Zephyr Energy Posts Robust Q2 Production Growth in US Portfolio

Zephyr Energy PLC reported better-than-expected production from its non-operated US portfolio in the second quarter. The company's average daily output of 914 barrels of oil equivalent per day rose around 45% year on year, with 69% of volumes consisting of oil.

Higher-than-expected production and commodity prices generated strong cash flow during the period, according to Zephyr. The company hedged 27,000 barrels of oil at a weighted average price of $65.91 a barrel, equivalent to around 32% of quarterly oil production.

Zephyr's non-operated portfolio spans more than 600 gross wells across Utah, Colorado, Wyoming, Montana, and North Dakota. First International Bank & Trust reaffirmed Zephyr's existing borrowing facilities following its semi-annual review, with current borrowings of about $19.9 million.

The company also participated in four new Powder River wells drilled by Chord Energy using existing cash resources. Chief executive Colin Harrington said the portfolio continues to generate cash capable of supporting Zephyr's operated Paradox Basin project in Utah.