HOUSTON, Aug. 2, 2017 /PRNewswire/ -- EP Energy
Corporation (NYSE:EPE) today reported second quarter 2017 financial
and operational results.
Second quarter 2017 Highlights
- 48.9 thousand barrels of oil production per day
(MBbls/d)—above 2Q'16 and 1Q'17
- $3 million net loss /
$179 million Adjusted EBITDAX
- Reduced adjusted cash operating costs compared to 2Q'16 and
1Q'17 and lowered unit cash operating costs guidance
- Maintained 2017 oil production volume guidance while lowering
expected completion activities and capital expenditures
- Executed open-market debt repurchases of $157MM in June and
July at an average price of 75 percent of face value
- Maintained liquidity of $1.1
billion
- Reaffirmed Reserve-Based Loan facility (RBL Facility) borrowing
base at $1.44 billion and extended
covenant relief through 1Q'19
- Completed Altamont drilling joint venture
"Due to our strong operational performance in the quarter and
year to date, we are maintaining our full year oil production
guidance while lowering expected completion activities and
capital," said Brent Smolik,
chairman, president and chief executive officer of EP Energy
Corporation. "We improved capital efficiencies in all of our asset
programs which helped offset cost inflation and reduce the
maintenance capital levels needed to sustain production. In
the Permian Basin, we increased activities in our Wolfcamp program
in the quarter and expect to further increase activities and
production in the second half of 2017 in that basin. During
the quarter, we also entered into a new drilling joint venture in
our Altamont program which increases capital efficiency and project
returns. In June and July, we repurchased $157 million of high coupon debt at a discount
and we remain focused on improving our financial position."
EP Energy reported a $(0.01)
diluted net loss per share and a $(0.10) adjusted loss per share for the second
quarter of 2017. Reported net loss was $3 million for the second quarter of 2017, down
from $62 million net income in the
second quarter of 2016. Adjusted EBITDAX for the second
quarter of 2017 was $179 million,
down from $256 million in the second
quarter of 2016 due primarily to lower hedge settlements and lower
gas volumes from the sale of the Haynesville gas asset in
May 2016, partially offset by higher
realized pricing on physical sales and lower operating costs in
2017.
Operating expenses for the second quarter of 2017 were
$235 million, up from $127 million in the second quarter of 2016, or
$30.46 per barrel of oil equivalent
(Boe) for the second quarter of 2017 versus $16.47 per Boe in the second quarter of
2016. The second quarter of 2016 included an $82 million (or $10.77 per Boe) gain from the sale of the
company's Haynesville gas assets. Adjusted cash operating
costs were $103 million for the
second quarter of 2017, down from $106
million in the second quarter of 2016. For the second
quarter of 2017, adjusted cash operating costs per unit were
$13.42 per Boe, down from
$13.85 per Boe for the second quarter
of 2016 due primarily to lower general and administrative costs,
lower third party commodity purchases and higher production
volumes.
Total capital expenditures in the second quarter of 2017 were
$128 million. In the second quarter
of 2017, the company completed 35 wells compared to 15 wells in the
second quarter of 2016. Average daily oil production was 48.9
MBbls/d, up 8 percent from 45.1 MBbls/d in the second quarter of
2016, and up 4 percent from the first quarter of 2017. Oil
production has grown each quarter since the third quarter of
2016. Total equivalent production was 84.9 thousand barrels
of oil equivalent per day (MBoe/d), up from 84.5 MBoe/d in the same
period last year, which included 6.3 MBoe/d from the Haynesville
assets sold in May 2016.
Note: See Disclosure of Non-GAAP Financial Measures section
of this release for applicable definitions and reconciliations to
GAAP terms.
Liquidity and Liability Management
EP Energy continued to make progress improving its financial
position and flexibility.
The company executed open-market repurchases of $56 million in June and an additional
$101 million in July. In total,
the $157 million of repurchases
($125 million of Notes maturing in
2020 and $32 million of Notes
maturing in 2023) were completed for $118 million in cash or a price of 75 percent of
face value. The company expects to reduce annualized interest
expense by approximately $10 million
as a result of these repurchases.
As previously announced, the company successfully completed its
semi-annual borrowing base redetermination for its RBL Facility in
April. The value was affirmed at $1.44
billion, and the company extended its 1st Lien debt to
EBITDAX ratio covenant through the end of the first quarter of 2019
and reduced the ratio from 3.5x to 3.0x. As of June 30, 2017, the company's 1st Lien debt to
EBITDAX ratio was approximately 0.5x.
EP Energy continues to prioritize balance sheet improvements and
maintaining a strong liquidity position. The company ended
the quarter with $4.0 billion of debt
and $1.1 billion of liquidity,
essentially flat to year end 2016.
Eagle Ford Program
In the second quarter of 2017, EP Energy completed 9 wells in
its Eagle Ford program and produced 26.4 MBbls/d of oil, a 3
percent decrease compared with the second quarter of 2016. However,
volumes were up 10 percent from the first quarter of 2017. Total
equivalent production for the second quarter of 2017 was 41.5
MBoe/d.
In the quarter, the company improved operational efficiencies
and reduced base production decline rates with a continued focus on
base production optimization.
EP Energy currently has one drilling rig in Eagle Ford and
remains focused on continuing to improve program returns and
operational efficiencies while running one drilling rig for the
remainder of 2017.
Wolfcamp Program
EP Energy continued to grow activity in its Wolfcamp
program. In the second quarter of 2017, the company completed
21 gross wells (10.5 net wells) and produced 9.9 MBbls/d of oil, a
46 percent increase compared with the second quarter of 2016.
Total equivalent production for the second quarter of 2017 was 25.4
MBoe/d.
Production volumes were down compared to the first quarter of
2017 due to a higher percentage of 50 percent joint venture wells,
the impact of higher royalties from higher oil prices and timing of
well completions within the quarter.
EP Energy currently has two drilling rigs in Wolfcamp and
expects to increase well completions and production in the second
half of the year while maintaining two drilling rigs for the
remainder of 2017.
Altamont Program
In the second quarter of 2017, EP Energy completed 5 gross wells
(3 net wells) in its Altamont program and produced 12.6 MBbls/d of
oil, a 15 percent increase compared with second quarter of 2016.
Total equivalent production for the second quarter of 2017 was 18.0
MBoe/d, up 16 percent from the second quarter of 2016.
In the second quarter of 2017, realized pricing for Altamont
production volumes was 95 percent of WTI as a result of improved
contract terms and local market conditions as compared to 89
percent of WTI in the same period in 2016.
EP Energy has two drilling rigs in Altamont and continues to
benefit from its successful recompletion program. During the
second quarter, the company entered into a new 60 well drilling
joint venture program which increased program returns. For the
second half of 2017, the company expects to run two joint venture
drilling rigs and continue its recompletion program.
Multi-year Commodity Hedge Program
EP Energy maintains a solid hedge program which provides
continued commodity price protection. In the second quarter of
2017, the company realized $31
million of settlements on its financial derivatives.
During the second quarter, the company enhanced its price
protection by adding 2018 oil hedges and 2019 natural gas
hedges. A summary of the company's current open hedge
positions including its most recent transactions is listed
below:
|
|
2017
|
|
2018
|
|
2019
|
|
Total Fixed Price
Hedges
|
|
|
|
|
|
|
|
Oil volumes
(MMBbls)(1)
|
|
5.0
|
|
|
8.9
|
|
|
—
|
|
|
Average floor price
($/Bbl)
|
|
$
|
60.34
|
|
|
$
|
60.00
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Natural Gas volumes
(TBtu)
|
|
17.5
|
|
|
25.6
|
|
|
7.3
|
|
|
Average floor price
($/MMBtu)
|
|
$
|
3.28
|
|
|
$
|
3.04
|
|
|
$
|
2.97
|
|
|
|
Note: Positions
are as of August 1, 2017 (Contract months: July 2017 -
Forward).
(1) 2017 positions include WTI three way
collars of 4.5 MMBbls and 2018 positions include WTI three way
collars of 8.9 MMBbls
|
At June 30, 2017, the
mark-to-market value of the company's hedge contracts was
approximately $114 million.
2017 Outlook
In its updated 2017 outlook, EP Energy expects to maintain its
previous full year oil production guidance while lowering
completion activities and capital expenditures. The company
also improved its outlook for unit cash operating costs in 2017 as
a result of increased operational efficiencies.
The table below summarizes the company's current operational and
financial guidance for 2017 compared with previously announced
guidance ranges.
|
|
Previous
Guidance
|
|
Current
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil production
(MBbls/d)
|
|
45 – 49
|
|
46 – 48
|
|
Total production
(MBoe/d)
|
|
75 – 82
|
|
80 – 85
|
|
|
|
|
|
|
|
Oil & Gas capital
($ million)1
|
|
|
|
|
|
Wolfcamp
|
|
$245 –
$325
|
|
$250 –
$300
|
|
Eagle Ford
|
|
$260 –
$270
|
|
~$200
|
|
Altamont
|
|
$125 –
$135
|
|
~$100
|
|
Total capital program
($ million)
|
|
$630 –
$730
|
|
$550 –
$600
|
|
|
|
|
|
|
|
Gross well
completions
|
|
|
|
|
|
Wolfcamp2
|
|
90 – 105
|
|
80 – 100
|
|
Eagle Ford
|
|
~60
|
|
~50
|
|
Altamont3
|
|
~25
|
|
~30
|
|
Total
|
|
175 – 190
|
|
160 – 180
|
|
|
|
|
|
|
|
GAAP general and
administration expense ($/Boe)
|
|
$3.95 –
$4.35
|
|
$3.35 –
$3.50
|
|
|
|
|
|
|
|
Lease operating
expense ($/Boe)
|
|
$5.85 –
$6.35
|
|
$5.50 –
$5.85
|
|
Adjusted general and
administration expense ($/Boe)
|
|
$3.15 –
$3.40
|
|
$2.90 –
$3.00
|
|
Transportation and
commodity purchases ($/Boe)
|
|
$3.90 –
$4.50
|
|
$3.85 –
$4.25
|
|
Taxes, other than
income ($/Boe)4
|
|
$2.70 –
$2.85
|
|
$2.10 –
$2.25
|
|
|
|
|
|
|
|
DD&A
($/Boe)
|
|
$16 – $17
|
|
$16 – $17
|
|
|
1 Includes
20 - 25 percent non-drill capital
|
2 Includes
completions which are within the DrillCo joint venture with 40
percent of total well costs to EP Energy
|
3 Includes
completions which are within the drilling joint ventures in the
Altamont program
|
4
Severance taxes estimates are based off of current strip
prices
|
Detailed financial and operational information for the company
will be posted at www.epenergy.com in the Investor Center
section.
Webcast Information
EP Energy has scheduled a webcast at 10:00 a.m. Eastern Time, 9:00 a.m. Central
Time, on August 3, 2017, to discuss
its second quarter financial and operational results. The
webcast may be accessed online through the company's website at
epenergy.com in the Investor Center. Materials to be
discussed during the webcast will be available in the Investor
Center one hour prior to the webcast. A limited number of
telephone lines will be available to participants by dialing
888-317-6003 (conference ID# 5555441) 10 minutes prior to the start
of the webcast. A replay of the webcast will be available
through September 3, 2017 on
the company's website in the Investor Center or by dialing
877-344-7529 (conference ID# 10110091).
About EP Energy
The EP Energy team has a passion for finding and producing the
oil and natural gas that enriches people's lives. EP Energy
has a proven strategy, a significant reserve base, multi-year
drilling opportunities, and a strategic presence in a number of the
country's leading unconventional resource areas in North America. EP Energy is active in key
phases of the E&P value chain—acquiring, developing and
producing oil and natural gas. For more information about EP
Energy, visit epenergy.com.
Disclosure of Non-GAAP Financial Measures
The Securities and Exchange Commission's Regulation G applies to
any public disclosure or release of material information that
includes a non-GAAP financial measure. In the event of such a
disclosure or release, Regulation G requires (i) the
presentation of the most directly comparable financial measure
calculated and presented in accordance with GAAP and (ii) a
reconciliation of the differences between the non-GAAP financial
measure presented and the most directly comparable financial
measure calculated and presented in accordance with GAAP.
Non-GAAP Terms
Adjusted EPS is defined as diluted earnings per share adjusted
for certain items that EP Energy considers to be significant to
understanding our underlying performance for a given period.
Adjusted EPS is useful in analyzing the company's ongoing earnings
potential and understanding certain significant items impacting the
comparability of EP Energy's results. Adjusted EPS is
calculated as net income (loss) per common share adjusted for the
impact of financial derivatives (mark-to-market effects of
financial derivatives, net of cash settlements and cash premiums
related to these derivatives), gains and losses on extinguishment
of debt, impairment charges, and other costs that affect
comparability, including transition and severance costs and changes
in the valuation allowance on deferred tax assets.
Below is a reconciliation of consolidated diluted net loss per
share to Adjusted EPS:
|
|
Quarter ended June
30, 2017
|
|
|
Pre
Tax
|
|
After
Tax
|
|
Diluted
EPS(1)
|
|
|
($ in millions,
except earnings per share amounts)
|
Net loss
|
|
|
|
$
|
(3)
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
Adjustments(2)
|
|
|
|
|
|
|
Impact of financial
derivatives(3)
|
|
$
|
(14)
|
|
|
$
|
(9)
|
|
|
$
|
(0.04)
|
|
Gain on
extinguishment of debt
|
|
(13)
|
|
|
(8)
|
|
|
(0.04)
|
|
Impairment
charges
|
|
1
|
|
|
—
|
|
|
—
|
|
Valuation allowance
on deferred tax assets
|
|
|
|
(3)
|
|
|
(0.01)
|
|
Total
adjustments
|
|
$
|
(26)
|
|
|
$
|
(20)
|
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
|
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares
|
|
|
|
|
|
246
|
|
|
|
|
|
|
(1)
|
Diluted per share
amounts are based on actual amounts rather than the rounded totals
presented.
|
|
|
(2)
|
All individual
adjustments for all periods presented assume a statutory federal
and blended state tax rate, as well as any other income tax effects
specifically attributable to that item.
|
|
|
(3)
|
Represents
mark-to-market impact net of cash settlements and cash premiums
related to financial derivatives. There were no cash premiums
received or paid for the period presented.
|
EBITDAX is defined as net income (loss) plus interest and debt
expense, income taxes, depreciation, depletion and amortization and
exploration expense. Adjusted EBITDAX is defined as EBITDAX,
adjusted as applicable in the relevant period for the net change in
the fair value of derivatives (mark-to-market effects of financial
derivatives, net of cash settlements and cash premiums related to
these derivatives), the non-cash portion of compensation expense
(which represents non-cash compensation expense under our long-term
incentive programs adjusted for cash payments made under these
plans), transition, severance and other costs that affect
comparability, gains and losses on extinguishment of debt, gains
and/or losses on sale of assets and impairment charges.
Adjusted EBITDAX Per Unit is calculated using Adjusted EBITDAX
divided by equivalent volumes.
Below is a reconciliation of our consolidated net (loss) income
to EBITDAX and Adjusted EBITDAX:
|
Quarter
ended June 30,
|
|
2017
|
|
2016
|
|
($ in millions, except equivalent volumes
and per unit)
|
Net (loss)
income
|
$
|
(3)
|
|
|
$
|
62
|
|
Income tax
benefit
|
(5)
|
|
|
—
|
|
Interest
expense, net of capitalized interest
|
82
|
|
|
73
|
|
Depreciation,
depletion and amortization
|
124
|
|
|
97
|
|
Exploration
expense
|
1
|
|
|
1
|
|
EBITDAX
|
199
|
|
|
233
|
|
Mark-to-market
on financial derivatives(1)
|
(45)
|
|
|
105
|
|
Cash
settlements and cash premiums on financial
derivatives(2)
|
31
|
|
|
157
|
|
Non-cash
portion of compensation expense(3)
|
6
|
|
|
3
|
|
Transition,
severance and other costs(4)
|
—
|
|
|
2
|
|
Gain on sale
of assets
|
—
|
|
|
(82)
|
|
Gain on
extinguishment of debt
|
(13)
|
|
|
(162)
|
|
Impairment
charges
|
1
|
|
|
—
|
|
Adjusted
EBITDAX
|
$
|
179
|
|
|
$
|
256
|
|
|
|
|
|
Total
equivalent volumes (MBoe)
|
7,730
|
|
|
7,691
|
|
|
|
|
|
Adjusted
EBITDAX Per Unit (MBoe)(5)
|
$
|
23.19
|
|
|
$
|
33.27
|
|
|
|
|
|
|
(1)
|
Represents the income
statement impact of financial derivatives.
|
|
|
(2)
|
Represents actual
cash settlements related to financial derivatives. There were no
cash premiums received or paid for the periods
presented.
|
|
|
(3)
|
Non-cash portion of
compensation expense represents compensation expense (net of
forfeitures) under long-term incentive programs adjusted for cash
payments made under these plans.
|
|
|
(4)
|
Reflects transition
and severance costs related to workforce reductions.
|
|
|
(5)
|
Adjusted EBITDAX Per
Unit is based on actual total amounts rather than the rounded
totals presented.
|
Adjusted cash operating costs is a non-GAAP measure that is
defined as total operating expenses, excluding depreciation,
depletion and amortization expense, exploration expense, impairment
charges, gains and/or losses on sale of assets, the non-cash
portion of compensation expense (which represents compensation
expense under our long-term incentive programs adjusted for cash
payments made under these plans) and transition, severance and
other costs that affect comparability. We use this measure to
describe the costs required to directly or indirectly operate our
existing assets and produce and sell our oil and natural gas,
including the costs associated with the delivery and purchases and
sales of produced commodities. Accordingly, we exclude
depreciation, depletion, and amortization and impairment charges as
such costs are non-cash in nature. We exclude exploration expense
from our measure as it is substantially non-cash in nature and is
not related to the costs to operate our existing assets. Similarly,
gains and losses on the sale of assets are excluded as they are
unrelated to the operation of our assets. We exclude
the non-cash portion of compensation expense as well as transition,
severance and other costs that affect comparability, as we believe
such adjustments allow investors to evaluate our costs against
others in our industry and these items can vary across companies
due to different ownership structures, compensation objectives or
the occurrence of transactions.
Below is a reconciliation of our GAAP operating expenses to
non-GAAP adjusted cash operating costs:
|
|
Quarter ended June
30,
|
|
|
2017
|
|
2016
|
|
|
Total
|
|
Per-Unit(1)
|
|
Total
|
|
Per-Unit(1)
|
|
|
($ in millions,
except per unit costs)
|
Oil and natural gas
purchases
|
|
$
|
1
|
|
|
$
|
0.09
|
|
|
$
|
3
|
|
|
$
|
0.38
|
|
Transportation
costs
|
|
28
|
|
|
3.66
|
|
|
24
|
|
|
3.19
|
|
Lease operating
expense
|
|
39
|
|
|
5.07
|
|
|
38
|
|
|
4.93
|
|
General and
administrative
|
|
26
|
|
|
3.43
|
|
|
32
|
|
|
4.20
|
|
Depreciation,
depletion and amortization
|
|
124
|
|
|
15.99
|
|
|
97
|
|
|
12.67
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
(82)
|
|
|
(10.77)
|
|
Impairment
charges
|
|
1
|
|
|
0.05
|
|
|
—
|
|
|
—
|
|
Exploration and other
expense
|
|
1
|
|
|
0.20
|
|
|
1
|
|
|
0.12
|
|
Taxes, other than
income taxes
|
|
15
|
|
|
1.97
|
|
|
14
|
|
|
1.75
|
|
Total
operating expenses
|
|
$
|
235
|
|
|
$
|
30.46
|
|
|
$
|
127
|
|
|
$
|
16.47
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
$
|
(124)
|
|
|
$
|
(15.99)
|
|
|
$
|
(97)
|
|
|
$
|
(12.67)
|
|
Impairment
charges
|
|
(1)
|
|
|
(0.05)
|
|
|
—
|
|
|
—
|
|
Exploration
expense
|
|
(1)
|
|
|
(0.20)
|
|
|
(1)
|
|
|
(0.12)
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
82
|
|
|
10.77
|
|
Non-cash portion of
compensation expense(2)
|
|
(6)
|
|
|
(0.80)
|
|
|
(3)
|
|
|
(0.35)
|
|
Transition, severance
and other costs
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(0.25)
|
|
Adjusted cash
operating costs and per-unit adjusted
cash costs
|
|
$
|
103
|
|
|
$
|
13.42
|
|
|
$
|
106
|
|
|
$
|
13.85
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
equivalent volumes (MBoe)
|
|
|
|
7,730
|
|
|
|
|
7,691
|
|
|
|
|
|
|
(1)
|
Per unit costs are
based on actual total amounts rather than the rounded totals
presented.
|
|
|
(2)
|
These amounts are
reported in GAAP general and administrative expense and excluded
from adjusted general and administrative expense.
|
Adjusted general and administrative expenses are defined as
general and administrative expenses excluding the non-cash portion
of compensation expense which represents compensation expense under
our long-term incentive programs adjusted for cash payments under
these plans.
Below is a reconciliation of our GAAP general and administrative
expense to non-GAAP adjusted general and administrative
expense:
|
Previous
Guidance
|
|
Current
Guidance
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
($/Boe)
|
GAAP general and
administrative expense
|
$
|
3.95
|
|
|
$
|
4.35
|
|
|
$
|
3.35
|
|
|
$
|
3.50
|
|
Less non-cash
compensation expense
|
0.80
|
|
|
0.95
|
|
|
0.45
|
|
|
0.50
|
|
Adjusted general and
administrative expense
|
$
|
3.15
|
|
|
$
|
3.40
|
|
|
$
|
2.90
|
|
|
$
|
3.00
|
|
EBITDAX, Adjusted EBITDAX and Adjusted EBITDAX Per Unit are used
by management and we believe provide investors with additional
information (i) to evaluate our ability to service debt adjusting
for items required or permitted in calculating covenant compliance
under our debt agreements, (ii) to provide an important
supplemental indicator of the operational performance of our
business without regard to financing methods and capital structure,
(iii) for evaluating our performance relative to our peers,
(iv) to measure our liquidity (before cash capital
requirements and working capital needs) and (v) to
provide supplemental information about certain material
non-cash and/or other items that may not continue at the same level
in the future. Adjusted EPS is used by management and we believe is
a valuable measure of operating performance. Adjusted Cash
Operating Costs per unit is used by management as a performance
measure, and we believe provides investors valuable information
related to our operating performance and our operating efficiency
relative to other industry participants and comparatively over time
across our historical results. Adjusted general and administrative
expense is used by management and investors as additional
information. In addition, the company believes that these measures
are widely used by professional research analysts and others in the
valuation, comparison and investment recommendations of companies
in the oil and gas exploration and production industry.
Adjusted EPS, EBITDAX, Adjusted EBITDAX, Adjusted EBITDAX Per
Unit, Adjusted Cash Operating Costs, and Adjusted general and
administrative expense have limitations as analytical tools and
should not be considered in isolation or as a substitute for
analysis of our results as reported under U.S. GAAP. Adjusted
EPS should not be used as an alternative to earnings (loss) per
share or other measure of financial performance presented in
accordance with GAAP. EBITDAX, Adjusted EBITDAX, Adjusted EBITDAX
Per Unit should not be used as an alternative to net income (loss),
operating income (loss), operating cash flows or other measures of
financial performance or liquidity presented in accordance with
GAAP. Adjusted Cash Operating Costs should not be used as an
alternative to operating expenses, operating cash flows or other
measures of financial performance or liquidity presented in
accordance with GAAP. Adjusted general and administrative expense
should not be used as an alternative to GAAP general and
administrative expense. Our presentation of Adjusted EPS,
EBITDAX, Adjusted EBITDAX, Adjusted EBITDAX Per Unit, Adjusted Cash
Operating Costs, and Adjusted general and administrative expense
may not be comparable to similarly titled measures used by other
companies in our industry. Furthermore, our presentation of
Adjusted EPS, EBITDAX, Adjusted EBITDAX, Adjusted EBITDAX Per Unit,
Adjusted Cash Operating Costs, and Adjusted general and
administrative expense should not be construed as an inference that
our future results will be unaffected by the items noted above or
what we believe to be other unusual items, or that in the future we
may not incur expenses that are the same as or similar to some of
the adjustments in this presentation.
Cautionary Statement Regarding Forward-Looking
Statements
This release includes certain forward-looking statements and
projections of EP Energy. We have made every reasonable effort to
ensure that the information and assumptions on which these
statements and projections are based are current, reasonable, and
complete. However, a variety of factors could cause actual results
to differ materially from the projections, anticipated results or
other expectations expressed, including, without limitation, the
volatility of and sustained low oil, natural gas and NGL prices;
the supply and demand for oil, natural gas and NGLs; the
company's ability to meet production volume targets; changes in
commodity prices and basis differentials for oil and natural gas;
the uncertainty of estimating proved reserves and unproved
resources; the future level of service and capital costs; the
availability and cost of financing to fund future exploration and
production operations; the success of drilling programs with regard
to proved undeveloped reserves and unproved resources; the
company's ability to comply with the covenants in various financing
documents; the company's ability to obtain necessary governmental
approvals for proposed E&P projects and to successfully
construct and operate such projects; actions by the credit rating
agencies; credit and performance risk of our lenders, trading
counterparties, customers, vendors, suppliers and third party
operators; general economic and weather conditions in geographic
regions or markets served by the company, or where operations of
the company are located, including the risk of a global recession
and negative impact on oil and natural gas demand; the
uncertainties associated with governmental regulation, including
any potential changes in federal and state tax laws and
regulations; competition; and other factors described in the
company's Securities and Exchange Commission filings. While the
company makes these statements and projections in good faith,
neither the company nor its management can guarantee that
anticipated future results will be achieved. Reference must be made
to those filings for additional important factors that may affect
actual results. EP Energy assumes no obligation to publicly update
or revise any forward-looking statements made herein or any other
forward-looking statements made by EP Energy, whether as a result
of new information, future events, or otherwise.
Contact
Investor and Media Relations
Bill Baerg
713-997-2906
bill.baerg@epenergy.com
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SOURCE EP Energy Corporation