Roan Resources reports 1Q losses of $58 million

 

Roan Resources, Inc. in Oklahoma City reported first quarter 2019 losses of $58.1 million or 38 cents a share.

Adjusted net income was $14.3 million or 10 cents a share.

The company also stated that its capital expenditures dropped $44 million to $172.8 million compared to a year ago.

But production of nearly 49,000 barrels of oil equivalent a day was up 30 percent over the first quarter of 2018. Fifteen operated wells were turned online in the first three months of this year while 12 joined in late March resulting in minimal new production in the quarter.

“Roan is beginning to execute on its optimized strategic and operational goals for 2019 and we remain confident in the potential of the company and its premier asset base in the Merge play,” said Joseph A. Mills, Roan’s Executive Chairman of the Board. “Our acreage is located in the core of the Merge play and we expect continued performance improvements as we optimize our full-field development practices.”

Realized prices in the first quarter were $53.18 per barrel of oil.

 

As of the end of the first quarter, Roan had $2.2 million of cash on the balance sheet and $602.6 million drawn on its revolving credit facility, resulting in a net debt balance of $600.4 million. Roan currently has no other outstanding debt or letters of credit. The Company had approximately $150 million of available liquidity on the revolver as of March 31, 2019. The Company is in the process of adding additional liquidity to its balance sheet.

  • Recently completed 4-well Mad Play unit, located in Canadian County, is the first 2019 optimized density unit turned to first sales; average 15-day per well IP rate of 1,818 Boe/d (45% oil, 21% NGLs, 34% gas) normalized to 10,000-foot lateral with an average projected well cost of less than $7 million per well;
  • Recently completed the 3-well Victory Slide pad located in Grady County; average daily rate of 1,444 Boe/d (78% oil, 8% NGLs, 14% gas) normalized to 10,000-foot lateral for the two Mayes wells with an average projected well cost of approximately $7 million per well; and
  • The company remains focused on the evaluation of various strategic options, following recent unsolicited indications of interest from third parties related to the outright sale of the company or in-basin M&A and consolidation and is in the final stages of engaging one or more banks to assist the Company in these efforts.
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