Penn Virginia Corp. anticipates curtailing about 12,600 boe/d of production in May and has halted all drilling and completion activity as of early April.
The operations update comes as part of the company’s first quarter 2020 operating and financial report.
The company generated net cash from operating activities of $72.5 million for the first quarter of 2020. Production for the quarter was 20,665 bo/d and 26,740 boe/d. During the quarter, the company spud 12 gross (10.2 net) wells and turned to sales 13 gross (11.0 net) wells. The company currently has eight drilled but uncompleted wells.
Net income was $163.1 million compared to a net loss of $38.7 million in the first quarter of 2019, and adjusted net income was $28.6 million. Operating expenses were $70.1 million.
During the quarter, the company incurred $79.2 million of capital expenditures, of which 96% was associated with drilling and completion capital.
As previously noted, the company completed its borrowing base redetermination under its revolving credit facility, and the borrowing base was reduced to $400 million as of Apr. 30, and, as of July 1, will be further reduced to $375 million. From Oct. 1 through the fall 2021 redetermination, the company must maintain at least $25 million of available capacity under its revolving credit facility.
As of May 7, Penn Virginia had about $59 million of liquidity, comprised of about $39 million of cash on hand, and $20 million available under the revolving credit facility.