Constellation Energy Partners LLC (NYSE Arca: CEP) today reported second quarter 2010 results.
The company produced 3,745 MMcfe for average daily net production of 41.2 MMcfe during the quarter and 42.0 MMcfe for the year-to-date ending June 30, 2010. Operating costs, which include lease operating expenses, production taxes and general and administrative expenses, net of certain non-cash items, averaged $3.20 per Mcfe during the quarter and $3.38 for the year-to-date.
On a GAAP basis, the company reported a net loss of $21.1 million for the second quarter 2010. Adjusted EBITDA for the quarter was $14.6 million. For the year-to-date, Adjusted EBITDA was $29.5 million.
During the quarter, the company completed eight net wells and recompletions with capital spending that totaled $2.1 million. As of June 30, 2010, the company had an additional 14 net wells and recompletions in progress.
“We’re focused this year on improving our financial strength through solid operating results, which we accomplished again this quarter,” said Stephen R. Brunner, President and Chief Executive Officer of Constellation Energy Partners. “Our performance has allowed us to reduce debt by 18% over the last nine months while at the same time funding our 2010 drilling program with cash from operations.”
Outstanding debt under the company’s credit facility currently totals $180 million, leaving the company with $25 million in available borrowing capacity. The company had a cash balance of $12.7 million as of June 30, 2010.
The company’s borrowing base, which was reaffirmed at $205 million in April 2010, is scheduled for semi-annual review in the third quarter of 2010.
Financial Outlook for 2010
The company announced earlier this year that it anticipates total capital spending for 2010 to range between $10 million and $12 million to complete approximately 25 net wells.
Net production is forecast to range between 14.5 and 15.5 Bcfe for 2010, with operating costs expected to range between $52 million and $56 million for the year.