Market Overview

Energen Production Tops 103 mboepd, Exceeds Guidance Midpoint by 4%

Share:

Per-unit LOE and SG&A Expenses Continue to Improve

Delaware Basin Wolfcamp Wells Highlight Gen 3-Driven Outperformance

Energen Corporation (NYSE:EGN) ("Energen" or the "company") today
announced financial and operating results for the three months ended
September 30, 2018.

HIGHLIGHTS:

  • 3Q18 production of 103.1 mboepd beat guidance midpoint by 4% and
    increased ≈6 % from 2Q18
  • Oil production in 3Q18 of 60.5 mbopd surpassed guidance midpoint by
    2.5% and grew 6.7% from 2Q18
  • 3Q18 per-unit LOE of $5.80 improved more than 13% over the guidance
    midpoint
  • 3Q18 per-unit net SG&A expense (adjusted) of $2.26 beat the
    guidance midpoint by ≈10%
  • 3Q18 adjusted EBITDAX totaled $268.2 million, exceeding internal
    expectations by ≈9% and 2Q18 by ≈10%
  • Bolt-on acquisitions in 3Q18 added ≈1,700 net acres for $37.8
    million
  • 14 new long-lateral length, Gen 3 Wolfcamp wells in Delaware Basin
    delivered average peak 24-hour IP rates of ≈300 boepd/1,000' (65% oil)

Comments from the CEO

"Last quarter we raised our production guidance midpoint for the
third quarter by 6.5%. Not only did we meet that new target, we
surpassed it by 4%," said James McManus, Energen's chairman and chief
executive. "Once again, wells completed with our Generation 3 frac
design generated outstanding results and continue driving growth. The
performance of our newest Delaware Basin wells underscores the quality
of our acreage and the effectiveness of our frac design. We also are
very pleased to see our operating expenses continue to decline.

"Our track record of execution, growth, and financial strength
continues," McManus said. "Through a series of transformational
strategic decisions over the last decade, Energen today is a leading
pure-play Permian Basin producer. We are extremely pleased to be ending
on such a high note as we prepare for the pending merger with
Diamondback Energy.

"I want to express my gratitude for the opportunity to have been a
part of this organization for 32 years," McManus said. "I especially
want to thank our Board of Directors for their insight and guidance, our
management team and employees for their untiring hard work and
dedication, and our shareholders, vendors, and partners for their
support. Together, we have accomplished a great deal and achieved much
success."

3Q18 Operations Update

Outstanding well performance led to 3Q18 production of 103.1 mboepd,
which was 4 percent higher than the guidance midpoint of 99.0 mboepd and
approximately 6 percent higher than 2Q18 production. Oil production in
3Q18 also outpaced the guidance midpoint by 2.5 percent and grew 6.7
percent from 2Q18. Energen placed on production 14 gross (13 net) wells
in the Delaware Basin and 20 gross (19 net) wells in the Midland Basin.

3Q18 Production (mboepd)

                           
Commodity  

3Q18
Actual

 

3Q18
Guidance
Midpoint

  % ∆

3Q18
Actual

 

2Q18
Actual

  % ∆
         
Oil   60.5  

59.0

  2.5 60.5   56.7   6.7
NGL   21.1   19.0   11.1 21.1   20.4   3.4
Natural Gas   21.6   21.0   2.9 21.6   20.3   6.4
Total   103.1   99.0   4.1 103.1   97.4   5.9

Note: Totals may not sum due to rounding

 

3Q18 Development Wells Turned to Production

                 
Area   # Wells  

Avg.
Completed
Lateral
Length

  Avg. Peak 24-Hr IP   Avg. Peak 30-Day IP
      Boepd  

Boepd/
1,000'

  % Oil   Boepd  

Boepd/
1,000'

  % Oil
Delaware Basin   14  

Wolfcamp A (10)
Wolfcamp B (4)

  9,448'   2,809   297   65%   2,485*   262*   57%*
N. Midland Basin   7  

Wolfcamp A (4)
Wolfcamp B (3)

  7,178'   1,712   238   87%   1,321   184   84%
N. Midland Basin   1   Jo Mill   10,105'   1,465   145   92%   NA   NA   NA
N. Midland Basin   4   Lower Spraberry   8,122'  
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com