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Penn Virginia Reports Third Quarter 2018 Results and Provides Operational Update
Entered into Definitive Merger Agreement to be Acquired by Denbury Resources
Oil Production Increases Nine Percent over Second Quarter
HOUSTON, November 8, 2018 (GLOBE NEWSWIRE) Penn Virginia Corporation (Penn Virginia or the Company) (NASDAQ:PVAC) today announced its financial and operational results for the third quarter 2018.
Significant Third Quarter and Recent Highlights
Entered into a definitive merger agreement on October 28, 2018, to be acquired by Denbury Resources, Inc. (Denbury), with the transaction expected to close in the first quarter of 2019;
Produced 22,912 barrels of oil equivalent per day (BOEPD) (77% oil) for the third quarter of 2018;
Drilled the Amber Porter (SA) Unit 2 2H in approximately 14 days (1,419 feet per day), a Company record for drilling a three string well;
Recorded net income of $16.3 million, or $1.06 per diluted share, for the third quarter of 2018; Adjusted net income(1) was $41.8 million, or $2.72 per diluted share, for the third quarter of 2018;
Generated adjusted EBITDAX(2) of $85.1 million for third quarter of 2018;
Realized cash operating margin(3) per BOE of $47.31 for the third quarter of 2018 with an aggregate realized price of $60.16 per BOE and adjusted direct operating expenses(4) per BOE of $12.84;
Yielded a realized oil price of $71.67 per barrel, a $2.24 per barrel premium over the West Texas Intermediate (WTI) average price for the third quarter of 2018;
Recorded a low lease operating expense (LOE) of $4.70 per BOE for the third quarter of 2018;
Increased the Companys borrowing base under its credit facility by more than 30% to $450 million; and
Lowered Penn Virginias debt to adjusted EBITDAX ratio to 1.9x in the third quarter of 2018, pro forma for acquisitions.
Continued success in our drilling program and premium LLS-based price realizations during the third quarter drove another period of strong operational and financial performance for Penn Virginia, said John A. Brooks, President and Chief Executive Officer of Penn Virginia. The result was an increase in oil production and adjusted EBITDAX from the second quarter of 2018 of nine and 12 percent, respectively, as well as industry leading realized cash margins.
Mr. Brooks added, In late October, we announced an agreement to merge Penn Virginia and Denbury. We believe it is the best path forward for Penn Virginia and its shareholders. Both companies share complementary attributes, including high-quality assets and the ability to generate significant free cash flow. We also believe Denburys EOR expertise will unlock meaningful value from our significant contiguous acreage position. As a result, the transaction will result in a combined company that is uniquely positioned for long-term success, and provides Penn Virginias shareholders with excellent value and significant upside.
The following information was filed by Penn Virginia Corp (PVAC) on Thursday, November 8, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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