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Jones Energy Gives 2016 Operational Details, Guides for 2017


U.S.-based energy explorer Jones Energy Inc JONE recently issued a statement regarding its estimated proved reserves, capital spending and production for 2016. Additionally, it provided a glimpse of its 2017 operations and capex guidance.

2016 Reserves, Production & Capex Results

The estimated proved reserves of Jones Energy as of Dec 31, 2016 amounted to 105.2 million barrels of oil equivalent (MMBoe) representing an increase of 3.4% than the year-ago period. Out of the total reserves, 59% were labeled as proved developed reserves. Total proved oil reserves stood at 23.6 million barrels as against 25.4 million barrels recorded in the year-ago period.

The company produced 1.8 MMBoe in the fourth quarter of 2016, out of which oil and natural gas liquids comprised around 55% of the total production. The total estimated production of the year amounted to 7 MMBoe as against 9.2 MMBoe in 2015.

The capital spending of Jones Energy for the fourth quarter amounted to $52.1 million. The non-acquisition capital expenditure for the full year amounted to $105.8 million, out of which 73% was allocated toward drilling and completion projects.

2017 Capex and Production Guidance

The initial capex budget of Jones Energy for 2017 is estimated at $275 million, out of which $232 million is directed toward drilling and completion projects while the rest is used for leasing and maintenance operations. Around 47% of the drilling and completion capital expenditure is allocated for drilling operation in Merge. During the year, the company intends to drill 56 and 26 wells in Cleveland and Merge respectively.

The estimated production for 2017 is likely to range between 20,700–23,000 barrels of oil equivalent per day.

Zacks Rank & Key Picks

Headquartered in Texas, Jones Energy deals with the production and acquisition of oil and natural gas properties in Texas and Oklahoma. The company carries a Zacks Rank #3 (Hold).

Jones Energy has outperformed the Zacks categorized International Oil & Gas Exploration & Production industry over the prior six months. During the aforesaid period, the company’s shares improved almost 5% while the broader industry gained around 3%.

Some better-ranked players in the industry include Denbury Resources Inc DNR, Ultra Petroleum Corp UPLMQ and W&T Offshore, Inc WTI. All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Denbury Resources is expected to report year-over-year growth of almost 15% and 450% on its revenues and earnings in 2017.

Ultra Petroleum is expected to report growth of 57.66% on its revenues for the year 2017.

W&T Offshore reported a positive earnings surprise in each of the last four quarters, the average being 31.49%.

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