EP Energy Corporation Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016 and Production Results for the Second Quarter Ended June 30, 2016; Provides Production and Capital Spending Guidance for the Year 2016
For the six months, the company reported net cash provided by operating activities was $406 million, cash paid for capital expenditures in the second quarter 2016 were $258 million, and free cash flow was $148 million. At June 30, 2016, net debt was approximately $3.9 billion, that's $900 million less than the balance at year-end 2015.
During the second quarter of 2016, the company daily oil production decreased 29% to 45.1 MBbls/d, down from 63.4 MBbls/d in the second quarter of 2015. Total equivalent production was 84.5 thousand barrels of oil equivalent per day (MBoe/d), down from 109.0 MBoe/d in the same period last year. The reduction in equivalent volumes included a 33 million cubic feet per day (5.5 MBoe/d) reduction attributed to the sale of the company's Haynesville Shale asset which closed on May 3, 2016.
For the full year of 2016, the company expects total production of 83 MBeo/d to 86 MBeo/d, oil production of 45 MBeo/d to 47 MBeo/d.
The company expects continued trend of positive free cash flow. The company expects to stay at the low end of capital spending range for the balance of 2016 and spend $475 million to $505 million for the full year.