Rosehill Resources Inc. (“Rosehill” or the “Company”) reported yesterday operational and financial results for the second quarter of 2018.
J.A. (Alan) Townsend, Rosehill’s President and Chief Executive Officer, commented, “During the second quarter, we made impressive progress executing our plan for 2018, including reaching significant development milestones in our Southern Delaware area. Along with aggressive cost management that resulted in a 21% decrease in combined lease operating and cash general and administrative expenses per BOE compared to the first quarter of 2018, we have continued our substantial growth in production and Adjusted EBITDAX. For the second quarter, average net production and Adjusted EBITDAX increased 50% and 41%, respectively, quarter over quarter.
“We are currently operating one rig in our Northern Delaware area and one rig in our Southern Delaware area. We are very encouraged by the logging and coring work we completed in the Southern Delaware area during the second quarter of 2018 and are well underway in optimizing our development plans for this acreage. In addition, we believe that the initial production results of our first horizontal well in Lea County, New Mexico, substantiate the significant value within this acreage. We are checking off objectives for 2018 that we laid out earlier in the year, and we will look to carry this positive momentum into the future as we grow and add value for our shareholders.”