=Extraction Oil & Gas (XOG) reported earnings on Tue 6 Nov 2018 (a/h)

Extraction Oil & Gas reports Q3 results, beats on revs

• Reports Q3 (Sep) earnings of $0.33 per share, may not compare to the S&P Capital IQ Consensus of $0.10; revenues rose 56.0% year/year to $282.2 mln vs the $256.67 mln S&P Capital IQ Consensus. This increase in net income was driven predominately by an $83.6 million gain from the previously announced sale of XOG's ownership in Discovery Midstream that closed in August.
• Adjusted EBITDAX, Unhedged was $212.4 million for the third quarter, up 69% year-over-year and up 12% sequentially. Adjusted EBITDAX was $169.4 million for the third quarter, up 32% year-over-year and up 11% sequentially.
• Third quarter crude oil volumes of 39,323 Bbl/d increased 14% y/y and increased 1% sequentially. Crude oil accounted for approximately 80% of the company's total revenues and over 52% of the company's total equivalent volumes recorded during the third quarter. Third quarter average net sales volumes were 75,680 BOE/d, an increase of 20% year-over-year and 3% sequentially.
• Commentary: "After DCP imposed production allocations later in August, we were forced to choke our wells back considerably, and since that time, we have not realized the full, sustained production potential of our outstanding DJ Basin wells. Despite these midstream headwinds that are outside of our control, we continue to produce some of the best wells in our company's history... Despite the midstream headwinds, we still expect to generate positive free cash flow for 4Q18 when you exclude the impact of our initial Elevation Midstream investment, which is non-recourse to and does not require capital outlays by the upstream company."