Current RSPP Stock Info

Tamara Pollard, Vice President of Planning and Reserves, and co-founder of RSP Permian Inc. (NYSE: RSPP), presented today at EnerCom’s The Oil & Gas Conference 20®.

RSP Permian is independent oil and Natural Gas Company focused on the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The majority of its operation locates in northern Midland Basin , primarily in the adjacent counties of Midland, Martin, Andrews, Ector and Glasscock.

In its second quarter 2015 earnings release, the company reported EBITDAX of $72.6 million, representing increases of 21% and 37% compared to Q1’15 and Q2’14, respectively. RSP Permian also closed the acquisitions of bolt-on properties in the Midland Basin for an aggregate purchase price of $274 million.

During the company’s breakout session, management was asked the following questions:

  • Do you have any concerns about your leverage? Will you take out more loans in this bad commodity environment?
  • You mentioned in your conference call that running two drilling rigs will maintain your HBP standards while running three rigs will keep your profit flat. Any additional rigs may increase your WOCs. Why do you want to decrease your rig count from four to three?
  • Are we still expected to follow the 2015 production guidance?
  • The service cost is a big chunk of your operating costs. What do you think with your cost saving strategy?
  • The production volume in Spanish Trail is going up crazy. What’s going on? What’s your assumption?
  • You talked about the acquisition in the presentation. Do you see any upside growth from that transaction?
  • Your rigs in Wolfcamp A and B outperformed expectations. What is your expectation for next year? Which zone will you focus on the most?
  • Are there any firms that you are looking for to acquire? We believe you paid 15% over price for the last acquisition – is that in the plan?
  • For the year 2016; do you have any flexibility to keep four rigs? Or do you prefer to keep two rigs?

Click here for the webcast.

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