Alta Mesa presents at EnerCom’s The Oil & Gas Conference®

Pure play STACK operator Alta Mesa Resources is focused on the development and acquisition of unconventional oil and natural gas reserves in the eastern portion of the Anadarko Basin referred to as the STACK.

Alta Mesa has assembled a large, highly contiguous leasehold position, largely in the up-dip, naturally-fractured oil portion of the STACK in eastern Kingfisher County, Oklahoma. The company has identified over 4,000 gross horizontal drilling locations, at least half of which it expects to operate.

Q2 highlights

  • Alta Mesa 2018 net production grew by more than 50% from average December daily production to estimated average July production of 31,800 BOE per day
  • Kingfisher Midstream estimated July system gas volumes was 112 MMcf per day, up by more than 35% since the business combination in February 2018
  • Kingfisher Midstream has initiated plans to expand an extensive produced water infrastructure platform to service Alta Mesa Upstream and third-party customers with the planned transfer of Alta Mesa Upstream’s produced water system to Kingfisher Midstream
  • Alta Mesa is providing a 2018 exit production guidance of 38,000 to 40,000 BOE per day, and updated annual production guidance of 29,000 to 31,000 BOE per day for full year 2018
  • Alta Mesa Upstream and Kingfisher Midstream each expanded their operational footprint in the Northwest STACK, including the expansion of Kingfisher’s high-pressure gas gathering system
  • Alta Mesa’s Board of Directors authorized a $50 million Class A common share repurchase program

Breakout session at the EnerCom conference

During Alta Mesa’s breakout session at the 2018 EnerCom conference, management was asked the following questions:

  • You talked earlier about the water handling business – what’s the difference between using a third party vs Alta Mesa?
  • Kingfisher was previously thought of as a potential 2019 IPO candidate – has there been anything from the operations side that changes that view?
  • Can you talk about regional takeaways?
  • In terms of guidance for the Kingfisher midstream what does the timing of it look like for 2018?
  • We really like Kingfisher, we have several public companies that we own, but sometimes we’re concerned about the data reported – do you (or anyone else) actually put out a curve/distribution after 12-24 months of production to show what the wells are producing now, and what the reserves will be later on? Where can we find this material?
  • Can you give some more details on your STACK position, especially in the Northern Plain? How are the drilling conditions?
  • What are you expecting for service cost inflation next year?
  • Walk us through commodity prices that have been above other prices the rest of the year?
  • Have you changed CapEx to reflect this?
  • Have you thought about doing more share buybacks? Why 50 million, and not more?

You can listen to Alta Mesa’s presentation here.

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