Contango Oil & Gas (ticker: MCF), an exploration and production company based in Houston, Texas, has published a digital 2014 Annual Report titled “Disciplined Value Enhancement.” The report details the company’s 2014 performance, provides easy access to Form 10-K, gives operations summaries and outlines its corporate vision for 2015.
2015 Gameplan
Contango management singled out three drivers to its 2015 development, including a downspacing test in its Madison/Grimes area, formation tests in south Texas and finishing initial tests on a sandstone exploration project in Wyoming. The company plans on spending $51 million in 2015 and is deferring further development until commodity prices recover. Its 2015 guidance is 73% below its 2014 budget and management plans on using the excess cash to improve its balance sheet. The company held a debt to market cap percentage of only 15% in EnerCom’s latest E&P Weekly, which is far below the median of 65% from 86 other listed companies.
Moving forward, Contango believes its legacy natural gas operations in the Gulf of Mexico will provide stable cash flows in for its short-term, reduced expenditure plans. Twelve wells were completed late in 2014 and will be turned to sales in 1H’15. Its 2014 year-end reserves, as estimated by Netherland, Sewell & Associates, Inc. and William M. Cobb & Associates, Inc., were 275.2 Bcfe, with 76% classified as proved developed producing. Volumes for Q1’15 are estimated at a midpoint of 100 Mcfe/d, slightly below its average volumes from the previous quarter.
The digital annual report, created by EnerCom, Inc., features a variety of interactive maps, graphs and tables detailing MCF’s activity throughout the Gulf of Mexico. Vital documents such as detailed financials, operations, 10-K and shareholder letter are all available with a single click in the digital annual report format.
The full report can be accessed at www.contango.com or by clicking here.
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