HighPoint Resources Provides Summary of Hedge Position
March 12 2020 - 7:58AM
HighPoint Resources Corporation (“we”, “us”, or the “Company”)
(NYSE: HPR) today provided a summary of the Company’s hedge
position. The Company currently has approximately 95% of
anticipated 2020 oil volumes hedged at a WTI price of $58.32 per
barrel and nearly half of anticipated 2021 oil volumes hedged at a
WTI price of $54.71 per barrel. In addition, the Company estimates
that the value of its hedge portfolio is approximately $145 million
based on current WTI strip prices. A full summary of the Company’s
hedge position is set forth below.
Chief Executive Officer and President Scot
Woodall commented, “Proactive hedging of anticipated forward oil
production has been an important component of our corporate
strategy to insulate against commodity price risk, to protect
anticipated cash flows, and to support our capital program. This
strategy has served us well and ensures a greater level of
certainty to our cash flows. We remain focused on maintaining value
for the long term and have reduced capital spending as part of our
original 2020 operating and financial plan. In addition, we will
reassess our development activity and adjust activity levels as
needed to preserve our balance sheet and liquidity in this lower
crude price environment.”
COMMODITY HEDGE POSITION
As of March 11, 2020, the Company had the following commodity
hedge positions in place for crude oil for 2020 and 2021:
|
|
Oil (WTI) |
Period |
|
Volume Bbls/d |
|
Price $/Bbl |
1Q20 |
|
16,500 |
|
|
$ |
59.73 |
|
2Q20 |
|
14,000 |
|
|
59.43 |
|
3Q20 |
|
16,750 |
|
|
57.18 |
|
4Q20 |
|
16,750 |
|
|
57.18 |
|
1Q21 |
|
9,500 |
|
|
54.95 |
|
2Q21 |
|
9,500 |
|
|
54.95 |
|
3Q21 |
|
7,000 |
|
|
54.39 |
|
4Q21 |
|
7,000 |
|
|
54.39 |
|
The Company has sold WTI swaptions of 3,000
bbl/d for calendar 2022 at an average strike price of $55.00/bbl.
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
ABOUT HIGHPOINT RESOURCES
CORPORATION
HighPoint Resources Corporation (NYSE: HPR) is a
Denver, Colorado based company focused on the development of oil
and natural gas assets located in the Denver-Julesburg Basin of
Colorado. Additional information about the Company may be found on
its website www.hpres.com.
Forward-Looking Statements
All statements in this press release, other than
statements of historical fact, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such as
expects, forecast, guidance, anticipates, intends, plans, believes,
seeks, estimates and similar expressions or variations of such
words are intended to identify forward-looking statements herein;
however, these are not the exclusive means of identifying
forward-looking statements. Forward-looking statements herein
include statements regarding future strategic decisions and
development activities.
These and other forward-looking statements in
this press release are based on management's judgment as of the
date of this release and are subject to numerous risks and
uncertainties. Actual results may vary significantly from those
indicated in the forward-looking statements. Please refer to
HighPoint Resource's Annual Report on Form 10-K for the year ended
December 31, 2019 filed with the SEC, and other filings, including
our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q,
all of which are incorporated by reference herein, for further
discussion of risk factors that may affect the forward-looking
statements. The Company encourages you to consider the risks and
uncertainties associated with projections and other forward-looking
statements and to not place undue reliance on any such statements.
In addition, the Company assumes no obligation to publicly revise
or update any forward-looking statements based on future events or
circumstances.
Company contact: Larry C. Busnardo, Vice
President, Investor Relations, 303-312-8514
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