The Company has revised its 2021 capital budget to include the addition of a second rig that is expected to commence operations in early August and now expects to spend $130-$140 million. This program is expected to result in spudding 30 gross / 26.2 net operated wells and bringing 20 gross / 16.1 net operated wells and 0.7 net non-operated wells online in 2021 on its acreage in the Midland Basin.
Based on its 2021 capital budget, operating plan, and existing service costs, along with current commodity prices and hedges, the Company expects to generate significant positive free cash flow4 in 2021. The Company’s capital budget excludes acquisitions.
|
FY 2021 Capital Expenditures |
$ millions (Net) |
Gross / Net Operated Wells Spudded |
Gross / Net Operated Wells On Line |
Net Non-Operated Wells On Line |
|
Drilling and Completions |
$120 – 130 |
30 / 26.2 |
20 / 16.1 |
0.7 |
|
Land / Infrastructure |
10 |
|||
|
FY 2021 Total Capital Expenditures |
$130 – 140 |
|||
|
FY 2021 Average Daily Production (Boe/d) |
23,500 – 24,250 |
|||
|
% Oil |
50% – 51% |
|||
|
% Liquids |
74% – 75% |
|||
|
2H 2021 Average Daily Production (Boe/d) |
25,500 – 27,000 |
|||
|
% Oil |
46% – 47% |
|||
|
% Liquids |
73% – 74% |
|||
|
2H 2021 Operating Costs |
||||
|
Lease Operating Expense ($/Boe) |
$5.75 – $6.00 |
|||
|
Production and Ad Valorem Taxes (% of Revenue) |
6.25% – 7.00% |
|||
|
Cash G&A ($mm) |
$12 – $13 |
