Montage Resources Corporation (the "Company" or "Montage Resources") today announced an increase in its full year and second quarter 2020 production guidance along with an organizational update.
Updated Production Guidance:
- In connection with improving crude oil and NGL commodity prices, the Company began increasing its previously curtailed production during the month of May. As of June 1, 2020, the Company has returned substantially all its previously curtailed production to sales due to the significant improvement in cash margins
- Due to continued operational outperformance and the return of its previously curtailed production to sales sooner than anticipated, the Company is increasing its full year production guidance for 2020 to 565 - 585 MMcfe per day, an increase of approximately 2% over the midpoint of its previous full year 2020 production guidance of 555 - 575 MMcfe per day
- The Company now expects its second quarter 2020 production will average between 535 - 555 MMcfe per day
Effective June 1, 2020, Matthew Rucker, who previously served as Executive Vice President, Resource Planning and Development, has been named Executive Vice President and Chief Operating Officer. Mr. Rucker replaces Oleg Tolmachev, the former Chief Operating Officer of the Company, whose employment with the Company ended June 1, 2020. In his new role, Mr. Rucker has assumed responsibility over the Company's operations in the Ohio Utica and Marcellus Shales along with oversight of the Company's drilling and completion operations. In addition, Mr. Rucker will continue to oversee the Company's reservoir engineering, land and geology departments.
John Reinhart, President and CEO, commented on the Company's increased production guidance and organizational update, "The Company has remained very responsive to the changing industry environment. Upon realizing an accelerated rebound in oil pricing and cash margins, the Company moved very quickly to return its previously curtailed condensate production back to sales. These actions continue to reflect the agility of the Company as well as management's priorities of cash flow generation and balance sheet protection.
Matthew's progression into the Chief Operating Officer role will benefit the Company greatly due to his extensive background in operations, reservoir, planning, land and other functions that contribute to our overall business strategy. He has been integral to the Company's successful pro forma strategy implementation over the past year. We look forward to his continued positive impact on the business. We also want to thank Oleg for his contributions and wish him well in his future endeavors."