WildHorse Resource Development (NYSE: WRD)
Imperial Capital analyst, Irene Haas, reiterated her Outperform rating on shares of Wildhorse Resource Development (NYSE: WRD) and cut her price target to $42 from $45 after EPS of $0.38 was below consensus of $0.47; CFPS of $1.57 and adjusted EBITDA of $186mn both exceeded consensus. Stronger gas volume (3% higher than our estimate) and stronger NGL realization (17% better than expected) drove a top-line beat. Several cost items were higher than expected, with exploration expenses ($3.07/boe vs. $0.46/boe expected) being the main contributor to a lower than expected cash margin.

The analyst stated "WRD brought online 27 gross (25.8 net) Eagle Ford (EF) and four gross (3.3 net) Austin Chalk wells during the quarter. Three EF wells in Burleson County achieved average peak IP-30 of 833/boepd (91% oil), or 113boepd/1,000’. The first 2-well Austin Chalk pad in Washington County delivered an average IP-30 of 2,444boepd (15% oil, 31% NGL, and 63% gas), or 438boepd/1,000’. The second 2-well Austin Chalk pad in Washington County delivered an average IP-24 of 2,584boepd (1% oil, 36% NGL, and 63% gas), or 449boepd/1,000’. The sand mine operation has built an inventory of about 200,000 tons of mined stockpiles and 70,000 tons of processed materials".

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Shares of Wildhorse Resource Development closed at $21.70 yesterday.