RSP Permian sees FY18 development capital spend $815M-$895M
RSP anticipates spending $815 to $895 million in development capital in 2018, generating production growth of 35% at the midpoint of the production guidance range. At a $50 average oil price, the Company expects to generate cash flow in excess of development spending by the fourth quarter and exit the year at less than 2.0x Net Debt / LTM EBITDAX. The Company is running seven operated rigs currently, and with an expected rig addition in April, will target four rigs running in each basin going forward. RSP is currently running three completion crews, two full-time and one spot crew, and expects to add a third full-time crew in May to replace the spot crew. With 19 wells completed in the first two months of 2018, RSP is off to a strong start towards its guided range of 100-120 operated completions for the full year 2018.