On May 12, Penn Virginia Corp. (NYSE: PVA) detailed its financial results for first-quarter 2014. The quarter ended March 31, the company added.
Operating income for the quarter was lower than it had been in fourth-quarter 2013. It was $14.9 million, Penn Virginia said, noting that this amount did not include a $57.4 million gain on asset sales. In fourth-quarter 2013, the gain on asset sales had been $0.2 million and the amount excluding that had been $15.5 million.
The quarter-over-quarter decrease was due to higher exploration expenses and other expenses, as well as increased production, the company said.
Total product revenues for the quarter were $133.2 million, 14% higher than fourth-quarter 2013’s $117.1 million, the company said. The increase was due to higher product prices, Penn Virginia said, noting that per barrel of oil equivalent, the price had risen to $70.01 from $63.58.
Regarding revenues from products, oil and NGL produced $114.9 million in the first-quarter, 9% higher than fourth-quarter 2013’s $105 million, the company said. The increase was due to increased prices for the two commodities and an increase in their production, the company added. Over the most recent quarter, oil and NGL revenues comprised 86% of the total product revenue, the company noted.
Realized oil prices were higher during the quarter than they had been in fourth-quarter 2013. They stood at $98.12 per barrel (bbl) compared with $94.66/bbl in fourth-quarter 2013. NGL stood at $41.27/bbl compared with $34.56/bbl and natural gas prices stood at $.507 per thousand cubic feet (Mcf) compared with $3.45/Mcf, the company added.
The quarter’s capex was about $182 million, a 21% increase over fourth-quarter 2013’s $150 million, the company said. The amount was divided--$135 went to drilling and completions, $37 million went to leasehold acquisitions and $10 million went to pipelines and gathering, the company added.
Exploration expenses increased to $8.6 million during the quarter from fourth-quarter 2013’s $2.9 million, primarily due to more seismic being acquired in its Eagle Ford area, the company said.
Regarding liquidity, Penn Virginia’s total debt at the end of first-quarter 2014 was about $1.3 million. Of this amount, $300 million was in principal amount of 7.25% senior unsecured notes due 2019, the company added. Another $775 million was in principal amount of 8.5% notes due 2020, and another $190 million was outstanding under the revolving credit facility, the company said.
Regarding the outlook for the rest of the year, the capex should range between $595 million and $653 million, the company said. This is an increase of between $13 and $20 million, Penn Virginia added.
Radnor, Pa.-based Penn Virginia Corp. explores, produces and develops domestic oil, NGL and natural gas.
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