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Here’s why Senex Energy Ltd crashed 8% today

Shares of Cooper Basin oil and gas producer, Senex Energy Ltd (ASX: SXY), have fallen 8% today following the release of its third quarter report.

For the quarter ended 31 March 2015, Senex said net production (mmboe) and sales revenue fell 8.3% and 20.9%, respectively over the prior quarter, with the company achieving an average realised oil price of $72 per barrel, down from $129 per barrel a year earlier.

Whilst the market price for oil fell 28% from the prior quarter, hedging instruments and declines in the Australian Dollar (AUDUSD) helped offset some of the lower prices. An additional one million barrels of production will be hedged under these instruments in financial year 2016.

During the quarter Senex also secured an $80 million debt facility, although it remains well funded with a cash balance of $60 million.

Capital expenditures have been further revised downward to between $80 million and $85 million from the $85 million to $90 million it announced in January. It expects to drill 14 wells in FY16.

Finally, Senex said full year production for FY15 will come in between 1.36 million barrels of oil equivalent (mmboe) and 1.41 mmboe, down from its original guidance of greater than 1.4 mmboe.

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Motley Fool contributor Owen Raskiewicz has no position in any stocks mentioned. Owen welcomes your feedback on Google plus (see below) or you can follow him on Twitter @ASXinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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