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Warren Resources Announces Third Quarter 2015
Financial and Operating Results
· Strong gas production of 7.3 billion cubic feet (Bcf) hits upper end of guidance
· Consistent oil production of 243 thousand barrels (MBbls) at midpoint of guidance
· 24% reduction in per unit lease operating expenses (LOEs), from $1.80 per million cubic feet equivalent (Mcfe) in the fourth quarter of 2014 to $1.38 per Mcfe in the third quarter of 2015
Denver, November 9, 2015 (GLOBE NEWSWIRE) Warren Resources, Inc. (Nasdaq: WRES) today reported its third quarter 2015 financial and operating results. While production remains a strong focus, operational efficiency continues to drive down costs, low oil and natural gas prices continue to adversely impact the Company`s financial results and have resulted in a significant impairment of the Company`s producing properties being recorded this quarter. Warren reported a net loss of $186.1 million, or $2.29 per basic and diluted share, which includes a non-cash ceiling test write-down of its oil and gas properties totaling $175.7 million. This compares to net income of $3.7 million, or $0.05 per basic and diluted share, reported in the third quarter of 2014. Third quarter 2015 adjusted net loss* was $18.3 million compared to adjusted net income of $3.0 million in the third quarter of 2014.
In announcing the results, Lance Peterson, Interim Chief Executive Officer, commented, Despite the ongoing challenges presented by the sustained commodity market downturn, Warren has continued to execute on its core business strategies of implementing cost reduction and efficiency initiatives, improving liquidity while reducing debt, and promoting best-in-class operations by unlocking value in our current asset base. In addition, the relocation of the Companys headquarters to Denver, Colorado, announced on September 30, are expected to consolidate management and result in long term G&A savings.
Mr. Peterson continued, Warrens third quarter production results were strong with gas production at the upper end of guidance and oil production at the mid-range of guidance. Warrens high-quality assets continue to provide a stable source of cash flow while we work on key corporate initiatives to further reduce debt and increase liquidity. Subsequent to the quarter, we were pleased to announce a series of transactions with our first lien lenders and a new second lien lenders, which not only reduced the outstanding face value of our senior notes but also brought significant additional liquidity into the Company. We also are benefitting from an aggressive hedging program undertaken in the third quarter, with approximately 70% of our estimated PDP gas production hedged through 2016 in the $3.00 range. With regard to liquidity, while we have the cash needed to maintain our current operations, we will have to substantially reduce our debt in order to continue operating in the long run.
The following information was filed by Warren Resources Inc (WRES) on Monday, November 9, 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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