Nov. 01–Despite constraints from the midstream sector — a lack of gas processing infrastructure — over the past year, SRC Energy grew its earnings by more than 40 percent from the third quarter of 2017.
Lynn Peterson, chairman and chief executive officer of the Denver-based oil and gas exploration and production company, discussed SRC’s third quarter results Thursday morning, quickly referencing Proposition 112, less than a week before Election Day.
SRC Energy third quarter results
SRC Energy Chairman and CEO Lynn Peterson discussed the company’s third quarter financial and operating results Thursday morning.
SRC’s 2018 third quarter net income totaled $62.6 million, up about 43 percent from the company’s 2017 third quarter net income of $43.8 million. SRC’s 2018 third quarter profit was $121.5 million, up about 46 percent from its 2017 third quarter profit of $83.5 million.
For more information, go to bit.ly/SRC3Q2018.
“While it’s a shame that we have to go to such lengths to defend our rights to produce a product that is beneficial to every individual’s life, this industry and its people have come together like never before and it makes me proud to be part of such a wonderful group of professionals,” Peterson said.
Earlier this year, SRC was unable to produce some of its wells in the Denver-Julesburg Basin, which includes Weld County, because of a shortage of gas processing plants. Early in the third quarter, DCP Midstream brought its Mewbourn 3 gas processing plant online at Weld County roads 38 and 35.
Increasing the system’s capacity by an incremental 200 million cubic feet per day, the anticipated impact of the Mewbourn 3 opening was somewhat offset, Peterson said, because of an unexpected restriction on offloads to a third-party processor. The company’s natural gas production for the third quarter increased by 28 percent from the same time last year, from about 7.41 billion cubic feet to 9.47 billion cubic feet.
In the third quarter, SRC officials completed the second portion of its acquisition of vertical and horizontal producing wells in the Greeley Crescent development from Noble Energy. At the time of closing the second portion, the wells were producing about 3,000 barrels of oil equivalent per day. They sold for $64 million.
Peterson, like many in the oil and gas industry, expressed confidence that Proposition 112 would not pass and indicated the importance of continuing to work with elected officials after Nov. 6.
“We have a lot of faith that Colorado voters understand that jobs, national security and energy costs are important to everyone and will vote accordingly,” he said.
— Trevor Reid covers business news for The Tribune. Connect with Trevor at (970) 392-4492, email@example.com or on Twitter, @treid71.
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