Our production guidance for the third quarter is 41,000 to 43,000 Boe per day or 245 to 256 million cubic feet per day. We have also narrowed our annual guidance to about 41,000 to 43,000 Boe and the same 245 to 260 equivalents per day. Really, to account for the second quarter actual that the math pull this down. So this second quarter math – I mean second quarter actual and some additional projected pipeline downtime.
The higher weighting towards oil and NGLs continues to bolster our overall price realization which was around $57 per Boe or $9.50 per Mcfe for the quarter. It includes a continued uplift in LLS versus WTI in oil prices which we continue to see – which we see continuing throughout 2012 and really into 2013.
Regarding our gas price, note that we are now separating NGLs from the gas volumes. So our gas price realization is expected to track just under Henry Hub by really, $0.05 to $0.10. This is more than offset by the relatively higher NGL pricing on a Btu basis although the overall NGL pricing has been under pressure for much of the year.
On the cost side, our LOE was about $51.5 million for the quarter, which is right in line at least with our estimates, although, the lower volumes pushed up the LOE per Boe. We will expect this figure to stay within the $51 million or $55 million range for the remaining two quarters and we will maintain our LOE guidance at the year for 195 million to 210 million which had been reduced from the original guidance of 200 million to 215 million.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV