Constellation Energy Partners LLC (NYSE Amex: CEP) today reported first quarter 2012 results.
The company produced 3,226 MMcfe during the first quarter for average daily net production of 35.5 MMcfe for the quarter. Net oil production for the first quarter was 324 barrels per day, or approximately 29.5 thousand barrels in total, which represents an increase of approximately 3% over the prior quarter’s total oil production.
Revenue of $23.8 million for the first quarter 2012 includes revenue from sales of $10.2 million, of which approximately 69% was from natural gas sales and 31% was from oil sales. The balance of the company’s first quarter 2012 revenue came from hedge settlements ($6.1 million), services provided to third parties ($0.9 million), and gains on mark-to-market activities ($6.6 million), which is a non-cash item.
Operating costs, which include lease operating expenses, production taxes and general and administrative expenses, net of certain non-cash items, averaged $3.40 per Mcfe for the first quarter 2012, which is a 3% improvement versus the first quarter of 2011.
Adjusted EBITDA for the first quarter 2012 was $5.9 million. On a GAAP basis, the company recorded net income of $5.9 million for the quarter.
The company completed 17 net wells and recompletions using $2.7 million in cash flow from operations during the first quarter 2012. Drilling activities in 2012 continue to focus on oil potential in the company’s existing asset base as well as capital efficient recompletions. The company finished the first quarter of 2012 with 38 net wells and recompletions in progress.
“We made solid progress on executing this year’s plan to add oil production during the first quarter,” said Stephen R. Brunner, President and Chief Executive Officer of Constellation Energy Partners. “Based on the results of our drilling efforts and our available inventory of oil opportunities, we continue to pursue our capital plan for 2012. We anticipate that this plan will enable us to further diversify our production and revenue mix, thereby increasing the contribution of oil production to our financial results this year.”