Eagle Ford Shale-focused driller Penn Virginia (NYSE: PVA ) announced first-quarter results after markets closed today. The company reported an adjusted net loss of $7.9 million, or $0.12 per share. That was a nickel per share more than analysts were expecting.
Underlying cash flow growth, however, was strong as the company's EBITDAX grew from $84.4 million last quarter to $93.8 million this quarter. One of the big drivers of that growth was the company's cash margin per barrel of oil equivalent, or BOE. Penn Virginia was able to expand its cash margin over the past quarter from $48.48 per BOE to $53.93.
Production growth was also strong in the first quarter for Penn Virginia. Overall, production was up 6% from last quarter to 21,133 BOE/d. This was led by strong Eagle Ford Shale production, which was up 15% from last quarter and fueled a 7% jump in oil production. That enabled the company to deliver a new quarterly record for oil production.
Penn Virginia doesn't expect that growth to slow down any time soon. The company added 6,400 net acres to its Eagle Ford Shale position last quarter, boosting it by 8% to 85,900 net acres. That, however, was just part of the story as strong results from its second Upper Eagle Ford Shale test well enabled the company to add 475 future Upper Eagle Ford Shale well locations to its drilling inventory, boosting it by 34%. The company now expects to drill at least 1,510 total Eagle Ford Shale wells on its current acreage position.
Penn Virginia remains on track to meet its 2014 production guidance. Further, it's well on its way to achieving its minimum stated goal of amassing 100,000 net acres in the Eagle Ford Shale. Combine that with the additional well locations from the Upper Eagle Ford Shale, and Penn Virginia still has plenty of oil-rich growth left.