Appalachian shale gas driller Montage Resources Corp. expects its third-quarter production to go beyond the high end of its current guidance of 600 MMcfe/d to 615 MMcfe/d, according to an Oct. 23 news release.
Production for the quarter is anticipated to exceed consensus expectations, the company said. Leveraging the recent volatility in commodity prices, Montage said it also increased its natural gas hedges for 2020 by 30%, with an overall floor of approximately $2.65 on 2020 hedged production.
In addition, Montage would keep operating one rig for the rest of the year and into 2020 to balance its free cash flow and maintain a strong balance sheet. The company also has no near-term debt maturities.
"We continue to see the benefits from the execution of the integration strategy with the significant efficiency gains, cost reductions and shortened cycle times," Montage President and CEO John Reinhart said in the release.
Montage Resources has roughly 218,000 net effective undeveloped acres focused on the Utica and Marcellus shales.