Penn Virginia Corporation (NASDAQ:PVAC) Q3 2019 Earnings Conference Call Transcript
Nov 08, 2019 • 11:00 am ET
Good day and welcome to the Penn Virginia Third Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Clay Jeansonne Director of Investor Relations. Please go ahead.
Thank you Andrew and good morning everyone. We appreciate your participation in today's call. I'm Clay Jeansonne Director of Investor Relations and I'm joined this morning by John Brooks Penn Virginia's President CEO; and Ben Mathis our Senior Vice President of Operations and Engineering. We will discuss non-GAAP measures on this call. Definitions and reconciliations of these measures to the most comparable GAAP measures are provided in our third quarter earnings press release and the presentation posted on our website this morning. Prior to getting started I'd like to remind you of the language in the forward-looking statement section of the press release which was released yesterday afternoon. Our comments today will contain forward-looking statements within the meaning of the Federal Securities Law. This statement -- these statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward-looking statements. Including those identified in the risk factors in our most recent annual report on Form 10-K as they may be amended in subsequent Form 10-Qs. Cautionary language is also included on Slide 1 of the presentation. We will use the presentation to go through today's discussion. Finally after our prepared remarks we will answer any questions you may have.
With that I'll turn the call over to John.
Thanks Clay. Let's start on Page 3 with a quick company overview. Penn Virginia is a pure-play Eagle Ford Shale operator in Gonzales Fayette LaVaca and DeWitt counties in South Texas. We have approximately 100200 gross acres and 87300 net acres in the Eagle Ford which is approximately 91% held by production and 99% of which is operated by Penn Virginia. Our estimated drilling inventory on September 30 2019 was 500 gross or 440 net locations. And I want to point out that this inventory count is only for the lower Eagle for one of our goals for our land and technical team is to continue replenishing that inventory through organic acreage leasing small acquisitions, as well as equity swaps with Jason operators. And we also hope to increase that count by identifying this To find additional location inventory in the upper Eagle furred in chalk from our recently constructed our model. Our product mix in the third quarter was 88% liquids of which 73% was oil.
Penn Virginia's oil production receives premium Louisiana Light Sweet which we sometimes refer to as LLS or Magellan East Houston also referred to as MEH pricing which enhances our adjusted EBITDAX margins. We're currently running 2 rigs and 1 dedicated frac spread. We are targeting year-over-year production growth for 2019 of 25% to 30% and we are well on our way to achieving that target based on the first nine months results. Now let's