Two companies, Eco-Stim Energy Solutions and Bellatrix Exploration, that are presenting at EnerCom’s The Oil & Gas Conference® have announced Q2 earnings and updates.
Eco-Stim Energy Solutions
Eco-Stim Energy Solutions (ticker: ESES) announced during its Q2 earnings call that is had increased its revenue by 233% over Q1, 2017 to $8.5 million. The company signed a second contract for services in Oklahoma, allowing it to expand its operations and activate a second spread.
The company completed a total of 88 stages during Q2 and—during July—completed another 85 stages in Oklahoma. In its Argentina operations, Eco-Stim completed 53 stages during Q2, with another 23 in July. The company will also be acquiring approximately 45,000 HHP worth of fracturing equipment for its two contracts.
Eco-Stim also reduced its long term debt by $41 million and its capital expenditures for the second quarter totaled approximately $4.2 million. The company’s capital expenditures were related to adding additional pressure pumping equipment to the company’s assets.
Bellatrix Exploration
During its second quarter, Bellatrix Exploration (ticker: BXE) reported an average quarterly production of 37,916 BOEPD—representing growth of 9% over its previous quarter. The company exceeded its mid-point estimate of 34,500 BOEPD.
Bellatrix decreased its debt by $52.8 million—down to $382.6 million as of June 30, 2017. The company’s capital expenditures for the first half of the year were $55.2 million, in line with its estimates. The company’s Q2 capital expenditures totaled $11.2 million. During the second quarter, the company drilled two gross (1.2 net) wells in the Spirit River formation.
As of the earnings call, the Alder Flats Plant Phase 2 expansion was proceeding on time, according to Bellatrix. The expansion is intended to increase the plant’s capacity to 230 Mmcf per day—more than doubling it from 110 Mmcf per day. The expansion is expected to be finished by early Q2, 2018.
The company increased its full year guidance to 36,000 BOEPD, up from 34,500 BOEPD announced in late June. Bellatrix maintained its full year capital budget of $120 million. For the remainder of 2017, Bellatrix expects that it will drill another 13 net wells.
Bellatrix Q2, 2017 Earnings Call Q&A
Q: You mentioned you had 15 years of drilling inventory. What steps are being taken in the Spirit River to make sure that that inventory is expanding over time? Are you looking at adding more land or you finding success in different zones within the Spirit River that could help that part?
Brett Eshleman, president and CEO: Yeah, pretty much Jay, all of the above. We continually as we do every year to add more land, usually the question is, you don’t see that in the marketplace, because it’s all done a section here, a couple of sections over there, it’s always done primarily on the smaller basis, it’s we’re always continuing to add, maintain or grow that inventory. I mean, we always look at these opportunities, but as you know, it’s – those are fewer and farther between.
For us, since I’ve always found that when you control your own backyard and you put it in the infrastructure and you have egress and you control everything in there, when opportunities arrives people come to you, whether that’s to sell some land to you, whether that’s to farm out some land. Our inventory is always drilling, and then also with additional zones. I mean, we primarily only been focused in our backyard right now, because we have such a plethora of
inventory, and we’ve really proven it up is in the Spirit River and most notably in the Spirit River not [indiscernible] and flare a and flare b, we have a cluster of other inventory and kind of the lower [ph] mantel just underneath the Spirit River, whether you went to the [indiscernible] you know not even to get into the Cardium inventory that we have that we’re not putting much any on the couple of nice oil wells this year. We drove one in the first quarter this year that hit you know the top 10 oil wells drilled.
These – and we look at all the other zones, you know from Rock Creek and Viking. So we don’t even talk about those, so those are life time of inventory through this area and that’s one of the reasons why you know the Deep Basin is such an attractive area for industry players.
You have all those several zones, I mean down in the basement, you’re not even getting into the Duvernay, which you know continues to be unlocked and someday will be a huge resource shale play that is profitable and growing. So no, the inventory we are always on that always looking to increase inventory and expand the different horizons.
Eco-Stim Energy Solutions and Bellatrix Exploration are presenting at EnerCom’s The Oil & Gas Conference® 22
ESES and BXE will be presenting companies at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
