WildHorse Resource Development Corporation Announces First Quarter 2017 Results
Houston - WildHorse Resource Development Corporation (NYSE: WRD) announced today its operating and financial results for the three months ended March 31, 2017. First quarter 2017 highlights include:
- Increased average daily production by 18% to 17.6 MBoe/d for the first quarter 2017 compared to 14.9 MBoe/d for the first quarter 2016
- Increased Net Income to $20.3 million for the first quarter 2017 compared to a Net Loss of $14.2 million for the first quarter 2016. Increased Adjusted Net Income(1) to $0.1 million for the first quarter 2017 compared to a Net Loss of $13.7 million for the first quarter 2016
- Increased Adjusted EBITDAX(1) by 95% to $34.6 million for the first quarter 2017 compared to $17.7 million for the first quarter 2016
- Issued $350 million in senior notes due 2025 at 6.875% in February 2017
- In early March 2017, WRD brought online its first Burleson North well and one of the strongest wells to date in the East Texas Eagle Ford, the Paul 134 #2H, with an IP-30(2) of 1,035 Boe/d (93% oil) on a 5,363’ lateral. When normalized for downtime and a 6,500’ lateral, the IP-30 is 1,321 Boe/d
- In late March 2017, WRD brought online the Altimore #1H with an IP-30(2) of 1,048 Boe/d (84% oil) on a 6,435’ lateral and the Jackson #1H with an IP-30(2)of 958 Boe/d (85% oil) on a 6,297’ lateral
Other recent highlights include:
- Agreed to acquire approximately 111,000 net acres (95% held by production) for cash and stock consideration of $625 million in Burleson, Brazos, Lee, Milam, Robertson, and Washington Counties adjacent to WRD’s existing acreage (expected to close on or about June 30, 2017)
- Announced acquisition includes fourth quarter 2016 net production of approximately 7.6 MBoe/d consisting of approximately 72% oil from 68 Eagle Ford, 299 Austin Chalk, and 19 Buda/Georgetown operated wells
- Raised estimated full-year 2017 production guidance range to 27.0 – 31.0 MBoe/d from 23.0 – 27.0 MBoe/d with 1.0 MBoe/d of the increase as a result of WRD well performance and 3.0 MBoe/d of the increase as a result of the acquired production
- Revolving credit facility borrowing base increased from $362.5 million to $450 million in April 2017 in connection with the semi-annual redetermination
- Agreed to issue $435 million in Series A Perpetual Convertible Preferred Stock with a dividend of 6% to fund the announced acquisition
“While early 2017 has been very exciting for WildHorse with a sizeable acquisition announced, we are just getting started as our production ramps over the next few months. In the second quarter of 2017, we expect to bring online 16 to 20 wells that will increase our total of Gen 3 completions to approximately 40 wells. Some of those wells will be immediately adjacent to our acquisition acreage,” said Jay Graham, Chairman and Chief Executive Officer of WRD. “Since the beginning of the year, we have brought online some incredible wells such as the Paul, Altimore, and Jackson. In 2017, as we expect to bring online a total of approximately 85 to 95 Eagle Ford wells and 9 wells in North Louisiana, we look forward to building on these results and demonstrating the consistency of our acreage,” added Jay Graham.
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