Jones Ventures INTL Acquisition1 Corp Class A Ordinary Shares (JONE)
Jones Energy, Inc. Schedules 2016 Second Quarter Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its second quarter 2016 financial and operational results on Wednesday, August 3, 2016 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, August 4, 2016 at 11:00 a.m. ET (10:00 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 43750203. If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Announces 2016 First Quarter Financial and Operating Results, Resumes Cleveland Drilling Program, and Provides Updated 2016 Guidance
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced financial and operating results for the quarter ended March 31, 2016 as well as a resumption of its Cleveland drilling program, and provided updated 2016 production and capital expenditure guidance. Highlights Average daily net production for the first quarter 2016 of 20.4 MBoe/d, with oil production of 5.3 MBbl/d, both above the top end of guidance EBITDAX for the first quarter 2016 of $51.1 million and net income of $48.5 million Adjusted net loss for the first quarter 2016 of $3.5 million, or ($0.03) per share Repurchased an additional $20.3 million in face value of senior notes for $11.2 million (55% of par), resulting in total repurchases year-to-date of $190.9 million in face value of senior notes for $84.8 million (44% of par) Year-to-date debt repurchases expected to result in approximately $13 million in annual interest savings and approximately $90 million in interest savings over the life of the bonds Resuming Cleveland drilling program with $2.03 million AFE; expect to have 3 rigs running in June 2016 Updating 2016 production and capex guidance; expect to spend $100 million in capex for 16.8 to 18.7 MBoe/d in production, resulting in an approximately 10% increase in 2016 production guidance Locked in $47 million in gains associated with 2018 and 2019 hedges and added hedges as a result of the drilling program resumption; mark-to-market hedge value of $173 million incorporating strip pricing as of April 29, 2016 Jonny Jones, the Company’s Founder, Chairman, and CEO, commented, “Our decision to put rigs back to work in the Cleveland is supported by compelling after-tax returns, which have resulted from our increased type curve, the additional cost savings our team has achieved, and higher commodity prices. Managing our balance sheet is paramount, and we expect our credit metrics to improve with our resumption of drilling and the additional debt buybacks we were able to complete. We expect to generate positive free cash flow in 2016 under our updated capital and operating plan. In addition, our resumed drilling program is expected to reverse production declines in 2016 and puts the Company in a position to deliver production growth in 2017.” Mr. Jones went on to say, “We deployed our first Cleveland rig at the beginning of April and expect to have a total of three Cleveland rigs in the field in June.” Financial Results Total operating revenues for the three months ended March 31, 2016 were $25.9 million as compared to $58.1 million for the three months ended March 31, 2015. Total revenues including current period settlements of matured derivative contracts were $68.5 million for the three months ended March 31, 2016 as compared to $94.5 million for the three months ended March 31, 2015. The decrease was due to lower commodity prices and production, partially offset by higher current period settlements of matured derivative contracts. Total operating expenses for the three months ended March 31, 2016 were $59.9 million as compared to $79.9 million for the three months ended March 31, 2015. Total operating expenses decreased primarily due to lower depreciation, depletion, and amortization expense, lease operating expense, and production and ad valorem tax expense. In addition, the Company had $3.0 million in standby rig costs included in other operating expenses in the first quarter of 2015 that did not recur in the first quarter of 2016. For the three months ended March 31, 2016, the Company reported an adjusted net loss of $3.5 million as compared to adjusted net income of $3.0 million for the three months ended March 31, 2015. The decrease was primarily due to lower commodity prices and lower production, which was partially offset by a decrease in operating expenses. Operational Results Cleveland The Company paused its drilling program in the Fall of 2015 and did not spud any wells in the first quarter of 2016. The Company resumed drilling with one Cleveland rig in April 2016 and plans to have three Cleveland rigs running in June 2016. Daily net production in the Cleveland was 14.9 MBoe/d in the first quarter of 2016 as compared to 17.7 MBoe/d in the fourth quarter of 2015 and 19.0 MBoe/d in the first quarter of 2015. Capital Expenditures During the first quarter of 2016, the Company spent $6.0 million on capital expenditures. Revised 2016 Capital Budget and Operating Plan The Company has updated its 2016 capital budget and now expects to spend $100 million in 2016, resulting in projected average production of between 16.8 MBoe/d and 18.7 MBoe/d. Second quarter 2016 production is projected to be between 17.3 MBoe/d and 18.3 MBoe/d. Our updated capital plan incorporates our current Cleveland AFE of $2.03 million and our plan to spud at least 40 gross wells in 2016 with an average working interest of approximately 80%. We expect our updated plan to result in the decline rate of our average production for the fourth quarter of 2016 compared to the fourth quarter of 2015 being cut in half when compared to our previous plan, which did not incorporate a drilling program. A table has been provided below with full-year and second quarter 2016 guidance by category: 2016 Updated Guidance *Production and ad valorem taxes are included as one line item on the Company’s Consolidated Statements of Operations. Liquidity and Hedging In April 2016, through several open market purchases, the Company repurchased an aggregate principal amount of $20.3 million of its 6.75% senior unsecured notes due 2022 for $11.2 million, or 55% of par, excluding accrued interest and including any associated fees. Year-to-date, the Company has repurchased $90.9 million principal amount of its 6.75% senior unsecured notes due 2022 for $38.3 million, and $100.0 million principal amount of its 9.25% senior unsecured notes due 2023 for $46.5 million, in each case excluding accrued interest and including any associated fees. The Company used cash on hand and borrowings from its revolver to fund the note repurchases completed this year. As a result of these repurchases, as of April 29, 2016, the Company had aggregate principal amount of senior unsecured notes outstanding of $559.1 million, outstanding borrowings under its revolving credit facility of $185.0 million, $325.0 million undrawn on its revolving credit facility, and approximately $34.3 million in cash. The Company is still in the process of completing the spring redetermination of its senior secured credit facility and expects the resulting borrowing base to be approximately $400 million. In March 2016, the Company entered into offsetting hedge transactions in respect of all of its 2018 and 2019 hedges, which resulted in a locked-in gain of $47 million. In addition, with the resumption of a Cleveland drilling program, the Company has begun adding hedges in 2016 and 2017. The estimated mark-to-market value of the Company’s commodity price hedges was $173 million incorporating strip pricing as of April 29, 2016. The following table summarizes the Company’s commodity derivative contracts outstanding: 20162 Oil, Natural Gas and NGL Swaps Weighted Average Prices 12018 and 2019 hedges have been offset and are therefore not shown as part of the Company’s net hedge position. 22016 hedges shown for the remaining three quarters of the year. Conference Call Details Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, May 5, 2016 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 83871791. If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com. Forward-Looking Statements This press 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 facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including guidance regarding the redeployment of rigs, the revised 2016 capital budget, the cost to drill and complete wells and the resultant impact on the revised 2016 capital budget, the ability to fund the Company’s revised 2016 capital expenditure budget largely with free cash flow, the Company’s hedging program with respect to the redeployment of rigs, the Company’s expectations regarding the results of the borrowing base redetermination under its senior secured credit facility, and projections regarding total production, average daily production, percentage liquids, operating expenses, production and ad valorem taxes as a percentage of revenue, cash G&A expenses and capital expenditure levels for 2016. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current economic and market conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing and amount of planned capital expenditures, availability of acquisitions and divestitures, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company’s ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company’s business and other important factors that could cause actual results to differ materially from those projected as described in the Company’s reports filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Consolidated Statement of Operations (Unaudited) Consolidated Balance Sheet (Unaudited) Consolidated Statement of Cash Flow Data (Unaudited) Jones Energy, Inc. Jones Energy, Inc. EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define EBITDAX as earnings before interest expense, income taxes, depreciation, depletion and amortization, exploration expense, gains and losses from derivatives less the current period settlements of matured derivative contracts, and the other items described below. EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles, or GAAP. Management believes EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. EBITDAX has limitations as an analytical tool and should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our liquidity. Certain items excluded from EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historical costs of depreciable assets. Our presentation of EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items and should not be viewed as a substitute for GAAP. Our computations of EBITDAX may not be comparable to other similarly titled measures of other companies. The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to EBITDAX for the periods indicated: Jones Energy, Inc. Adjusted Net Income is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements. We define Adjusted Net Income as net income excluding the impact of certain non-cash items including gains or losses on commodity derivative instruments not yet settled, impairment of oil and gas properties, non-cash compensation expense, and the other items described below. We believe adjusted net income and adjusted earnings per share are useful to investors because they provide readers with a more meaningful measure of our profitability before recording certain items for which the timing or amount cannot be reasonably determined. However, these measures are provided in addition to, not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP. The following table provides a reconciliation of net income (loss) as determined in accordance with GAAP to adjusted net income for the periods indicated: (1) In arriving at adjusted net income, the tax impact of the adjustments to net income is determined by applying the appropriate tax rate to each adjustment and then allocating the tax impact between the controlling and non-controlling interests. Jones Energy, Inc. Adjusted Earnings per Share is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements. We define Adjusted Earnings per Share as earnings per share plus that portion of the components of adjusted net income allocated to the controlling interests divided by weighted average shares outstanding. We believe adjusted earnings per share is useful to investors because it provides readers with a more meaningful measure of our profitability before recording certain items for which the timing or amount cannot be reasonably determined. However, these measures are provided in addition to, not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP. The following table provides a reconciliation of earnings per share to adjusted earnings per share for the period indicated: (1) In arriving at adjusted net income, the tax impact of the adjustments to net income is determined by applying the appropriate tax rate to each adjustment and then allocating the tax impact between the controlling and non-controlling interests.
Jones Energy, Inc. to Present at IPAA’s OGIS New York and Schedules 2016 First Quarter Earnings Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) announced today that the Company will participate in IPAA’s OGIS New York. Jonny Jones, Founder, Chairman, and CEO will present at the conference on Monday, April 11, 2016 at 11:40 a.m. ET. The presentation and webcast for the conference will be posted to the Company’s website at www.jonesenergy.com in the Investor Relations section. The Company also announced that it plans to release its first quarter financial and operational results on Wednesday, May 4, 2016 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, May 5, 2016 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 83871791. If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Schedules 2015 Fourth Quarter and Full-Year Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its fourth quarter and full-year 2015 financial and operational results on Monday, March 7, 2016 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Tuesday, March 8, 2016 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 31543671. If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Schedules 2015 Third Quarter Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its third quarter financial and operational results on Wednesday, November 4, 2015 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, November 5, 2015 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 51264543. If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Schedules 2015 Second Quarter Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its second quarter financial and operational results on Wednesday, August 5, 2015 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, August 6, 2015 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 77863314. If you are not able to participate in the conference call, an audio replay will be available through August 13, 2015, by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International) and entering conference code 77863314. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Announces 2015 First Quarter Financial and Operating Results
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced financial and operating results for the quarter ended March 31, 2015. For the quarter ended March 31, 2015, the Company reported net income of $5.7 million, adjusted net income of $2.9 million, and EBITDAX of $71.2 million. 2015 First Quarter Highlights Average daily net production for the quarter was 26.4 MBoe/d (above the top end of guidance); oil production in the first quarter of 2015 was 8.4 MBoe/d, up 27% from the fourth quarter of 2014 Cleveland daily net production for the quarter was 19.0 MBoe/d, up 11% from the fourth quarter of 2014; oil composed 41% of the total average daily volume Spud twelve 33 stage open-hole wells to date, eleven of which have been completed and are either flowing back or producing; production results consistent with expectations Achieved targeted 30% cost savings that reduced the Cleveland 33 stage open-hole AFE from $3.8 million to $2.65 million two months ahead of plan Achieved new company records for spud to rig release of 13.7 days and one day lateral length drilled of over 1,900 feet Reaffirmed borrowing base for senior secured revolving credit facility at $562.5 million Jonny Jones, the Company’s Founder, Chairman and CEO, commented, “I am excited about our first quarter results, which reflect the success of our intense focus on managing costs and executing our plan for the year. We continue to drive down costs and as a result, well level returns have reached the threshold that supports our planned increase in activity from three to five rigs. Our return to open-hole completions has eliminated the sand flowback issues we were facing last year and is helping to reduce cycle times. In fact, we were able to achieve new company records for both spud to rig release and lateral length drilled in a single day in the first quarter. The spud to rig release record was almost two full days faster than our previous best, and this is in a formation where we have drilled more than 500 horizontal wells over a ten year period.” Mr. Jones went on to say, “I am very proud of what our team has accomplished thus far in 2015. We are likely one of the few companies that will be adding rigs in the middle of the year and we are doing so with a cash flow neutral program. As we add rigs, we will continue to hedge production in order to lock in our favorable margins. “Our capital raise during the first quarter has positioned us to take advantage of the many opportunities we are starting to see in the market. Our borrowing base was reaffirmed at $562.5 million in April and could have been increased. First quarter capex was spot on compared to our expectations and has us on track to meet or beat our annual guidance. Looking forward, we will continue to exploit any additional efficiencies that the current environment presents in order to maximize the return to our shareholders. Over the past six months, the oil and gas industry has faced significant headwinds, but this is the type of environment where we have thrived in the past and should allow us to differentiate ourselves. As we’ve seen before, environments like these often present excellent growth opportunities to those who are prepared.” Financial Results Total operating revenues for the three months ended March 31, 2015 were $58.1 million as compared to $98.2 million for the three months ended March 31, 2014. The decrease was due to lower commodity prices, which was somewhat offset by higher production. Total operating expenses for the three months ended March 31, 2015 were $79.9 million as compared to $64.2 million for the three months ended March 31, 2014. The increase was primarily due to increased production which resulted in higher lease operating and depletion, depreciation, and amortization expenses. The Company also incurred certain non-recurring charges which were included in other operating expenses. Adjusted net income for the three months ended March 31, 2015 was $2.9 million as compared to $17.6 million for the three months ended March 31, 2014. The decrease was primarily due to lower average realized prices for all commodities and an increase in operating expenses, which more than offset higher production volumes. Operational Results Cleveland All of the Company’s first quarter development activity was focused on the Cleveland. During the first quarter, the Company spud 14 wells and completed 27 wells, with a total of 34 wells seeing first production during the quarter. As of March 31, 2015, four wells were in various stages of completion, and the Company had three rigs running. Daily net production in the Cleveland was 19.0 MBoe/d in the first quarter of 2015, up 11% from the fourth quarter of 2014 and up 22% from the first quarter of 2014, despite running only three rigs for the majority of the quarter. Cleveland oil production for the first quarter of 2015 increased by 25% compared to the fourth quarter of 2014. The increase in oil production was a result of reducing the backlog of drilled but uncompleted wells from the fourth quarter of 2014 along with a significant reduction in overall cycle times. The last of the sliding sleeve wells drilled in 2014 and carried into the year were completed during January 2015 and future activity is expected to utilize the open-hole well design. To date, the Company has spud twelve 33 stage open-hole wells, eleven of which have been completed and are either flowing back or producing. Importantly, the production results for the 33 stage wells are consistent with the projected type curve, which was derived from the 64 wells drilled as part of the Company’s 2013 and 2014 completion optimization work. The current estimated cost of a 33 stage well is below $2.65 million, reflecting a 30% decrease from the December 2014 estimate for the same well. The Company’s goal at the outset of 2015 was to reach this cost target by mid-year and it has been achieved two months early. The Company is also seeing efficiency improvements as shifting back to open-hole completions has resulted in a 50% improvement in average spud to sales times since October 2014. In March 2015, the Company set a new all-time record for spud to rig release of just 13.7 days, achieving this record in a play where the Company has drilled more than 500 horizontal wells. Capital Expenditures During the first quarter of 2015, the Company spent $82.6 million, of which $76.1 million was related to drilling and completing wells, representing 92% of total capital expenditures in the quarter. These figures are consistent with the Company’s expectations for the quarter and the level of capital spending is expected to drop significantly in the second quarter. This reduction in drilling and completion activity during the second quarter along with expected lower costs per well should result in greatly reduced spending across the remainder of 2015. The Company expects the $127 million of projected capital spend for the remainder of this year to be relatively evenly distributed throughout the remaining three quarters of the year. Liquidity and Hedging During the first quarter, the Company completed three capital market transactions: a private placement of $250 million of 9.25% senior unsecured notes due 2023, a registered direct offering of $50 million of common stock, and a public offering of common stock which raised nearly $77 million in gross proceeds. Total net proceeds of approximately $355 million were used to pay down the balance of the Company’s credit facility. On April 17, 2015, the Company’s borrowing base on its senior secured revolving credit facility was reaffirmed at $562.5 million. The Company’s lead administrative agent had approved a borrowing base increase to $610 million. However, the Company elected to maintain its $562.5 million borrowing base given its substantial liquidity position. As of March 31, 2015, the Company had an undrawn credit facility balance of $472.5 million and approximately $28 million in cash. During the first quarter and into the second quarter of 2015, the Company has continued to add to its hedge position. The Company has hedged 85% of its estimated oil and natural gas production through 2016 at approximately $85 per barrel and $4.50 per Mcf. A large portion of the Company’s estimated 2015 natural gas liquids production is hedged as well. The Company also has oil and natural gas hedges in place for 2017, 2018, and the first quarter of 2019, although at less significant volume levels. A table providing the latest summary hedge positions is shown below. Oil, Natural Gas and NGL Swaps Weighted Average Prices 1 2015 hedges shown for remaining three quarters of the year. 2 2019 hedges apply to the first quarter. Guidance The Company is providing guidance for the second quarter and affirming guidance for the full year 2015 as follows: Conference Call Details Jones Energy will host a conference call for investors and analysts to discuss its results for the first quarter on Thursday, May 7, 2015 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 28365989. If you are not able to participate in the conference call, an audio replay will be available through May 14, 2015, by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International) and entering conference code 28365989. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com. Forward-Looking Statements This press 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 facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including guidance regarding the timing and location of our anticipated drilling and completion activity, our ability and the ability of other companies to add rigs in the middle of the year, our ability to take advantage of additional cost efficiencies, our ability to reduce spending in connection with a reduction in drilling and completion activity, results of our 33 stage open-hole completion technique in the Cleveland formation including projected uplifts in oil production, our ability to mitigate commodity price risk through our hedging program, and our ability to successfully execute our 2015 development plan and guidance for the second quarter and full year 2015. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil, natural gas liquids, and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, customers’ elections to reject ethane and include it as part of the natural gas stream for the remainder of 2015, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company’s business and other important factors that could cause actual results to differ materially from those projected as described in the Company’s reports filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Consolidated Statements of Operations (Unaudited) 2014 Consolidated Balance Sheets (Unaudited) Restricted cash 3,374 244,363 Oil and gas properties, net, at cost under the successful efforts method 1,994,849 26,756 1,141,499 1,994,849 Consolidated Statements of Cash Flows (Unaudited) 2014 Adjustments to reconcile net income to net cash provided by operating activities Jones Energy, Inc. The following table sets forth summary data regarding production volumes, average prices and average production costs associated with our sale of oil and natural gas for the periods indicated: Jones Energy, Inc. EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define EBITDAX as earnings before interest expense, income taxes, depreciation, depletion and amortization, exploration expense, gains and losses from derivatives less the current period settlements of matured derivative contracts and the other items described below, however, we may modify our definition of EBITDAX in the future. EBITDAX is not a measure of net income as determined by United States generally accepted accounting principles, or GAAP. Management believes EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. EBITDAX has limitations as an analytical tool and should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our liquidity. Certain items excluded from EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historical costs of depreciable assets. Our presentation of EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of EBITDAX may not be comparable to other similarly titled measures of other companies. The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to EBITDAX for the periods indicated: Reconciliation of EBITDAX to net income Jones Energy, Inc. Adjusted Net Income is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements. We define Adjusted Net Income as net income excluding the impact of certain non-cash items - including gains or losses on commodity derivative instruments not yet settled, impairment of oil and gas properties, and non-cash compensation expense - and certain unusual or non-recurring items. We believe adjusted net income is useful to investors because it provides readers with a more meaningful measure of our profitability before recording certain items for which the timing or amount cannot be reasonably determined. However, this measure is provided in addition to, not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP. Our computations of adjusted net income may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of net income (loss) as determined in accordance with GAAP to adjusted net income for the periods indicated: Current period settlements of matured derivative contracts (1) In arriving at adjusted net income, the tax impact of the adjustments to net income is determined by applying the appropriate tax rate to each adjustment and then allocating the tax impact between the controlling and non-controlling interests.
Jones Energy, Inc. to Present at IPAA’s OGIS New York and Schedules 2015 First Quarter Earnings Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) announced today that the Company will participate in IPAA’s OGIS New York. Jonny Jones, Founder, Chairman, and CEO, will present at the conference on Monday, April 20, 2015 at 10:00 a.m. ET. The presentation for the conference will be posted to the Company’s website at www.jonesenergy.com in the Investor Relations section. The Company also announced that it plans to release its first quarter financial and operational results on Wednesday, May 6, 2015 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, May 7, 2015 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 28365989. If you are not able to participate in the conference call, an audio replay will be available through May 14, 2015, by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International) and entering conference code 28365989. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Schedules 2014 Fourth Quarter and Full-Year Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its fourth quarter and full-year financial and operational results on Wednesday, March 4, 2015 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Thursday, March 5, 2015 at 3:00 p.m. ET (2:00 p.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 92843469. If you are not able to participate in the conference call, an audio replay will be available through March 12, 2015, by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International) and entering conference code 92843469. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Provides 2014 Year-End Reserves, Operations Update, and 2015 Guidance
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today provided its 2014 year-end reserves, an operations update, and 2015 capital budget plan and guidance. Highlights Proved reserves increased 29.4% from year-end 2013 to 115.3 MMBoe at year-end 2014 based on SEC pricing1; proved oil reserves increased 65.9% to 27.7 MMBbls Cleveland proved reserves increased 44.3% from year-end 2013 to 83.0 MMBoe PV-10 value of proved reserves increased 47.6% to a record $1.5 billion at SEC prices1 2015 capital budget of $210 million; Cleveland development comprises more than 90% of all activity Three rigs running in the Cleveland as of January 31, 2015 with additional rigs on stand-by; expect to ramp activity to 5 rigs by mid-year pending lower drilling and completion costs Cleveland well costs have decreased from the December 2014 AFE of $3.8 million to $3.1 million per well as of January 2015; additional cost reductions expected January production is projected between 25,500 and 26,500 Boe/d (new company record) 2015 full-year production guidance of 21,700 to 23,700 Boe/d; first quarter 2015 production guidance of 24,000 to 25,000 Boe/d Jones Energy Founder, Chairman, and CEO, Jonny Jones stated, “Our efforts during 2014 have resulted in strong proved reserve growth, particularly in our Cleveland play, and we are now prepared to capitalize on the oil uplift achieved due to our very strong hedging program. As we enter 2015, over 90% of our projected oil and gas production for the year is hedged at very attractive prices, which has allowed us to reduce our drilling activity while commodity prices and service costs realign. We find ourselves in the enviable position of being prepared to ramp activity when well-level returns improve, without needing to drill ahead just to meet contract obligations. We have been able to drive down our drilling and completion cost for Cleveland wells by nearly 20% in a very short amount of time and we expect that there is still plenty of room to improve upon those expected savings. Ultimately, we believe that Jones Energy is well prepared to weather the current commodity downturn and to emerge in excellent shape.” 1 SEC prices for 2014 year-end proved reserves were $94.99 per barrel for oil and $4.35 per MMBtu for natural gas based on the average of such prices for 2014. 2014 Year-End Proved Reserves Jones Energy’s year-end 2014 proved reserves based on SEC pricing and definitions increased 29.4% from year-end 2013 to 115.3 MMBoe, of which 52.2% were classified as proved developed (PDP) reserves. Total proved oil reserves were up 65.9% when compared to year-end 2013, with PDP oil reserves up 56.2%. The SEC PV-102 value of proved reserves for year-end 2014 was approximately $1.5 billion with a corresponding standardized measure3 value of approximately $1.4 billion. The following tables set forth the Company’s total proved reserves and the changes in the Company’s total proved reserves. These estimates are based on reports prepared by Cawley, Gillespie & Associates, Inc., independent petroleum engineers. Year-end proved reserves were determined utilizing an average 2014 WTI oil price of $94.99 per barrel and an average 2014 Henry Hub spot market natural gas price of $4.35 per MMBtu. Production4 2 SEC PV-10 is a non-GAAP financial measure.3 Standardized measure is calculated in accordance with Statement of Financial Accounting Standards No. 69 Disclosures about Oil and Gas Producing Properties, as codified in ASC topic 932, Extractive Activities – Oil and Gas.4 Full year 2014 production figures are estimates pending final audit results by the company’s outside auditor As of December 31, 2014 the Company had identified 2,765 gross drilling locations. These include 704 gross drilling locations in the Cleveland play and 777 gross locations in the Arkoma Woodford shale. 2015 Capital Budget and Operating Plan The Company has established a capital budget of $210 million for 2015, with approximately $190 million dedicated to Cleveland drilling and completion activity and the remainder allocated to capital work-overs and field maintenance projects. This budget represents a nearly 60% reduction in capital expenditures from 2014 and provides for a development program which keeps capital spending within expected cash flow. The Company will continue at its current 3 rig pace during the first portion of the year, and assuming targeted additional cost reductions for drilling and completions are achieved, will deploy 2 additional rigs to the Cleveland to reach a 5 rig pace by mid-year. As of January, the Company’s average estimated cost to drill and complete a Cleveland well with its 33 stage open-hole design had been reduced to $3.1 million, a $700,000 reduction from the $3.8 million estimate provided during December 2014. The Company continues to actively negotiate with its various service providers and expects that additional cost savings can be attained. Operations Update Production Update for the Fourth Quarter of 2014 The Company produced an estimated 2.1 MMBoe (23,200 – 23,400 Boe/d) in the fourth quarter of 2014 and 8.5 MMBoe (approximately 23,200 Boe/d) for the full year. Oil volumes comprised 28% of production for the fourth quarter and 29% for the full year. NGL volumes accounted for 29% of the fourth quarter production and 28% of the full year volumes. During the fourth quarter, liquids accounted for 57% of total production. Fourth quarter production was negatively impacted by continued delays in well completions and sand flow back issues. In addition, December production was impacted by more than 1,000 Boe per day due to field production issues, including an outage at a third party processing facility. These production issues were resolved in January 2015, and as a result, the Company achieved record single day wellhead production reaching over 29,000 Boe/d. Production for January is projected to be between 25,500 and 26,500 Boe/d. The significant jump in average daily production between December 2014 and January 2015 was primarily attributable to closing the timing gap between drilled wells and completed wells. Revenues and EBITDAX for the Fourth Quarter of 2014 The Company estimates revenues for the fourth quarter of 2014 of between $74.1 million and $79.1 million based upon internally projected production figures and estimated realized commodity prices. The Company estimates EBITDAX for the fourth quarter of 2014 of between $70 million and $75 million. 2015 Guidance Based upon the current 2015 capital budget and operating plan, we are projecting 2015 average daily production of between 21,700 and 23,700 Boe/d. Production is expected to peak during the first quarter and eventually flatten out during the second half of the year. Assuming targeted cost reductions are achieved and additional rigs are deployed, capital spending is expected to be $210 million for the full year. First quarter capital expenditures are expected to be higher than the rest of the year, much like production, due to carry-over activity from late 2014, primarily well completions. For 2015, the company expects to drill between 60 and 70 gross wells with an average working interest of approximately 80%. Due to carry-over of drilled but uncompleted wells from 2014, the Company expects to complete between 70 and 80 wells during 2015, also with an average working interest of approximately 80%. A table has been provided below with full year and first quarter 2015 guidance by category: 2015 Guidance Risk Management The Company has provided updated hedge positions. The estimated mark-to-market value of our hedges was $208.5 million as of December 31st, 2014. The following table summarizes the Company’s commodity derivative contracts outstanding: Oil, Natural Gas and NGL Swaps Weighted Average Prices - Operations Update, Proved Reserves and Capital Budget Conference Call In connection with this press release, Jones Energy will host a conference call for investors and analysts to discuss the information provided on Wednesday, February 11, 2015, at 11:30 a.m. ET (10:30 a.m. CT). Participants may join the conference call by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 84798577. If you are not able to participate in the conference call, an audio replay will be available through February 18, 2015, by dialing (855) 859-2056 for domestic U.S., or (404) 537-3406 for international participants, and entering conference code 84798577. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com. Forward-Looking Statements This press 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 facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including guidance regarding the timing and location of additional rigs, results of the Company's drilling program, the 2015 capital budget, the projected drilling and completion cost savings and the resultant impact on 2015 capital budget, the ability to fund the Company’s 2015 capital expenditure budget largely with free cash, projections regarding total production, average daily production, percentage liquids, operating expenses, production taxes as a percentage of revenue, G&A expenses and capital expenditure levels for 2015. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing and amount of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Information Concerning Proved Reserves Proved reserves volumes and related PV-10 values as of December 31, 2014 contained herein are based on SEC mandated first-day-of-the-month unweighted average prices for 2014 and costs as of December 31, 2014. These prices and costs are not representative of current market values and do not fully reflect declines in such prices and costs which have occurred since mid-year 2014. PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. The Company expects to release its December 31, 2014 Standardized Measure with year-end earnings results. Neither PV-10 nor Standardized Measure represents an estimate of the fair market value of our oil and natural gas properties. The oil and gas industry uses PV-10 as a measure to compare the relative size and value of proved reserves held by companies without regard to the specific tax characteristics of such entities.
Jones Energy, Inc. Schedules 2014 Third Quarter Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its third quarter financial and operational results on Wednesday, November 5, 2014 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results for the quarter on Thursday, November 6, 2014 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 21669762. A telephonic replay will be available approximately two hours after the call on November 6, 2014 through Thursday, November 13, 2014. Participants may access this replay by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International) and entering conference code 21669762. A replay of the conference call may also be found on the Company’s website. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Provides Mid-Year Update on Leasing Program and Schedules 2014 Second Quarter Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today provided an update on the Company’s 2014 leasing program. To date in 2014, the Company has secured new leases totaling just over 10,000 net acres, primarily in the Texas panhandle. The acquired acreage will yield approximately 78 net drilling locations in the Cleveland formation alone, more than replacing the total number of budgeted Cleveland wells for the full year 2014. The Company expects that many of the leases acquired will be prospective for other formations in addition to the Cleveland. As of mid-year, the Company has spent approximately half of the budgeted leasing dollars for 2014 and continues to actively seek additional leases across the basin. Jonny Jones, Chairman and CEO of Jones Energy, stated, “We have been very successful in expanding our acreage position within the Anadarko basin during the first half of the year through our leasing efforts. Our ability to replace all of the budgeted Cleveland drilling locations for 2014 at such attractive lease rates should provide significant value for our shareholders. We are excited about the prospect of continued inventory growth during the second half of this year.” Jones Energy today also announced that it plans to release its second quarter financial and operational results on Wednesday, August 6, 2014 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results for the quarter on Thursday, August 7, 2014 at 10:00 a.m. ET (9:00 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 70194786. A telephonic replay will be available approximately two hours after the call on August 7, 2014 through Thursday, August 14, 2014. Participants may access this replay by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International), and entering conference code 70194786. A replay of the conference call may also be found on the Company’s website. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Jones Energy, Inc. Schedules First Quarter 2014 Earnings Release and Conference Call
AUSTIN, Texas--(BUSINESS WIRE)--Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today announced that it plans to release its first quarter financial and operational results on Wednesday, May 7, 2014 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results for the quarter on Thursday, May 8, 2014 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 32991686. A telephonic replay will be available approximately two hours after the call on May 8, 2014 through Thursday, May 15, 2014. Participants may access this replay by dialing (855) 859-2056 (for domestic U.S.) or (404) 537-3406 (International), and entering conference code 32991686. A replay of the conference call may also be found on the Company’s website. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
CORRECTING and REPLACING Jones Energy, Inc. Provides 2013 Year End Reserves, Operations Update, and 2014 Guidance
AUSTIN, Texas--(BUSINESS WIRE)--Please replace the release with the following corrected version which presents proved reserves by category consistent with prior presentations. The corrected release reads: JONES ENERGY, INC. PROVIDES 2013 YEAR END RESERVES, OPERATIONS UPDATE, AND 2014 GUIDANCE Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) today provided its 2013 year-end reserves, an operations and risk management update, and 2014 guidance. Highlights Cleveland proved reserves increased 42% from year-end 2012 to 57.5 MMBoe; additions replaced production by 558% (307% through the drill-bit) Total proved reserves increased 23% from year-end 2012 excluding the expiration of the Southridge JDA Fourth quarter 2013 production increased to a record 1.7 MMBoe (approximately 18,200 Boe/d) despite impact of severe weather and other operations factors; full year 2013 production of 6.2 MMBoe (approximately 17,000 Boe/d) within previously announced guidance range Company has completed 20 test wells using an enhanced frack design and will be monitoring production results over next two quarters prior to making a capital commitment decision; 2014 guidance is based on historical open-hole completion technique with average Cleveland AFE to remain at a best-in-class $3.1 million 2014 production guidance of 22,000 – 23,000 Boe/d resulting in over 30% production growth compared to 2013 10 rigs currently running in core operating areas (8 in the Cleveland and 2 in the Woodford) 2013 Year-End Proved Reserves and Wells Drilled Jones Energy’s year-end 2013 estimated proved reserves increased 4% from year-end 2012 to 89.0 MMBoe, of which 56% were classified as proved developed reserves. Excluding the 15.5 MMBoe reduction in proved undeveloped reserves resulting from the expiration of the Southridge joint development agreement (JDA), proved reserves increased 23% from year-end 2012, and increased 42% in our core Cleveland area. Oil and NGLs (total liquids) increased to 56% of our proved reserve base. Additionally, proved developed reserves increased by 27% to 49.5 MMBoe. The following tables set forth the Company’s total proved reserves and the changes in the Company’s total proved reserves. These estimates are based on reports prepared by Cawley, Gillespie & Associates, Inc., independent petroleum engineers. Year-end proved reserves were determined utilizing an average 2013 WTI oil price of $96.78 per barrel and an average 2013 Henry Hub spot market natural gas price of $3.67 per MMBtu. 130.2 19.6 57.5 62.3 22.0 1.3 5.3 30.8 (1) Includes 15.5 MMBoe associated with the expiration of the Company’s JDA with Southridge in the Woodford. Excluding non-operated wells, the Company spud a total of 86 gross wells in 2013 and completed 63 gross wells before year-end. As of December 31, 2013, the Company had 22 gross wells in various stages of completion and 10 gross wells drilling. The following table provides a summary of the Company’s 2013 operated drilling and completion activity: Various Stages of Completion Operations Update Production Update for the Fourth Quarter of 2013 The Company produced 1.7 MMBoe (approximately 18,200 Boe/d) in the fourth quarter of 2013 and 6.2 MMBoe (approximately 17,000 Boe/d) for calendar year 2013, which was within its guidance range for the year of 6.1 – 6.5 MMBoe (16,600-17,900 Boe/d). The percentage of total production composed of liquids for both the fourth quarter and full year 2013 was 53%. Fourth quarter results were negatively impacted by severe winter weather and frack impacts, including production delays tied to a new completion design tested in the Cleveland formation beginning in late 2013. Winter weather continued to impact production early in the first quarter of 2014, however, all operations have returned to normal and all drilling rigs are currently operating as expected. Update on Completion Techniques in the Cleveland Jones Energy has completed 20 test wells in the Cleveland using a new completion technique, which has an average of 20 stages (3 clusters/stage resulting in approximately 70 foot spacing between clusters) compared to the prior design of 20 stages (210 foot spacing). The new technique uses a cased-hole design as compared to an open-hole completion in the prior design. The average cost per well of the new design is approximately $4.0 million, compared to $3.1 million using the historical design. All of the 20 wells in the first phase of the test program have been completed and are currently producing hydrocarbons. Of the 14 wells with 30 or more days of production, 12 have produced at or above historical type curve. Over the next two quarters, the Company will monitor production data on the test wells and undertake additional optimization techniques, prior to making a decision on whether the level of production is significant enough to justify the incremental capital investment per well, and which design to utilize going forward. In the interim, Jones Energy will be employing its traditional open-hole completion technique in the Cleveland, which is the basis for its guidance for the balance of 2014. Going forward, the Company expects its average Cleveland AFE to remain at a best-in-class $3.1 million, which we expect will allow us to continue to generate compelling rates of return in our core play. 2014 Guidance Jones Energy is projecting 2014 average daily production of 22,000 – 23,000 Boe/d, which would result in over 30% production growth compared to 2013. We plan to invest approximately $350 million in total capital expenditures in 2014, including approximately $310 million for drilling and completion, and $40 million for leasing, workovers and efficiency projects. The Company’s drilling and completion capital expenditures will be largely funded from operating cash flow. In order to generate growth above its base plan, Jones expects to begin a three well test in the Tonkawa formation in the second quarter of 2014. The Company has also substantially increased its budget and expectations for leasehold acquisition within its core Panhandle operating area, which is prospective for the Cleveland, Tonkawa and other formations. In addition, we are also conducting frack optimization tests in the Woodford, involving more frack stages (16 – 20 vs. current 10 – 14 stages) with the objective of further improving overall economics in this play. The Company is currently running 10 rigs in its core operating areas (8 rigs in the Cleveland and 2 rigs in the Woodford), however, based on a success case for the Tonkawa drilling or Woodford frack tests, we expect to deploy 2 additional rigs in the second half of 2014. Total Production (MMBoe) (1) Average Daily Production (Boe/d) (1) % Oil and Natural Gas Liquids: (1) (1) Company is in ethane rejection in the Woodford. Projections assume ethane rejection continues throughout 2014.(2) Excluding non-cash compensation expense. Risk Management The Company executed new hedges in conjunction with its acquisition of assets from Sabine in December 2013. The following table summarizes the Company’s commodity derivative contracts outstanding as of December 31, 2013: Oil, Natural Gas and NGL Swaps Weighted Average Prices 91.12 89.27 87.49 84.92 0.24 0.27 0.21 Fourth Quarter 2013 Earnings Release and Conference Call Jones Energy plans to release its fourth quarter financial and operating results on Wednesday, March 12, 2014, after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss the results for the quarter on Thursday, March 13, 2014, at 10:00 a.m. ET (9:00 a.m. CT). Participants may join the conference call by dialing (877) 201-0168 (for domestic U.S.) or (647) 788-4901 (International) and entering conference code 58814078. If you are not able to participate in the conference call, an audio replay will be available through April 13, 2014, by dialing (855) 859-2056 for domestic U.S., or (404) 537-3406 for international participants, and entering conference code 58814078. A replay of the conference call may also be found on the Company’s website, www.jonesenergy.com. About Jones Energy Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com. Forward-Looking Statements This press 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 facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including guidance regarding the timing and location of additional rigs, results of the Company's drilling program, 2014 capital budget, ability to fund the Company’s 2014 capital expenditure budget largely with cash flow from operations, customers’ elections to reject ethane and include it as part of the natural gas stream for the remainder of 2014, projections regarding total production, average daily production, percentage liquids, operating expenses, production taxes as a percentage of revenue, G&A expenses and capital expenditure levels for 2014. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.