Lonestar Resources expecting higher production in Q2
Texas-based Lonestar Resources reported May 11 that first quarter production from regional shale basins was down nearly 30%, but new wells could help reverse that loss.
Sub-freezing temperatures from a weather phenomenon dubbed Winter Storm Uri idled large segments of the US energy sector along the Gulf Coast in February. Lonestar reported production in Q1 averaged 10,377 barrels of oil equivalent (boe)/d, a 29% decrease from year-ago levels.
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About half of its total Q1 production was in crude oil, with the rest split more or less evenly between natural gas and natural gas liquids. The company said it expected higher volumes for the second quarter due to new well activity in the Hawkeye segment of the Eagle Ford shale basin in Texas.
Production volumes for Q2 are expected to range between 11,500 and 12,000 boe/d, with the mix similar to Q1.
Lonestar Resources reported last month that it ended 2020 with more than 70mn boe in proven reserves, all in the Eagle Ford basin.
The company exited a bankruptcy in November after eight months, eliminating some $390mn in aggregate debt obligations. It still had net debt of $239mn during the three months ending March 31.
For Q1, Lonestar took a net loss of $6.3mn, compared to a net loss of $113mn in Q1 2020. Net cash flow during Q1 was $7mn, which the company said it would use in part to pay down its debt.