of the SemCAMS K3 natural gas processing facility. Production in July averaged 9,730 boe/d;

  • Produced 6,484 boe/d in the second quarter of 2017, a twelve percent increase from 5,802 boe/d in the comparative quarter of 2016. Production was curtailed by approximately 2,500 boe/d due to a 36 day long turnaround of SemCAMS K3 natural gas processing facility and a concurrent nine day turnaround of Company's 7-11-60-23W5 compression and dehydration facility ("7-11 Montney facility");

  • Montney field and plant condensate yield averaged 81 barrels per million cubic feet of natural gas ("bbls/mmcf") or 70 percent of the total 122 bbls/mmcf of Montney liquids yield;

  • Realized an operating netback of $16.44 per barrel of oil equivalent ("boe") before gains on risk management contracts, up from $3.55 per boe for the same period in 2016;

  • Closed a $65.0 million financing by way of private placement consisting of $35.0 million of equity priced at $1.27 per common share and $30.0 million of senior secured notes;

  • Repaid the Company's senior secured revolving credit facility;

  • Generated adjusted funds from operation of $7.0 million in the second quarter, a 69 percent increase over the comparative period in 2016, and net earnings of $4.6 million;

  • Drilled four gross (2.5 net) wells and completed five gross (3.2 net) wells on the Company's Bigstone Montney property; and

  • Completed the turnaround and upgrade of the 7-11 Montney facility and expansion of the 5-8-59-22W5 compression and dehydration facility (5.8 Montney facility").


FINANCIAL AND OPERATIONAL HIGHLIGHTS          
    Three months ended June 30 Six months ended June 30
    2017   2016   % Change 2017   2016   % Change
Operating              
(boe conversion – 6:1 basis)              
Production:              
Field condensate (bbls/d)   1,540   1,060   45   1,738   1,382   26  
Ethane (bbls/d)   5   6   -   5   7   (3 )
Propane (bbls/d)   473   412   15   527   501   5  
Butane (bbls/d)   331   304   9   367   350   5  
Pentanes & plant condensate (bbls/d)   210   301   (30 ) 261   322   19  
Total field condensate and natural gas liquids                         2,559   2,083   23   2,898   2,562   13  
Natural gas (mcf/d)   23,551   22,311   6   26,628   27,219   (2 )
Total (boe/d)   6,484   5,802   12   7,336   7,099   3  
Average realized sales prices, before
financial instruments
             
Field condensate ($/bbl)   59.74   46.26   29   60.39   43.77   38  
Natural gas liquids ($/bbl)   27.02   20.16   34   29.92   16.53   81  
Natural gas ($/mcf)   4.31   2.22   94   4.24   2.72   56  
               
Netbacks ($/boe)              
Crude oil and natural gas revenues   34.17   20.72   65   34.51   21.87   58  
Marketing revenue   1.72   -   -   0.77   -   -  
Realized gain (loss) on financial instruments   0.77   11.51   (93 ) -   9.32   -  
Revenue, after realized financial instruments   36.66   32.23   14   35.28   31.19   13  
Royalties   (1.49 ) (2.43 ) (39 ) (2.48 ) (2.42 ) 2  
Operating expense   (12.72 ) (7.95 ) 60   (10.21 ) (7.88 )
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