- Average net daily production was 221.6 MMcfe per day, exceeding the high end of the Company's previously issued guidance.
- Realized an average natural gas price, before the impact of cash settled derivatives and firm transportation expenses, of $2.28 per Mcf, a $0.60 discount to the average NYMEX natural gas prices during the quarter.
- Realized an average oil price, before the impact of cash settled derivatives of $39.67 per barrel, a $5.22 per barrel discount to the average WTI oil price during the quarter.
- Realized an average natural gas liquids price, before the impact of cash settled derivatives of $13.41 per barrel, or approximately 30% of the average WTI oil price during the quarter.
- Per unit cash production costs (includes lease operating, transportation, gathering and compression, production and ad valorem taxes) were $1.53 per Mcfe and includes $0.39 per Mcfe of firm transportation expenses.
- Net loss for the third quarter of 2016 was $26.8 million; Adjusted EBITDAX 1 for the third quarter of 2016 was $21.7 million.
- Completed 12 wells utilizing Eclipse's "Generation 3" completion design which incorporates increased proppant loading, tighter spacing and 100% slickwater. The Company turned 11 gross (9.6 net) wells to sales during the third quarter of 2016 and was very encouraged with the initial results of the wells as compared to the Company's previous completion designs.
- The Company's first "Super-Lateral" well continued to outperform the Company's "type well" expectations, producing a cumulative amount of 2.4 Bcfe (38% gas, 38% condensate and 24% natural gas liquids) during the first 185 days of production while exhibiting significantly shallower pressure declines than the Company anticipated. Based on the well's performance to date, the Company currently estimates the well will outperform the Company's "type well" reserve expectations by 28% to 50%.
- Commenced transporting natural gas as the only user on the 205,000 MMBtu per day Utica Access Project into the Columbia Gas Transmission "TCO" pool.
- The Company completed its borrowing base redetermination of its revolving credit facility which resulted in no change to its $125 million borrowing base. The Company remains undrawn on its revolving credit facility, other than for letters of credit.
- The Company added to its natural gas hedge portfolio by executing incremental hedges of 90,000 MMBtu per day.
- The Company has 198,333 MMBtu per day of 2017 natural gas production hedged, or approximately 80% of its expected natural gas production, at an average floor price 2 of $2.86 and an average ceiling price of $3.28.
- The Company has an average of 3,500 barrels per day of 2017 oil production hedged, or approximately 80% of its expected oil production, at an average floor price 2 of $46.00 and an average ceiling price of $59.81.
- The Company has 140,000 MMBtu per day of 2018 natural gas production hedged at an average floor price 2 of $2.86 and an average ceiling price of $3.29.
|1||Non-GAAP measure. See reconciliation for details|
|2||For the purposes of calculating three-way floor price, the higher valued put is used|