HOUSTON, May 08, 2018 (GLOBE NEWSWIRE) -- Penn Virginia Corporation (NASDAQ:PVAC) today announced its financial and operational results for the first quarter 2018.

Significant Operational and Financial Accomplishments

• Produced approximately 1.5 million barrels of oil equivalent (“MMBOE”), or 16,145 barrels of oil equivalent per day (“BOEPD”) (78% oil), in the first quarter of 2018 – a 28% increase in total production and a 33% increase in oil production over the fourth quarter of 2017;
• Posted strong well results in Area 2 – the two-well Southern Hunter-Amber pad had a 30-day initial production (“IP”) rate of 4,028 BOEPD (90% oil) and a previously announced 24-hour IP rate of 5,092 BOEPD. In addition, the Company recently recorded three preliminary 24-hour IP rates:
  • McCreary-Technik three-well pad – 5,425 BOEPD (81% oil);
  • Medina three-well pad – 5,208 BOEPD (63% oil); and
  • Schacherl-Effenberger two-well pad – 3,073 BOEPD (88% oil).
• Completed the longest lateral to date – the McCreary-Technik 2H well, with a lateral length of greater than 9,100 feet and continued to increase operational efficiencies with feet drilled per day up by more than 40% and frac stages rising by more than 45% per day since deploying new service equipment in late 2017;
• Recorded net income of $10.3 million, or $0.68 per diluted share, in the first quarter of 2018. Adjusted net income⁽¹⁾was $22.3 million, or $1.48 per diluted share, in the first quarter of 2018;
• Generated adjusted EBITDAX⁽²⁾ of $50.5 million in the first quarter of 2018;
• Realized cash operating margin per barrel of oil equivalent (“BOE”) ⁽³⁾ of $39.94 for the first quarter of 2018 with an aggregate realized price of $52.99 per BOE and adjusted total direct operating expenses per BOE of $13.05⁽⁴⁾. All of the Company’s Eagle Ford oil production was sold at the Louisiana Light Sweet (“LLS”) pricing point yielding a realized oil price $0.36 per barrel higher than the comparable West Texas Intermediate (“WTI”) price; and
• Closed the previously announced acquisition of Eagle Ford assets located primarily in Gonzales and Lavaca Counties, Texas, from Hunt Oil Company on March 1, 2018.

“We are extremely pleased with our results for the first quarter,” said John A. Brooks, President and Chief Executive Officer of Penn Virginia. “First quarter production exceeded the midpoint of guidance but more importantly, oil volumes increased by 33% over the fourth quarter of 2017 as our overall product mix is getting oilier. We completed and drilled our longest lateral to date, the McCreary-Technik 2H with a completed lateral length over 9,100 feet, as our operations team continued to improve operational efficiencies across both drilling and completions disciplines.”

Mr. Brooks added, “Recently, four pads in Area 2 were turned to sales which helped drive average estimated production for April to approximately 20,900 BOE per day, 30% higher than our first quarter production and more than double the average rate produced for 2017. Given the strong well results, the Company intends to evaluate allocating more capital to Area 2 relative to Area 1. With our success to date, we are confident in our ability to grow production by approximately 125% this year, spend within cash flow by the fourth quarter and reach our stated target leverage of 1.5x by year-end.”

First Quarter 2018 Financial Results

Total direct operating expenses, which consist of lease operating expense (“LOE”), gathering, processing and transportation (“GPT”) expense, production and ad valorem taxes, and cash general and administrative (“G&A”) expense, were $19.6 million, or $13.52 per BOE, in the first quarter of 2018, as compared to $14.9 million, or $13.11 per BOE, in the fourth quarter of 2017. G&A expense for the first quarter of 2018 was $4.45 per BOE, which includes $1.6 million of non-cash share base compensation and $0.7 million associated with non-recurring items related to transaction costs for the Hunt acquisition and executive retirement costs. Adjusted G&A⁽⁵⁾ which excludes those items was $2.90 per BOE. Adjusted total direct operating expenses per BOE⁽⁴⁾, excluding the aforementioned non-recurring G&A items was $13.05 for the first quarter of 2018. For the first quarter of 2018, LOE was $5.02 per BOE, down almost 9% from the fourth quarter of 2017.

Net income for the first quarter of 2018 was $10.3 million, or $0.68 per diluted share, compared to net loss of $10.8 million, or $0.72 per diluted share, in the fourth quarter of 2017. Adjusted net income⁽¹⁾ was $22.3 million, or $1.48 per diluted share in the first quarter of 2018, versus $15.9 million, or $1.06 per diluted share in the fourth quarter of 2017.

Adjusted EBITDAX⁽²⁾ was $50.5 million in the first quarter of 2018 and realized cash operating margin per BOE⁽³⁾ for the first quarter of 2018 was $39.94 a 16% increase over fourth quarter 2017. 

About Penn Virginia Corporation

Penn Virginia Corporation is an independent oil and gas company engaged in the development and production of oil, NGLs and natural gas, with a primary focus in the Eagle Ford shale in south Texas. For more information, please visit our website at www.pennvirginia.com.