Bonanza Creek Provides an Operational Update and Announces 2nd Quarter 2020 Conference Call
- Second quarter 2020 estimated average sales volumes of 24.9 thousand barrels of oil equivalent per day (“MBoe/d”), with oil representing 56% of total volumes
- Total second quarter 2020 capital expenditures of approximately
$22 million, in line with expectations for the year
- Lease operating expenses (“LOE”) for the quarter are expected to be
$2.56per boe, up less than 2% from first quarter 2020, and down 13% from full year 2019
- Recurring cash general and administrative (“G&A”) expenses, which excludes stock-based compensation and cash severance costs, are expected to be
$2.72per boe, down 21% from first quarter 2020, and down 27% from full year 2019
- Rocky Mountain Infrastructure (“RMI”) net effective cost of
$0.97per boe, which is comprised of approximately $1.48per boe of midstream operating expense offset by $0.51per boe of RMI operating revenue from working interest partners
- The Company exited the quarter with over
$206 millionof liquidity, $58 millionoutstanding on its credit facility, and cash of approximately $4 million
The Company announced that it is scheduled to release its second quarter 2020 operating and financial results after market close on
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 2020 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
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Senior Director, Finance & Investor Relations and Treasurer
Schedule 1: Recurring Cash G&A
(in thousands, unaudited)
Recurring cash G&A is a supplemental non-GAAP financial measure that is used by management to provide only the cash portion of its G&A expense, which can be used to evaluate cost management and operating efficiency on a comparable basis from period to period. Management believes recurring cash G&A provides external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies, with additional information to assist in their analysis of the Company. The Company defines recurring cash G&A as GAAP general and administrative expense exclusive of the Company's stock based compensation and one-time charges. The Company refers to recurring cash G&A to provide typical recurring cash G&A costs that are planned for in a given period. Recurring cash G&A is not a fully inclusive measure of general and administrative expense as determined by GAAP.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expense to the non-GAAP financial measure of recurring cash G&A.
|Three Months Ended|
|General and administrative expense||$8,406|
|Cash severance costs||(784)|
|Recurring cash G&A||$6,148|
Schedule 2: Rocky Mountain Infrastructure (“RMI”) Net Effective Cost
(in thousands, unaudited)
RMI net effective cost is a supplemental non-GAAP financial measure that is used by management to provide only the net cash impact the Company’s wholly owned subsidiary, Rocky Mountain Infrastructure, LLC, has on the Company’s consolidated financials. Management believes the net effective cost provides external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies, with additional information to assist in their analysis of the Company. The Company defines the RMI net effective cost as GAAP midstream operating expense less revenue generated from working interest partners utilizing the RMI assets.
The following table presents a reconciliation of the GAAP financial measures of midstream operating expense and RMI working interest partner revenue to the non-GAAP financial measure of RMI net effective cost.
|Three Months Ended|
|Midstream operating expense||$3,354|
|RMI working interest partner revenue||(1,157)|
|RMI net effective cost||$2,197|
Source: Bonanza Creek Energy, Inc.
Data Provided by Refinitiv. Minimum 15 minutes delayed.