Approach Resources
Approach Resources (ticker: AREX) exceeded its production guidance for Q2, with production at 11.9 MBOEPD, and dropped its lease operating cost below guidance as well, at $3.92 per BOE.
Approach drilled a total of eight wells and completed another five. One of the completed wells was in the Wolfcamp A bench, two more in the Wolfcamp B bench, and the last two in the Wolfcamp C bench. As of the end of June, the company had ten horizontal wells waiting to be completed and one well being drilled.
Approach has also been able to “hold [its] drilling completion cost for a typical Wolfcamp well to around $4 million,” according to chairman and CEO Ross Craft in Approach’s earnings call.
Approach had $24.2 million in capital expenditures during Q2, $23.8 million of which was dedicated to drilling and completion activities. Approximately $1.5 million was allocated to infrastructure costs and equipment—with $0.9 million offset by sales tax refunds.
Approach intends to complete between two and four wells during its third quarter and has projected its production to be between 11.8 and 12.0 MBOEPD.
Eclipse Resources
Eclipse Resources (ticker: ECR) achieved average production of 287.8 MMcfe per day—above its 265 and 275 MMcfe per day production guidance. The company’s Q2 net income totaled $11.5 million, as compared to a loss of $73.2 million in the second quarter of last year.
Eclipse’s revenue was $86.2 million, significantly ahead of Q2, 2016, which was $47.1 million.
Eclipse also committed to a joint drilling venture with Sequel Energy Group to drill in Eclipse’s Utica shale acreage in southeast Ohio. The venture will include funding from Sequel up to $325 million for two drilling programs. The programs—which are expected to end in 2018—include plans to drill 34 gross wells. Eclipse will be the operator of the wells.
As of the Q2 report, Eclipse was completing two of its “super-lateral” wells—what Eclipse’s chairman, president and CEO, Ben Hulburt, “believe[s] to be the longest onshore lateral wells ever drilled.” Two super-laterals undergoing completion are the Great Scott 3H, with a 19,100 foot lateral, and the Outlaw C11H, with a 19,500 foot lateral.
Unit Corporation
Unit Corporation (ticker: UNT) reported $9.1 million in net income, up from a loss of $72.1 million in Q2, 2016. The company had total revenue of $170.6 million for Q2, 2017. Of that revenue, 49% was sourced from the corporation’s oil and gas segment, 23% from its contract drilling segment, and 29% from its midstream segment.
The company produced a cumulative of 3.9 MMBOE during Q2, 2017—approximately 7,851 BOPD of oil, 12,456 BPD of NGLs, and 131,940 Mcf per day of natural gas. In its Wilcox area, the company tested an exploration well in the Cherry Creek prospect. Unit intends to build horizontal well inventory in its Wilcox area.
Unit is also continuing its Buffalo Wallow extended reach lateral drilling program, which should extend through the remainder of 2017.It brought two wells to first production in the area during the quarter.
The company’s Southern Oklahoma Hoxbar Oil Trend assets—acquired in Q1—are being evaluated for the incorporation of longer lateral wells. Unit believes that it will initiate a drilling program in its STACK acreage by late 2017 or early 2018.
The company’s contract drilling segment experienced an average of 28.8 working rigs during Q2, 13% higher than the first quarter. At the end of the quarter, the company had 33 rigs being utilized.
Approach Resources, Eclipse Resources, and Unit Corp. are presenting at EnerCom’s The Oil & Gas Conference® 22
AREX, ECR, and UNT will be presenting companies at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
