Schedules Second Quarter 2020 Earnings
Release Date and Conference Call
Montage Resources Corporation (NYSE: MR) (the “Company” or
“Montage Resources”) today announced that it has entered into a
non-binding letter of intent (the “Letter of Intent”) with an
international third-party (“Third-Party”) to sell its non-core
wellhead gathering infrastructure in the Ohio Utica condensate
development area. In addition, Montage announced its preliminary
second quarter production performance and updated expectations for
its full year capital expenditures along with its upcoming second
quarter 2020 earnings release information.
Highlights:
- Under the terms of the Letter of Intent, the Company will
receive a cash payment of $25 million from the Third-Party in
exchange for its existing non-core Ohio Utica wellhead gas and
liquids gathering infrastructure within the defined area, with the
transaction expected to close during the fourth quarter of
2020
- Due to continued operational outperformance, the Company
anticipates that its production for the second quarter 2020 will be
near the high end of the previously announced range of 535-555
MMcfe per day. The second quarter 2020 production includes the
impact of the previously announced production curtailments and
substantially all production was returned to sales by June 1,
2020
- Given the results from its persistent focus on cost and
efficiency gains, the Company is lowering its full year 2020
capital expenditure guidance range to $120-$140 million, from its
previously announced range of $130-$150 million, with no projected
impact on its full year 2020 production
John Reinhart, President and CEO, commented on the Company’s
Letter of Intent and operational update, “We are extremely pleased
to be working with this well-established third-party on the sale of
these non-core assets and the proceeds will provide the Company the
ability to reduce leverage, enhance liquidity and maintain its
already strong balance sheet. On the operational side, we continue
to see the benefits of our execution focus regarding optimization
of production and capital expenditures. Our demonstrated results
continue to reinforce value-enhancing progress toward improvements
in efficiency gains, cost reductions, shortened cycle times and
ongoing well outperformance. We believe the demonstrated capability
of the team at Montage and the flexibility of the Company’s assets
will enable us to maintain a relatively stable year-over-year
production profile from a prudent amount of capital expenditures,
while sustaining the Company’s commitment to debt reduction and
cash flow generation.”
Completion of the transaction is subject to, among other
standard items, the completion of due diligence, the execution of
definitive documentation and satisfaction of conditions negotiated
in the agreement of the transaction.
Earnings Release and Conference
Call
The Company will release its second quarter 2020 financial and
operational results after the market close on Thursday, August 6,
2020.
A conference call to review the Company’s second quarter 2020
financial and operational results is scheduled for Friday, August
7, 2020, at 10:00 a.m. Eastern Time. To participate in the call,
please dial 877-709-8150 or 201-689-8354 for international callers
and reference Montage Resources Second Quarter 2020 Earnings Call.
A replay of the call will be available through October 7 , 2020. To
access the phone replay, dial 877-660-6853 or 201-612-7415 for
international callers. The conference ID is 13707434. A live
webcast of the call may be accessed through the Investor Center on
the Company’s website at www.montageresources.com. The webcast will
be archived for replay on the Company’s website for six months.
About Montage Resources
Montage Resources is an exploration and production company with
approximately 195,000 net effective core undeveloped acres
currently focused on the Utica and Marcellus Shales of Southeast
Ohio, West Virginia and North Central Pennsylvania. For more
information, please visit the Company’s website at www.montageresources.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, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact,
included in this press release, including statements regarding
Montage Resources’ strategy, future operations, financial position,
estimated revenues and income/losses, projected costs and capital
expenditures, prospects, and plans and objectives of management,
are forward-looking statements. When used in this press release,
the words “plan,” “endeavor,” “goal,” “will,” “would,” ”should,”
“could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,”
”efforts,” “continue,” “position,” “potential,” “committed,”
“target, ”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 Montage 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 Montage Resources’
Annual Report on Form 10-K for the fiscal year ended December 31,
2019 filed with the Securities and Exchange Commission on March 10,
2020 (the “2019 Annual Report”) and in Montage Resources’ other
filings and reports with the Securities and Exchange
Commission.
Forward-looking statements may include, but are not limited to,
statements about business strategy; reserves; general economic
conditions; financial strategy, liquidity and capital required for
developing properties and timing related thereto; realized natural
gas, NGLs and oil prices and the volatility of those prices;
write-downs of natural gas and oil asset values due to declines in
commodity prices; timing and amount of future production of natural
gas, NGLs and oil; hedging strategy and results; future drilling
plans; competition and government regulations, including those
related to hydraulic fracturing; the anticipated benefits under
commercial agreements; marketing of natural gas, NGLs and oil;
leasehold and business acquisitions and joint ventures; leasehold
terms expiring before production can be established and costs to
extend such terms the costs, terms and availability of gathering,
processing, fractionation and other midstream services; the costs,
terms and availability of downstream transportation services;
credit markets; uncertainty regarding future operating results,
including initial production rates and liquid yields in type curve
areas; and plans, objectives, expectations and intentions contained
in this press release that are not historical, including, without
limitation, the guidance set forth herein and consummation of the
proposed asset disposition anticipated in the Letter of Intent.
Montage Resources cautions you that all these forward-looking
statements are subject to risks and uncertainties, most of which
are difficult to predict and many of which are beyond the Company’s
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, the severity and continued
duration of the COVID-19 pandemic, related economic effects and the
resulting negative impact on the demand for natural gas, NGLs and
oil; operational challenges relating to the COVID-19 pandemic,
including logistical challenges, protecting the health and
well-being of the Company’s employees, remote work arrangements,
performance of counterparty contracts and supply chain disruptions;
legal and environmental risks; drilling and other operating risks;
regulatory changes, including U.S. federal, state and local tax
regulatory changes; commodity price volatility and declines in 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; risks
associated with the Company’s level of indebtedness; the timing of
development expenditures, and the other risks described under the
heading “Risk Factors” in the 2019 Annual Report and in Montage
Resources’ other filings and reports with the Securities and
Exchange Commission.
All forward-looking statements, expressed or implied, included
in this press release are expressly qualified in their entirety by
this cautionary statement and are based on assumptions that Montage
Resources believes to be reasonable but that may not prove to be
accurate. This cautionary statement should also be considered in
connection with any subsequent written or oral forward-looking
statements that Montage Resources or persons acting on its behalf
may issue. Except as otherwise required by applicable law, Montage
Resources disclaims any duty to update any forward-looking
statements to reflect new information or events or circumstances
after the date of this press release. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20200722005860/en/
Montage Resources Corporation Douglas Kris, Investor Relations
469-444-1736 dkris@mresources.com
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