Resolute Energy Corporation (NYSE:REN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.84%.
Resolute Energy Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.14 in the quarter versus EPS of $0.00 in the year-earlier quarter.
Revenue: Rose 38.18% to $89.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Resolute Energy Corporation reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $88.94 million.
Quoting Management: “In Aneth Field, production rates are in line with our expectations, notwithstanding the ongoing suspension of the gas sales line as we reported in the prior quarter. Lease operating expenses have come down significantly from the first quarter when we had an unusual number of workovers. We continue to see a CO2 response in the latest phase of our Aneth Unit CO2 expansion. As a result of ongoing CO2 activities, we expect a continued ramp-up in Aneth Unit production for several years. The reinitiation of the McElmo Creek Unit waterflood continues as planned, with four producing wells and one injection well recompleted in the second quarter, bringing the total new producer count to 25 and injector count to 26. There remain 38 producer-injector pairs to recomplete in the Desert Creek IIC formation (“DC IIC”) program. In preparation for future CO2 flooding of this formation, we intend to put increased focus on injection to bring the reservoir up to minimum miscibility pressure, which will enhance efficacy of the CO2 flood. Aneth Field continues to produce free cash flow that we can deploy in the Permian Basin, Powder River Basin and elsewhere.”
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