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Tuesday, February 2, 2016

Low Prices Prompt Eclipse Resources to Take $750-$850 Million Impairment on Ohio Property

From an Eclipse Resources press release:
In addition, the Company expects to record an impairment charge with respect to the fourth quarter of 2015 on certain oil and gas properties located in Ohio, attributable primarily to a significant decline in commodity prices. The Company currently estimates the impairment charge to be between $750 million and $850 million. The amount of this impairment charge has been estimated by the Company based upon presently available information, including the reserve report prepared by Netherland Sewell, and such estimate is unaudited. Accordingly, the estimated impairment charge remains subject to revision based upon further analysis and final review. The Company does not anticipate that the expected impairment will result in a violation of any financial covenants associated with the Company’s senior secured revolving credit facility or senior unsecured bonds.
You can read the whole release by clicking here.

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