Gastar Exploration (GST) Reports In-Line Q3 EPS, Offers Guidance

Gastar Exploration (NYSE: GST) reported Q3 EPS of $0.03, in-line with the analyst estimate of $0.03.

Revised 2015 Capital Budget

Gastar's Board of Directors has recently elected to reduce its previously announced 2015 capital budget of approximately $257 million to approximately $173 million. The 33% decrease in the capital budget is a prudent action considering the recent decline in crude oil prices and the decline in realized natural gas prices in the Northeast. The reduced capital budget will allow Gastar to maintain a strong balance sheet and liquidity position during the current commodity price environment. The new budget consists of $138 million (previously $222 million) of drilling, completion and infrastructure costs, $28 million of land and seismic expenditures, and other capitalized costs of approximately $7 million. The revised capital budget should still result in significant year-over-year production growth as noted in our updated guidance below.

Gastar's 2015 revised capital budget is expected to provide for 31 gross (15.4 net) (previously 44 gross (27.1 net)) wells in the Hunton Limestone play, three gross (1.5 net) (previously six gross (3.0 net)) wells in the Marcellus Shale play and one gross (0.5 net) (previously two gross (1.5 net)) well(s) in the Utica Shale play in addition to the postponement of two gross (1.5 net) Mid-Continent Stack Play wells and one gross (1.0 net) vertical well in Marcellus East. The focus of Gastar's 2015 Hunton Limestone play will be on acreage not currently held by production and the deferral of drilling expenditures on acreage held by production.

Guidance for the Fourth Quarter of 2014 and Full Year 2015

We are updating previously issued guidance for full-years 2014 and 2015, and are providing the following guidance for the fourth quarter of 2014:

For earnings history and earnings-related data on Gastar Exploration (GST) click here.

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