Eclipse Resources Announces Asset Divestiture
December 19 2016 - 4:10PM
Business Wire
Eclipse Resources Corporation (NYSE:ECR) (the “Company” or
“Eclipse Resources”) announced today that it has completed the sale
of approximately 9,900 net acres in eastern Noble County and
western Monroe County, Ohio for approximately $63.8 million to an
undisclosed buyer. The assets sold were predominately undeveloped
acres in the Utica Shale formation and included de minimis net
production of approximately 1,000 Mcfe per day. Proceeds from the
sale will be used to fund operations and for general corporate
purposes.
Benjamin W. Hulburt, Chairman, President & CEO commenting on
the sale, “We are excited to complete this non-core acreage
divestment that further enhances our liquidity as we prepare to
accelerate our growth in the coming year. The acreage we divested
was not in our near-term drilling program, did not permit us to
drill wells with lateral lengths that meet our internal planning
requirements, and would have required future lease extension
payments.
We are currently in the process of completing our 2017 capital
expenditure plan, which we expect to release early in the first
quarter. In addition to completing this planned divestment, we have
taken advantage of the recent favorable move in natural gas prices
to continue to add to our hedging portfolio for both 2017 and 2018.
With this increased hedge position coupled with the additional cash
from this divestiture, we are increasingly confident in our ability
to fund the addition of a second operated rig during 2017 without
overburdening our balance sheet.”
About Eclipse Resources
Eclipse Resources is an independent exploration and production
company engaged in the acquisition and development of oil and
natural gas properties in the Appalachian Basin, including the
Utica and Marcellus Shales. For more information, please visit the
Company’s website at www.eclipseresources.com.
Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”) and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
All statements, other than statements of historical fact included
in this press release, regarding Eclipse Resources’ strategy,
future operations, financial position, estimated revenues and
income/losses, projected costs and capital expenditures, prospects,
plans and objectives of management are forward-looking statements.
When used in this press release, the words “plan,” “endeavor,”
“will,” “would,” “could,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on Eclipse Resources’ current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. When considering forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements described under the heading “Risk Factors” in Eclipse
Resources’ Annual Report on Form 10-K filed with the Securities
Exchange Commission on March 4, 2016 (the “2015 Annual
Report”), and in “Item 1A. Risk Factors” of Eclipse Resources’
Quarterly Reports on Form 10-Q.
Forward-looking statements may include statements about Eclipse
Resources’ business strategy; reserves; general economic
conditions; financial strategy, liquidity and capital required for
developing its properties and timing related thereto; realized
natural gas, NGLs and oil prices; timing and amount of future
production of natural gas, NGLs and oil; its hedging strategy and
results; future drilling plans; competition and government
regulations, including those related to hydraulic fracturing; the
anticipated benefits under its commercial agreements; pending legal
matters relating to its leases; marketing of natural gas, NGLs and
oil; leasehold and business acquisitions; the costs, terms and
availability of gathering, processing, fractionation and other
midstream services; general economic conditions; credit markets;
uncertainty regarding its future operating results, including
initial production rates and liquid yields in its type curve areas;
and plans, objectives, expectations and intentions contained in
this press release that are not historical.
Eclipse Resources cautions you that these forward-looking
statements are subject to all of the risks and uncertainties, most
of which are difficult to predict and many of which are beyond its
control, incident to the exploration for and development,
production, gathering and sale of natural gas, NGLs and oil. These
risks include, but are not limited to; legal and environmental
risks, drilling and other operating risks, regulatory changes,
commodity price volatility and the recent significant decline of
the price of natural gas, NGLs, and oil, inflation, lack of
availability of drilling, production and processing equipment and
services, counterparty credit risk, the uncertainty inherent in
estimating natural gas, NGLs and oil reserves and in projecting
future rates of production, cash flow and access to capital, the
timing of development expenditures, and the other risks described
under the heading “Risk Factors” in the 2015 Annual Report and in
“Item 1A. Risk Factors” of Eclipse Resources’ Quarterly Reports on
Form 10-Q.
All forward-looking statements, expressed or implied, included
in this press release are expressly qualified in their entirety by
this cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that Eclipse Resources or persons acting
on the Company’s behalf may issue.
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version on businesswire.com: http://www.businesswire.com/news/home/20161219006181/en/
Eclipse Resources CorporationDouglas Kris, Investor
Relations814-325-2059dkris@eclipseresources.com
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