Contango Oil & Gas (ticker: MCF), an exploration and production company based in Houston, Texas, has published a digital 2014 Annual Report titled “Disciplined Value Enhancement.” The report details the company’s 2014 performance, provides easy access to Form 10-K, gives operations summaries and outlines its corporate vision for 2015.
Contango management singled out three drivers to its 2015 development, including a downspacing test in its Madison/Grimes area, formation tests in south Texas and finishing initial tests on a sandstone exploration project in Wyoming. The company plans on spending $51 million in 2015 and is deferring further development until commodity prices recover. Its 2015 guidance is 73% below its 2014 budget and management plans on using the excess cash to improve its balance sheet. The company held a debt to market cap percentage of only 15% in EnerCom’s latest E&P Weekly, which is far below the median of 65% from 86 other listed companies.
Moving forward, Contango believes its legacy natural gas operations in the Gulf of Mexico will provide stable cash flows in for its short-term, reduced expenditure plans. Twelve wells were completed late in 2014 and will be turned to sales in 1H’15. Its 2014 year-end reserves, as estimated by Netherland, Sewell & Associates, Inc. and William M. Cobb & Associates, Inc., were 275.2 Bcfe, with 76% classified as proved developed producing. Volumes for Q1’15 are estimated at a midpoint of 100 Mcfe/d, slightly below its average volumes from the previous quarter.
The digital annual report, created by EnerCom, Inc., features a variety of interactive maps, graphs and tables detailing MCF’s activity throughout the Gulf of Mexico. Vital documents such as detailed financials, operations, 10-K and shareholder letter are all available with a single click in the digital annual report format.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.