Bonanza Creek Energy, Inc. (NYSE: BCEI) (“Bonanza Creek” or
the “Company”) today provided preliminary 2019 results and
2020 guidance. The Company has also posted an updated investor
presentation to its website.
Highlights for fourth quarter and full year 2019 include:
- Average sales volumes of 24.3 MBoe/d for the fourth quarter
2019; up 37% over fourth quarter 2018
- Average sales volumes of 23.5 MBoe/d for full year 2019; up 48%
year-over-year, in the top-quartile of the initial 2019 annual
guidance and at the mid-point of the most recent guidance
- Total 2019 capital expenditures are estimated to be $222
million, below the low-end of the most recent guidance of $230 -
$240 million and initial guidance of $230 - $255 million
- Lease operating expense of $3.01/boe for the fourth quarter
brings the full year 2019 to $2.95/boe, below the low-end of
initial 2019 annual guidance and near the mid-point of the most
recent guidance
- Rocky Mountain Infrastructure (“RMI”) operating expense of
$1.66/boe for the fourth quarter brings full year 2019 to
$1.40/boe; at the high-end of the guidance range
Initial 2020 guidance:
- Annual 2020 production guidance of 26.0 – 29.0 MBoe/d,
representing 11 - 23% growth over 2019 volumes
- Total 2020 annual capital expenditures are expected to be $215
- $235 million
Eric Greager, President and Chief Executive Officer of Bonanza
Creek, commented, “The Company finished 2019 strong, meeting or
beating initial guidance for the year and meaningfully improving
key performance measures throughout the year. Average sales volumes
in 2019 finished near the high-end of initial guidance and
increased 48% over 2018, while capex finished below budget, below
guidance, and 19% lower than 2018. Improvements in our cost
structure continued through 2019, and we expect total opex and cash
G&A to be at or below our initial guidance for the year.”
Greager continued, “We are excited to provide initial guidance
and a capital plan for 2020. We expect to deliver production growth
of 17% at the mid-point of our guidance range, with capex that is
flat to 2019. We continue to work closely with our development
partner and remain ready for the start of French Lake drilling in
early Q4 2020.”
2020 Guidance
The Company’s 2020 capital plan assumes the continuation of a
one-rig (gross) operated program in the Company’s Legacy acreage,
and the startup of a one-rig (gross) non-operated program in the
Company’s French Lake area in late 2020. Total 2020 capital
expenditure guidance of $215 to $235 million compares to full-year
2019 capital expenditures of approximately $222 million.
The Company’s 2020 capital expenditures guidance includes an
estimated $20 to $25 million for non-operated capital, which
includes approximately $10 to $15 million for French Lake. The
budget includes the drilling of 61 gross (44.9 net) wells,
completion of 45 gross (35.9 net) wells, and turning to sales of 62
gross (48.5 net) wells. Included in the wells drilled are 15 gross
(7.5 net) wells in French Lake. This budget is subject to change
due to changes in service costs and non-operated activity, among
other factors.
The table below outlines the Company’s guidance for the full
year 2020.
2020 Guidance |
|
|
Low |
|
High |
|
Capital
Expenditures ($MM) |
|
$215 |
-- |
$235 |
|
|
|
|
|
|
|
|
|
Production
(boe/d) |
|
|
26,000 |
-- |
29,000 |
|
% Oil |
|
|
57-60% |
|
|
|
|
|
|
|
|
|
Lease Operating
Expenses ($/boe) |
$2.75 |
-- |
$3.00 |
|
|
|
|
|
|
|
|
|
RMI Operating
Expenses ($/boe) |
$1.50 |
-- |
$1.85 |
|
|
|
|
|
|
|
|
|
Cash G&A
($MM) |
|
|
$29 |
-- |
$32 |
|
|
|
|
|
|
|
|
Production
Taxes |
|
|
8% |
-- |
9% |
|
|
|
|
|
|
|
|
|
Oil
Differential |
|
|
$4.35 |
-- |
$4.85 |
|
Note: Guidance is forward-looking information
that is subject to considerable change and numerous risks and
uncertainties, many of which are beyond the Company’s control. See
“Forward-Looking Statements” below.
The Company’s expected 2020 RMI operating expenses include a
full year of costs associated with the Company’s oil gathering
pipeline system. This pipeline system significantly reduces the
Company’s use of truck hauling services, reducing truck traffic,
emissions, and weather risk while lowering crude oil differentials
and improving realized pricing. The Company expects its 2020 oil
differential to be in the range of $4.35 to $4.85 per barrel based
on an average WTI benchmark range of $50 to $60 per barrel.
Upcoming Events
The Company announced that it is scheduled to release its fourth
quarter and full-year 2019 operating and financial results after
market close on February 27, 2020 and will host a conference call
to discuss these results the following morning at 9:00 a.m.
Mountain Time (11:00 a.m. Eastern Time). A live webcast and replay
of this event will be available on the Investor Relations section
of the Company’s website at www.bonanzacrk.com. Dial-in information
for the conference call is included below.
Type |
Phone Number |
Passcode |
Live participant |
877-793-4362 |
5589405 |
Replay |
855-859-2056 |
5589405 |
The Company also announces that members of the Company’s
management will attend and participate at the following
conferences:
Credit Suisse 25th Annual Energy Summit Vail, ColoradoMarch 1-4,
2020
About Bonanza Creek Energy, Inc.
Bonanza Creek Energy, Inc. is an independent oil and natural gas
company engaged in the acquisition, exploration, development, and
production of oil and associated liquids-rich natural gas in the
Rocky Mountain region of the United States. The Company’s assets
and operations are concentrated in rural, unincorporated Weld
County within the Wattenberg Field, focused on the Niobrara and
Codell formations. The Company’s common shares are listed for
trading on the NYSE under the symbol: “BCEI.” For more information
about the Company, please visit www.bonanzacrk.com. Please note
that the Company routinely posts important information about the
Company under the Investor Relations section of its website.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the
future are forward-looking statements. These statements are based
on certain assumptions made by the Company based on management’s
experience, perception of historical trends and technical analyses,
current conditions, anticipated future developments and other
factors believed to be appropriate and reasonable by management.
When used in this press release, the words “will,” “potential,”
“believe,” “estimate,” “intend,” “expect,” “may,” “should,”
“anticipate,” “could,” “plan,” “predict,” “project,” “profile,”
“model” or their negatives, other similar expressions or the
statements that include those words, are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. These statements include
statements regarding development and completion expectations and
strategy; decreasing operating and capital costs; impact of the
Company's reorganization; and updated 2019 guidance. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company,
that may cause actual results to differ materially from those
implied or expressed by the forward-looking statements, including
the following: changes in natural gas, oil and NGL prices; general
economic conditions, including the performance of financial markets
and interest rates; drilling results; shortages of oilfield
equipment, services and personnel; operating risks such as
unexpected drilling conditions; ability to acquire adequate
supplies of water; risks related to derivative instruments; access
to adequate gathering systems and pipeline take-away capacity; and
pipeline and refining capacity constraints. Further information on
such assumptions, risks and uncertainties is available in the
Company’s SEC filings. We refer you to the discussion of risk
factors in our Annual Report on Form 10-K for the year ended
December 31, 2018, filed on February 28, 2019, our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2019, filed on August
7, 2019, our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019, filed on November 6, 2019, and other filings
submitted by us to the Securities Exchange Commission. The
Company’s SEC filings are available on the Company’s website at
www.bonanzacrk.com and on the SEC’s website at www.sec.gov. All of
the forward-looking statements made in this press release are
qualified by these cautionary statements. Any forward-looking
statement speaks only as of the date on which such statement is
made, including guidance, and the Company undertakes no obligation
to correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
For further information, please contact:Scott
LandrethSenior Director, Finance & Investor Relations and
Treasurer720-225-6679slandreth@bonanzacrk.com
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