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A Look at Cobalt International Energy’s Production

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Cobalt International Energy’s production

Cobalt International Energy (CIE) hasn’t given any specific production guidance for 1Q17 or 2017. In this part of the series, we’ll look at its 4Q16 production and operational details.

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4Q16 production

Sequentially, CIE’s 4Q16 production (USO) (UNG) is ~64.0% higher than 3Q16. It achieved its first ever production in 1Q16. So there’s no year-over-year comparison available for production in 4Q16. Most of Cobalt’s 4Q16 production came from the Heidelberg field in the US Gulf Of Mexico. CIE owns a ~9.4% non-operating working interest in Heidelberg.

Fiscal 2016 production

For fiscal 2016, CIE reported a total production of 413.1 Mboe (thousand barrels of oil equivalent). For 2017, it reported crude oil (USO) production of 383.6 Mbbls (thousand barrels), natural gas (UNG) production of 103.7 MMcf (million cubic feet), and natural gas liquids production of 12.2 Mbbls.

Cobalt International Energy’s exploration efforts in the US Gulf of Mexico have resulted in four oil and gas discoveries, including the North Platte, Shenandoah, Anchor, and Heidelberg fields, each of which are in various stages of appraisal and development. No significant production so far is a deep concern for CIE stock.

CIE’s peer W&T Offshore (WTI) is also active in the US Gulf of Mexico. It reported production of 15.4 MMboe (million barrels of oil equivalent) in 2016.

Fiscal 2016 realized prices and costs

Cobalt International Energy’s average realized crude oil price in 2016 was $42.29 per barrel, and its average realized price for natural gas production was $2.97 per thousand cubic feet. As we’ve seen, CIE achieved its first ever production in 1Q16. So there’s no year-over-year comparison available for realized prices in 2016.

For fiscal 2016, CIE reported lease operating expenses of $18.33 per boe (barrel of oil equivalent).

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