Montage Resources Corporation (NYSE:MR) (the “Company” or
“Montage Resources”) today announced that the lenders in its
revolving credit facility have completed the Company’s fall
borrowing base redetermination and unanimously approved a 25%
increase in the Company’s borrowing base and provided increased
commitments from $400 million to $500 million. In addition, the
Company has expanded the lending group from 13 to 15 members, which
represents a diverse group of financial institutions. With this
$100 million increase, the Company’s liquidity, pro forma for the
borrowing base redetermination, would have been approximately $353
million as of the end of the second quarter 2019.
John Reinhart, President and CEO, commented, “The results of our
optimized development program and the significant efficiency gains
we have achieved have outpaced our expectations and provided the
Company a meaningful increase in proved reserves during the first
half of 2019. We appreciate the support of the member banks in our
revolving credit facility who have reviewed our results and
substantially increased our borrowing base. In addition, the
Company has been able to take advantage of recent market conditions
and incrementally add to its hedge portfolio. The Company remains
highly focused on keeping our leverage low, maintaining our strong
balance sheet and generating free cash flow by the end of 2019. Our
near-term outlook remains unchanged and our one operated rig
program continues to reflect our forecasted level of activity in
the current commodity price environment. We believe the Company’s
operational flexibility, limited midstream and downstream
commitments and the value of our high-quality assets continue to
differentiate Montage Resources from its peers and the $100 million
of incremental pro forma liquidity from our revolving credit
facility further enhances our already strong financial
position.”
About Montage Resources
Montage Resources is an exploration and production company with
approximately 218,000 net effective 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, regarding Montage 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,” ”should,” “could,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “continue,”
“position,” “potential,” “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 filed with the Securities and
Exchange Commission on March 15, 2019 (the “2018 Annual Report”),
in “Item 1A. Risk Factors” of Montage Resources’ Quarterly Reports
on Form 10-Q 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 Montage 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 commercial agreements;
marketing of natural gas, NGLs and oil; leasehold and business
acquisitions; 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. Forward-looking
statements also may include statements relating to the combination
with Blue Ridge, including statements regarding integration and
transition plans, synergies, cost savings, opportunities,
anticipated future performance, benefits of the transaction and its
impact on Montage Resources’ business, operations, assets, results
of operations, liquidity, and financial position, and any
statements of assumptions underlying any of the foregoing.
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, legal and environmental
risks, drilling and other operating risks, 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, the timing of development
expenditures, and the other risks described under the heading “Risk
Factors” in the 2018 Annual Report, in “Item 1A. Risk Factors” of
Montage Resources’ Quarterly Reports on Form 10-Q and in Montage
Resources’ other filings and reports with the Securities and
Exchange Commission. In addition, forward-looking statements are
subject to risks and uncertainties related to the combination with
Blue Ridge, including, without limitation, failure to realize or
delays in realizing expected synergies or other benefits of the
transaction, difficulties in integrating the combined operations,
disruption of management time from ongoing business operations due
to the transaction, adverse effects on the ability of Montage
Resources to retain and hire key personnel and maintain
relationships with suppliers and customers, negative effects of
consummation of the transaction on the market price of the
Company’s common stock, transaction costs, unknown liabilities or
unanticipated expenses.
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/20190923005742/en/
Montage Resources Corporation Douglas Kris, Investor Relations
814-325-2059 dkris@mresources.com
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