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LRR Energy, L.P. (NYSE: LRE) today announced revised 2012 full year guidance. The revised guidance reflects preliminary operating and financial results for October and November 2012, and preliminary production results for December 2012. As with our previously disclosed 2012 guidance, the guidance assumes the Permian Basin acquisition was effective January 1, 2012. LRE closed the Permian Basin acquisition from its sponsor, Lime Rock Resources, on June 1, 2012. Our previously issued financial statements for the first six months of 2012 were recast as if we had owned the acquired Permian Basin assets since our initial public offering because the transaction was between entities under common control. Our previously disclosed average production of 6,423 Boe per day for the nine months ended September 30, 2012 includes production from the Permian Basin acquisition from January 1, 2012, although the acquisition closed June 1, 2012. The revised 2012 guidance does not include results from the Mid-continent acquisition from our sponsor that closed on January 3, 2013.
Production (Boe per day) -Revised 6,300-6,350 (from 6,250-6,400)
LOE ($/Boe)- $ 11.00 – 11.25 (from $10.50 – 11.00)
Capital Expenditures ($MM)
Maintenance -$21.0
Growth and other – 10.0
Total – $31.0
The revised 2012 guidance set forth above sets forth management’s best estimate based on current and anticipated market conditions and other factors. While LRR Energy believes that these estimates and assumptions are reasonable, they are inherently uncertain and are subject to significant business, economic, regulatory, environmental and competitive risks and uncertainties that could cause actual results to differ materially from those we anticipate, as set forth under “Forward-Looking Statements.”
Our estimated average net production for December 2012 is approximately 5,900 Boe per day. As previously disclosed, we accelerated our 2012 capital program in the second and third quarters. As a result, our development activity was significantly lower in the fourth quarter. The December 2012 production rate reflects the lower development activity, our properties’ natural production decline and flush production decline related to our successful second and third quarter development program. We have resumed normal development activity in January 2013.
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