Bonanza Creek Provides an Operational Update and 2020 Guidance
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 millionand 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 - $235 million
Greager continued, “We are excited to provide initial guidance and a capital plan for 2020. We expect to deliver production growth of 17% at the mid-point of our guidance range, with capex that is flat to 2019. We continue to work closely with our development partner and remain ready for the start of
The Company’s 2020 capital plan assumes the continuation of a one-rig (gross) operated program in the Company’s Legacy acreage, and the startup of a one-rig (gross) non-operated program in the Company’s
The Company’s 2020 capital expenditures guidance includes an estimated
The table below outlines the Company’s guidance for the full year 2020.
|Capital Expenditures ($MM)||$215||--||$235|
|Lease Operating Expenses ($/boe)||$2.75||--||$3.00|
|RMI Operating Expenses ($/boe)||$1.50||--||$1.85|
|Cash G&A ($MM)||$29||--||$32|
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
The Company announced that it is scheduled to release its fourth quarter and full-year 2019 operating and financial results after market close on
The Company also announces that members of the Company’s management will attend and participate at the following conferences:
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
For further information, please contact:
Senior Director, Finance & Investor Relations and Treasurer
Source: Bonanza Creek Energy, Inc.
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