Endeavor Reports Record Third Quarter 2019 Operating Results
MIDLAND, Texas, November 7, 2019
Endeavor Energy Resources, LP (“Endeavor,” or the “Company”) announces operating results for the quarter ended September 30, 2019.
Highlights:
- Average daily net production of approximately 133.6 MBoe per day (73% oil) during the three months endedSeptember 30, 2019 (“3Q19”), a 19% increase over the three months ended June 30, 2019 and an 86% increase from the three months ended September 30, 2018 (“3Q18”).
- Placed on production 40 gross operated horizontal wells in 3Q19, achieving an average 30-day IP rate of over 1,157 Boepd (79% oil).
- Lease operating expense per Boe decreased to $7.63, a 29% decrease as compared to the same period in the prior year.
- Improved cycle times across the Midland Basin. Spud-to-rig release cycle time decreased by 21% and number of stages completed per day improved by 22% in 3Q19, in each case, as compared to 3Q18.
Operational Update
3Q19 total net production was 12.3 MMBoe, an 85% increase from 6.6 MMBoe in 3Q18. Lease operating expense per Boe decreased by 29% to $7.63 per Boe in 3Q19 compared to $10.69 per Boe in 3Q18.
During 3Q19, the Company spudded 62 and placed on production 40 gross operated horizontal wells. Endeavor’s working interest in operated horizontal wells placed on production was approximately 96%, with an average completed lateral length of approximately 9,841 feet.
Wells placed on production in 3Q19 were among the best to date, achieving an average 30-day IP rate of over 1,157 Boepd (79% oil).
Capital Investment Efficiency
During the first nine months of 2019, the Company materially improved drilling, completion and equipment (“DC&E”) costs per foot. DC&E costs averaged $800 per foot, representing an 18% reduction from the full-year 2018 average.
Due to accelerating development optimization and efficiency gains in terms of drilling and completions cadence, along with favorable service costs price environment and company-level capital returns profile, Endeavor has added an additional completion crew and a horizontal drilling rig starting September 2019. As of November 7, 2019, the Company is operating 10 horizontal drilling rigs and has 4 dedicated frac crews.
Forward Looking Statements
Certain statements contained in this document constitute “forward-looking statements“ within the meaning of the federal securities laws. 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.