In a release on
-Earnings for the first quarter of fiscal 2014 of
-Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") for the first quarter of fiscal 2014 were
-The Company is reiterating its previous fiscal 2014 production guidance range of 145 to 165 Bcfe. This represents a 20 percent to 37 percent increase over fiscal 2013 production.
-The Company is revising its GAAP earnings guidance range for fiscal 2014 to a range of
-A conference call is scheduled for
"Seneca Resources delivered significant growth, increasing production 51 percent compared to the prior year's first quarter and 12 percent compared to the fourth quarter of last year. Notwithstanding Seneca's tremendous operating performance, ongoing volatility in natural gas prices in the Appalachian region dampened Seneca's financial results. Since these regional pricing issues are expected to persist for the next few years, Seneca and our midstream subsidiaries continue to evaluate long-term solutions to help deliver natural gas to markets with more stable pricing that correlates more closely with long-term
"Our Utility employees remained focused on safe and reliable service during a winter that has been much colder than recent years, and our midstream subsidiaries have easily handled the increased throughput resulting from our ongoing pipeline capacity expansion. Combined with Seneca's substantial production growth, fiscal 2014 is off to a strong start."
Seneca's activities during the first quarter were primarily focused on multi-well pads in DCNR Tract 100 in
Recently, Seneca brought 6 new wells on line in Tract 100 with 24- hour peak production rates that averaged 15.6 million cubic feet ("MMcf") per day per well. These wells, which were spud in early fiscal 2013, had an average lateral length of 4,872 feet. Each well was completed using a reduced cluster spacing ("RCS") design, averaging 32 stages per well with an average of 10 stages completed per day. The estimated capital cost to drill and complete each of these wells averaged
Today, Seneca has two horizontal drilling rigs operating in the WDA, with one currently located on a 6-well development pad in the
National Fuel had consolidated earnings for the quarter ended
The following discussion of the earnings of each segment is summarized in a tabular form at pages 8 and 9 of this report. It may be helpful to refer to those tables while reviewing this discussion.
The Exploration and Production segment operations are carried out by
The Exploration and Production segment's earnings in the first quarter of fiscal 2014 of
Overall production of natural gas and crude oil for the current quarter of 37.1 Bcfe increased approximately 12.6 Bcfe, or 51.4 percent, compared to the prior year's first quarter. Production from Seneca's Appalachia properties increased approximately 64.4 percent and accounted for the entire 12.6 Bcfe increase, largely because of Seneca's strong well results in
Lower commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended
On a per unit basis, depletion decreased
The Pipeline and Storage segment's operations are carried out by
The Pipeline and Storage segment's earnings of
The Gathering segment's operations are carried out by
The Gathering segment's earnings of
The Utility segment operations are carried out by
The Utility segment's earnings of
The Energy Marketing segment's earnings for the quarter ended
The Corporate and All Other category primarily includes corporate operations. The category also includes the remaining operations of Seneca's Northeast division that markets hardwoods from Appalachian land holdings.
The Corporate and All Other category earnings of
The Company is revising its GAAP earnings guidance range for fiscal 2014 to a range of
National Fuel is an integrated energy company with
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In a release on