HOUSTON, March 19, 2020 (GLOBE NEWSWIRE) — Rosehill Resources Inc. (“Rosehill” or the “Company”) (NASDAQ: ROSE, ROSEW, ROSEU) today provided an operational and financial update and withdrew its previously issued 2020 guidance in light of deteriorating global markets and commodity prices.
Capital Activity and GuidanceThe Company has halted all drilling and completion activity for 2020. The Company now has five drilled uncompleted wells all located in Loving County after drilling eight wells and completing eight wells to date in 2020. Through February, the Company’s average net production for 2020 was approximately 20,900 barrels of oil equivalent per day. Rosehill’s 2020 guidance issued on December 16, 2019 should no longer be relied upon.Liquidity and Commodity HedgesThe Company fully drew the amount available under its revolving credit facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets and commodity prices. After this draw, the Company’s total debt under its credit facility increased to $340 million with total cash on hand of $73 million. The Company remains fully compliant with all of its financial covenants.The Company’s commodity derivative portfolio continues to be a significant asset with a projected settlement value of approximately $159 million and mark-to-market value of approximately $143 million, both as of March 18, 2020.
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