Gastar Exploration Inc (NYSEMKT:GST)

Gastar Exploration Inc (NYSEMKT:GST) Exploration, Development in the STACK

Gastar Exploration Inc (NYSEMKT:GST)

Gastar Exploration Inc (NYSEMKT:GST), based in Oklahoma, has established a strong production portfolio in the STACK play where 62,600 out of its 89,600 net acres are located in 5 zones. Gastar Exploration is an independent energy company which specializes in the development and production oil and other oil products.

Gastar Exploration Inc (NYSEMKT:GST)’s assets in STACK are spread out between Osage, Meramec, Oswego, and Hunton Limestone plays. According to the company’s estimates, there are 1,142 net undrilled horizontal locations located within the five areas. At the end of the first quarter of 2017, the company has three drilling wells in STACK.

In the acreage located in Meramec, which has around 23,600 acres, the company has 11 non-operating wells. The company has 19 horizontal-operated wells out of which 17 are producing.

The Osage acreage is made up of around 47,700 acres. The company has 10 wells out of which seven are producing. The company also has six operational wells out of which two are currently producing. Two more wells as are under flowback while an additional two wells are waiting on cement.

The Oswego asset sits on around 11,400 net acres. The company has showed a strong production take off with around 2,100 BOEPD. The company is currently actively participating in four wells out of which three are producing. The company itself has one horizontal well which is under production.

Gastar Exploration Inc (NYSEMKT:GST)’s Woodford asset is made up of around 19,900 acres. The assets have shown a lot of potential with an initial production rate of 1,500 BOEPD. The company is participating in three wells and has opened doors for other operators so as to de-risk the play.

Gastar Exploration Inc (NYSEMKT:GST) also has wells in the WEHLU-Hunton play which is made up of around 64,000 acres. It operates a total of 8 proved-undeveloped wells situated in Northern Hunton plus 18 proved-undeveloped situated in Lower Hunton. The company operates a total of 39 horizontal wells in the entire Hunton area with 37 of these located in Lower Hunton. In a move to expand its STACK total acreage, the company has acquired an additional 5,670 net STACK acres at a cost of $51.4 million.

At the end of the last financial year, the company entered into partnership with DrillCo in which Gastar Exploration Inc (NYSEMKT:GST) came up with a drilling program mainly targeting the Osage and Meramec formations. At its full implementation, the program is expected to result in the drilling of 20 wells in the initial stage. The number of wells that will eventually be drilled will be determined at a later stage.

Gastar Exploration Inc (NYSEMKT:GST) closed Thursday’s session at $1.00 losing 5.66%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Gastar Exploration Inc (NYSEMKT:GST) Announces Net Loss of $22.3 Million In First Quarter 2017 Results

Gastar Exploration Inc (NYSEMKT:GST)

Gastar Exploration Inc (NYSEMKT:GST) has announced its financial results for the first quarter of 2017. The company’s loss amounted to $22.3 million or $0.93 per share in Q1 of 2017. Non-GAAP net loss amounted to $9.6 million or $0.06 per share in Q1 of 2017.

Gastar Exploration Inc (NYSEMKT:GST) reported adjusted EBITDA of $10.6 million in Q1 of 2017 compared to $10.7 million and $10.6 million in adjusted EBITDA that was reported in Q1 and Q4 of the 2016 financial year respectively. The company’s Q1 2017 total revenue was $18.7 million. This represents a 26% increase from the $14.8 million that the company reported in Q1 of 2016 and 2% increase from the $18.3 million that was reported in Q4 of the 2016 financial year.

The company’s Q1 2017 revenue from oil, natural gas, and condensate was $17.4 million, representing a 20% increase from the $14.5 million that was reported in the first quarter of 2016 and 1% increase from the Q1 2016 $17.2 million. The increase in revenue from oil, natural gas, and condensate was due to the 182% increase in pricing of related products. The increase in Q4 revenue was as a result of 8% increase in pricing of equivalent products offset by a 6% decrease in production volumes of equivalent products.

Gastar Exploration Inc (NYSEMKT:GST)’s commodity hedges were in place for around 67% of condensate and oil production, 25% of NGLs production, and 56% of natural gas production in Q1 of 2017. The company reported $1.9 million increase in revenue from commodity contracts that were settled in Q1 of 2017. This is compared to an increase of $6.8 million in revenue due to commodity contracts in Q1 of 2016.

The company reported an average daily Mid-Continent production of 5,700 barrels of oil in Q1 of 2017 compared to 6,100 Boe/d that was reported during the same period the previous financial year. The company 5,900 Boe/d in Q4 of the 2016 financial year. Gastar Exploration Inc (NYSEMKT:GST) reported a 7% decrease in Q1 2017 average daily production in the Mid-Continent area compared to Q1 if 2016. Q1 Mid-Continent production comprised of around 28% natural gas and 23% NGLs and 49% oil. The company’s Mid-Continent, condensate, oil, and NGLs represented 72% of Q1 2017’s total production volume compared to 71% in Q1 of 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.