Our Strategy

Our Strategy

Focus Area#Improvement PlanQ1 '16 Update
Liability Management1Improve Debt Structure To Provide Structural Liquidity* Borrowing base redetermined at $325 MM in connection with semi-annual process; $256 MM of liquidity as of March 31, 2016
* Repurchased $54 MM of unsecured notes with cash for $8 MM
* Continuing to evaluate financing alternatives including the repurchase, refinancing or exchange of existing indebtedness, issuance of additional indebtedness or issuance of equity
2Restructure Gathering And Transportation Contracts To Provide Liquidity* Remain committed to working with midstream and transportation providers to restructure gathering and transportation contracts
* Significant amount of underutilized capacity with fee structures above current market rates
Operational Performance3Reduce G&A Load To Reduce Fixed Costs Burden* Reduced G&A headcount by an additional 20% since Q4 '15
* Decreased G&A and LOE costs by 27% and 25% compared to Q4 '15
* Expect G&A and LOE costs to continue to decrease during '16
* Continue to rationalize corporate costs
4Improve Drilling And Completion Performance To Improve Capital Returns* Completion program utilized up to 2,800 lbs of proppant per lateral foot during Q1 '16
* Drilled NLA Haynesville well in 23 days (spud to rig release) during Q1 '16, a new Company record
* Average cost for the ETX Haynesville wells turned to sales during Q1 '16 was $8.9 MM, $1.2 MM below budget; NLA Haynesville wells expected to cost $6.0 MM, $0.7 MM below budget
Capital Deployment5Implement A "Liquidity Driven" Prioritized Capital Allocation System To Ensure Highest And Best Use Of Capital* Reduced '16 capital program to $85 MM versus '15 capital expenditures of $277 MM
* Measure capital allocation decisions against liquidity intensity benchmark
* Elected to defer additional development to preserve capital resources
* Evaluating divestiture of non-core assets

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