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Warren Resources Announces Second Quarter 2015
Financial and Operating Results
· LOE has been reduced 22% to $1.40 per Mcfe over the past two quarters
· G&A has been reduced 18% to $0.41 per Mcfe for the same period
· Achieved record production at the upper end of guidance
· Liquidity of $45 million at June 30, 2015
· Commenced completion operations on first two Upper Marcellus wells
NEW YORK, August 4, 2015 (GLOBE NEWSWIRE) Warren Resources, Inc. (Nasdaq: WRES) today reported its second quarter 2015 financial and operating results, including a net loss of $85.3 million, or ($1.05) per basic and diluted share, which includes a non-cash ceiling test write-down of its oil and gas properties totaling $83.5 million. This compares to net income of $10.8 million, or $0.15 per basic and diluted share, reported in the second quarter of 2014. Second quarter 2015 adjusted net income* was $2.7 million compared to adjusted net income of $11 million in the second quarter of 2014.
In addition, Warrens cash flow from operations in the second quarter of 2015 was $7.0 million, compared to $23.9 million in the second quarter of 2014. The Companys discretionary cash flow* was $8.1 million, compared to $22.1 million in the prior year period.
In announcing the results, Lance Peterson, Interim Chief Executive Officer, commented, Warren has begun realizing the benefits of operational efficiency initiatives implemented in the first quarter of 2015, including second quarter production results at the upper end of guidance and substantial cost reductions and savings across the first half of 2015. We expect to continue realizing the benefits of these efficiency initiatives throughout the year. In addition, we continue to execute on our core business strategies. The quality of Warrens existing assets continues to provide a stable platform for significant value, and we are excited about the potential to unlock the value of resources, such as our Upper Marcellus locations in Pennsylvania and our deep rights acreage position in Wyoming. We continue to diligently focus on reducing debt, increasing liquidity, and implementing key corporate initiatives such as our recent GSO/Franklin Square refinancing, pending Wyoming CBM asset sale, and ongoing business development opportunities. These measures have provided Warren with the ability to weather the current commodity price environment while we prepare to evaluate and capitalize on targeted growth opportunities.
Second Quarter Results
Revenue from oil and gas sales decreased $8.5 million in the second quarter of 2015 to $25.1 million, which represents a 25% decrease versus the same quarter in 2014.
Net gas production was 7.7 Bcf (85 Mmcf/d) in the second quarter of 2015 compared with 1.6 Bcf (18 Mmcf/d) in the second quarter of 2014, and 5.9 Bcf (66 Mmcf/d) in the first quarter of 2015. This increase in gas production from the same quarter of last year reflects an additional 6.3 Bcf of gas produced from the Marcellus Assets that were acquired in the third quarter of 2014. The average realized price of natural gas in the second quarter was $1.61 per Mcf, compared to $3.76 per Mcf in the second quarter of 2014.
Net oil production for the second quarter of 2015 was 250 Mbbls (2,747 Bbls/d), compared to 281 Mbbls (3,087 Bbls/d) in the second quarter of 2014. The average realized price per barrel of oil for the three months ended June 30, 2015 and 2014 was $50.78 and $97.59, respectively.
The following information was filed by Warren Resources Inc (WRES) on Tuesday, August 4, 2015 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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