Production averaged 162 100 boe/d in 1Q20, compared to 151 800 boe/d in 4Q19, maintaining the company's full year production guidance of 145 000 – 160 000 boe/d.
Cash flow for the period was US$355 million, compared to US$362.3 million in 4Q19. EBITDAX was US$322.9 in 1Q20, compared to US$451 million in 4Q19.
The company is expecting to reduce its CAPEX in 2020 by over US$300 million, and has identified 2020 operating cost and G&A cost savings of US$50 million that can be made.
Neptune's CEO, Jim House said: “Despite the challenges posed by the Covid-19 pandemic, Neptune’s operational performance in the first quarter of the year was strong. Our resilience plan and hedging activity mitigated weaker commodity prices, resulting in a robust financial performance.
“We have taken decisive action across the business to increase liquidity and reduce cost, while preserving long-term value. We continue to review our business to identify opportunities to reduce operating expenditure further and focus on value over volume.
“The second quarter of the year is likely to be more challenging and we expect production to be lower, reflecting planned maintenance and development-related shutdowns and weaker commodity prices.
“We remain mindful of the impact of the pandemic and have put in place measures to support our people, our suppliers and the communities in which we operate.”