Eclipse Resources Corporation announced production results for the fourth quarter and full year ended December 31, 2017. Net production for the fourth quarter 2017 averaged 311.7 MMcfe per day, a 22% increase over fourth quarter 2016 production. The company's production mix was 74% natural gas, 15% natural gas liquids (“NGLs”) and 11% oil.

Net production for the full year 2017 averaged 310.7 MMcfe per day, a 36% increase over 2016 full year production. This was the result of shut-in or curtailed production during offsetting completion operations, as well as the conscious decision to reorder drilling schedule towards condensate wells (which can have a negative effect on an Mcfe basis using the traditional 6:1 ratio, but results in higher cash flow). During the full year 2017, the Company drilled 29 gross wells with an average lateral length of approximately 13,600 feet, which included eight wells with a lateral length greater than 19,000 feet. Production mix for the full year 2017 was 77% natural gas, 14% NGLs and 9% oil.

The company provided production guidance for the first quarter and full year of 2018. For the first quarter of 2018, production guidance range of 295 MMcfe per day to 305 MMcfe per day.

For the full-year 2018, production guidance range of 335 MMcfe per day to 355 MMcfe per day, and estimated year- over-year condensate growth of approximately 42%, which reflects the Company's objective of increasing its oil and liquids exposure as a percentage of its total production for 2018. The company has updated its “type well” assumptions for 2018, including extending the average lateral length for all of its Utica Shale wells to 16,000 feet, updating service cost assumptions and adjusting its initial flow assumption on its Utica Shale Dry gas wells, which the Company expects will accelerate production over its previous expectations.

The Company has established an initial capital budget for 2018 of between $300 million to $320 million, allocated approximately 84% for drilling and completions activities, 8% for midstream activities, 6% for land activities and 2% for other capital requirements. This budget incorporates the Company's drilling joint venture with Sequel Energy, in which the Company made a pre-carry working interest election of 50% in the first 16 well program and a pre-carry working interest election of 30% in the second 17 well program. The initial capital budget assumes the drilling of 17 net (33 gross) horizontal Utica Shale wells and the completion of 18 net (35 gross) horizontal Utica Shale wells, including the drilling and completion of 1 net (1.0 gross) Flat Castle area well. The wells to be drilled in 2018 are expected to average over 16,800 feet in lateral length.