Eclipse Resources Corporation (NYSE:ECR) (the “Company” or “Eclipse
Resources”) announced today that its Board of Directors (the “Board”)
has initiated a process to evaluate and consider a full range of
potential strategic, operational and financial alternatives to maximize
shareholder value. Eclipse Resources has retained Jefferies LLC as its
financial advisor and Norton Rose Fulbright US LLP as its legal counsel
to assist with the process.
Commenting on the announcement, Benjamin W. Hulburt, Chairman, President
and Chief Executive Officer, said, "Our management team and Board have
always been focused on maximizing long-term shareholder value. We will
review all alternatives available to Eclipse Resources and will take all
steps necessary to evaluate our opportunities and achieve the best
strategy for our shareholders, partners and employees.
“Despite the challenging environment facing our industry over the last
several years, our Company has made significant progress in increasing
the scale of our assets, improving well performance, decreasing
operational costs and increasing asset level returns. We have developed
an industry leading drilling capability that we believe would benefit
greatly from increased scale and acceleration, while at the same time
reducing the company’s general and administrative costs and interest
expense on a per unit of production basis. We are proud of what we have
accomplished and believe now is an appropriate time to explore
alternatives to continue increasing shareholder value.”
There is no assurance that the review by the Board will result in a
transaction or other strategic alternative. The Board has not set a
timetable for completion of the review process, and Eclipse Resources
does not intend to disclose or comment on developments related to its
review unless and until the Board has otherwise determined that further
disclosure is appropriate or required by law. The strategic alternatives
review process has not been initiated as a result of receiving any
transaction proposal.
About Eclipse Resources
Eclipse Resources is an independent exploration and production company
engaged in the acquisition and development of oil and natural gas
properties in the Appalachian Basin, including the Utica and Marcellus
Shales. For more information, please visit the Company’s website at www.eclipseresources.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”) and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). All statements, other than
statements of historical fact included in this press release, regarding
Eclipse Resources’ strategy, future operations, financial position,
prospects, plans and objectives of management are forward-looking
statements. When used in this press release, the words “plan,” “will,”
“would,” “could,” “believe,” “anticipate,” “intend,” “estimate,”
“expect,” “project” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking statements
contain such identifying words. These forward-looking statements are
based on Eclipse Resources’ current expectations and assumptions about
future events and are based on currently available information as to the
outcome and timing of future events. When considering forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements described under the heading “Risk Factors” in
Eclipse Resources’ Annual Report on Form 10-K filed with the Securities
Exchange Commission on March 2, 2018 (the “2017 Annual Report”).
Forward-looking statements may include, but are not limited to,
statements about Eclipse Resources’ business strategy; general economic
conditions; financial strategy, liquidity and capital required for
developing its properties and timing related thereto; realized prices
for natural gas, natural gas liquids and oil and the volatility of those
prices; timing and amount of future production of natural gas, NGLs and
oil; its hedging strategy and results; future drilling plans;
competition and government regulations, including those related to
hydraulic fracturing; the anticipated benefits under its commercial
agreements; marketing of natural gas, NGLs and oil; leasehold and
business acquisitions; the costs, terms and availability of gathering,
processing, fractionation and other midstream services; credit markets;
uncertainty regarding its future operating results, including initial
production rates and liquid yields in its type curve areas; and plans,
objectives, expectations and intentions contained in this press release
that are not historical, including, without limitation, the guidance set
forth herein.
Eclipse Resources cautions you that all these forward-looking
statements are subject to risks and uncertainties, most of which are
difficult to predict and many of which are beyond the Company’s control,
incident to the exploration for and development, production, gathering
and sale of natural gas, NGLs and oil. These risks include, but are not
limited to, legal and environmental risks, drilling and other operating
risks, regulatory changes, commodity price volatility and the
significant decline of the price of natural gas, NGLs, and oil from
historical highs, inflation, lack of availability of drilling,
production and processing equipment and services, counterparty credit
risk, the uncertainty inherent in estimating natural gas, NGLs and oil
reserves and in projecting future rates of production, cash flow and
access to capital, risks associated with the Company’s level of
indebtedness, the timing of development expenditures, and the other
risks described under the heading “Risk Factors” in the 2017 Annual
Report.
All forward-looking statements, expressed or implied, included in
this press release are expressly qualified in their entirety by this
cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that Eclipse Resources or persons acting on
the Company’s behalf may issue. Except as otherwise required by
applicable law, Eclipse Resources disclaims any duty to update any
forward-looking statements to reflect events or circumstances after the
date of this press release.
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