A. Lee Graham
Athlon Energy Inc. of Fort Worth has promoted two executives and acquired more Midland Basin acreage as the Fort Worth firm reports record production.
The company’s average daily production volume for second quarter 2014 reached a record high of 21,901 barrels of oil equivalent per day compared to 11,183 in the same period last year, a 96 percent increase. Second quarter production was comprised of 61 percent oil, 21 percent natural gas liquids, and 18 pecent natural gas.
Total revenues surged 109 percent to $136.5 million in second quarter 2014 compared to $65.2 million in the same period last year.
Meanwhile, company executives Bud Holmes and Jennifer Palko have been promoted to senior vice president-operations and senior vice president–corporate development, respectively.
“Our impressive results are driven by extraordinary talent, and I am proud to recognize this today with these two exceptional individuals that have been with the company since the beginning and have been fundamental to Athlon’s success,” said chairman, president and CEO Bob Reeves in a news release.
In other business, the company has entered into definitive agreements with several unrelated third-party sellers to acquire certain producing properties and undeveloped acreage for an aggregate purchase price of $382 million in cash. The properties are primarly on the western side of the northern Midland Basin in Midland and Martin counties and the remaining in Glasscock County, with all acreage adjacent to the company’s existing operating areas.
The company plans to fund the acquisitions using cash-on-hand and borrowings under its revolving credit facility and expects to close by the end of third quarter 2014.
Athlon said it expects its previously announced 2014 capital budget to remain unchanged, with drilling expenditures estimated at about $700 million and an additional $25 million for leasing, infrastructure, capital workovers, and capitalized interest.
Including in the newly announced acquisitions, Athlon said it expects daily production for the full-year 2014 to average between 24,500 to 25,000 barrrels of oil equivalent per day, representing growth exceeding 100 percent over full-year 2013. For the third quarter 2014, the company expects average daily production to range from 26,500 to 27,500 barrels of oil equivalent per day, or about 110 percent growth over third quarter 2013.
Athlon Energy is an independent exploration and production company that acquires and develops unconventional oil and liquids-rich natural gas reserves in the Permian Basin. More information is available at www.athlonenergy.com