AUSTIN, Texas--(BUSINESS WIRE)--
Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today
provided an operational update and lowered its 2015 capital expenditure
guidance while maintaining its production guidance. The Company has also
posted a new investor presentation to its website for the Barclays CEO
Energy-Power Conference.
Highlights
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Running three Cleveland rigs as of September 3, 2015; reduced activity
from five rigs running previously
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2015 capex guidance reduced to $220 million from $240 million;
previously increased production guidance maintained
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Third quarter production ahead of plan, led by natural gas
outperformance
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Expect to run cash flow neutral program in second half of 2015
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Leasing program underway; approximately 6,000 net acres acquired with
more than half of $5 million budget remaining
Jones Energy Founder, Chairman, and CEO, Jonny Jones stated, “In
response to the current market environment, we have reduced activity to
three Cleveland rigs from five rigs running previously. This reduction
in activity should allow us to be cash flow neutral in the second half
of 2015 while still achieving our previously increased production
guidance. Results from our 33 stage open-hole wells continue to meet or
beat our expectations, with natural gas production exceeding our
expectations. Oil production continues to track the uplift expected from
the incremental frack stages. We are beating our $2.6 million AFE, and
see the potential for additional cost savings in a ‘lower for longer’
scenario.”
Mr. Jones went on to say, “Our leasing program is off to a great start.
We have already leased nearly 6,000 net acres with more than half of our
$5 million budget remaining. We continue to have ample liquidity and are
positioned to capture market opportunities. We remain substantially
hedged and are one of only a few companies that has hedged a meaningful
portion of its 2016 and 2017 production. The mark-to-market value of our
hedges as of the end of August was over $230 million. Our significant
hedge book provides cash flow stability and continues to be an asset in
the current environment. We have not yet determined what our 2016
capital spending program will look like, but we remain nimble from an
operational perspective and have the ability to generate positive cash
flow through 2016 by continuing to run three rigs.”
Guidance
The Company is providing updated capital expenditure guidance for the
full year 2015, but maintaining all other 2015 guidance metrics. The
Company is also maintaining its previous third quarter production
guidance.
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2015 Guidance
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2015E
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3Q15E
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Total Production (MMBoe)
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8.4 - 8.9
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2.0 - 2.1
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Average Daily Production (MBoe/d)
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23.0 - 24.5
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22.0 - 23.0
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Oil (MBbls/d)
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6.8 - 7.3
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6.3 - 6.6
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Natural Gas (MMcf/d)
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58.5 - 62.5
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56.5 - 59.0
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NGLs (MBbls/d)
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6.4 - 6.8
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6.3 - 6.6
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Total Capital Expenditures ($mm)
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$220.0
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2015 Capital Expenditure Summary ($mm)
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1H15
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2H15E
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2015E
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Total Capital Expenditures
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$128.1
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$91.9
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$220.0
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About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged
in the development and acquisition of oil and natural gas properties in
the Anadarko and Arkoma basins of Texas and Oklahoma. Additional
information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150909005097/en/
Source: Jones Energy, Inc.