Resolute Energy Corp. (REN) announced its updated production, cost guidance and revised 2013 capital budget. This release is an update to the guidance issued on February 25, 2013.
The company said that its plans for the Permian Basin have changed materially from its February 25, 2013, guidance. In its updated capital plan it now expects the Permian Basin to account for approximately $85 million to $90 million, or 40 percent of capital spending, up from $50 million to $55 million, or 35 percent of original budget.
During 2013, the company expects to invest between $195 and $220 million for its base development activities. The Company intends to fund more than 85 percent of the 2013 capital program from internally generated cash flow from operations and from the receipt of $47 million in proceeds from the sale of certain Aneth Field properties early in 2013.
The company estimates that full-year production for 2013 will be 4.7 to 5.5 million Boe or "MMBoe". The midpoint of 2013 production guidance represents a 50 percent increase from full-year 2012 production of 3.4 MMBoe. On a revenue-weighted basis, approximately 96 percent of Resolute's production is expected to come from sales of oil and natural gas liquids or "NGL", while on a volume-weighted basis approximately 83 percent is expected to be attributed to oil and NGL.
The company projects annual cash lease operating expenses or "LOE" for 2013 to be between $98 million and $115 million. Higher production contributions from lower-cost operations in the Permian Basin as well as greater operating leverage in Aneth Field contribute to an LOE forecast that is lower on a per-unit basis than that experienced during 2012.
The company anticipates that annual general and administrative expense for 2013 will be between $24 million and $26 million, excluding non-cash stock-based compensation expense.
The company anticipates that its depletion, depreciation and amortization rate for 2013 will be approximately $24.00 to $26.00 per Boe of production, unchanged from prior guidance.
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