Endeavor Reports Fourth-Quarter and Full-Year 2018 Operating Results
MIDLAND, Texas, March 28, 2019
Endeavor Energy Resources, LP (“Endeavor”, or the “Company”) announces operating results for the fourth quarter and year ended December 31, 2018.
Fourth Quarter 2018 Highlights
- Averaged daily net production of approximately 72.0 MBOE per day during the three months ended December 31, 2018, a 57% increase from the average daily net production volume of approximately 46.0 MBOE per day for the three months ended December 31, 2017.
- Placed on production 33 horizontal wells during the three months ended December 31, 2018 achieving an average 30-day IP rate of 928 BOEPD (84% oil).
- Lease operating expense per BOE decreased to $10.05, a 4% improvement as compared to the same period in the prior year.
- Increased stages per day per frac crew by 40% compared to same period in the prior year
Year-end 2018 Highlights
- The Company placed 130 gross operated horizontal wells on production during the year ended December 31, 2018.
- Total net production for the year ended December 31, 2018 was 22.7 MMBOE, a 50% increase from the Company’s total net production of 15.1 MMBOE for the year ended December 31, 2017.
- Executed 29 asset trades to supplement the Company’s 373,000 net acre leasehold position in the Midland Basin.
- Reduced days from spud to rig release by approximately 24% as compared to the same period in the prior year.
- Currently operating 9 horizontal drilling rigs and 3 full-time frac crews
Operational Update
In the third and fourth quarter of 2018, two of the Company’s largest natural gas purchasers experienced fires at gas processing plants that resulted in the purchasers curtailing a portion of the Company’s natural gas production. Endeavor flared natural gas that these purchasers were not able to purchase and process during the fourth quarter of 2018. The net impact on Endeavor’s production volume in the fourth quarter of 2018 was approximately 2,090 BOEPD. Significant curtailment and flaring continued into the first quarter of 2019. As of March 28, 2019, the affected gas processing plants have resumed operations and most of the Company’s natural gas production affected by the curtailments is flowing to these plants.
Forward Looking Statements
Certain statements contained in this document constitute “forward-looking statements“ within the meaning of the federal securities law. These forward-looking statements represent Endeavor’s expectations or beliefs concerning future events, and it is possible that the results described will not be achieved and Endeavor can give no assurance that such expectations will prove to have been correct. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Endeavor’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Endeavor does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Endeavor to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in our Offering Circular dated November 28, 2017 circulated in connection with the offering of our 5.500% senior unsecured notes due 2026 in the aggregate principal amount of $500 million and our 5.750% senior unsecured notes due 2028 in the aggregate principal amount of $500 million, and those risk factors and other cautionary statements found in our annual report for the year ended December 31, 2018. The risk factors and other factors noted could cause our actual results and outcomes to differ materially from those contained in any forward-looking statement.