PE reports Q2 net oil production rose 28% Y/Y and 10% Q/Q to 86.6K bb/day, and total net production averaged 140.1K boe/day.
The company says drilling efficiency improved 8% vs. Q1, which enabled it to drop from 12 development rigs to 11 development rigs in mid-June.
PE says it is increasing full-year net oil production guidance by nearly 4% to 85K-86.5K bbl/day from 80K-85K bbl/day, while also tightening its 2019 capital budget outlook from $1.4B-$1.49B from $1.35B-$1.55B.
PE notes favorable trends in operating costs and margins during the quarter, with lease operating expense declining 8% Q/Q to $3.35/boe, driven by artificial lift optimization, continued utilization of its integrated water handling system and increased production volumes.
As a result, the company cuts full-year LOE guidance to $3.40-$3.90/boe from $3.50-$4.50/boe previously.
PE says healthy realized oil pricing and favorable trends in cash operating costs drove a strong operating cash margin of $30.38/boe, or 78% of the company's average realized price per boe.
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