Warren Resources, Inc. provided an update on the Company's operations in its Marcellus, California, and Wyoming business units.
Warren continues to execute successfully on its five core business strategies: right sizing capital spending; optimizing current assets and protecting production against commodity risk; increasing liquidity; positioning for commodity price recovery; and pursuing selective growth opportunities.
Warren previously announced a revised capital budget of $21 million for 2015, which allows the Company to spend within its cash flow. Ongoing optimization efforts have resulted in strong production results in the second quarter of 2015 and reduced costs in the first half of the year, trends which the Company expects to continue through the year. Warren's previously announced refinancing with GSO Capital Partners and Franklin Square Capital Partners and pending Wyoming CBM asset sale will increase the Company's pro forma liquidity to over $60 million and reduced net debt by approximately $47 million. Importantly, the Company will not face reduced liquidity during the fall of 2015 since it no longer has a reserve-based credit facility.
Warren continues to review other opportunities for debt reduction and, with this additional liquidity, believes that it is well positioned to weather the current commodity market conditions while seeking to capture opportunities in its core areas. The Company has the ability to return to drilling quickly in California with its owned drilling rig and continue development of our high impact wells on its Marcellus 'core of the core' acreage position. Warren strongly believes that the Company's execution of these strategies will fulfill its mission to deliver long term value to shareholders.