The Company is increasing guidance for annual production volume growth to 24-26% for 2005. The estimated ranges of average daily production going forward are:
Q2 Q3 - Q4
Natural Gas (Mmcf) 1,000 - 1,015 1,040 - 1,070
NGL (Mbbl) 8.0 - 9.5 8.0 - 9.5
Oil (Mbbl) 34 - 35 34 - 35
Total Gas Equivalent (Mcfe) 1,252 - 1,282 1,292 - 1,337
The Company is increasing the 2005 budget for development events from $850 million to $935 million to accommodate recent acquisitions and additional workover and drilling activities.
For the year, the Company's realized natural gas prices are expected to be $0.60 to $0.70 below the NYMEX Henry Hub price, assuming a $6.50 per Mcf gas price and before consideration of hedging activities. Natural gas liquids prices are expected to be about 55% to 65% of the average NYMEX oil price. The Company's realized oil prices should be about $3.00 to $4.00 below the average NYMEX price, assuming a $45.00 per Bbl oil price and before consideration of hedging activities.
The following table presents the Company's expected expenses per Mcfe for the remainder of 2005 assuming a $6.50 per Mcf NYMEX gas price and a $45.00 per Bbl NYMEX oil price:
Expense ($/Mcfe) Q2 - Q4
Production 0.74 - 0.78
Taxes, transportation and other 0.53 - 0.57
Exploration 0.02 - 0.05
Depreciation, depletion and amortization 1.25 - 1.35
Accretion of asset retirement obligation 0.02 - 0.03
General and administrative (a) 0.19 - 0.22
Interest 0.30 - 0.32
(a) Excludes stock-based incentive compensation
The Company's hedging positions for natural gas and oil are:
Mcf or Bbls NYMEX Price
per Day per Mcf or Bbls
Natural Gas *
Apr-Dec 2005 260,000 $5.97
Jan-Dec 2006 10,000 $7.78
Apr-Dec 2005 15,000 $38.37
* Includes 10,000 Mcf per day of hedges acquired in the
Antero Resources acquisition, at their average April 1, 2005
mark-to-market NYMEX price of $7.78 per Mcf.
The Company projects a 35% effective tax rate, with up to 40% of that amount expected to be currently payable.
Most Popular Articles
From the Career Center
Jobs that may interest you