Warren Resources Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Production Guidance for the Third Quarter Ending September 30, 2015; Provides Production and Capital Expenditure Guidance for the Year Ending December 31, 2015; Reports Impairment for the Second Quarter Ended June 30, 2015
Aug 4 15
Warren Resources Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company's total revenues were $26,217,000 against $34,994,000 a year ago. Loss from operations was $93,596,000 against income of $10,833,000 a year ago. Loss before taxes was $85,260,000 against income of $10,748,000 a year ago. Net loss was $85,276,000 against income of $10,754,000 a year ago. Net loss applicable to common stockholders was $85,278,000 or $1.05 basic and diluted per share against income of $10,752,000 or $0.15 basic and diluted per share a year ago. Adjusted net income was $2,735,000 or $0.03 diluted per share against $11,047,000 or $0.15 diluted per share a year ago. Net cash provided by operating activities was $7,003,000 against $23,860,000 a year ago. Discretionary cash flow was $8,105,000 or $0.10 basic and diluted per share against $22,051,000 or $0.30 diluted per share a year ago. Capital additions for the three months ended June 30, 2015 were approximately $4.1 million, compared to $7.9 million in first quarter 2015) and consisted of $2.9 million in drilling and development costs for the Marcellus Assets and $1.2 million for facilities in its California properties.
For the six months, the company's total revenues were $51,995,000 against $69,196,000 a year ago. Loss from operations was $194,490,000 against income of $20,648,000 a year ago. Loss before taxes was $187,539,000 against income of $18,950,000 a year ago. Net loss was $187,547,000 against income of $18,964,000 a year ago. Net loss applicable to common stockholders was $187,552,000 or $2.31 basic and diluted per share against income of $18,959,000 or $0.26 basic and diluted per share a year ago. Net cash provided by operating activities was $12,995,000 against $39,351,000 a year ago. Discretionary cash flow was $16,137,000 or $0.20 diluted per share against $40,372,000 or $0.55 diluted per share a year ago.
Net oil production for the second quarter of 2015 was 250 Mbbls (2,747 Bbls/d), compared to 281 Mbbls (3,087 Bbls/d) in the second quarter of 2014. The average realized price per barrel of oil for the three months ended June 30, 2015 and 2014 was $50.78 and $97.59, respectively. Natural gas production was 7.7 billion cubic feet for the quarter which also was at the high end of range, and this was driven by the outperformance of wells in the Marcellus asset in Pennsylvania. Warren did not curtail any gas production in the Marcellus during the second quarter, but did curtail approximately 1.4 billion cubic feet in the first quarter of this year. Marcellus gas realizations averaged $1.58 per Mcf in the second quarter.
The Company recorded an impairment of $83.5 million at June 30, 2015 relating to its ceiling test write down of oil and gas properties. This resulted from a significant drop in the PV10 value as determined
For the year ending December 31, 2015, budgeted capital expenditures for 2015 remain at $21 million. the company expects production of Oil to be 900 MBbl to 1,000 MBbl. production of Gas to be 28,500 MMcf to 30,000 MMcf. Oil Equivalent to be 5,567 MBoe to 6,000 MBoe. Gas Equivalent to be 33,400 MMcfe to 36,000 MMcfe.
For the third quarter ending September 30, 2015, the company expects production of Oil to be 235 MBbl to 255 MBbl. production of Gas to be 6,500 MMcf to 7,500 MMcf. Oil Equivalent to be 1,318 MBoe to 1,505 MBoe. Gas Equivalent to be 7,910 MMcfe to 9,030 MMcfe.
Warren Resources Announces Closing of 9.000% Senior Notes Exchange Offer
Jul 27 15
Warren Resources Inc. announced that it has completed its offer to exchange up to $230,410,000 aggregate principal amount of its 9.000% Senior Notes due 2022, which have been registered under the Securities Act of 1933, as amended (the "Exchange Notes"), for up to $230,410,000 million of its outstanding 9.000% Senior Notes due 2022, which were previously issued in a private placement (the "Private Notes"). The registered exchange offer, which expired at 5:00 p.m. Eastern Time on July 23, 2015, fulfilled the Company's obligations regarding the registration of the outstanding Private Notes. Pursuant to a registration rights agreement entered into by the Company in connection with the initial offering of the Private Notes, the Company agreed to file a registration statement with the Securities and Exchange Commission relating to the exchange offer and the Exchange Notes. The Company received and accepted tenders of approximately 99.96% of the Private Notes that were outstanding. The Exchange Notes contain substantially identical terms to the Private Notes.