Eclipse 2Q18: Drilled More Long Wells, Progress on Sale/Merger

Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, is one of the smaller but (in our opinion) more important drillers in our region. Eclipse has drilled the reigning record-holders for longest on-shore lateral wells drilled…in the world (almost 20,000 feet long!). Last week Eclipse issued their second quarter update. Among the items discussed: The company lost $19 million vs. making $11.5 million in 2Q17. They produced an average of 305.5 million cubic feet equivalent per day (MMcfe/d), up a tad from 2Q17’s 287.8 MMcfe/d. Production was 72% natural gas and 28% liquids. They drilled 6 wells with an average lateral length of approximately 15,900 feet. So far the company has drilled 17 “super lateral” wells with an average lateral length of over 18,300 feet–which is why they are an important driller. The company, as we previously reported, is going through a “strategic review process” in which they are looking to combine with, or sell out to, another company (see Eclipse Resources Board Considering Either Merger or Acquisition). Ben Hulburt, CEO, had this to say about progress with the buyout/merger process: “As you all know, we announced that our Board of Directors has initiated a process to evaluate and consider a full range of strategic, operational and financial alternatives to maximize shareholder value. And while we’re pleased to say that substantial progress continues to be made, as we’ve previously stated, there is no definitive timetable for completion of this evaluation nor can there be any assurances that any initiatives will be announced or completed in the future.” In other words, there’s something coming, but we can’t talk about it, so stay tuned…

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