FORT WORTH, Texas, July 5, 2017 /PRNewswire/ — Lonestar Resources US Inc. (NASDAQ: LONE) (together with its subsidiaries, “Lonestar”) announced today the addition of new crude oil hedges.
Lonestar has added to its hedge position for 2018, as well as initiating positions for 2019 and 2020. Giving effect for these new hedges, Lonestar’s crude oil positions stand as follows:
- For the remainder of 2017 (July 2017 through December 2017), the Company has approximately 2,947 barrels per day of crude oil swaps and collars at an average price of $53.84 per barrel.
- For calendar 2018, the Company has approximately 3,300 barrels per day of crude oil swaps and collars at an average price of $52.26 per barrel.
- For calendar 2019, Lonestar entered into approximately 1,538 barrels per day of crude oil swaps at an average price of $48.04 per barrel.
- For the period January 1, 2020 through June 30, 2020, the Company also entered into approximately 1,119 barrels per day of crude oil swaps at an average price of $48.90 per barrel.
Lonestar has meaningful price protection for the remainder of 2017, with daily crude oil hedge volumes of 2,947 barrels hedged at an average price of $53.84 per barrel, equating to 50% to 55% of our expected crude oil production during the period. Additionally, for calendar 2018, Lonestar has daily crude oil hedge volumes of 3,300 barrels at an average price of $52.26 per barrel, equating to 50% to 55% of our expected crude oil production during the period
Lonestar’s Chief Executive Officer, Frank D. Bracken, III, commented, “Our recent transactions in the futures market are a continuation of Lonestar’s strategy of maintaining significant levels of price protection for crude oil, the Company’s principal product. After closing our recent acquisitions in the Eagle Ford Shale play, we boosted our hedge positions to account for the 40% increase in our current production rates.” Bracken added, “Lonestar’s long-standing policy of opportunistic hedging has served the Company well. Our current hedge book provides insulation to the current softness in the crude oil markets and delivers higher certainty to our cash flows and our ability to internally fund our Eagle Ford growth program.”