Current XOG Stock Info

2018 capital program, production and operating expense guidance

  • The company expects its full-year 2018 average net sales volumes to be 87-93 MBOEPD, with 42.5-45.5 MBbl/d of crude oil, which at the midpoint represents 76% total equivalent growth and 83% crude oil growth over the midpoint of the 2017 guidance ranges provided in December 2016
  • Drilling and completion capital expenditures for 2018 are expected to range from $770 million to $840 million, land and other capital expenditures are expected to range from $120 million to $150 million
  • Extraction expects to drill 170-175 gross wells (77% working interest), complete 185-190 gross wells (82% working interest) and turn to sales 170-175 gross wells (76% working interest) during 2018

Extraction Oil & Gas, Inc. (ticker: XOG) is currently negotiating third party financing for infrastructure related to its Broomfield and Hawkeye areas and has not included capital expenditures associated with these projects in the above guidance. This may include joint ventures or preferred equity financings at a subsidiary level that will be non-recourse to Extraction.

Extraction Oil & Gas Prepares to Invest $770-$840 Million 2018 CapEx

XOG Hawkeye Area

Extraction Chairman and CEO Mark Erickson said, “We are looking forward to a robust 2018 as we expect to realize additional capital efficiencies driven by the development of our high-quality acreage in the city of Greeley along with drilling a higher mix of long laterals across our development program. With a drilling and completion capital program that is modestly smaller than our current 2017 program, we expect to grow our production over 75% year-over-year compared to the 2017 guidance we released in December 2016.”

“As our production and cash flow continues to grow, assuming $50 WTI crude oil and $3 Henry Hub natural gas prices, we expect our capital program to be funded within our cash flow from operations sometime in the second half of 2018.

“We also have some exciting spacing and optimization tests planned for our Broomfield and Hawkeye areas along with results forthcoming for our Grover area and a host of other high-potential projects,” Erickson said.

Extraction Oil & Gas Prepares to Invest $770-$840 Million 2018 CapEx

XOG Broomfield Project, Dec. 2017

To navigate the high line pressures impacting northern portions of the Wattenberg Field, Extraction’s turn-inline efforts will be focused primarily on its Southwest Wattenberg acreage, which the company said it believes has ample gas gathering and processing capacity until the DCP expansion project is complete sometime near the end of the summer next year. At that point, Extraction will begin turning inline its wells in the city of Greeley.

Commenting on Extraction’s flexibility surrounding the elevated line pressures in the northern portion of the Wattenberg Field, Erickson said, “I think Extraction is uniquely positioned to execute efficiently and effectively despite the line pressure issues most operators have been facing in the northern portion of the Wattenberg. Specifically, over 75% of our Core DJ Basin acreage is in areas outside of DCP’s gathering system and has ample capacity and multiple options to service our growth needs while we await the completion of DCP’s expansion projects. We have taken the line pressures into account in both our guidance and our operational plans as we’ll be completing and turning-inline wells on our Southwest Wattenberg acreage while we await the expansion in the northern Wattenberg.”

Extraction Oil & Gas Prepares to Invest $770-$840 Million 2018 CapEx

XOG Midstream Options

Extraction Oil & Gas Prepares to Invest $770-$840 Million 2018 CapEx

Extraction Oil & Gas 2018 Guidance

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