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Eclipse Resources Corporation Announces Third Quarter 2017 Results and Updated Full Year 2017 Guidance

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Eclipse Resources Corporation (NYSE:ECR) (the "Company" or "Eclipse
Resources") today announced its third quarter 2017 financial and
operational results and provided updated full year 2017 guidance. In
conjunction with this release, the Company has posted an updated
investor presentation to its website at www.eclipseresources.com.

Third Quarter 2017 Highlights:

  • Placed two new Utica Condensate "Super-Lateral" wells into sales with
    initial average production rates of approximately 3,300 BOE per day
    per well (48% condensate, 68% liquids) on a restricted choke during
    the fourth quarter of 2017.
  • Average net daily production was 353 MMcfe per day, in line with the
    Company's previously issued production guidance range of 350 to 355
    MMcfe per day.
  • Realized an average natural gas price, before the impact of cash
    settled derivatives and firm transportation expenses, of $2.47 per
    Mcf, a $0.53 per Mcf discount to the average monthly NYMEX settled
    natural gas price during the quarter, exceeding the Company's
    previously issued natural gas differential discount guidance of $0.60
    to $0.70 per Mcf.
  • Realized an average oil price, before the impact of cash settled
    derivatives, of $42.08 per barrel, a $6.10 per barrel discount to the
    average WTI oil price during the quarter, exceeding the Company's
    previously issued oil differential guidance range of $6.50 to $7.00
    per barrel.
  • Realized an average natural gas liquids ("NGL") price, before the
    impact of cash settled derivatives, of $20.34 per barrel, or
    approximately 42% of the average WTI oil price during the quarter and
    exceeding the Company's previously issued NGL guidance range of 30% to
    35% of the WTI oil price.
  • Per unit cash production costs (including lease operating,
    transportation, gathering and compression, production and ad valorem
    taxes) were $1.18 per Mcfe, including $0.28 per Mcfe in
    firm transportation expenses, which was below the Company's previously
    issued per unit cash production cost guidance range of $1.20 to $1.25
    per Mcfe.
  • Net loss for the third quarter of 2017 was $(16.7) million; and
    Adjusted EBITDAX1 for the third quarter of 2017 was $45.9
    million.

1 Non-GAAP measure. See reconciliation for details.

Benjamin W. Hulburt, Chairman, President and CEO, commented on the
Company's third quarter 2017 results, "Eclipse Resources has continued
to build on its strong track record and has delivered another solid
quarter. We continue to challenge ourselves to provide incremental
enhancements to our drilling and completions capabilities by embracing
new technology and data applications while striving for optimal
performance throughout our processes, from planning to implementation.
As of the end of the third quarter, we had drilled eleven
"super-lateral" wells with an average lateral length of approximately
18,000 feet, averaging just 16 days from spud to total depth ("TD").
During the third quarter, the Company drilled 10 gross (9.7 net) wells
including four "super-laterals" with an average lateral length of over
17,500 feet. Moving into the fourth quarter, we drilled our Mercury B5H,
setting a new lateral length record, located in the Utica Condensate
area. This well was drilled with a lateral length of approximately
20,800 feet in 13 days spud to TD with the lateral itself drilled in
only five days.

"On the completion side, we are in the process of completing our
"stacked pay" Stalder pad, which incorporates two Marcellus Condensate
wells and three Utica Dry Gas wells. We expect that this pad will begin
to turn to sales in January 2018 and anticipate that it will provide the
Company with the data needed to further validate our condensate rich
Marcellus play footprint in eastern Ohio. Currently we have 16 wells
with average lateral lengths of 14,500 (232,000 in total lateral
footage) drilled but not completed. Two of these are Marcellus
Condensate wells which are currently completing, three are Utica Dry gas
wells that are waiting on plug drill out, while one Utica Dry and 10
Utica Condensate wells are waiting on completion. As our drilling
operations have generally been more efficient and faster than expected,
we are currently planning to mobilize a second completion crew in the
first quarter to reduce our drilled uncompleted well inventory.

"Lastly and perhaps most excitingly, early in the fourth quarter, we
began turning to sales five wells in the Utica Condensate portion of our
acreage that included our Great Scott 3H (19,200 foot completed lateral)
and Outlaw C11H (19,600 foot completed lateral), along with three
additional laterals averaging approximately 10,300 feet in length. The
two record setting "super-laterals" have reached an average per well
24-hour production rate of approximately 3,300 Barrels of Oil Equivalent
("BOE") to date on a restricted choke, consisting of almost 50%
condensate and 68% in total liquids. We estimate that our total cost to
drill and complete these two "super-lateral" wells (including all
construction and facility costs) was approximately $750 per foot of
lateral. We are continuing to bring all five wells up to what we believe
to be a stabilized rate as the wells continue to clean up. To date, the
five wells have reached a per well average daily rate of 163 BOE per day
per 1,000 foot of lateral consisting of approximately 67% liquids.

"Concerning our previously announced drilling joint venture commitment
agreement, I am pleased to say that we believe we have substantially
completed the binding documents associated with the joint venture with
Sequel Energy and have commenced a preclearance process related to the
accounting treatment of the transaction with the Securities and Exchange
Commission ("SEC"). We hope to close the transaction, pending final
discussions with the SEC during the next 30 days. I believe that I speak
for both Eclipse and Sequel in saying that we are excited to begin this
next step in growing our production base to achieve ultimate scale in
our model while managing our business prudently in what continues to be
a constantly changing environment."

Operational Discussion

The Company's production for the three and nine months ended
September 30, 2017 and 2016 is set forth in the following table:

  Three Months Ended     Nine Months Ended
September 30, September 30,
2017     2016 2017     2016
Production:        
Natural gas (MMcf) 26,716.4 15,372.2 66,225.8 44,358.0
NGL sales (Mbbls) 675.6 525.5 2,002.7 1,725.1
Oil sales (Mbbls) 281.3 310.0 1,083.2 910.4
Total (MMcfe) 32,457.8 20,385.2 84,741.2 60,171.0
 
Average daily production volume:
Natural gas (Mcf/d) 290,396 167,089 242,585 161,891
NGL sales (Bbls/d) 7,343 5,712 7,336 6,296
Oil sales (Bbls/d) 3,058 3,370 3,968 3,323
Total (Mcfe/d) 352,802 221,575 310,409
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