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Delphi Energy Corp. Reports First Quarter 2018 Results

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CALGARY, Alberta, May 09, 2018 (GLOBE NEWSWIRE) -- Delphi Energy Corp. ("Delphi" or the "Company") is pleased to announce its financial and operational results for the quarter ended March 31, 2018.

The first quarter of 2018 is characterized by several milestones. Successful delineation drilling into West Bigstone is driving field condensate production to record levels, with current condensate production up approximately 45 percent from one year ago. The recent integration of the Company's under-utilized sweet non-Montney gathering and processing infrastructure into its Montney development will be instrumental in driving operating costs lower. These milestones combined with improving WTI oil and realized condensate prices, as well as advantaged natural gas marketing arrangements are all contributing to increasing netbacks.

First Quarter 2018 Highlights

  • Drilled four (2.6 net) successful wells and completed six (3.9 net) Montney wells in Bigstone;

  • Produced 9,515 barrels of oil equivalent per day ("boe/d"), a 16 percent increase from 8,198 boe/d in the first quarter of 2017;
     
  • Increased field condensate production by 27 percent to 2,472 barrels per day ("bbls/d") and natural gas liquids ("NGLs")  by nine percent to 1,418 bbls/d in comparison to the first quarter of 2017;
     
  • Increased natural gas liquids and field condensate yields to 115 barrels per million cubic feet ("bbls/mmcf"), up six percent from the 109 bbls/mmcf in the comparative quarter of 2017 and up eleven percent from the 104 bbls/mmcf in the fourth quarter of 2017.  Field and plant condensate yields are 83 bbls/mmcf, or 72 percent of the 115 bbls/mmcf;
     
  • Field condensate and natural gas liquids accounted for 65 percent of crude oil and natural gas revenues;
     
  • Realized a natural gas price before risk management contracts of $3.74 per thousand cubic feet ("mcf") compared to an AECO price of $2.08 per mcf as a result of selling approximately 90 percent of our natural gas in Chicago, Illinois, via full-path transportation arrangements;

  • Added $1.25 per barrel of oil equivalent ("boe") to cash netback from marketing income generated from excess firm Alliance transportation service; and
     
  • Cash netbacks per boe increased by 23 percent over the comparative quarter resulting in adjusted funds flow of $11.4 million, a 43 percent increase over the first quarter of 2017.
FINANCIAL AND OPERATIONAL HIGHLIGHTS          
    Three months ended March 31
        2018   2017   % Change  
Operating            
(boe conversion – 6:1 basis)            
             
Production:            
Field condensate (bbls/d)       2,472   1,940   27  
Natural gas liquids (bbls/d)       1,418   1,302   9  
Natural gas (mcf/d)       33,747   29,737   13  
Total (Boe/d)       9,515   8,198   16  
Financial            
($ thousands, except per share)            
Oil and natural gas revenues       32,675   25,671   27  
Net earnings (loss)       (4,466 ) 8,156   (155 )
Per share – basic and diluted       (0.02 ) 0.05   (140 )
Adjusted funds flow(1)       11,428   7,970   43  
Per share – basic and diluted(1)       0.06   0.05   20  
Net debt(1)       166,436   108,367   54  
Capital expenditures, net of dispositions       41,165   30,055   37  
             
Weighted average shares (000s)            
Basic       185,547   156,790   18  
Diluted       185,547   159,775   16  
             
Average realized sales prices, before financial instruments          
Field condensate ($/bbl)       69.97   60.85   15  
Natural gas liquids ($/bbl)       43.93   32.23   36  
Natural gas ($/mcf)       3.74   4.18   (11 )
             
Netbacks ($/boe)            
Crude oil and natural gas revenues       38.16   34.79   10  
Marketing income (1)       1.25   -   -  
Realized loss on financial instruments       (2.87 ) (0.62 ) 363  
Revenue, after realized financial instruments       36.54   34.17   7  
Royalties       (3.05 ) (3.26 ) (6 )
Operating expense       (9.48 ) (8.80 ) 8  
Transportation expense       (5.46 ) (5.63 ) (3 )
Operating netback(1)       18.55  
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