DALLAS, Jan. 20, 2015 /PRNewswire/ -- RSP Permian,
Inc. ("RSP" or the "Company") (NYSE: RSPP) today announced its
Board of Directors has approved a $400
million to $450 million capital budget for 2015.
Additionally, the Company has provided fourth quarter and full-year
2014 earnings release and conference call information.
2015 Production Outlook
In 2015, RSP expects production to average between 17,500 and
18,500 Boe/d, or a 49% to 57% year-over-year growth rate from the
mid-point of its previously provided 2014 expected production
range. The outlook for 2015 reflects the impact of severe
winter storms that hit the Permian Basin and affected the Company's
production and drilling operations in early 2015. The weather
had a minimal impact on fourth quarter 2014 production.
Total
Boe/d
|
17,500 –
18,500
|
|
|
% Oil
|
71% - 73%
|
% Natural
Gas
|
11% - 13%
|
% NGLs
|
16% - 18%
|
2015 Capital
Budget
At the mid-point of the capital budget range, RSP expects to
spend $400 million on drilling and
completion activities and $25 million
on infrastructure and other items. The Company plans to
complete approximately 45-50 gross operated horizontal wells and
approximately 30 gross operated vertical wells. The operated
horizontal drilling and completion capital will be allocated
approximately 5% in the Middle Spraberry, 45% in the Lower
Spraberry, 20% in the Wolfcamp A and 30% in the Wolfcamp B.
Additionally, the Company believes that non-operated expenditures
in 2015 will be similar to 2014, and represent approximately 10% of
total expenditures.
Budget
|
($MM)
|
Drilling &
Completion
|
$380 -
$420
|
Infrastructure &
Other
|
$20 - $30
|
Total Capital
Expenditures
|
$400 -
$450
|
"Last year we targeted several horizontal zones and performed
pilot tests on our properties to obtain valuable information to
optimize the design of our horizontal drilling program and better
understand the potential returns in our targeted zones. Based
upon these results, we plan to focus almost all of our capital
budget in 2015 to developing our Wolfcamp A, Wolfcamp B and Lower
Spraberry zones, which offer our highest rates of returns," stated
Zane Arrott, RSP's Chief Operating
Officer.
2015 Rig Schedule
At the end of 2014, the Company operated four horizontal rigs
and two vertical rigs. RSP added a newly built horizontal rig
in early 2015, bringing the total current operated horizontal rig
count to five. During 2015, at staggered rig expiration
dates, RSP plans to release its remaining two vertical rigs and
three of its current five horizontal rigs. In addition, RSP
will add a second newly built horizontal rig in the second
quarter. As a result, RSP expects to operate an average of
approximately 3.5 horizontal rigs and one vertical rig during the
year and plans to end the year with three horizontal rigs and no
vertical rigs.
Rig
Schedule
|
Q1
|
Q2
|
Q3
|
Q4
|
Beginning:
|
5 Hz, 2 Vt
|
4 Hz, 2
Vt
|
4 Hz, 1
Vt
|
3 Hz, 0 Vt
|
End:
|
4 Hz, 2 Vt
|
4 Hz, 1
Vt
|
3 Hz, 0
Vt
|
3 Hz, 0 Vt
|
"While we are continuing to deliver strong well results and
production growth, we are committed to preserving our strong
balance sheet. Accordingly, in response to the pull back in
crude oil prices, we have reduced our anticipated capital spending
plans and we are in active discussions with our service providers
to achieve cost reductions. However, we retain flexibility to
scale our activity level up or down, depending on market
conditions. RSP is fortunate to have a premier position in
the northern Midland Basin, with
an inventory that allows us to achieve attractive rates of return
in multiple formations despite a lower commodity price
environment," stated Steve Gray,
Chief Executive Officer.
Fourth Quarter and Full-Year 2014 Earnings Release and
Conference Call
RSP will release its fourth quarter and year-end 2014 results
before the New York Stock Exchange opens on Monday, March 2, 2015. The release will be
followed by a conference call for investors at 10:00 a.m. Central Time to discuss fourth quarter
and year-end 2014 results. Hosting the call will be
Steve Gray, Chief Executive Officer,
Zane Arrott, Chief Operating Officer
and Scott McNeill, Chief Financial
Officer.
The call may be accessed live over the telephone by dialing
(877) 705-6003, or for international callers, (201) 493-6725.
A replay will be available shortly after the call and can be
accessed by dialing (877) 870-5176, or for international callers
(858) 384-5517. The passcode for the replay is 13599596. The
replay will be available until March 16,
2015. Interested parties may also listen to a simultaneous
webcast of the conference call by logging onto RSP's website at
www.rsppermian.com in the Investor Relations section. A replay of
the webcast will also be available for approximately 30 days
following the call.
About RSP Permian, Inc.
RSP is an independent oil and natural gas company focused on the
acquisition, exploration, development and production of
unconventional oil and associated liquids-rich natural gas reserves
in the Permian Basin of West
Texas. The vast majority of our acreage is located on large,
contiguous acreage blocks in the core of the Midland Basin, a sub-basin of the Permian
Basin, primarily in the adjacent counties of Midland, Martin, Andrews, Dawson, Ector
and Glasscock. The Company's common stock is traded on the
NYSE under the ticker symbol "RSPP." For more information,
visit www.rsppermian.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws. All statements, other than
historical facts, that address activities that RSP assumes, plans,
expects, believes, intends or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Forward-looking statements are based on
management's current beliefs, based on currently available
information, as to the outcome and timing of future events. These
forward-looking statements involve certain risks and uncertainties
that could cause the results to differ materially from those
expected by the management of RSP. Information concerning these
risks and other factors can be found in RSP's filings with the SEC,
including its Form 10-K, which can be obtained free of charge on
the SEC's web site located at http://www.sec.gov. RSP undertakes no
obligation to update or revise any forward-looking statement.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rsp-permian-inc-announces-2015-outlook-and-timing-of-fourth-quarter-and-full-year-2014-earnings-release-and-conference-call-300022665.html
SOURCE RSP Permian, Inc.