IRVING, Texas--(BUSINESS WIRE)--Montage Resources Corporation (NYSE:MR) (the  today has provided updated operational and financial guidance in response to current market conditions.

Updated 2020 Plan Highlights:

• Revised full year capital spend of between $145 - $165 million, an approximate 23% reduction at the midpoint versus the previously spend of between $190 - $210 million
• Reaffirms full year production of between 570 – 590 MMcfe per day, primarily driven by expected outperformance in first quarter 2020 production, further improved cycle times for remaining 2020 turn-to-sales, and gassier 2020 well mix
• Strategic shift in activity levels which reduces the Ohio Marcellus weighted activity and increases the Utica Dry Gas weighted activity versus the previously announced capital spending plan

John Reinhart, President and CEO, commented on the Company’s updated capital plan and guidance, “With a solid balance sheet, peer-leading cash operating margins and minimal long-term commitments, Montage will remain flexible and nimble as we continue to optimize development and monitor market conditions. The Company has a proven track record of adjusting activity and delivering cost savings to maximize cash flow. By strategically shifting operational activity and the production mix, we expect to continue to achieve an extremely high level of capital efficiency with the approximate 23% capital savings while maintaining our overall production, based on the respective guidance midpoints, and subsequently allowing the Company to capture any potential benefits of the more constructive natural gas macro environment in the second half of 2020 and 2021. In addition, we are continuing to act opportunistically in the current commodity price environment and tactically add additional downside protection to our cash flows by actively managing our hedge book. Finally, incremental cost savings initiatives are being implemented across our operations as part of the commitment to focus on targeting free cash flow generation, which includes further drilling and completion unit cost reductions as well as operating and corporate overhead expense reductions.”

2020 Capital Expenditure Budget

The updated capital expenditure budget for 2020 of approximately $145 - $165 million is based upon a front-loaded one rig drilling program. This capital budget is allocated approximately 90% for drilling and completions activities and approximately 10% for land and other expenditures. Development activity is concentrated in the Company’s stacked pay area within the Ohio Marcellus and Utica Dry gas areas located in Monroe County, Ohio. The updated capital budget assumes the drilling of between 12 to 16 gross horizontal shale wells, the completion of 13 to 17 gross horizontal shale wells and between 12 to 16 gross horizontal shale wells turned to sales, with approximately 65% of the capital spend weighted toward the first half of 2020. The Company anticipates approximately 75% of the wells drilled to be in the Company’s Ohio Utica acreage and approximately 25% in the Ohio Marcellus acreage area, which is a meaningful shift from the 35% Utica Dry/65% Marcellus split in the previous capital spending plan.

About Montage Resources

Montage Resources is an exploration and production company with approximately 195,000 net effective core undeveloped acres currently focused on the Utica and Marcellus Shales of Southeast Ohio, West Virginia and North Central Pennsylvania. For more information, please visit the Company’s website at www.montageresources.com.