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Penn Virginia Corporation Announces Record Quarterly Oil Production And 2013 Oil Production Growth Guidance Of 67 Percent

Core Eagle Ford Shale Position Expanded to 62,000 Net Acres

Drilling Inventory Increased to Approximately 750 Locations

Excellent Recent Drilling Results in the Eagle Ford Shale

Financial Liquidity of Approximately $300 Million

RADNOR, Pa., Aug. 7, 2013 (GLOBE NEWSWIRE) -- Penn Virginia Corporation (NYSE:PVA) today reported financial results for the three months ended June 30, 2013 and provided updates of its operations and 2013 guidance.

Second Quarter 2013 Highlights

Second quarter 2013 financial results, as compared to first quarter 2013 results, were as follows:
  • Product revenues from the sale of oil, natural gas liquids (NGLs) and natural gas were $109.7 million, or $62.78 per barrel of oil equivalent (BOE), an increase of 34 percent compared to $82.2 million, or $57.61 per BOE;  
  • Oil and NGL revenues were $94.2 million, or 86 percent of product revenues, an increase of 34 percent compared to $70.2 million, or 85 percent of product revenues;  
  • Operating margin, a non-GAAP (generally accepted accounting principles) measure, excluding acquisition transaction expenses of $2.4 million, was $46.09 per BOE, an increase of 20 percent compared to $38.55 per BOE;  
  • Operating income, also excluding acquisition transaction expenses, was $5.6 million, compared to an operating loss of $3.0 million;  
  • Adjusted EBITDAX, a non-GAAP measure, was $83.1 million, an increase of 38 percent compared to $60.3 million;  
  • Loss attributable to common shareholders (which includes our preferred stock dividend) was $27.2 million, or $0.43 per diluted share, compared to a loss of $18.1 million, or $0.33 per diluted share; and  
  • Adjusted loss attributable to common shareholders (which includes our preferred stock dividend), a non-GAAP measure which excludes the effects of certain costs and other gains or losses that affect comparability to other periods, was $10.9 million, or $0.17 per diluted share, compared to a loss of $10.4 million, or $0.19 per diluted share.

Recent operational highlights were as follows:
  • Second quarter production of 1.7 million BOE (MMBOE), or 19,209 BOE per day (BOEPD), up 21 percent compared to 1.4 MMBOE, or 15,857 BOEPD, in the first quarter. 
  • Second quarter Eagle Ford Shale production of 11,476 BOEPD, up 53 percent compared to 7,523 BOEPD in the first quarter. 
  • Record quarterly oil production of 9,430 barrels of oil per day (BOPD), an increase of 42 percent over 6,655 BOPD in the first quarter of 2013. 
  • Including the Eagle Ford Shale assets acquired from Magnum Hunter Resources Corporation in April 2013 (MHR Acquisition), we currently have a total of 139 (94.3 net) Eagle Ford Shale producing wells, with 15 (8.4 net) wells either completing or waiting on completion and five (2.1 net) wells being drilled. 
  • The average peak gross production rate per well for the 120 (84.9 net) operated wells completed to date was 1,094 BOEPD. The initial 30-day average gross production rate for the 116 of these 120 wells with a 30‑day production history was 702 BOEPD. The average lateral length for these operated wells was approximately 4,475 feet, with an average of 19 fracturing (frac) stages. 
  • The average peak gross production rate per well for the 22 (13.5 net) most recent operated wells was 1,282 BOEPD. The initial 30-day average gross production rate for the 19 of these 22 wells with a 30-day production history was 787 BOEPD. The average lateral length for these recent wells was approximately 5,520 feet, with an average of 22 frac stages. 
  • The average stimulation (completion) cost per frac stage was approximately $150,000 in the second quarter of 2013, compared to approximately $200,000 in the first quarter of 2013. This average is expected to decrease further to approximately $110,000 per frac stage beginning in the third quarter of 2013, as we transition to new pumping service providers.  
  • Currently, we have a total of approximately 110,000 gross (62,000 net) acres in the Eagle Ford Shale. 
  • Approximately 9,000 net acres in the Eagle Ford Shale have been added recently at a cost of approximately $1,600 per acre; and 
  • As previously announced in June 2013, approximately 1,300 net acres and associated production were divested pursuant to exercises of preferential rights in connection with the MHR Acquisition, with net proceeds to PVA of approximately $21.4 million before purchase price adjustments.
  • We estimate that we currently have approximately 750 undeveloped drilling locations, which is a drilling inventory of approximately 10 years, assuming an ongoing six-rig program.  
  • This has increased from 645 locations that had been disclosed previously. 
  • 14 of our recently drilled wells were drilled off of six multi-well pads, with effective spacing of between 45 and 70 acres. 

Definitions of non-GAAP financial measures and reconciliations of these non-GAAP financial measures to GAAP-based measures appear later in this release. Second quarter financial and production results reflect contributions from the MHR acquisition from April 24, 2013 through June 30, 2013.

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