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Q2 usps calculator 2014 Earnings Conference usps calculator Call
Operator
Good morning. My name is Naine and I'll be your conference operator today. At this time, I'd like to welcome everyone to the LRR Energy Second Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session (Operator Instructions). Thank you.
Thanks, operator and good morning everyone. Welcome to LRR Energy's second quarter 2014 earnings conference call. Also presenting this morning are our Co-Chief Executive Officers, Eric Mullins and Charlie Adcock; and our Chief Operating Officer, Tim Miller. Chris Butta, our Chief Engineer is also with us and available for questions.
During the course of the call management will make forward-looking statements about LRE. Forward-looking statements are based on current expectations and relate to future business usps calculator and financial performance. Actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve certain usps calculator risks and uncertainties and may not prove to be accurate. These risks and uncertainties are included usps calculator in the Risk Factors section of our 2013 Form 10-K on filed with the Securities and Exchange Commission.
Additionally, during the course of today's call, management will refer to adjusted EBITDA, distributable cash flow and distribution coverage ratio as important metrics for evaluating LRE's performance. Please note these metrics are non-GAAP financial measures, usps calculator which are reconciled to the most directly usps calculator comparable GAAP measures in the earnings press release we issued yesterday.
Thanks, Jaime. And good morning, everybody. We appreciate you joining us for our second quarter conference call. In a few minutes Charlie, Tim and Jaime will discuss our results in detail, but in summary our second quarter operating and financial results were slightly lower than our expectations. For the quarter, production averaged 6,418 barrel of oil equivalents per day, adjusted EBITDA was $19.6 million, usps calculator distributable cash flow was $11.8 million and our total unit distribution coverage was 0.87 times. Despite higher production, adjusted EBITDA, distributable cash flow and total unit distribution coverage were negatively impacted by higher operating usps calculator cost and lower price realization compared to the first quarter. We will discuss each of these items in more detail in a second.
On the acquisition front, LRE remain committed to a disciplined and patient approach of acquiring assets that we believe are well suited for the MLP structure, and at prices that provide long-term distribution growth.
Year-to-date, we have reviewed 36 potential acquisitions ranging in size from $50 million to over $500 million. And while we cannot predict the timing of our next acquisition, we are encouraged by the activity level that we've seen so far this year.
Lastly, our Board of Directors declared usps calculator an increase in our per unit distribution for the second quarter bringing our current distribution to $0.4950 per unit or $1.98 per unit on an annualized basis. The distribution will be paid on August 14 of this year and represents the eight consecutive quarter with a distribution increase. usps calculator
Thanks, Eric. I'd like to start by reviewing our operating results for the second quarter. Yesterday, we reported total net production of 584,000 Boe for the second quarter. LRE's production was 48% natural gas, 37% oil and 15% natural gas liquids for the quarter. Lease operating expenses for the second quarter were $6.8 million or $11.70 per Boe, compared with $5.8 million or $10.18 per Boe in the first quarter. The 15% increase on a dollar per Boe basis was primarily due to higher saltwater disposal chemical and electricity cost at our Red Lake Field; an increase saltwater disposal and equipment rental cost at Pecos Slope. Based on year-to-date results usps calculator and our outlook for the second half of 2014, we are revising our full year 2014 LOE per Boe guidance range from $10.75 to $11 per Boe from our prior guidance of $10.50 to $11 per Boe. Production and ad valorem taxes for the quarter were $2.2 million or $3.85 per Boe and represented 7.3% of the gross revenue. This compares to the production and ad valorem taxes of $2.4 million or $4.19 per Boe in the first quarter 2014.
Thanks, Charlie. For the second quarter, our average daily production was 6,418 Boe per day, up 1% from the first quarter. While production was up slightly for the quarter, production was negatively usps calculator impacted by flaring at Red Lake of approximately 30 Boe per day primarily due to third -party plant compression limits. Estimated usps calculator July production through the 25th was approximately 6,425 Boe per day which is net of approximately 50 Boe per day of flared volumes at Red Lake. For the quarter, our total cash capital expenditure totaled $10.3 million, the majority of our development usps calculator a
Q2 usps calculator 2014 Earnings Conference usps calculator Call
Operator
Good morning. My name is Naine and I'll be your conference operator today. At this time, I'd like to welcome everyone to the LRR Energy Second Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session (Operator Instructions). Thank you.
Thanks, operator and good morning everyone. Welcome to LRR Energy's second quarter 2014 earnings conference call. Also presenting this morning are our Co-Chief Executive Officers, Eric Mullins and Charlie Adcock; and our Chief Operating Officer, Tim Miller. Chris Butta, our Chief Engineer is also with us and available for questions.
During the course of the call management will make forward-looking statements about LRE. Forward-looking statements are based on current expectations and relate to future business usps calculator and financial performance. Actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve certain usps calculator risks and uncertainties and may not prove to be accurate. These risks and uncertainties are included usps calculator in the Risk Factors section of our 2013 Form 10-K on filed with the Securities and Exchange Commission.
Additionally, during the course of today's call, management will refer to adjusted EBITDA, distributable cash flow and distribution coverage ratio as important metrics for evaluating LRE's performance. Please note these metrics are non-GAAP financial measures, usps calculator which are reconciled to the most directly usps calculator comparable GAAP measures in the earnings press release we issued yesterday.
Thanks, Jaime. And good morning, everybody. We appreciate you joining us for our second quarter conference call. In a few minutes Charlie, Tim and Jaime will discuss our results in detail, but in summary our second quarter operating and financial results were slightly lower than our expectations. For the quarter, production averaged 6,418 barrel of oil equivalents per day, adjusted EBITDA was $19.6 million, usps calculator distributable cash flow was $11.8 million and our total unit distribution coverage was 0.87 times. Despite higher production, adjusted EBITDA, distributable cash flow and total unit distribution coverage were negatively impacted by higher operating usps calculator cost and lower price realization compared to the first quarter. We will discuss each of these items in more detail in a second.
On the acquisition front, LRE remain committed to a disciplined and patient approach of acquiring assets that we believe are well suited for the MLP structure, and at prices that provide long-term distribution growth.
Year-to-date, we have reviewed 36 potential acquisitions ranging in size from $50 million to over $500 million. And while we cannot predict the timing of our next acquisition, we are encouraged by the activity level that we've seen so far this year.
Lastly, our Board of Directors declared usps calculator an increase in our per unit distribution for the second quarter bringing our current distribution to $0.4950 per unit or $1.98 per unit on an annualized basis. The distribution will be paid on August 14 of this year and represents the eight consecutive quarter with a distribution increase. usps calculator
Thanks, Eric. I'd like to start by reviewing our operating results for the second quarter. Yesterday, we reported total net production of 584,000 Boe for the second quarter. LRE's production was 48% natural gas, 37% oil and 15% natural gas liquids for the quarter. Lease operating expenses for the second quarter were $6.8 million or $11.70 per Boe, compared with $5.8 million or $10.18 per Boe in the first quarter. The 15% increase on a dollar per Boe basis was primarily due to higher saltwater disposal chemical and electricity cost at our Red Lake Field; an increase saltwater disposal and equipment rental cost at Pecos Slope. Based on year-to-date results usps calculator and our outlook for the second half of 2014, we are revising our full year 2014 LOE per Boe guidance range from $10.75 to $11 per Boe from our prior guidance of $10.50 to $11 per Boe. Production and ad valorem taxes for the quarter were $2.2 million or $3.85 per Boe and represented 7.3% of the gross revenue. This compares to the production and ad valorem taxes of $2.4 million or $4.19 per Boe in the first quarter 2014.
Thanks, Charlie. For the second quarter, our average daily production was 6,418 Boe per day, up 1% from the first quarter. While production was up slightly for the quarter, production was negatively usps calculator impacted by flaring at Red Lake of approximately 30 Boe per day primarily due to third -party plant compression limits. Estimated usps calculator July production through the 25th was approximately 6,425 Boe per day which is net of approximately 50 Boe per day of flared volumes at Red Lake. For the quarter, our total cash capital expenditure totaled $10.3 million, the majority of our development usps calculator a
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