Penn Virginia Corp. (NYSE: PVA) detailed its 2014 financial guidance and its full-year 2013 financial results on Feb. 19.
This year’s projected capex budget is between $575- $640 million, the company said, noting that the percent increase over 2013 is between 13% and 25%. The capex budget is over its preliminary guidance range of $510-$540 million, the company added.
Higher drilling and completion capex costs—a $40-$45 million increase—drove the 2014 capex budget out of the preliminary guidance range, the company added. Additional, higher capex costs of $16-$44 million in lease acquisitions and $9-$11 million capex costs for midstream also drove the 2014 capex out of preliminary guidance range, the company said.
For the year, drilling and completion capex costs should be $510-$540 million, a 22%-29% increase over 2013’s costs, the company said. Lease acquisition capex costs should be $40-$70 million, a 30% decrease from 2013’s costs, the company added.
Additionally, 2014 production guidance was issued. For the year, 77% of estimated total production should come from Eagle Ford operations, the company said. The year’s crude oil production should increase 38% over 2013’s—9.1-9.8 million barrels of oil equivalent (MBOE/d), the company noted.
Unhedged product revenues should range from $587 million to $630 million, a 36%-46% increase over 2013’s, the company said.
Penn Virginia has hedged part of its oil and gas production. Crude oil barrels have been hedged at $93.55 per barrel, at 10,000 barrels a day, the company said. Natural gas has been hedged at $4.17 per million British thermal units (MMBtu), at 12,500 MMBtu a day, the company added.
Penn Virginia Corp., based in Radnor, Pa., explores, develops and produces oil, natural gas and natural gas liquids throughout the U.S.
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