- We continue to execute on our active drilling program and have increased our guidance for the third time this year to a range of 20% to 23% production growth;
- Our plan to drill 257 gross (160 net) wells throughout our prospect areas remains unchanged. By high-grading our drilling rig fleet and using pad drilling and sliding sleeve completions, we believe we can efficiently reach our 2012 drilling goals;
- At current oil prices, our discretionary cash flow, recent WHZ Trust unit sale and Belfield Plant sale will substantially fund our 2012 capital budget of $1.9 billion;
- We continue to experience success in emerging development areas such as Big Tex and build solid acreage positions in new exploration areas at attractive prices and attractive net revenue interests.
- We continue to monitor oil prices and have flexibility in our rig contracts. Of our 29 contracted rigs 13 have contracts that can be terminated without penalty by December 31, 2012 and another seven have contracts that can be terminated without penalty by December 31, 2013. Currently our plans call for the release of three rigs. One in Sanish in early September, one in Hidden Bench in late August and one in Pronghorn in late August. These are generally less efficient rigs when compared to others we have under contract. Due to the efficiency of the rigs we will retain under contract, we anticipate no reduction in the number of wells we intend to drill in 2012.
|Three Months Ended June 30,|
|Production (MBOE/d)||80.70||64.12||26 %|
|Discretionary Cash Flow-MM$ (1)||310.5||313.3||(1) %|
|Realized Price ($/BOE)||66.13||78.45||(16) %|
|Total Revenues-MM$||502.2||481.2||4 %|
|Net Income Available to CommonShareholders-MM$||150.6||202.9||(26) %|
|Per Basic Share||$1.28||$1.73||(26) %|
|Per Diluted Share||$1.27||$1.71||(26) %|
|Adjusted Net Income Available to CommonShareholders-MM$ (2)||86.8||120.3||(28) %|
|Per Basic Share||$0.74||$1.02||(27) %|
|Per Diluted Share||$0.73||$1.02||(28) %|