Quarterly / Earnings Reports | Third Quarter (3Q) Update | Financial Results | Capital Markets | Drilling Activity

Endeavor Energy Resources Grew Production 19% Q/Q

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   |    Thursday,November 07,2019

Endeavor Energy Resources, LP reported its Q3 2019 results.

Highlights:

• Average daily net production of approximately 133.6 MBoe per day (73% oil) during the three months endedSeptember 30, 2019 (“3Q19”), a 19% increase over the three months ended June 30, 2019 and an 86% increase from the three months ended September 30, 2018 (“3Q18”).
• Placed on production 40 gross operated horizontal wells in 3Q19, achieving an average 30-day IP rate of over 1,157 Boepd (79% oil).
• Lease operating expense per Boe decreased to $7.63, a 29% decrease as compared to the same period in the prior year.
• Improved cycle times across the Midland Basin. Spud-to-rig release cycle time decreased by 21% and number of stages completed per day improved by 22% in 3Q19, in each case, as compared to 3Q18.

Operational Update

3Q19 total net production was 12.3 MMBoe, an 85% increase from 6.6 MMBoe in 3Q18. Lease operating expense per Boe decreased by 29% to $7.63 per Boe in 3Q19 compared to $10.69 per Boe in 3Q18.

During 3Q19, the Company spudded 62 and placed on production 40 gross operated horizontal wells. Endeavor’s working interest in operated horizontal wells placed on production was approximately 96%, with an average completed lateral length of approximately 9,841 feet.

Wells placed on production in 3Q19 were among the best to date, achieving an average 30-day IP rate of over 1,157 Boepd (79% oil).

Drilling & Completion Activity

• Rig Activity : 10 Rigs
• Wells Drilled : Spudded 62 Wells
• Frac Crews : 4 Frac Crews
• Wells Placed on Production : 40 gross operated horizontal

Capital Investment Efficiency

During the first nine months of 2019, the Company materially improved drilling, completion and equipment (“DC&E”) costs per foot. DC&E costs averaged $800 per foot, representing an 18% reduction from the full-year 2018 average.

Due to accelerating development optimization and efficiency gains in terms of drilling and completions cadence, along with favorable service costs price environment and company-level capital returns profile, Endeavor has added an additional completion crew and a horizontal drilling rig starting September 2019. As of November 7, 2019, the Company is operating 10 horizontal drilling rigs and has 4 dedicated frac crews.