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Eclipse Resources Corporation Announces Third Quarter 2017 Results and Updated Full Year 2017 Guidance

STATE COLLEGE, Pa., Nov 08, 2017 (BUSINESS WIRE) --

Eclipse Resources Corporation (NYSE:ECR) (the "Company" or "Eclipse Resources") today announced its third quarter 2017 financial and operational results and provided updated full year 2017 guidance. In conjunction with this release, the Company has posted an updated investor presentation to its website at www.eclipseresources.com.

Third Quarter 2017 Highlights:

-- Placed two new Utica Condensate "Super-Lateral" wells into sales with initial average production rates of approximately 3,300 BOE per day per well (48% condensate, 68% liquids) on a restricted choke during the fourth quarter of 2017.

-- Average net daily production was 353 MMcfe per day, in line with the Company's previously issued production guidance range of 350 to 355 MMcfe per day.

-- Realized an average natural gas price, before the impact of cash settled derivatives and firm transportation expenses, of $2.47 per Mcf, a $0.53 per Mcf discount to the average monthly NYMEX settled natural gas price during the quarter, exceeding the Company's previously issued natural gas differential discount guidance of $0.60 to $0.70 per Mcf.

-- Realized an average oil price, before the impact of cash settled derivatives, of $42.08 per barrel, a $6.10 per barrel discount to the average WTI oil price during the quarter, exceeding the Company's previously issued oil differential guidance range of $6.50 to $7.00 per barrel.

-- Realized an average natural gas liquids ("NGL") price, before the impact of cash settled derivatives, of $20.34 per barrel, or approximately 42% of the average WTI oil price during the quarter and exceeding the Company's previously issued NGL guidance range of 30% to 35% of the WTI oil price.

-- Per unit cash production costs (including lease operating, transportation, gathering and compression, production and ad valorem taxes)were $1.18 per Mcfe, including $0.28 per Mcfe in firm transportation expenses, which was below the Company's previously issued per unit cash production cost guidance range of $1.20 to $1.25 per Mcfe.

-- Net loss for the third quarter of 2017 was $(16.7) million; and Adjusted EBITDAX(1) for the third quarter of 2017 was $45.9 million.

(1) Non-GAAP measure. See reconciliation for details.

Benjamin W. Hulburt, Chairman, President and CEO, commented on the Company's third quarter 2017 results, "Eclipse Resources has continued to build on its strong track record and has delivered another solid quarter. We continue to challenge ourselves to provide incremental enhancements to our drilling and completions capabilities by embracing new technology and data applications while striving for optimal performance throughout our processes, from planning to implementation. As of the end of the third quarter, we had drilled eleven "super-lateral" wells with an average lateral length of approximately 18,000 feet, averaging just 16 days from spud to total depth ("TD"). During the third quarter, the Company drilled 10 gross (9.7 net) wells including four "super-laterals" with an average lateral length of over 17,500 feet. Moving into the fourth quarter, we drilled our Mercury B5H, setting a new lateral length record, located in the Utica Condensate area. This well was drilled with a lateral length of approximately 20,800 feet in 13 days spud to TD with the lateral itself drilled in only five days.

"On the completion side, we are in the process of completing our "stacked pay" Stalder pad, which incorporates two Marcellus Condensate wells and three Utica Dry Gas wells. We expect that this pad will begin to turn to sales in January 2018 and anticipate that it will provide the Company with the data needed to further validate our condensate rich Marcellus play footprint in eastern Ohio. Currently we have 16 wells with average lateral lengths of 14,500 (232,000 in total lateral footage) drilled but not completed. Two of these are Marcellus Condensate wells which are currently completing, three are Utica Dry gas wells that are waiting on plug drill out, while one Utica Dry and 10 Utica Condensate wells are waiting on completion. As our drilling operations have generally been more efficient and faster than expected, we are currently planning to mobilize a second completion crew in the first quarter to reduce our drilled uncompleted well inventory.

"Lastly and perhaps most excitingly, early in the fourth quarter, we began turning to sales five wells in the Utica Condensate portion of our acreage that included our Great Scott 3H (19,200 foot completed lateral) and Outlaw C11H (19,600 foot completed lateral), along with three additional laterals averaging approximately 10,300 feet in length. The two record setting "super-laterals" have reached an average per well 24-hour production rate of approximately 3,300 Barrels of Oil Equivalent ("BOE") to date on a restricted choke, consisting of almost 50% condensate and 68% in total liquids. We estimate that our total cost to drill and complete these two "super-lateral" wells (including all construction and facility costs) was approximately $750 per foot of lateral. We are continuing to bring all five wells up to what we believe to be a stabilized rate as the wells continue to clean up. To date, the five wells have reached a per well average daily rate of 163 BOE per day per 1,000 foot of lateral consisting of approximately 67% liquids.

"Concerning our previously announced drilling joint venture commitment agreement, I am pleased to say that we believe we have substantially completed the binding documents associated with the joint venture with Sequel Energy and have commenced a preclearance process related to the accounting treatment of the transaction with the Securities and Exchange Commission ("SEC"). We hope to close the transaction, pending final discussions with the SEC during the next 30 days. I believe that I speak for both Eclipse and Sequel in saying that we are excited to begin this next step in growing our production base to achieve ultimate scale in our model while managing our business prudently in what continues to be a constantly changing environment."

Operational Discussion

The Company's production for the three and nine months ended September 30, 2017 and 2016 is set forth in the following table:

                                                                             Three Months Ended                                                                                               Nine Months Ended
                                                                                                   September 30,                                                                                                                                         September 30,
                                                      ------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------
                                                                   2017                              2016                                                                    2017                                    2016
                                                      ------------------------------                                          ------------------------------                                          ------------------------------                                          ------------------------------------------
Production:                                                                                                                                                                                                           
Natural gas (MMcf)                                                         26,716.4                                                                15,372.2                                                                66,225.8                                                                            44,358.0
NGL sales (Mbbls)                                                             675.6                                                                   525.5                                                                 2,002.7                                                                             1,725.1
Oil sales (Mbbls)                                                             281.3                                                                   310.0                                                                 1,083.2                                                                               910.4
  Total (MMcfe)                                                            32,457.8                                                                20,385.2                                                                84,741.2                                                                            60,171.0
                                                                                                                                                                                                                                                                                                    
Average daily production volume:
Natural gas (Mcf/d)                                                         290,396                                                                 167,089                                                                 242,585                                                                             161,891
NGL sales (Bbls/d)                                                            7,343                                                                   5,712                                                                   7,336                                                                               6,296
Oil sales (Bbls/d)                                                            3,058                                                                   3,370                                                                   3,968                                                                               3,323
  Total (Mcfe/d)                                                            352,802                                                                 221,575                                                                 310,409                                                                             219,605
                                                                                                                                                                                                                                                                                                    

Market Conditions

Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. Prices for commodities, such as hydrocarbons, are inherently volatile. The following table lists average daily, high, low and average monthly settled NYMEX Henry Hub prices for natural gas and NYMEX WTI prices for oil for the three and nine months ended September 30, 2017 and 2016:

                                                                          Three Months Ended                                                       Nine Months Ended
                                                                                                September 30,                                                                                                 September 30,
                                                                       --------------------------------------------------------------                                          ---------------------------------------------------------------------------
                                                                          2017          2016                                               2017                 2016
                                                                       ----------                                          ----------                                          ---------                                          ------------------------
NYMEX Henry Hub High ($/MMBtu)                                           $  3.18                                             $  3.19                                            $  3.71                                            $                 3.19
NYMEX Henry Hub Low ($/MMBtu)                                               2.76                                                2.67                                               2.44                                                              1.49
Average Daily NYMEX Henry Hub ($/MMBtu)                                     2.95                                                2.88                                               3.01                                                              2.37
Average Monthly NYMEX Settled Henry Hub ($/MMBtu)                           3.00                                                2.81                                               3.17                                                              2.29
                                                                                                                                                                                                                                      
NYMEX WTI High ($/Bbl)                                                   $ 52.14                                             $ 49.02                                            $ 54.48                                            $                51.23
NYMEX WTI Low ($/Bbl)                                                      44.25                                               39.50                                              42.48                                                             26.19
Average NYMEX WTI ($/Bbl)                                                  48.18                                               44.89                                              49.30                                                             42.25
                                                                                                                                                                                                                                      

Financial Discussion

Revenue for the third quarter of 2017 totaled $91.5 million, compared to $54.5 million for the third quarter of 2016. Adjusted Revenue(2), which includes the impact of cash settled derivatives and excludes brokered natural gas and marketing revenue, totaled $93.1 million for the third quarter of 2017 compared to $59.0 million for the third quarter of 2016. Net Income (Loss) for the third quarter of 2017 was $(16.7) million, or $(0.06) per share compared to $(25.9) million or $(0.10) per share for the third quarter of 2016. Adjusted Net Income (Loss)(2) for the third quarter of 2017 was $(5.8) million, or $(0.02) per share, compared to $(20.5) million, or $(0.08) per share for the third quarter of 2016. Adjusted EBITDAX(2) was $45.9 million for the third quarter of 2017 compared to $22.6 million for the third quarter of 2016.

Revenue for the nine months ended September 30, 2017 totaled $279.6 million, compared to $151.2 million for the nine months ended September 30, 2016. Adjusted Revenue(2), which includes the impact of cash settled derivatives and excludes brokered natural gas and marketing revenue, totaled $272.1 million for the nine months ended September 30, 2017 compared to $176.6 million for the nine months ended September 30, 2016. Net Income (Loss) for the nine months ended September 30, 2017 was $21.6 million, or $0.08 per share compared to $(144.6) million or $(0.62) per share for the nine months ended September 30, 2016. Adjusted Net Income (Loss)(2) for the nine months ended September 30, 2017 was $(3.7) million, or $(0.01) per share, compared to $(59.7) million, or $(0.25) per share for the nine months ended September 30, 2016. Adjusted EBITDAX(2) was $135.7 million for the nine months ended September 30, 2017 compared to $59.9 million for the nine months ended September 30, 2016.

(2) Adjusted Revenue, Adjusted Net Income (Loss) and Adjusted EBITDAX are non-GAAP financial measures. Tables reconciling Adjusted Revenue, Adjusted Net Income (Loss) and Adjusted EBITDAX to the most directly comparable GAAP measures can be found at the end of the financial statements included in this press release.

Average realized price calculations for the three and nine months ended September 30, 2017 and 2016 are set forth in the table below:

                                                                                      Three Months Ended                                                       Nine Months Ended
                                                                                                            September 30,                                                                                                 September 30,
                                                                                   --------------------------------------------------------------                                          ---------------------------------------------------------------------------
                                                                                      2017          2016                                               2017                 2016
                                                                                   ----------                                          ----------                                          ---------                                          ------------------------
Average Sales Price (excluding cash settled derivatives and
firm transportation)
Natural gas ($/Mcf)                                                                  $  2.47                                             $  2.28                                            $  2.83                                            $                 1.96
NGLs ($/Bbl)                                                                           20.34                                               13.41                                              20.95                                                             13.28
Oil ($/Bbl)                                                                            42.08                                               39.67                                              44.26                                                             33.95
   Total average prices ($/Mcfe)                                                        2.82                                                2.67                                               3.27                                                              2.34
                                                                                                                                                                                                                                                  
Average Sales Price (including cash settled derivatives,
excluding firm transportation)
Natural gas ($/Mcf)                                                                  $  2.55                                             $  2.50                                            $  2.78                                            $                 2.57
NGLs ($/Bbl)                                                                           19.52                                               13.21                                              19.99                                                             13.36
Oil ($/Bbl)                                                                            42.42                                               43.60                                              44.41                                                             43.56
   Total average prices ($/Mcfe)                                                        2.87                                                2.89                                               3.21                                                              2.94
                                                                                                                                                                                                                                                  
Average Sales Price (including firm transportation, excluding
cash settled derivatives)
Natural gas ($/Mcf)                                                                  $  2.13                                             $  1.77                                            $  2.39                                            $                 1.49
NGLs ($/Bbl)                                                                           20.34                                               13.41                                              20.95                                                             13.28
Oil ($/Bbl)                                                                            42.08                                               39.67                                              44.26                                                             33.95
   Total average prices ($/Mcfe)                                                        2.54                                                2.28                                               2.93                                                              1.99
                                                                                                                                                                                                                                                  
Average Sales Price (including cash settled derivatives and
firm transportation)
Natural gas ($/Mcf)                                                                  $  2.20                                             $  2.00                                            $  2.34                                            $                 2.10
NGLs ($/Bbl)                                                                           19.52                                               13.21                                              19.99                                                             13.36
Oil ($/Bbl)                                                                            42.42                                               43.60                                              44.41                                                             43.56
   Total average prices ($/Mcfe)                                                        2.59                                                2.51                                               2.87                                                              2.59
                                                                                                                                                                                                                                                  

The Company's operating expenses per Mcfe for the third quarter of 2017 decreased by 19% compared to the third quarter of 2016 and are shown in the table below. Per unit cash production costs (includes lease operating, transportation, gathering and compression, production and ad valorem taxes) were $1.18 per Mcfe for the third quarter 2017 and includes $0.28 per Mcfe of firm transportation expenses.

General and administrative expense was $11.3 million for the three months ended September 30, 2017 compared to $8.0 million for the three months ended September 30, 2016 and are shown in the table below. General and administrative expense per Mcfe was $0.35 in the three months ended September 30, 2017 compared to $0.39 in the three months ended September 30, 2016. The increase of $3.3 million during the three months ended September 30, 2017 when compared to three months ended September 30, 2016 was primarily due to higher salaries and benefits associated with increased headcount for the three months ended September 30, 2017. The decrease of $0.04 per Mcfe is due to fixed costs being spread across higher production as of September 30, 2017 as compared to September 30, 2016. General and administrative expense includes $2.4 million and $1.8 million of stock-based compensation expense for the three months ended September 30, 2017 and 2016, respectively.

                                                                    Three Months Ended                                                         Nine Months Ended
                                                                                          September 30,                                                                                                   September 30,
                                                                ----------------------------------------------------------------                                          ----------------------------------------------------------------------------
                                                                   2017           2016                                                 2017                 2016
                                                                -----------                                          -----------                                          ----------                                          ------------------------
Operating expenses (in thousands):
Lease operating                                                   $  5,032                                             $  2,186                                            $ 11,943                                            $                7,111
Transportation, gathering and compression                           30,869                                               26,888                                              92,715                                                            78,279
Production and ad valorem taxes                                      2,427                                                1,128                                               6,391                                                             5,894
Depreciation, depletion and amortization                            35,588                                               28,225                                              86,929                                                            64,287
General and administrative                                          11,347                                                8,036                                              32,209                                                            29,712
Operating expenses per Mcfe:
Lease operating                                                   $   0.16                                             $   0.11                                            $   0.14                                            $                 0.12
Transportation, gathering and compression                             0.95                                                 1.32                                                1.10                                                              1.30
Production, severance and ad valorem taxes                            0.07                                                 0.06                                                0.08                                                              0.10
Depreciation, depletion and amortization                              1.10                                                 1.38                                                1.03                                                              1.07
General and administrative                                            0.35                                                 0.39                                                0.38                                                              0.49
                                                                                                                                                                                                                                  

Capital Expenditures

Third quarter 2017 capital expenditures were $104.5 million. These expenditures included $88.8 million for drilling and completions, $2.7 million for midstream expenditures, $12.4 million for land-related expenditures, and $0.6 million for corporate-related expenditures.

During the third quarter of 2017, the Company commenced drilling 10 gross (9.7 net) operated Utica Shale wells. In addition, the Company commenced completions of 6 gross (6.0 net) operated wells and turned to sales 2 gross (2.0 net) operated wells.

Financial Position and Liquidity

As of September 30, 2017, the Company's liquidity was $220.2 million, consisting of $28.8 million in cash and cash equivalents and $191.4 million in available borrowing capacity under the Company's revolving credit facility (after giving effect to outstanding letters of credit issued by the Company of $33.6 million).

Matthew R. DeNezza, Executive Vice President and Chief Financial Officer, commented, "We believe our current liquidity position coupled with the drilling joint venture agreement will allow us the financial flexibility to navigate the current commodity price volatility without adding stress to our balance sheet. Assuming the closing of our pending drilling joint venture is completed before year-end, we would expect to receive a significant reimbursement of the third and fourth quarter's drilling and completion capital expenditures, and as such, we continue to anticipate that we will end the full year 2017 with an undrawn revolver."

Commodity Derivatives

The Company engages in a number of different commodity trading program strategies as a risk management tool to attempt to mitigate the potential negative impact on cash flows caused by price fluctuations in natural gas, NGL and oil prices. Below is a table that illustrates the Company's hedging activities as of September 30, 2017:

Natural Gas Derivatives

                                            Volume                                                             Weighted Average
Description                                                   (MMBtu/d)                                                                 Production Period                                   Price ($/MMBtu)
------------------------------                      -----------------------------                                          -----------------------------------------                      ------------------
Natural Gas Swaps:                                   
                                                                          10,000                                            October 2017 - December 2017                            $     2.98
                                                                          10,000                                            October 2017 - December 2017                            $     3.21
                                                                          30,000                                             October 2017 - March 2018                              $     3.46
Natural Gas Three-way Collars:
  Floor purchase price (put)                                             160,000                                            October 2017 - December 2017                            $     2.83
  Ceiling sold price (call)                                              160,000                                            October 2017 - December 2017                            $     3.37
  Floor sold price (put)                                                 160,000                                            October 2017 - December 2017                            $     2.31
  Floor purchase price (put)                                              30,000                                             October 2017 - March 2019                              $     3.00
  Ceiling sold price (call)                                               30,000                                             October 2017 - March 2019                              $     3.40
  Floor sold price (put)                                                  20,000                                             October 2017 - March 2019                              $     2.40
  Floor sold price (put)                                                  10,000                                             October 2017 - March 2019                              $     2.20
  Floor purchase price (put)                                              40,000                                            October 2017 - December 2018                            $     2.90
  Ceiling sold price (call)                                               40,000                                            October 2017 - December 2018                            $     3.38
  Floor sold price (put)                                                  40,000                                            October 2017 - December 2018                            $     2.30
  Floor purchase price (put)                                              60,000                                             January 2018 - March 2018                              $     2.90
  Ceiling sold price (call)                                               60,000                                             January 2018 - March 2018                              $     3.75
  Floor sold price (put)                                                  60,000                                             January 2018 - March 2018                              $     2.40
  Floor purchase price (put)                                              60,000                                             April 2018 - December 2018                             $     2.90
  Ceiling sold price (call)                                               60,000                                             April 2018 - December 2018                             $     3.25
  Floor sold price (put)                                                  60,000                                             April 2018 - December 2018                             $     2.40
  Floor purchase price (put)                                              60,000                                            January 2018 - December 2018                            $     2.80
  Ceiling sold price (call)                                               60,000                                            January 2018 - December 2018                            $     3.35
  Floor sold price (put)                                                  60,000                                            January 2018 - December 2018                            $     2.33
Natural Gas Call/Put Options:
  Call sold                                                               40,000                                            January 2018 - December 2018                            $     3.75
  Call sold                                                               10,000                                            January 2019 - December 2019                            $     4.75
Basis Swaps:
  TCO - Columbia                                                          20,000                                            October 2017 - December 2017                            $    (0.19 )
  Appalachia - Dominion                                                   80,000                                            October 2017 - November 2017                            $    (1.02 )
  Appalachia - Dominion                                                   50,000                                                          December 2017                                          $    (0.56 )
  Appalachia - Dominion                                                   50,000                                             January 2018 - March 2018                              $    (0.43 )
  Appalachia - Dominion                                                   12,500                                             April 2019 - October 2019                              $    (0.52 )
  Appalachia - Dominion                                                   12,500                                             April 2020 - October 2020                              $    (0.52 )
                                                                                                                                                                                                             

Oil Derivatives

                                         Volume                                                                  Weighted Average
Description                                                (Bbls/d)                                                                 Production Period                                          Price ($/Bbl)
----------------------------                      ---------------------------                                          -----------------------------------------                      ------------------------------
Oil Three-way Collars:                             
  Floor purchase price (put)                                           2,000                                            October 2017 - December 2017                            $                46.00
  Ceiling sold price (call)                                            2,000                                            October 2017 - December 2017                            $                60.00
  Floor sold price (put)                                               2,000                                            October 2017 - December 2017                            $                38.00
                                                                                                                                                                                                

NGL Derivatives

                                                                                                                                                                                                                                                  Volume                                                                  Weighted Average
Description                                                                                                                                                                                                                                                                     (Gal/d)                                                                 Production Period                                          Price ($/Gal)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      ----------------------------                                          -----------------------------------------                      ------------------------------
Propane Swaps:                                            
                                                                                                                                                                                                                                                                               84,000                                            October 2017 - December 2017                            $                 0.60
                                                                                                                                                                                                                                                                                                                                                                                                         

Guidance

The Company has reiterated the following full year 2017 guidance in the table below:

                                                            FY 2017
                                                                                                                                                                                                                                 -----------------
Production MMcfe/d                                                                                                                                                                                                                    315 - 320
    % Gas                                                                                                                                                                                                                             77% - 81%
    % NGL                                                                                                                                                                                                                             11% - 15%
    % Oil                                                                                                                                                                                                                              7% - 9%
Gas Price Differential ($/Mcf)(1,2)                                                                                                                                                                                               $(0.30) - $(0.40)
Oil Differential ($/Bbl)(1)                                                                                                                                                                                                       $(5.50) - $(6.00)
NGL Prices (% of WTI)(1)                                                                                                                                                                                                              40% - 45%
Cash Production Costs ($/Mcfe)(3)                                                                                                                                                                                                   $1.35 - $1.40
Cash G&A ($mm)(4)                                                                                                                                                                                                                     $35 - $37
CAPEX ($mm)(5)                                                                                                                                                                                                                           $300

(1) Excludes impact of hedges. (2) Excludes the cost of firm transportation. (3) Includes lease operating, transportation, gathering and compression, production and ad valorem taxes. (4) Non-GAAP measure which excludes non-cash compensation, see reconciliation to the most comparable GAAP measure at the end of the financial statements included in this press release. (5) Excludes potential acquisitions and payments of approximately $18 million for land leased in 2016 which was paid in 2017.

Conference Call

A conference call to review the Company's financial third quarter 2017 earnings is scheduled for Thursday, November 9, 2017, at 10:00 a.m. (Eastern). To participate in the call, please dial 877-709-8150, or 201-689-8354 for international callers, and reference Eclipse Resources Third Quarter Earnings Call. A replay of the call will be available through January 9, 2017. To access the phone replay dial 877-660-6853 or 201-612-7415 for international callers. The conference ID is 13672214. A live webcast of the call may be accessed through the "Investors" section of the Company's website at www.eclipseresources.com.

                                                                                                        
                                                                                      ECLIPSE RESOURCES CORPORATION
                                                                                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                           (In thousands, except share and per share amounts)
                                                                                               (Unaudited)
                                                                                                                                                                                    
                                                                                                September 30,                                              December 31,
                                                                                                    2017                                                       2016
                                                                                    ------------------------------------                       ------------------------------------
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                                                                            $         28,795                                           $        201,229
  Accounts receivable                                                                                            40,553                                                     44,423
  Assets held for sale                                                                                              426                                                        468
  Other current assets                                                                         6,959                                   4,295
                                                                                    -------------------- --------------                        -------------------- --------------
     Total current assets                                                                                        76,733                                                    250,415
                                                                                                                                                                                    
PROPERTY AND EQUIPMENT AT COST
  Oil and natural gas properties, successful efforts method:
  Unproved properties                                                                                           488,260                                                    526,270
  Proved oil and gas properties, net                                                                            636,023                                                    414,482
  Other property and equipment, net                                                            7,190                                   6,748
                                                                                    -------------------- --------------                        -------------------- --------------
     Total property and equipment, net                                                                        1,131,473                                                    947,500
                                                                                                                                                                                    
OTHER NONCURRENT ASSETS
  Other assets                                                                                 2,040                                     729
                                                                                    -------------------- --------------                        -------------------- --------------
TOTAL ASSETS                                                                                           $      1,210,246                                           $      1,198,644
                                                                                    ==================== ==============                        ==================== ==============
                                                                                                                                                                                    
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts payable                                                                                     $         69,914                                           $         44,049
  Accrued capital expenditures                                                                                   19,319                                                     11,083
  Accrued liabilities                                                                                            24,981                                                     55,044
  Accrued interest payable                                                                                        9,973                                                     21,098
  Liabilities held for sale                                                                      189                                     245
                                                                                    -------------------- --------------                        -------------------- --------------
     Total current liabilities                                                                                  124,376                                                    131,519
                                                                                                                                                                                    
NONCURRENT LIABILITIES
  Debt, net of unamortized discount and debt issuance costs                                                     494,332                                                    492,278
  Asset retirement obligations                                                                                    5,766                                                      4,806
  Other liabilities                                                                            2,740                                  13,434
                                                                                    -------------------- --------------                        -------------------- --------------
     Total liabilities                                                                                          627,214                                                    642,037
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
                                                                                                         --                                             --
  Preferred stock, 50,000,000 authorized, no shares issued and
  outstanding
                                                                                                                  2,637                                                      2,607
  Common stock, $0.01 par value, 1,000,000,000 authorized,
  262,740,355 and 260,591,893 shares issued and outstanding,
  respectively
  Additional paid in capital                                                                                  1,965,514                                                  1,958,731
                                                                                                                 (2,096 )                                                      (61 )
  Treasury stock, shares at cost; 992,315 and 72,704 shares,
  respectively
  Accumulated deficit                                                                     (1,383,023 )                            (1,404,670 )
                                                                                    -------------------- --------------                        -------------------- --------------
     Total stockholders' equity                                                              583,032                                 556,607
                                                                                    -------------------- --------------                        -------------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                             $      1,210,246                                           $      1,198,644
                                                                                    ==================== ==============                        ==================== ==============
                                                                                                                                                                                    
                                                                                                                                                         
                                                                                                                                          ECLIPSE RESOURCES CORPORATION
                                                                                                                                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                      (In thousands, except per share data)
                                                                                                                                                   (Unaudited)
                                                                                                                                                                                                                                                                                             
                                                                                                          For the Three Months Ended                                                                                              For the Nine Months Ended
                                                                                                                 September 30,                                                                                                          September 30,
                                                                      --------------------------------------------------------------------------------------------------                        --------------------------------------------------------------------------------------------
                                                                                      2017                                       2016                                                        2017                                    2016
                                                                      ------------------------------------                          ------------------------------------                        ------------------------------------                          ------------------------------
REVENUES
  Natural gas, oil and natural gas liquids sales                                         $         91,549                                              $         54,351                                            $        277,174                                              $  140,740
  Brokered natural gas and marketing revenue                            --                                        128                                    2,428                               10,411
                                                                      -------------------- --------------                           -------------------- --------------                         -------------------- --------------                           -------------------- --------
     Total revenues                                                                                91,549                                                        54,479                                                     279,602                                                 151,151
                                                                                                                                                                                                                                                                                             
OPERATING EXPENSES
  Lease operating                                                                                   5,032                                                         2,186                                                      11,943                                                   7,111
  Transportation, gathering and compression                                                        30,869                                                        26,888                                                      92,715                                                  78,279
  Production and ad valorem taxes                                                                   2,427                                                         1,128                                                       6,391                                                   5,894
  Brokered natural gas and marketing expense                                                            8                                                            42                                                       2,474                                                  11,604
  Depreciation, depletion and amortization                                                         35,588                                                        28,225                                                      86,929                                                  64,287
  Exploration                                                                                       8,937                                                        12,083                                                      29,514                                                  45,183
  General and administrative                                                                       11,347                                                         8,036                                                      32,209                                                  29,712
  Rig termination and standby                                                              --                                                          (112 )                                            --                                                   3,843
  Impairment of proved oil and gas properties                                              --                                                --                                              --                                                  17,665
  Accretion of asset retirement obligations                                                           143                                                           100                                                         395                                                     275
  (Gain) loss on sale of assets                                                    (13 )                                      102                                      (12 )                               (944 )
                                                                      -------------------- --------------                           -------------------- --------------                         -------------------- --------------                           -------------------- --------
     Total operating expenses                                                   94,338                                     78,678                                  262,558                              262,909
                                                                      -------------------- --------------                           -------------------- --------------                         -------------------- --------------                           -------------------- --------
OPERATING INCOME (LOSS)                                                                            (2,789 )                                                     (24,199 )                                                    17,044                                                (111,758 )
OTHER INCOME (EXPENSE)
  Gain (loss) on derivative instruments                                                            (1,889 )                                                      10,639                                                      41,385                                                  (8,407 )
  Interest expense, net                                                                           (12,016 )                                                     (12,393 )                                                   (36,763 )                                               (38,293 )
  Gain (loss) on early extinguishment of debt                                              --                                                --                                              --                                                  14,489
  Other income (expense)                                                --                                          4                                      (19 )                               (137 )
                                                                      -------------------- --------------                           -------------------- --------------                         -------------------- --------------                           -------------------- --------
     Total other income (expense), net                                         (13,905 )                                   (1,750 )                                  4,603                              (32,348 )
                                                                      -------------------- --------------                           -------------------- --------------                         -------------------- --------------                           -------------------- --------
INCOME (LOSS) BEFORE INCOME TAXES                                                                 (16,694 )                                                     (25,949 )                                                    21,647                                                (144,106 )
INCOME TAX BENEFIT (EXPENSE)                                            --     

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