Exploration & Production | Service & Supply | Forecast - Production
New Source Energy Edits 2015 Guidance Outlook
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New Source Energy Partners L.P. reported that the Board of Directors of its General Partner has declared a cash distribution of $0.20 per unit on all common units, or $0.80 on an annualized basis. The distribution will be paid on February 13, 2015 to all unit holders of record on February 2, 2015.
Kristian Kos, Chairman and Chief Executive Officer of the Partnership said: "The management team along with the Board of Directors determined that a reduction to the quarterly cash distribution was prudent based on the current and projected commodity pricing environment for 2015. We believe setting distributions at this level positions us to provide an appropriate and consistent return to our unitholders, while opportunistically growing our business and strengthening our financial position at the same time."
2015 Guidance
The Partnership is revising its 2015 guidance in response to the lower commodity prices and the anticipated impact on drilling plans for our oil and gas properties as well as our customers’ drilling plans in the oilfield services business. The Oilfield Services Division’s guidance reflects a decrease in revenue based on expected decreases in oil and natural gas producers’ drilling activity. The Exploration and Production Division’s guidance reflects lower average daily production based on drilling plans being curtailed due to the low commodity price environment. Additionally, as a non-operating working interest owner, we are subject to the higher operating fees and increased production costs from our contract operator.
Kos added: "While we have reduced our guidance for revenue for our Oilfield Services Division, I believe our quality of service, customer relationships and record of safety help to differentiate us from other oilfield service providers. We are fortunate to have a strong customer base that consists of premier oil and gas producers. We are working with these customers to manage the challenging pricing environment in an effort to gain market share in the areas in which we operate."