Endeavor Energy Reports Fourth-Quarter and Annual 2017 Results
MIDLAND, Texas, March 29, 2018
- Net production averaged 46.0 MBoe per day in 4Q 2017, a 39% increase year-over-year.
- Lease operating expense (“LOE”) per Boe in the 4Q 2017 decreased to $10.43, a 31% year-over-year decrease.
- Issued new Senior Notes to extend maturities at a lower coupon rate.
- Currently operating nine horizontal rigs versus an average of six during 2017.
- Spudded 72 gross horizantal wells and placed 37 operated horizantal wells on production in 2017.
2017 Transformational Year Highlights
Building strength across all operational and financial metrics:
Improved Capex Efficiency
Endeavor’s horizontal program has continued to realize improved capex efficiency by drilling longer lateral lengths in fewer days while adding additional rigs.
Improved Completion Results
Endeavor’s Midland Basin operated horizontal completions continued to improve in 2017 with completions achieving IP 60 day average rates of over 800 Boepd versus 510 Boepd in 2016. Endeavor has continued to delineate large areas of the extensive leasehold and has seen outstanding results across the core Midland Basin portfolio as shown on the map below:
During 4Q 2017, Endeavor drilled 20 gross horizontal wells and turned 8 operated horizontal wells to production. For the full year 2017, Endeavor drilled 72 gross horizontal wells and placed 37 horizontal wells on production in the Midland Basin. At December 31, 2017 41 operated wells remained drilled but uncompleted.
Midland Basin HZ Drilling Yields Results
Endeavor’s 4Q 2017 production was 46.0 MBoepd (73% oil), up 39% year over year from 33.1 MBoepd in 4Q 2016. Average daily production for the full year 2017 was 41.4 MBoepd (71% oil), up 24% year over year. Production from Midland Basin horizontal wells averaged approximately 18.8 MBoepd.
Lease Operating Expense Continuous Improvement
Midland Basin horizontal production, efficiency emphasis and various cost reduction initiatives has continuously reduced lease operating expense including workovers and ad valorem taxes.
About Endeavor Energy Resources, LP
Endeavor Energy Resources, LP is a private E&P company located in Midland, Texas. Endeavor’s considerable asset position in the Permian Basin, coupled with an improving balance sheet and expanding capital program, positions the company for production and cash flow growth moving forward. Endeavor’s strategic focus is to become the premier Midland Basin horizontal operator. This requires a systematic approach that relies on the proven strength and capability of Endeavor’s employees and management. For more information, please visit www.endeavorenergylp.com.
Note Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the Tender Offers, the Company’s previously announced debt financing transaction and any redemption of the 2021 Notes and 2023 Notes. All statements, other than statements of historical fact, regarding Endeavor’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project”, “budget” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Endeavor’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Forward-looking statements may include statements about Endeavor’s: business strategy; reserves; financial strategy, liquidity and capital required for its development program; realized oil and natural gas prices; timing and amount of future production of oil and natural gas; hedging strategy and results; future drilling plans and locations; competition and government regulations; marketing of oil and natural gas; leasehold or property acquisitions; costs of developing its properties; general economic conditions; credit markets; liquidity and access to capital; uncertainty regarding its future operating results; plans, objectives, expectations and intentions contained in this press release that are not historical. Endeavor cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond its control, incident to the exploration for and development and production of oil and natural gas. These risks include, but are not limited to, commodity price volatility; inflation; uncertainties about Endeavor’s estimated oil and natural gas reserves and in projecting future rates of production; cash flow; lack of availability of drilling and production equipment and services; the concentration of Endeavor’s operations in the Permian Basin of West Texas; difficult and adverse conditions in the domestic and global capital and credit markets; potential financial losses or earnings reductions resulting from Endeavor’s commodity price risk management program or any inability to manage its commodity risks; failure to realize expected value creation from property acquisitions; Endeavor’s dependence on Autry C. Stephens; access to capital, the timing of development expenditures; environmental, weather, drilling and other operating risks; regulatory changes; competition in the oil and natural gas industry; and Endeavor’s substantial existing indebtedness. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, Endeavor’s actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Endeavor or persons acting on its behalf may issue. Except as otherwise required by applicable law, Endeavor disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
For Additional Information
Endeavor Energy Resources, LP
110 N. Marienfeld Street, Suite 200
Midland, TX 79701
Attention: Damon Button, Chief Financial Officer, Vice President and Treasurer
Phone: (432) 262-4012