Resolute Energy (NYSE:REN) is up 16.6% on news that the company sold some of its midstream assets in the Permian Basin to an undisclosed buyer for $110M.
The Denver, CO based company is an independent oil and gas company that acquires and develops various oil and gas properties in states such as Utah, Wyoming, Oklahoma, Alabama, and Texas. The sale involves properties in Reeves County, Texas and according to REN will be used to reduce debt and fund other development activity.
Along with the deal, REN also announced that they “exited June with record production of more than 15,400 barrels of oil equivalent (boe) per day. This value beats REN’s previous record of 14,911 boe/day.
Analysts tracking REN currently have a 67% agreement in downward earnings estimate revisions for Q2, with current estimates at -$0.06 per share, a decrease from the -$0.02 estimate of 60 days ago. For this fiscal year, estimates stand at -$0.42 per share, up from the -$0.47 estimate of 60 days ago.
REN has mostly missed EPS estimates in the last two years, with an average of the last four surprises at -398.30%. This transaction is meant to help put REN on track, but whether or not it actually will is left to be seen.
RESOLUTE ENERGY Price and EPS Surprise
RESOLUTE ENERGY Price and EPS Surprise | RESOLUTE ENERGY Quote
Resolute Energy currently sits at a Zacks Rank #3 (Hold).
RESOLUTE ENERGY (REN): Free Stock Analysis Report
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