Clayton Williams Energy, Inc. Adds Oil Hedges
August 05 2011 - 10:39AM
Business Wire
Clayton Williams Energy, Inc. (the “Company”) (NASDAQ: CWEI)
today announced that on August 1, 2011, the Company entered into
derivative agreements to sell 1.683 million barrels of oil at fixed
NYMEX-WTI prices, as follows: 4th quarter of 2011 – 189,000 barrels
at $98.35; 2012 – 785,000 barrels at $100.75; and 2013 – 709,000
barrels at $102.10.
Combined with its other oil hedges, the Company’s current
positions and average fixed NYMEX-WTI prices are as follows: 3rd
quarter 2011 – 547,000 barrels at $83.78; 4th quarter 2011 –
729,000 at $87.56; 2012 – 2,649,000 at $95.75; and 2013 – 1,189,000
at $99.92. As a percentage of the Company’s estimated production
from existing wells, these volumes cover approximately 100% through
2012 and 50% of 2013.
In addition, the Company has approximately 3 million MMBtu of
natural gas hedged for the remainder of 2011 at $7.07.
“These hedges provide both a stable source of cash flow and a
comfort to us during this current period of volatility in the
global markets,” stated Clayton W. Williams, Jr., President and
Chief Executive Officer of the Company.
Clayton Williams Energy, Inc. is an independent energy company
located in Midland, Texas.
This release contains 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. All statements, other
than statements of historical or current facts, that address
activities, events, outcomes and other matters that we plan,
expect, intend, assume, believe, budget, predict, forecast,
project, estimate or anticipate (and other similar expressions)
will, should or may occur in the future are forward-looking
statements. These forward-looking statements are based on
management’s current belief, based on currently available
information, as to the outcome and timing of future events. The
Company cautions that its future natural gas and liquids
production, revenues, cash flows, liquidity, plans for future
operations, expenses, outlook for oil and natural gas prices,
timing of capital expenditures and other forward-looking statements
are subject to all of the risks and uncertainties, many of which
are beyond our control, incident to the exploration for and
development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price
volatility, domestic and worldwide economic conditions, the
availability of capital on economic terms to fund our capital
expenditures and acquisitions, our level of indebtedness, the
impact of the current economic recession on our business
operations, financial condition and ability to raise capital,
declines in the value of our oil and gas properties resulting in a
decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the
uncertainty inherent in estimating proved oil and gas reserves and
in projecting future rates of production and timing of development
expenditures, drilling and other operating risks, lack of
availability of goods and services, regulatory and environmental
risks associated with drilling and production activities, the
adverse effects of changes in applicable tax, environmental and
other regulatory legislation, and other risks and uncertainties are
described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update
or revise any forward-looking statements.
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