German oil and gas company Wintershall Dea boosted its production during the third quarter of 2019 and increased guidance for the full year. The company has also decided to reduce capex for the full year by 100 million euros.
DEA Deutsche Erdoel and Wintershall Holdings completed their merger agreement, creating Wintershall Dea, at the beginning of May 2019.
In its first full quarter as one company, Wintershall Dea recorded a production growth, with working interest production increasing by 6% from 578 mboe/d in 3Q 2018 to 613 mboe/d in 3Q 2019.
Figures from the third quarter of 2018 represent an aggregation of Wintershall Holdings and DEA Deutsche Erdoel results, without any pro forma adjustments.
Production costs were down 21% to $3.8/boe in 3Q 2019 from $4.8/boe in 3Q 2018 due to higher production from low-cost fields and further cost efficiencies.
Wintershall Dea revised its full year production guidance to 640 mboe/d ahead of previous guidance of 635 mboe/d.
The company’s EBITDAX in the third quarter of 2019 was impacted by the significantly weaker commodity price environment, with Brent down 20%, and European gas down 60% respectively year-on-year.
In the third quarter of 2019 the company recorded revenues of 1.3 billion euros.
Capital expenditures were €400 million in 3Q 2019, with FY guidance revised down by €100 million to €1.6 billion.
Mario Mehren, Wintershall Dea Chairman & CEO, said: “Wintershall Dea made good progress during our first full quarter since the merger. Strong operational performance gave us confidence to revise our full year production guidance to 640 mboe/d. In the face of a challenging commodity price environment Wintershall Dea has worked hard to maximize value from every barrel we produce. Our production costs have fallen 21% year-on-year to $3.8/boe, our balance sheet remains strong and the business continues to generate positive free cashflow.”
Offshore Energy Today Staff
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