HighPoint Resources (HPR) Misses Q2 EPS by 2c, Revenues Beat

HighPoint Resources (NYSE: HPR) reported Q2 EPS of ($0.02), $0.02 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $110.12 million versus the consensus estimate of $100.14 million.

Chief Executive Officer and President Scot Woodall commented, "Our second quarter results demonstrate our continued operating excellence as we reported total equivalent production sales volumes within our guidance range, including oil volumes that were above the mid-point of guidance. During the second quarter, we generated EBITDAX of $63.1 million, an increase of 35% over the first quarter of 2018 and 72% over the second quarter last year. We are well positioned for continued growth with a dominant acreage position, a low cost structure, and ample liquidity of $381 million at the end of the second quarter. Combined with disciplined capital allocation across an extensive and attractive inventory of XRL drilling locations we remain well positioned for value creation.

"Operationally, our development program is on track as Hereford activity began as planned in April. Drilling of the first DSU was recently completed and we initiated production from nine DUCs. Three of the DUCs were placed on flowback in May and we are seeing positive early production data as the wells are performing consistent with our base type-curve assumptions. The early results highlight the significant resource potential of the Hereford asset. The pace of development at Hereford will increase during the second half of the year as we are currently operating two drilling rigs. NE Wattenberg also continues to see very consistent results and produced an average of 23,900 Boe/d in the second quarter of 2018, representing a 65% increase over the second quarter of 2017.

"Midstream constraints in NE Wattenberg resulted in curtailed natural gas and liquids production during the second quarter. While we had anticipated these issues, the impact was greater than forecast due to a period of unseasonably warm weather in June and July, which resulted in an increase in processing facility outages. We are adjusting our 2018 natural gas and NGL guidance to account for these temporary issues, but expect that full-year oil volumes will be relatively unchanged from previous expectations.

"I am pleased with HighPoint\'s ability to create long-term shareholder value through development of our extensive and favorable asset base targeting the oil-weighted and rural core of the DJ Basin. We remain positioned to deliver significant growth in production, cash flow and EBITDAX and reiterate our 2019 outlook"

For earnings history and earnings-related data on HighPoint Resources (HPR) click here.

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