Rmp Energy Inc. Reports Production Results for the First Quarter of 2015; Reaffirms Production Guidance for the Fiscal Year 2015
Apr 16 15
RMP Energy Inc. reported that during the first quarter of 2015, it achieved an average daily production level of approximately 12,250 boe/d, with light crude oil and NGLs volumes accounting for 47% of the first quarter production. This represents a significant increase of 33% over the company’s comparative first quarter 2014 production of 9,229 boe/d and maintains approximately the same production level as the fourth quarter of 2014. First quarter 2015 output was affected by an outage of a regional oil sales pipeline causing the company to shut-in production both at Ante Creek and Waskahigan for a five-day period in mid-January 2015 and a mechanical disruption which resulted in the shut-in of the company's Kaybob Montney gas field commencing March 19, 2015. The company utilized enhanced well completion method and conducted slick water hybrid stimulations on five horizontal wells at Waskahigan and Grizzly, with the objective of creating a more complex fracture network and stimulating more reservoir rock within the Montney formation. Four of the five slick water well completions, with initial production information, have yielded very encouraging early results. Of the Waskahigan slick water completion wells, the 2-15-64-23W5 and 12-29-63-23W5 are notable because their production performance to-date is expected to establish a substantial new fairway of drilling opportunities for RMP. Both of these wells have each produced approximately 30,000 barrels of light oil to-date. During the first thirty days of reported production, these two wells produced an average light oil rate of approximately 840 bbls/d and 805 bbls/d, respectively. The initial oil production from these two Waskahigan wells is significantly above the Company's expected oil production rates for its wells in the area. The other two slick water completed wells with production information (12-9-64-23W5 and 12-25-62-23W5) are approximately at or above RMP's expected production rates for its wells in the respective areas.
The company is reaffirming its previously-disclosed fiscal year 2015 market guidance average daily production of 13,500 boe/d, weighted 45% light oil and NGLs, representing growth of 15% in forecasted year-over-year production.
RMP Energy Inc. Presents at 2015 CAPP Scotiabank Investment Symposium, Apr-08-2015 01:45 PM
Mar 24 15
RMP Energy Inc. Presents at 2015 CAPP Scotiabank Investment Symposium, Apr-08-2015 01:45 PM. Venue: Sheraton Centre Hotel, 123 Queen Street West, Toronto, Ontario, Canada. Speakers: John Wayne Ferguson, Chief Executive Officer, President and Director.
RMP Energy Inc. Reports Audited Consolidated Earnings and Operating Results for the Fourth Quarter and Year Ended December 31, 2014; Reports Impairment on Property, Plant and Equipment for the Fourth Quarter of 2014; Provides Financial and Operating Guidance for 2015; Reports Operating Results for the First Quarter of 2015
Mar 18 15
RMP Energy Inc. reported audited consolidated earnings and operating results for the fourth quarter and year ended December 31, 2014. For the quarter, the company reported P&NG revenue of $56,239,000 against $34,074,000 a year ago. Funds from operations was $32,152,000 or $0.25 per diluted share against $19,408,000 or $0.16 per diluted share a year ago. Net income was $1,411,000 or $0.01 per diluted share against $2,452,000 or $0.01 per diluted share a year ago. Total capital expenditures were $61,933,000 against $93,091,000 a year ago. Net debt was $123,450,000 against $116,157,000 a year ago. Fourth quarter 2014 earnings were impacted by a non-cash impairment on property, plant and equipment in the aggregate amount of $12.8 million, which related to the Company's gas-weighted assets at Kaybob and Gilby resulting primarily from the deterioration in forward commodity gas prices.
For the full year, the company reported P&NG revenue of $265,892,000 against $136,078,000 a year ago. Funds from operations was $164,092,000 or $1.30 per diluted share against $78,553,000 or $0.68 per diluted share a year ago. Net income was $47,846,000 or $0.38 per diluted share against $10,449,000 or $0.09 per diluted share a year ago. Total capital expenditures were $179,746,000 against $187,411,000 a year ago.
For the quarter, the company reported natural gas production of 36,563 Mcf/d against 19,718 Mcf/d a year ago. Crude oil production was 5,896 bbls/d against 3,880 bbls/d a year ago. NGLs production was 352 bbls/d against 99 bbls/d a year ago. Oil equivalent production was 12,342 boe/d against 7,266 boe/d a year ago.
For the full year, the company reported natural gas production of 31,341 Mcf/d against 19,316 Mcf/d a year ago. Crude oil production was 6,308 bbls/d against 3,417 bbls/d a year ago. NGLs production was 251 bbls/d against 236 bbls/d a year ago. Oil equivalent production was 11,782 boe/d against 6,872 boe/d a year ago.
Fourth quarter 2014 earnings were impacted by a non-cash impairment on property, plant and equipment in the aggregate amount of $12.8 million, which related to the Company’s gas-weighted assets at Kaybob and Gilby resulting primarily from the deterioration in forward commodity gas prices.
In mid-December 2014, the Company announced a 2015 capital expenditures budget of $150 million. However, as a result of a precipitous decrease in crude oil prices, and current commodity prices substantially below the Company’s originally-budgeted pricing assumptions, the company is reducing its budgeted capital expenditures and now plans to spend between $95 million to $100 million in 2015. Notwithstanding a reduction in capital spending for 2015, RMP continues to forecast industry-leading year-over-year production growth of 15%, with production estimated to average 13,500 boe/d (weighted 45% oil and NGLs). The 2015 capital program is expected to be funded by internally-generated funds from operations, which is forecasted to approximate $100 million, augmented by the aforementioned production increase and the Company's low-cost operating profile. Forecasted funds from operations is based on a recent forward contango price strip of USD 49.75 per barrel for WTI oil, CAD 2.75 per gigajoule for AECO gas and an exchange rate of $0.7875 (USD/CAD). As a result of a 'cash flow-based' exploration and development expenditures program for 2015, the Company's year-end 2015 debt position is anticipated to remain relatively unchanged from year-end 2014 net debt.
In the first quarter of this year, RMP successfully drilled and completed four (4.0 net) Ante Creek horizontal oil wells and one (1.0 net) Waskahigan horizontal oil well. At Ante Creek, the Company has now drilled a total of 24 (24.0 net) Montney horizontal oil wells, of which only 14 wells are currently producing due to capacity limitations with associated solution gas processing at RMP's Ante Creek 4-36 battery. In order to increase its gas processing capabilities and facilitate capacity for future full-phase development of the Ante Creek field, the Company is presently finalizing the construction of its second gas handling and battery facility (Ante Creek 5-26 battery). RMP has made good progress with this infrastructure project; the Company has taken physical delivery of all the major equipment and vessels, which are presently being connected to existing infrastructure. The scheduled in-service date for the Ante Creek 5-26 battery is on or about April 1, 2015. The estimated total capital investment is approximately $31 million, of which $16 million was incurred and recognized in fiscal 2014. At Ante Creek, the Company holds approximately 36 sections of land providing for a future drilling inventory of approximately 50 locations (of which 15 proved undeveloped locations and two probable undeveloped locations were included in the year-end 2014 independent reserves report outlined hereafter). This identified drilling inventory, along with the implementation of artificial lift and eventually secondary recovery techniques, is expected to result in increased recoveries of crude oil and solution gas at Ante Creek and the maintenance of production providing for a significant level of free cash flow generation for years into the future.