Energy companies earn first-quarter incomes

Two Oklahoma Citybased energy companies reported this week they earned first-quarter 2020 net incomes.

As cent Resources Utica Holdings reported it earned a net income of about $85 million on total revenues of about $587 million, compared to a net loss of about $85 million on total revenues of about $376 million the same quarter in 2019.

Chaparral Energy, meanwhile, reported it earned a first-quarter 2020 net income of about $4.9 million, or 11 cents per share, on total revenues of about $48.9 million.

In the first quarter of 2019, the company posted a net loss of about $103.5 million, or $2.28 per share, on total revenues of about $49.8 million.

Ascent, which states it is the seventh-largest natural gas producer in the nation, reported growing its total average daily first quarter production year over year by 14%, to 2,009 million cubic feet (equivalent).

Its average daily production was 1,712 million cubic feet of natural gas, 13,769 barrels of oil and 35,714 barrels of natural gas liquids.

As of March 31, nearly 80% of its forecast ed natural gas production for the remainder of the year was hedged at about $2.79 per thousand cubic feet, while about 50% of its forecasted remaining 2020 crude oil production was hedged at an average price of above $43 a barrel.

Officials said the company had improved well costs by 15 to 20%, compared to previously issued midpoint in guidance, and had reduced net debt by nearly $100 million while maintaining about $700 million in liquidity.

“Ascent delivered on the key operating objectives se wet out to accomplish in the first quarter,” Jeff Fisher, its CEO, stated as part of its earnings release, noting it had successfully focused its capital on stronger performing areas of its portfolio while reducing costs and prioritizing the health and safety of its employees during the ongoing coronavirus pandemic.

Ascent didn't update its capital expenditure plans for the remainder of the year in the release it issued this week.

Chaparral Energy, meanwhile, also reported stronger than forecasted production for the first quarter and lower lease operating and administrative expenses.

It stated it released both rigs contracted to drill new wells, stopped completion activities and does not expect to bring any additional wells to market in the near future.

“To minimize exposure to the abnormally l ow wellhead price for crude oil and maximize future value as prices recover, the company has begun to shut-in all non-essential oil production, excluding wells associated with waterflood sand those with well-specific mechanical or other risks,” its release stated.