Kelt Exploration earns $3.63-million in Q3
KELT EXPLORATION Ltd. has released its financial and operating results for the three and nine months ended Sept. 30, 2018.
(See KEL Table 1 on page 15)
Average production for the three months ended Sept. 30, 2018, was 26,204 boe per day, up 16 per cent compared with average production of 22,510 boe per day during the third quarter of 2017. Quarter over quarter, daily average production in the third quarter of 2018 was flat compared with average production of 26,120 boe per day in the second quarter of 2018.
Kelt’s realized average oil price during the third quarter of 2018 was $80.62 per barrel, up 51 per cent from $53.22 per barrel in the third quarter of 2017. The realized average NGLs price during the third quarter of 2018 was $41.20 per barrel, up 69 per cent from $24.34 per barrel in the same quarter of 2017. Kelt’s realized average gas price for the third quarter of 2018 was $2.81 per thousand cubic feet, up 21 per cent from $2.33 per Mcf in the corresponding quarter of the previous year.
For the three months ended Sept. 30, 2018, revenue was $100.2-million and adjusted funds from operations was $46.9-million (25 cents per share, diluted), compared with $56.4-million and $23.0-million (13 cents per share, diluted) respectively, in the third quarter of 2017.
As a result of lower production than originally forecasted during the third quarter, primarily due to the reallocation of capital expenditures, Kelt has reduced its annual 2018 average production estimate to be within a range of 27,000 to 28,000 boe per day (previously 28,000 to 29,000 boe per day). The expected range for production in 2018 would represent an increase between 22 per cent and 27 per cent from average production in 2017 of 22,130 boe per day. Estimated production for 2018 is expected to be weighted approximately 42 per cent oil and NGLs and 58 per cent gas.
The company’s board of directors has approved an initial capital expenditure budget of $270.0-million for 2019. Kelt expects to drill 34 gross (33.0 net) wells in 2019 and expects to complete 36 gross (35.0 net) wells in 2019. The 2019 capital expenditures are expected to be allocated as follows: $201.0-million for drilling and completing wells, $60.0-million for facilities, pipeline and equipment, and $9.0-million for land and seismic.
Kelt has prepared its 2019 financial guidance based on a capital expenditure budget of $270.0-million and the forecasted commodity prices that result in the following:
• Estimated average production of 33,500 to 34,500 boe per day, an increase of approximately 24 per cent from estimated 2018 production levels;
• Production mix is expected to be weighted 47 per cent to oil and NGLs and 53 per cent to gas;
• Operating income is expected to be derived 85 per cent from oil and NGLs and 15 per cent from gas;
• Estimated funds from operations of $240.0-million ($1.23 per share, diluted);
• Estimated bank debt, net of working capital as at Dec. 31, 2019, of $225.0-million (0.9 times forecasted 2019 funds from operations).
We seek Safe Harbor.
Erika Flores condensed this news release (email@example.com).
Robert John Dales, Geraldine L Greenall, William Charles Guinan, Michael R Shea, Neil Graham Sinclair, David John Wilson
(KEL) Shares: 183,980,702