Resolute Energy reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2017. For the quarter, the company reported revenue of $65,226,000 against $19,002,000 a year ago. Income from operations was $8,390,000 against loss of $76,084,000 a year ago. Net income available to common shareholders was $76,000 or $0.01 per basic and diluted share against net loss available to common shareholders of $85,312,000 or $5.65 per basic and diluted share a year ago. Adjusted EBITDA was $28,918,000 against $23,153,000 a year ago. The increase in Adjusted EBITDA was the result of increased revenue due to increased production, partially offset by decreased commodity derivative gains and an increase in cash-settled incentive award expense. The company realized a 39% increase in adjusted revenue (revenue including commodity derivative settlements), a non-GAAP measure, as compared to the prior year quarter due to increased production attributable to positive results from the drilling program in the Delaware Basin offset by decreased derivative settlement gains. Adjusted revenue was $65.0 million, including the effect of commodity derivative settlement losses of $0.3 million. Capital expenditures were approximately $53.4 million, excluding proceeds from divestitures of $19.2 million and capitalized interest of $2.5 million.  These capital investments were primarily for drilling and completion projects in the Delaware Basin.

Production for the first quarter of 2017 averaged 19,702 Boe per day, an increase of 10,686 Boe per day, or 119%, from the prior year first quarter. On a sequential basis, first quarter production was essentially flat to fourth quarter 2016 volumes of 19,583 Boe per day.  Quarterly production was also impacted by vendor delays and production downtime related to well shut-ins to perform significant facilities upgrades, weather induced events such as power interruptions and well interference from nearby completion operations.

For the quarter, the company recorded a $58 million non-cash impairment of the carrying value of proved oil and gas properties during the 2016 period, as a result of the ceiling test limitation at March 31, 2016.