Market Overview

Eclipse Resources Corporation Announces Second Quarter 2018 Operational and Financial Results

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Eclipse Resources Corporation (NYSE:ECR) (the "Company" or "Eclipse
Resources") today announced its second quarter 2018 financial and
operational results, along with reaffirming guidance for full year 2018.
In conjunction with this release, the Company has posted an updated
corporate presentation in the Investor Center section of its website at www.eclipseresources.com.

Second Quarter 2018 Highlights:

  • Average net daily production was 305.5 MMcfe per day, consisting of
    72% natural gas and 28% liquids.
  • Realized an average natural gas price, before the impact of cash
    settled derivatives and firm transportation expenses, of $2.72 per
    Mcf, a $0.08 per Mcf discount to the average monthly NYMEX settled
    natural gas price during the quarter.
  • Realized an average oil price, before the impact of cash settled
    derivatives, of $61.64 per barrel, a $6.43 per barrel discount to the
    average daily NYMEX WTI oil price during the quarter.
  • Realized an average natural gas liquids ("NGL") price, before the
    impact of cash settled derivatives, of $22.99 per barrel, or
    approximately 34% of the average daily NYMEX WTI oil price during the
    quarter.
  • Per unit cash production costs (including lease operating,
    transportation, gathering and compression, production and ad valorem
    taxes) were $1.47 per Mcfe, including $0.41 per Mcfe in
    firm transportation expenses.
  • Net loss for the second quarter of 2018 was ($19.0) million and
    Adjusted EBITDAX1 for the second quarter of 2018 was $51.1
    million.

1 Non-GAAP measure. See reconciliation for details

Benjamin W. Hulburt, Chairman, President and CEO, commented on the
Company's second quarter 2018 results, "This was another solid earnings
report with our continued focus on execution, innovation and efficiency,
which resulted in the Company delivering what we believe to be another
tremendous quarter with cash flows above expectations, capital
expenditures below expectations, production above the top end of our
guidance range, operating expenses below the low end of our guidance and
continued strong well performance in both the dry gas and condensate
areas of our acreage.

We have continued our relentless pursuit for industry leading
innovation, and have set a new internal record for production on our
recent Rolland C 5H "super-lateral", which we drilled to a total
measured depth of 26,027 feet with a 15,285 foot completable lateral in
our Utica Dry Gas area. This well was initially turned to sales late in
the second quarter of 2018 and flowed at a target rate of approximately
40 Mmcf per day before recently being shut in for offset operator
activity. In addition, we continue to be excited with the potential for
our Flat Castle acreage in north central Pennsylvania and are currently
in the final stages of completion operations on our first operated well,
the Painter 2H, which we intend to place into sales during the third
quarter of 2018.

For the second quarter of 2018, the Company was able to achieve revenue
of $103.6 million, a 20% increase over the second quarter of 2017, while
also posting a 29% increase in adjusted EBITDAX1 over the
second quarter of 2017, which came in at $51.1 million. We continued to
capitalize on our industry leading well costs and operational
capabilities, while our per unit cash production costs of $1.47 were
better than our second quarter 2018 guidance. From a capital spending
perspective, the Company is continuing to manage its plan consistent
with the revised $250 million guidance that was previously provided and
we believe that our proven operational performance, continued gain in
efficiency and financial flexibility leave us well positioned to deliver
upon the full year 2018 production guidance that we have issued.

Our strategic and financial review process continues. As we have
previously discussed, there is no timetable for the completion of the
strategic review process nor any assurance that the review process will
result in a transaction or other strategic alternative. The Company will
provide further information when and if disclosure is appropriate or
required."

1 Non-GAAP measure. See reconciliation for details

Operational Discussion

The Company's production for the three and six months ended June 30,
2018 and 2017 is set forth in the following table:

   
Three Months Ended Six Months Ended
June 30, June 30,
2018   2017 2018   2017
Production:
Natural gas (MMcf) 19,985.4 20,127.8 40,328.7 39,509.4
NGLs (Mbbls) 813.6 662.1 1,586.2 1,327.1
Oil (Mbbls) 489.1 347.8 1,054.6 801.9
Total (MMcfe) 27,801.6 26,187.2 56,173.5 52,283.4
 
Average daily production volume:
Natural gas (Mcf/d) 219,620 221,185 222,810 218,284
NGLs (Bbls/d) 8,941 7,276 8,764 7,332
Oil (Bbls/d) 5,375 3,822 5,827 4,430
Total (MMcfe/d) 305.5 287.8 310.4 288.9
 

Market Conditions

Prices for various quantities of natural gas, NGLs and oil that we
produce significantly impact our revenues and cash flows. Prices for
commodities, such as hydrocarbons, are inherently volatile. The
following table lists average daily, high, low and average monthly
settled NYMEX Henry Hub prices for natural gas and average daily, high
and low NYMEX WTI prices for oil for the three and six months ended
June 30, 2018 and 2017:

   
Three Months Ended Six Months Ended
June 30, June 30,
2018   2017 2018   2017
NYMEX Henry Hub High ($/MMBtu) $ 3.08 $ 3.27 $ 6.24 $ 3.71
NYMEX Henry Hub Low ($/MMBtu) 2.74 2.85 2.49 2.44
Average Daily NYMEX Henry Hub ($/MMBtu) 2.85 3.08 2.96 3.05
Average Monthly Settled NYMEX Henry Hub ($/MMBtu) 2.80 3.18 2.90 3.25
 
NYMEX WTI High ($/Bbl) $ 77.41 $ 53.38 $ 77.41 $ 54.48
NYMEX WTI Low ($/Bbl) 62.03 42.48 59.20 42.48
Average Daily NYMEX WTI ($/Bbl) 68.07 48.10 65.55 49.85
 

Financial Discussion

Revenue for the three months ended June 30, 2018 totaled $103.6 million,
compared to $86.2 million for the three months ended June 30, 2017.
Adjusted Revenue2, which includes the impact of cash settled
derivatives and excludes brokered natural gas and marketing revenue,
totaled $100.8 million for the three months ended June 30, 2018 compared
to $83.6 million for the three months ended June 30, 2017. Net Loss for
the three months ended June 30, 2018 was ($19.0) million, or ($0.06) per
share, compared to Net Income of $11.5 million, or $0.04 per share, for
the three months ended June 30, 2017. Adjusted Net Income2
(Loss) for the three months ended June 30, 2018 was $2.5 million, or
$0.01 per share, compared to $(2.8) million, or $(0.01) per share, for
the three months ended June 30, 2017. Adjusted EBITDAX2
was $51.1 million for the three months ended June 30, 2018 compared to
$39.6 million for the three months ended June 30, 2017.

2 Adjusted Revenue, Adjusted Net Income (Loss) and
Adjusted EBITDAX are non-GAAP financial measures. Tables reconciling
Adjusted Revenue, Adjusted Net Income (Loss) and Adjusted EBITDAX to the
most directly comparable GAAP measures can be found at the end of the
financial statements included in this press release.

Average realized price calculations for the three and six months ended
June 30, 2018 and 2017 are set forth in the table below:

   
Three Months Ended Six Months Ended
June 30, June 30,
2018   2017 2018   2017

Average realized price (excluding cash settled derivatives and
firm transportation)

Natural gas ($/Mcf) $ 2.72 $ 2.98 $ 2.80 $ 3.07
NGLs ($/Bbl) 22.99 16.84 24.24 21.26
Oil ($/Bbl) 61.64 43.57 58.89 45.02
Total average prices ($/Mcfe) 3.71 3.29 3.80 3.55
 

Average realized price (including cash settled derivatives,
excluding firm transportation)

Natural gas ($/Mcf) $ 2.84 $ 2.86 $ 2.94 $ 2.94
NGLs ($/Bbl) 22.99 16.38 23.64 20.23
Oil ($/Bbl) 51.94 43.57 52.12 45.11
Total average prices ($/Mcfe) 3.62 3.19 3.76 3.42
 

Average realized price (including firm transportation,
excluding cash settled derivatives)

Natural gas ($/Mcf) $ 2.16 $ 2.52 $ 2.33 $ 2.56
NGLs ($/Bbl) 22.99 16.84 24.24 21.26
Oil ($/Bbl) 61.64 43.57 58.89 45.02
Total average prices ($/Mcfe) 3.31 2.94 3.46 3.16
 

Average realized price (including cash settled derivatives and
firm transportation)

Natural gas ($/Mcf) $ 2.27 $ 2.41 $ 2.47 $ 2.43
NGLs ($/Bbl) 22.99 16.38 23.64 20.23
Oil ($/Bbl) 51.94 43.57 52.12 45.11
Total average prices ($/Mcfe) 3.22 2.84 3.42 3.04
 

Per unit cash production costs, which include $0.41 per Mcfe of firm
transportation expense, were $1.47 per Mcfe for the second quarter of
2018 and increased by 8% compared to the second quarter of 2017. The
Company's cash production costs (which include lease operating,
transportation, gathering and compression, production and ad valorem
taxes) are shown in the table below.

General and administrative expense was $10.7 million for each of the
three months ended June 30, 2018 and 2017 and is shown in the table
below. Cash general and administrative expense3, which
exclude stock-based compensation expense, were $8.7 million and $8.4
million for the three months ended June 30, 2018 and 2017 respectively.
General and administrative expense per Mcfe was $0.38 in the three
months ended June 30, 2018 compared to $0.41 in the three months ended
June 30, 2017. Cash general and administrative expense3
per Mcfe was $0.31 in the three months ended June 30, 2018 compared to
$0.32 in the three months ended June 30, 2017.

3 Cash general and administrative expense is a
non-GAAP financial measure. A table reconciling cash general and
administrative expense to the most directly comparable GAAP measure can
be found at the end of the financial statements included in this press
release.

   
Three Months Ended Six Months Ended
June 30, June 30,
2018   2017 2018   2017
Operating expenses (in thousands):
Lease operating $ 7,324 $ 4,568 $ 16,714 $ 6,911
Transportation, gathering and compression 31,371 28,969 59,060 61,846
Production and ad valorem taxes 2,178 2,033 4,623 3,964
Depreciation, depletion and amortization 32,760 25,152 63,916 51,341
General and administrative 10,697 10,730 20,454 20,862
Operating expenses per Mcfe:
Lease operating $ 0.26 $ 0.17 $ 0.30 $ 0.13
Transportation, gathering and compression 1.13 1.11 1.06 1.19
Production and ad valorem taxes 0.08 0.08 0.08 0.08
Depreciation, depletion and amortization 1.18 0.96 1.14 0.98
General and administrative 0.38 0.41 0.36 0.40
 

Capital Expenditures

Second quarter 2018 capital expenditures were $69.3 million, including
$65.6 million for drilling and completions, $5.2 million for midstream
expenditures, $(1.9) million for land-related expenditures (which
include proceeds associated with the sale of acreage), and $0.4 million
for corporate-related expenditures.

During the second quarter of 2018, the Company commenced drilling 6
gross (2.2 net) operated Utica Shale wells, commenced completions of 9
gross (4.2 net) operated wells and turned to sales 9 gross (6.2 net)
operated wells.

Financial Position and Liquidity

As of June 30, 2018, the Company's liquidity was $143.4 million,
consisting of $12.0 million in cash and cash equivalents and $131.4
million in available borrowing capacity under the Company's revolving
credit facility (after giving effect to outstanding letters of credit
issued by the Company of $33.6 million and $60 million in outstanding
borrowings).

Matthew R. DeNezza, Executive Vice President and Chief Financial
Officer, commented, "We are again pleased with the level of EBITDAX
generated in the second quarter and continue to anticipate strong cash
flow growth in the full year 2018. From a pricing perspective, the gas
marketing team was able to capture a strong differential through the
optimization of our natural gas, while continuing to assume an increase
during the second half of 2018 in our operating expenses associated with
the Company's Rover pipeline capacity being fully utilized. As a means
of providing additional certainty of cash flows, the majority of our
estimated 2018 natural gas production is hedged with an average floor
price of $2.93 per MMbtu."

Commodity Derivatives

The Company engages in a number of different commodity trading program
strategies as a risk management tool to attempt to mitigate the
potential negative impact on cash flows caused by price fluctuations in
natural gas, NGL and oil prices. Below is a table that illustrates the
Company's hedging activities as of June 30, 2018:

Natural Gas Derivatives

 

Volume

    Weighted Average
Description

 

(MMBtu/d)

Production Period Price ($/MMBtu)
Natural Gas Swaps:
30,000 July 2018 – March 2019 $ 2.90
20,000 July 2018 – December 2018 $ 2.80
20,000 July 2018 – September 2018 $ 2.81
40,000 October 2018 – December 2019 $ 2.80
50,000 January 2019 – December 2019 $ 2.87
Natural Gas Three-way Collars:
Floor purchase price (put) 30,000 July 2018 – March 2019 $ 3.00
Ceiling sold price (call) 30,000 July 2018 – March 2019 $ 3.40
Floor sold price (put) 30,000 July 2018 – March 2019 $ 2.50
Floor purchase price (put) 40,000 July 2018 – December 2018 $ 3.11
Floor purchase price (put) 60,000 July 2018 – December 2018 $ 2.80
Ceiling sold price (call) 100,000 July 2018 – December 2018 $ 3.36
Floor sold price (put) 100,000 July 2018 – December 2018 $ 2.50
Floor purchase price (put) 20,000 October 2018 – December 2019 $ 2.75
Ceiling sold price (call) 20,000 October 2018 – December 2019 $ 3.10
Floor sold price (put) 20,000 October 2018 – December 2019 $ 2.30
Floor purchase price (put) 57,500 January 2019 – December 2019 $ 2.72
Ceiling sold price (call) 57,500 January 2019 – December 2019 $ 3.02
Floor sold price (put) 57,500 January 2019 – December 2019 $ 2.30
Natural Gas Call/Put Options:
Call sold 40,000 July 2018 – December 2018 $ 3.75
Call sold 30,000 January 2019 – March 2019 $ 3.50
Call sold 30,000 April 2019 – December 2019 $ 3.00
Call sold 10,000 January 2019 – December 2019 $ 4.75
Basis Swaps:
Appalachia - Dominion 12,500 April 2019 – October 2019 $ (0.52 )
Appalachia - Dominion 12,500 April 2020 – October 2020 $ (0.52 )
Appalachia - Dominion 20,000 January 2020 – December 2020 $ (0.59 )
 

Oil Derivatives

  Volume     Weighted Average
Description (Bbls/d) Production Period Price ($/Bbl)
Oil Swaps:
1,000 July 2018 – March 2019 $ 61.00
Oil Three-way Collars:
Floor purchase price (put) 4,000 July 2018 – December 2018 $ 45.00
Ceiling sold price (call) 4,000 July 2018 – December 2018 $ 53.47
Floor sold price (put) 4,000 July 2018 – December 2018 $ 35.00
Floor purchase price (put) 2,000 January 2019 – December 2019 $ 50.00
Ceiling sold price (call) 2,000 January 2019 – December 2019 $ 60.56
Floor sold price (put) 2,000 January 2019 – December 2019 $ 40.00
 

Guidance

The Company has also reaffirmed full year 2018 guidance as set forth in
the table below:

 
FY 2018
Production MMcfe/d 325 - 335
% Gas 72% - 75%
% NGL 13% - 17%
% Oil 10% - 13%
Gas Price Differential ($/Mcf)1,2 $(0.25) - $(0.35)
Oil Differential ($/Bbl)1 $(6.25) - $(7.25)
NGL Prices (% of WTI)1 30% - 35%
Cash Production Costs ($/Mcfe)3 $1.55 - $1.60
Cash G&A ($mm)4 $35 - $37
CAPEX ($mm) ~$250
 
 

1

 

Excludes impact of hedges

2

Excludes the cost of firm transportation

3

Includes lease operating, transportation, gathering and
compression, production and ad valorem taxes

4

Non-GAAP measure which excludes non-cash compensation, see
reconciliation to the most comparable GAAP measure at the end of
the financial statements included in this press release

 

Conference Call

A conference call to review the Company's financial and operational
results is scheduled for Friday, August 3, 2018 at 10:00 a.m. Eastern
Time. To participate in the call, please dial 877-709-8150 or
201-689-8354 for international callers and reference Eclipse Resources
Second Quarter Earnings Call. A replay of the call will be available
through October 3, 2018. To access the phone replay dial 877-660-6853 or
201-612-7415 for international callers. The conference ID is 13681846. A
live webcast of the call may be accessed through the Investor Center on
the Company's website at www.eclipseresources.com.
The webcast will be archived for replay on the Company's website for six
months.

 
ECLIPSE RESOURCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
 
June 30, December 31,
2018 2017
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 12,049 $ 17,224
Accounts receivable 112,166 77,609
Assets held for sale 206
Other current assets   7,263   12,023
Total current assets 131,478 107,062
 
PROPERTY AND EQUIPMENT AT COST
Oil and natural gas properties, successful efforts method:
Unproved properties 547,963 459,549
Proved oil and gas properties, net 716,292 647,881
Other property and equipment, net   6,949   6,942
Total property and equipment, net 1,271,204 1,114,372
 
OTHER NONCURRENT ASSETS
Other assets   3,117   2,093
TOTAL ASSETS $ 1,405,799 $ 1,223,527
 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 111,230 $ 76,174
Accrued capital expenditures 13,689 10,658
Accrued liabilities 49,326 41,662
Accrued interest payable   21,891   21,100
Total current liabilities 196,136 149,594
 
NONCURRENT LIABILITIES
Debt, net of unamortized discount and debt issuance costs 496,397 495,021
Credit facility 60,000
Asset retirement obligations 6,554 6,029
Other liabilities   3,348   529
Total liabilities 762,435 651,173
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY

Preferred stock, 50,000,000 authorized, no shares issued and
outstanding

Common stock, $0.01 par value, 1,000,000,000 authorized,
302,325,028 and 262,740,355 shares issued and outstanding,
respectively

3,040 2,637
Additional paid in capital 2,061,365 1,967,958

Treasury stock, shares at cost; 1,661,915 and 992,315 shares,
respectively

(3,236 ) (2,096 )
Accumulated deficit   (1,417,805 )   (1,396,145 )
Total stockholders' equity   643,364   572,354
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,405,799 $ 1,223,527
 
   
ECLIPSE RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
For the Three Months Ended For the Six Months Ended
June 30, June 30,
2018   2017 2018   2017
REVENUES
Natural gas, oil and natural gas liquids sales $ 103,257 $ 86,194 $ 213,441 $ 185,625
Brokered natural gas and marketing revenue   365   (3 )   373   2,428
Total revenues 103,622 86,191 213,814 188,053
 
OPERATING EXPENSES
Lease operating 7,324 4,568 16,714 6,911
Transportation, gathering and compression 31,371 28,969 59,060 61,846
Production and ad valorem taxes 2,178 2,033 4,623 3,964
Brokered natural gas and marketing expense 430 6 477 2,466
Depreciation, depletion and amortization 32,760 25,152 63,916 51,341
Exploration 9,620 8,997 24,898 20,577
General and administrative 10,697 10,730 20,454 20,862
Accretion of asset retirement obligations 162 128 317 252
(Gain) loss on sale of assets   (1,553 )   6   (1,820 )   1
Total operating expenses   92,989   80,589   188,639   168,220
OPERATING INCOME (LOSS) 10,633 5,602 25,175 19,833
OTHER INCOME (EXPENSE)
Gain (loss) on derivative instruments (16,577 ) 18,177 (20,792 ) 43,274
Interest expense, net (13,092 ) (12,285 ) (26,043 ) (24,747 )
Other income (expense)         (19 )
Total other income (expense), net   (29,669 )   5,892   (46,835 )   18,508
INCOME (LOSS) BEFORE INCOME TAXES (19,036 ) 11,494 (21,660 ) 38,341
INCOME TAX BENEFIT (EXPENSE)        
NET INCOME (LOSS) $ (19,036 ) $ 11,494 $ (21,660 ) $ 38,341
 
NET INCOME (LOSS) PER COMMON SHARE
Basic $ (0.06 ) $ 0.04 $ (0.07 ) $ 0.15
Diluted $ (0.06 ) $ 0.04 $ (0.07 ) $ 0.15
 
WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING

Basic 301,936 262,423 297,717 261,768
Diluted 301,936 264,420 297,717 264,321
 

Adjusted Revenue

Adjusted revenue is a non-GAAP financial measure. The Company defines
adjusted revenue as follows: total revenues plus net cash receipts or
payments on settled derivative instruments less brokered natural gas and
marketing revenue. The Company believes adjusted revenue provides
investors with helpful information with respect to the performance of
the Company's operations and management uses adjusted revenue to
evaluate its ongoing operations and for internal planning and
forecasting purposes. See the table below, which reconciles adjusted
revenue and total revenues.

   
For the Three Months Ended For the Six Months Ended
June 30, June 30,
$ thousands 2018   2017 2018   2017
Total revenues $ 103,622 $ 86,191 $ 213,814 $ 188,053
Net cash receipts (payments) on derivative instruments (2,488 ) (2,644 ) (2,347 ) (6,633 )
Brokered natural gas and marketing revenue   (365 )   3   (373 )   (2,428 )
Adjusted revenue $ 100,769 $ 83,550 $ 211,094 $ 178,992
 

Adjusted Net Income (Loss)

Adjusted net income (loss) represents income (loss) before income taxes
adjusted for certain non-cash items as set forth in the table below. We
believe adjusted net income (loss) is used by many investors and
published research in making investment decisions and evaluating
operational trends of the Company and its performance relative to other
oil and gas producing companies. Adjusted net income (loss) is not a
measure of net income (loss) as determined by GAAP. See the table below
for a reconciliation of adjusted net income (loss) and net income (loss).

   
Three Months Ended

Six Months Ended

June 30,

June 30,

$ thousands 2018   2017 2018   2017
Income (loss) before income taxes, as reported $ (19,036 ) $ 11,494 $ (21,660 ) $ 38,341
(Gain) loss on derivative instruments 16,577 (18,177 ) 20,792 (43,274 )
Net cash receipts (payments) on derivative instruments (2,488 ) (2,644 ) (2,347 ) (6,633 )
Dry hole and other 2 79 96 942
Stock-based compensation 1,979 2,348 3,960 4,429
Impairment of unproved properties 6,971 4,125 13,667 8,250
Other (income) expense 19
(Gain) loss on sale of assets   (1,553 )   6   (1,820 )   1
Loss before income taxes, as adjusted   2,452   (2,769 )   12,688   2,075
Adjusted net income (loss) $ 2,452 $ (2,769 ) $ 12,688 $ 2,075
 
Net income (loss) per Common Share
Basic $ (0.06 ) $ 0.04 $ (0.07 ) $ 0.15
Diluted $ (0.06 ) $ 0.04 $ (0.07 ) $ 0.15
 
Adjusted net income (loss) per Common Share
Basic $ 0.01 $ (0.01 ) $ 0.04 $ 0.01
Diluted $ 0.01 $ (0.01 ) $ 0.04 $ 0.01
 
Weighted Average Common Shares Outstanding
Basic 301,936 262,423 297,717 261,768
Diluted 301,936 264,420 297,717 264,321
 

Adjusted EBITDAX

Adjusted EBITDAX is a supplemental non-GAAP measure that is used by the
Company to evaluate its financial results. The Company defines Adjusted
EBITDAX as net income or loss before interest expense; income taxes;
impairments; depreciation, depletion and amortization ("DD&A"); gain
(loss) on derivative instruments, net cash receipts (payments on settled
derivative instruments, and premiums (paid) received on options that
settled during the period); non-cash compensation expense; gain or loss
from sale of interest in gas properties; exploration expenses; and other
unusual or infrequent items set forth in the table below. Adjusted
EBITDAX is not a measure of net income or loss as determined by GAAP.
See the table below for a reconciliation of Adjusted EBITDAX to net
income or net loss.

   
Three Months Ended Six Months Ended
June 30, June 30,
$ thousands 2018   2017   2018   2017
Net income (loss) $ (19,036 ) $ 11,494 $ (21,660 ) $ 38,341
Depreciation, depletion and amortization 32,760 25,152 63,916 51,341
Exploration expense 9,620 8,997 24,898 20,577
Stock-based compensation 1,979 2,348 3,960 4,429
Accretion of asset retirement obligations 162 128 317 252
(Gain) loss on sale of assets (1,553 ) 6 (1,820 ) 1
(Gain) loss on derivative instruments 16,577 (18,177 ) 20,792 (43,274 )
Net cash receipts (payments) on settled derivatives (2,488 ) (2,644 ) (2,347 ) (6,633 )
Interest expense, net 13,092 12,285 26,043 24,747
Other (income) expense         19
Adjusted EBITDAX $ 51,113 $ 39,589 $ 114,099 $ 89,800
 

Cash General and Administrative Expenses

Cash General and Administrative Expenses is a non-GAAP financial measure
used by the Company in the Guidance Table to provide a measure of
administrative expenses used by many investors and published research in
making investment decisions and evaluating operational trends of the
Company. See the table below for a reconciliation of Cash General and
Administrative Expenses and General and Administrative Expenses.

     
Guidance
For the Three Months For the Three Months For the Year Ending
$ thousands Ended June 30, 2018 Ended June 30, 2017 December 31, 2018

General and administrative expenses, estimated to be reported

$ 10,697 $ 10,730 $43,500-$47,500
Stock-based compensation expense   (1,979 )   (2,348 ) (8,500 - 10,500)
Cash general and administrative expenses $ 8,718 $ 8,382 $35,000-$37,000
 

About Eclipse Resources

Eclipse Resources is an independent exploration and production company
engaged in the acquisition and development of oil and natural gas
properties in the Appalachian Basin, including the Utica and Marcellus
Shales. For more information, please visit the Company's website at www.eclipseresources.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act") and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). All statements, other than
statements of historical fact included in this press release, regarding
Eclipse Resources' strategy, future operations, financial position,
estimated revenues and income/losses, projected costs and capital
expenditures, prospects, plans and objectives of management are
forward-looking statements. When used in this press release, the words
"plan," "endeavor," "will," "would," "could," "believe," "anticipate,"
"intend," "estimate," "expect," "project" and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on Eclipse Resources' current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of future
events. When considering forward-looking statements, you should keep in
mind the risk factors and other cautionary statements described under
the heading "Risk Factors" in Eclipse Resources' Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 3, 2018
(the "2017 Annual Report"), and in "Item 1A. Risk Factors" of Eclipse
Resources' Quarterly Reports on Form 10-Q.

Forward-looking statements may include, but are not limited to,
statements about Eclipse Resources' business strategy; reserves; general
economic conditions; financial strategy, liquidity and capital required
for developing its properties and timing related thereto; realized
prices for natural gas, NGLs and oil and the volatility of those prices;
write-downs of its natural gas and oil asset values due to declines in
commodity prices; timing and amount of future production of natural gas,
NGLs and oil; its hedging strategy and results; future drilling plans;
competition and government regulations, including those related to
hydraulic fracturing; the anticipated benefits under its commercial
agreements; marketing of natural gas, NGLs and oil; leasehold and
business acquisitions and joint ventures; the expiration of primary
terms of oil and gas leases before production can be established and as
costs to extend such terms; the costs, terms and availability of
gathering, processing, fractionation and other midstream services;
credit markets; uncertainty regarding its future operating results,
including initial production rates and liquid yields in its type curve
areas; and plans, objectives, expectations and intentions contained in
this press release that are not historical, including, without
limitation, the guidance set forth herein..

Eclipse Resources cautions you that all these forward-looking
statements are subject to risks and uncertainties, most of which are
difficult to predict and many of which are beyond the Company's control,
incident to the exploration for and development, production, gathering
and sale of natural gas, NGLs and oil. These risks include, but are not
limited to, legal and environmental risks, drilling and other operating
risks, regulatory changes, commodity price volatility and the
significant decline of the price of natural gas, NGLs, and oil from
historical highs, inflation, lack of availability of drilling,
production and processing equipment and services
, counterparty
credit risk, the uncertainty inherent in estimating natural gas, NGLs
and oil reserves and in projecting future rates of production, cash flow
and access to capital, risks associated with the Company's level of
indebtedness, the timing of development expenditures, and the other
risks described under the heading "Risk Factors" in the 2017 Annual
Report and in "Item 1A. Risk Factors" of Eclipse Resources' Quarterly
Reports on Form 10-Q.

All forward-looking statements, expressed or implied, included in
this press release are expressly qualified in their entirety by this
cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that Eclipse Resources or persons acting on
the Company's behalf may issue. Except as otherwise required by
applicable law, Eclipse Resources disclaims any duty to update any
forward-looking statements to reflect events or circumstances after the
date of this press release.

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