Montage Resources Corp. Announces Execution of a Renegotiated Gas Gathering Agreement & Updates its 2020 & 2021 Hedging Portf...
16 Marzo 2020 - 2:03PM
Business Wire
Montage Resources Corporation (NYSE:MR) (the “Company” or
“Montage Resources”) today is pleased to announce it has entered
into a new consolidated gas gathering agreement and has added
downside protection to natural gas prices in 2020 and 2021 through
incremental hedges recently executed.
Gas Gathering Agreement
The Company has recently completed the renegotiation of
significant existing gas gathering contracts with a midstream
partner into a single new consolidated gas gathering agreement in
order to enhance its already peer-leading cash operating
margins.
Consolidated Gas Gathering Agreement Highlights:
- Ensures a dedicated gatherer for the Company’s valuable
Marcellus Ohio development with a significantly improved fee
structure relative to the prior agreements for all existing and
future development
- Delivers gas gathering and compression fee reductions relative
to the prior agreements, with an estimated undiscounted gross cost
savings over the life of the new contact (assuming the Company’s
continues its current one-rig development program) of approximately
$200 million
- Provides incremental flexibility to Montage by reducing the
near-term minimum volume obligations below their prior levels while
providing our midstream partner additional certainty on a per-unit
basis for any unutilized throughput capacity
- Eliminates Montage’s potential obligation for incremental
capital costs for future pipeline or related facilities
construction on its Marcellus Ohio and Utica Dry development
Hedge Portfolio
- The Company has increased its 2020 natural gas hedges and now
has approximately 64% of its projected natural gas production in
2020 hedged with an average floor price of approximately $2.63 per
MMbtu
- The Company has increased its 2021 natural gas hedges by an
average of 75,000 MMbtu per day with an average floor price of
approximately $2.54
John Reinhart, President and CEO, commented on the Company’s gas
gathering agreement, “I am extremely pleased to announce the
successful outcome of this new consolidated gas gathering agreement
that further enhances the Company’s peer leading cash operating
margins and demonstrates our ability to continue to deliver on a
contractual cost structure that increases flexibility and positions
the Company to improve returns as well as shareholder value. We are
happy to continue our partnership with one of the premier midstream
providers in the region and believe this agreement contributes
value to both parties. In addition, we are continuing to act
opportunistically in the current commodity price environment and
tactically add additional downside protection to our cash flows by
actively managing our hedge book.”
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, and prospects, and 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,” “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 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; 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.
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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200316005785/en/
Montage Resources Corporation Douglas Kris, Investor Relations
469-444-1736 dkris@mresources.com
Montage Resources (NYSE:MR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Montage Resources (NYSE:MR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024