Lonestar Resources Reports Big Increase In Production, Bigger 2019 Expected, Some Loss

August 6, 2018


Fort Worth’s Lonestar Resources reported a 98% increase in oil and gas production during the second quarter, whe compared with a year ago.

The company said the increase is because of greater performance among its Eagle Ford properties, with production up from 5,635 to 11,140 Boe/d.

Lonestar, with its Hawkeye, Horned Frog and Karnes producing properties, had expected up to 10,500 Boe/d in previous guidance.

As a result, its latest guidance is fixed at a max of 12,200 Boe/d for the 3rd quarter.

The company reduced its loss figure, with net loss to common stockholders of $20.7 million, down from $23.5 million in 2Q 2017.

Lonestar says it will increase this year’s capital program to bring 21 wells onstream (it had previously planned for 19), so it’s increased its completion budget by about $15 million to a revised total of $130 million.

With the increase in production, Lonestar has issued a preliminary 2019 forecast, based on the drilling and completion budget of $120$130 million, with daily production increasing to a range of 13,000 -14,000 Boe/d in 2019 and Adjusted EBITDAX increasing to a range of $140$160 million.

The company noted in its 2Q statement, that “Importantly, this 2019 program can be executed with a single rig and can be essentially funded by internally generated cash flow.”