Montage Resources reports record fourth quarter revenues

By Patrick C. Miller | March 19, 2019

Montage Resources—an exploration and production company focused on the Utica and Marcellus shale plays—achieved record revenues of $171.2 million during the fourth quarter of 2018.

Based in Irving, Texas, the company’s assets include about 227,000 net effective undeveloped acres in southeast Ohio, West Virginia and north central Pennsylvania. Montage resources was formed through a combination of Eclipse Resources and Blue Ridge Mountain Resources.

The fourth quarter represented a 64 percent increase over the fourth quarter of 2017, which set a new company record of $80.7 million in earnings adjusted for interest, taxes, depreciation and amortization. Capital expenditures for 2018 were reduced by 20 percent while meeting the $250 million target.

“These achievements highlight the strength of the portfolio of assets, the demonstration of the business model to generate positive free cash flow and the ability to drive value for shareholders,” said John Reinhart, Montage Resources president and CEO.”

The company drilled nine gross (5.7 net) operated wells, began completions on six gross (3.1 net) operated wells and turned to sales on three gross (0.8 net) operated Utica Shale wells. The average natural gas price during the quarter was $3.59 per thousand cubic feet. The average oil price was $53.10 per barrel and the average price of natural gas liquids was $22.40 per barrel. Montage’s average net daily production was 404.5 MMcfe per day, consisting of 72 percent natural gas and 28 percent liquids.

“The industry is clearly faced with a new set of operational and financial expectations and as we move through 2019 we will execute on the plan we have created that mirrors our five strategic priorities and commitment to generating organic free cash flow, while still moderately growing our production base,” Reinhart said.

“Decreasing our cycle times while continuing to build scale will allow the company to enhance its operating margins, lower its cost of capital, be well positioned in terms of base production and significantly improve its cost structure,” Reinhart added. “We are looking forward to the continued integration of the teams and the potential opportunities this business model can provide.”