Eclipse Resources Wraps Up Private Placement

Eclipse Resources Corporation has closed the Company’s previously announced private placement of 62,500,000 shares of common stock.

The shares were sold to selected institutional and accredited investors, including affiliates of EnCap Investments L.P. and entities controlled by members of the Company’s management team, at a price of $7.04 per share. The Company expects to receive net proceeds from the private placement of approximately $434 million (after deducting placement agent commissions and the Company’s estimated expenses) and intends to use the net proceeds to fund the Company’s capital expenditure plan and for general corporate purposes.

Commenting on the capital raise, Benjamin Hulburt, President and CEO said, "The proceeds raised in this capital raise will enable us to maintain a lower leverage balance sheet, making us essentially net debt free as of the closing of the offering, which I believe sets us apart from many of our peers. However, even with our significantly enhanced liquidity, we intend to tightly control capital spending as we navigate through this challenging environment. We expect to continue to manage our drilling and completion activities to preserve liquidity this year, rather than attempt to maximize our production growth given the low commodity prices. We are working closely with all of our service providers to reduce drilling and completion costs, have begun deferring completion activities on several of our well pads in the liquids portion of our acreage and are revising our expectations for non-operated drilling and completion activities based on our discussions with partners. I expect to provide a further update to our capital expenditure plan for the year during our year end conference call to be conducted in early March."