Delaware | 001-35371 | 61-1630631 |
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (I.R.S. employer identification number) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Exhibits. |
Exhibit No. | Description |
Bonanza Creek Energy, Inc. | |||
Dated: August 7, 2019 | By: | /s/ Cyrus D. Marter IV | |
Name: | Cyrus D. Marter IV | ||
Title: | Executive Vice President, General Counsel and Secretary | ||
• | Increasing 2019 annual production guidance to a range of 22.0 to 24.0 MBoe/d following strong second quarter 2019 sales volumes of 24.4 MBoe/d, up 18% over first quarter 2019 and 38% over fourth quarter 2018 |
• | The Whitetail A-4 well in the Company's Northern acreage is performing consistent with the Company's Legacy East XRL type curve |
• | Net oil and gas revenue of $85.8 million, an increase of 18% over first quarter 2019 |
• | GAAP net income of $41.0 million, or $1.99 per diluted share, inclusive of $0.42 non-cash gain on derivatives |
• | Adjusted EBITDAX(1) of $56.2 million, or $2.72 per diluted share, an increase of 14% sequentially |
• | Lease operating expenses of $2.87 per Boe, a decrease of 1% over first quarter 2019 |
• | Total general and administrative ("G&A") expense, including non-cash, stock-based compensation, of $9.8 million. Cash G&A(1), excluding stock-based compensation, was $8.0 million for the quarter or $3.61 per Boe, down 24% from first quarter 2019 |
• | Combined cash costs of LOE, Rocky Mountain Infrastructure ("RMI") operating expenses, gathering, transportation and processing ("GT&P"), and cash G&A totaled $9.65 per Boe for the quarter, down 13% from first quarter 2019 |
• | Total capital expenditures of $81.7 million for the quarter and $126.5 million year to date, in line with Company's full year 2019 guidance of $230.0 to $255.0 million |
Three Months Ended June 30,(2) | |||||||||||||
2019 | 2018 | % Change | |||||||||||
Avg. Daily Sales Volumes: | |||||||||||||
Crude oil (Bbls/d) | 15,096 | 8,866 | 70% | ||||||||||
Natural gas (Mcf/d) | 31,901 | 18,511 | 72% | ||||||||||
Natural gas liquids (Bbls/d) | 4,015 | 3,126 | 28% | ||||||||||
Crude oil equivalent (Boe/d) | 24,428 | 15,077 | 62% | ||||||||||
Product Mix | |||||||||||||
Crude oil | 62 | % | 59 | % | |||||||||
Natural gas | 22 | % | 20 | % | |||||||||
Natural gas liquids | 16 | % | 21 | % | |||||||||
Average Sales Prices (before derivatives): | |||||||||||||
Crude oil (per Bbl) | $ | 54.10 | $ | 63.05 | |||||||||
Natural gas (per Mcf) | $ | 1.94 | $ | 1.96 | |||||||||
Natural gas liquids (per Bbl) | $ | 11.66 | $ | 17.06 | |||||||||
Crude oil equivalent (per Boe) | $ | 37.88 | $ | 43.02 | |||||||||
Guidance | 2Q19 Actuals | YTD 2019 Actuals | FY19 Guidance |
Production (MBoe/d) | 24.4 | 22.3 | 22.0 - 24.0 |
LOE ($/Boe) | $2.87 | $2.89 | $2.75 - $3.25 |
RMI Opex ($/Boe) | $1.22 | $1.23 | $1.10 - $1.40 |
Cash G&A ($/Boe) | $3.61 | $4.14 | $3.70 - $4.20 |
Severance Ad/Valorem (% of rev) | 9.2% | 7.7% | 8% - 9% |
Oil Differential ($/bbl)(1) | $5.90 | $5.69 | $4.25 - $5.25 |
Total Capex ($MM) | $82 | $127 | $230 - $255 |
D&C Capex ($MM) | $64 | $102 | $210 - $220 |
Type | Phone Number | Passcode |
Live participant | 877-793-4362 | 6557808 |
Replay | 855-859-2056 | 6557808 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating net revenues: | |||||||||||||||
Oil and gas sales | $ | 85,783 | $ | 71,872 | $ | 158,377 | $ | 136,064 | |||||||
Operating expenses: | |||||||||||||||
Lease operating expense | 6,390 | 11,316 | 11,816 | 21,775 | |||||||||||
Gas plant and midstream operating expense | 2,709 | 3,247 | 5,030 | 6,860 | |||||||||||
Gathering, transportation, and processing | 4,331 | 1,660 | 8,353 | 3,998 | |||||||||||
Severance and ad valorem taxes | 7,711 | 6,071 | 11,959 | 11,303 | |||||||||||
Exploration | 408 | 221 | 505 | 250 | |||||||||||
Depreciation, depletion, and amortization | 18,898 | 9,564 | 34,657 | 17,072 | |||||||||||
Abandonment and impairment of unproved properties | 878 | 2,477 | 1,757 | 4,979 | |||||||||||
Unused commitments | — | — | — | 21 | |||||||||||
General and administrative expense (including $1,768, $2,184, $3,148, and $3,192, respectively, of stock-based compensation) | 9,803 | 9,917 | 20,081 | 19,451 | |||||||||||
Total operating expenses | 51,128 | 44,473 | 94,158 | 85,709 | |||||||||||
Income from operations | 34,655 | 27,399 | 64,219 | 50,355 | |||||||||||
Other income (expense): | |||||||||||||||
Derivative gain (loss) | 8,173 | (22,012 | ) | (28,371 | ) | (30,754 | ) | ||||||||
Interest expense | (385 | ) | (805 | ) | (1,536 | ) | (1,162 | ) | |||||||
Loss on sale of properties, net | (1,432 | ) | — | (306 | ) | — | |||||||||
Other income | 11 | 277 | 23 | 290 | |||||||||||
Total other income (expense) | 6,367 | (22,540 | ) | (30,190 | ) | (31,626 | ) | ||||||||
Income from operations before taxes | 41,022 | 4,859 | 34,029 | 18,729 | |||||||||||
Income tax benefit (expense) | — | — | — | — | |||||||||||
Net income | $ | 41,022 | $ | 4,859 | $ | 34,029 | $ | 18,729 | |||||||
Comprehensive income | $ | 41,022 | $ | 4,859 | $ | 34,029 | $ | 18,729 | |||||||
Basic net income per common share | $ | 1.99 | $ | 0.24 | $ | 1.65 | $ | 0.91 | |||||||
Diluted net income per common share | $ | 1.99 | $ | 0.24 | $ | 1.65 | $ | 0.91 | |||||||
Basic weighted-average common shares outstanding | 20,618 | 20,488 | 20,588 | 20,471 | |||||||||||
Diluted weighted-average common shares outstanding | 20,664 | 20,603 | 20,630 | 20,538 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 41,022 | $ | 4,859 | $ | 34,029 | $ | 18,729 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation, depletion, and amortization | 18,898 | 9,564 | 34,657 | 17,072 | |||||||||||
Abandonment and impairment of unproved properties | 878 | 2,477 | 1,757 | 4,979 | |||||||||||
Well abandonment costs and dry hole expense | — | — | 62 | — | |||||||||||
Stock-based compensation | 1,768 | 2,184 | 3,148 | 3,192 | |||||||||||
Amortization of deferred financing costs | 123 | — | 248 | — | |||||||||||
Derivative loss (gain) | (8,173 | ) | 22,012 | 28,371 | 30,754 | ||||||||||
Derivative cash settlements | (543 | ) | (7,310 | ) | 393 | (11,622 | ) | ||||||||
Loss on sale of properties, net | 1,432 | — | 306 | — | |||||||||||
Other | (1 | ) | — | (901 | ) | 172 | |||||||||
Changes in current assets and liabilities: | |||||||||||||||
Accounts receivable | 8,852 | (4,618 | ) | 15,089 | (20,376 | ) | |||||||||
Prepaid expenses and other assets | (263 | ) | (2,467 | ) | (703 | ) | 935 | ||||||||
Accounts payable and accrued liabilities | (683 | ) | (323 | ) | (10,833 | ) | (889 | ) | |||||||
Settlement of asset retirement obligations | (583 | ) | (132 | ) | (1,175 | ) | (797 | ) | |||||||
Net cash provided by operating activities | 62,727 | 26,246 | 104,448 | 42,149 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Acquisition of oil and gas properties | (10,376 | ) | (1,197 | ) | (11,738 | ) | (1,295 | ) | |||||||
Exploration and development of oil and gas properties | (74,895 | ) | (53,818 | ) | (111,398 | ) | (91,482 | ) | |||||||
Proceeds from sale of oil and gas properties | — | — | 1,153 | 20 | |||||||||||
Additions to property and equipment - non oil and gas | (72 | ) | (177 | ) | (148 | ) | (280 | ) | |||||||
Net cash used in investing activities | (85,343 | ) | (55,192 | ) | (122,131 | ) | (93,037 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from Current Credit Facility | — | — | 15,000 | — | |||||||||||
Proceeds from Prior Credit Facility | — | 45,000 | — | 60,000 | |||||||||||
Proceeds from exercise of stock options | — | 968 | — | 968 | |||||||||||
Payment of employee tax withholdings in exchange for the return of common stock | (930 | ) | (794 | ) | (1,083 | ) | (794 | ) | |||||||
Net cash provided by financing activities | (930 | ) | 45,174 | 13,917 | 60,174 | ||||||||||
Net change in cash, cash equivalents, and restricted cash | (23,546 | ) | 16,228 | (3,766 | ) | 9,286 | |||||||||
Cash, cash equivalents, and restricted cash: | |||||||||||||||
Beginning of period | 32,782 | 5,840 | 13,002 | 12,782 | |||||||||||
End of period | $ | 9,236 | $ | 22,068 | $ | 9,236 | $ | 22,068 |
June 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,149 | $ | 12,916 | |||
Accounts receivable: | |||||||
Oil and gas sales | 40,341 | 31,799 | |||||
Joint interest and other | 23,946 | 47,577 | |||||
Prepaid expenses and other | 5,336 | 4,633 | |||||
Inventory of oilfield equipment | 2,946 | 3,478 | |||||
Derivative assets | 11,116 | 34,408 | |||||
Total current assets | 92,834 | 134,811 | |||||
Property and equipment (successful efforts method): | |||||||
Proved properties | 802,452 | 719,198 | |||||
Less: accumulated depreciation, depletion and amortization | (86,265 | ) | (52,842 | ) | |||
Total proved properties, net | 716,187 | 666,356 | |||||
Unproved properties | 155,882 | 154,352 | |||||
Wells in progress | 133,364 | 93,617 | |||||
Other property and equipment, net of accumulated depreciation of $2,853 in 2019 and $2,546 in 2018 | 3,490 | 3,649 | |||||
Total property and equipment, net | 1,008,923 | 917,974 | |||||
Long-term derivative assets | 1,176 | 3,864 | |||||
Right-of-use assets | 38,623 | — | |||||
Other noncurrent assets | 3,782 | 4,885 | |||||
Total assets | $ | 1,145,338 | $ | 1,061,534 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 45,087 | $ | 79,390 | |||
Oil and gas revenue distribution payable | 30,262 | 19,903 | |||||
Current portion of lease liability | 10,593 | — | |||||
Derivative liability | 2,066 | 183 | |||||
Total current liabilities | 88,008 | 99,476 | |||||
Long-term liabilities: | |||||||
Credit facility | 65,000 | 50,000 | |||||
Lease liability | 28,792 | — | |||||
Ad valorem taxes | 34,370 | 18,740 | |||||
Asset retirement obligations for oil and gas properties (note 9) | 29,162 | 29,405 | |||||
Total liabilities | 245,332 | 197,621 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $.01 par value, 25,000,000 shares authorized, none outstanding | — | — | |||||
Common stock, $.01 par value, 225,000,000 shares authorized, 20,632,999 and 20,543,940 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 4,285 | 4,286 | |||||
Additional paid-in capital | 698,526 | 696,461 | |||||
Retained earnings | 197,195 | 163,166 | |||||
Total stockholders’ equity | 900,006 | 863,913 | |||||
Total liabilities and stockholders’ equity | $ | 1,145,338 | $ | 1,061,534 |
Three Months Ended June 30,(1) | Six Months Ended June 30,(1) | ||||||||||||||||||||
2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | ||||||||||||||||
Sales volume | |||||||||||||||||||||
Oil (MBbl) | 1,374 | 807 | 70 | % | 2,582 | 1,552 | 66 | % | |||||||||||||
Gas (MMcf) | 2,903 | 1,685 | 72 | % | 5,101 | 3,328 | 53 | % | |||||||||||||
NGL (MBbl) | 365 | 284 | 29 | % | 657 | 502 | 31 | % | |||||||||||||
Equivalent (MBoe) | 2,223 | 1,372 | 62 | % | 4,089 | 2,609 | 57 | % | |||||||||||||
Realized pricing (before derivatives) | |||||||||||||||||||||
Oil ($/Bbl) | $ | 54.10 | $ | 63.05 | (14 | )% | $ | 52.10 | $ | 60.15 | (13 | )% | |||||||||
Gas ($/Mcf) | $ | 1.94 | $ | 1.96 | (1 | )% | $ | 2.43 | $ | 2.29 | 6 | % | |||||||||
NGL ($/Bbl) | $ | 11.66 | $ | 17.06 | (32 | )% | $ | 13.10 | $ | 19.34 | (32 | )% | |||||||||
Equivalent ($/Boe) | $ | 37.88 | $ | 43.01 | (12 | )% | $ | 38.04 | $ | 42.43 | (10 | )% | |||||||||
Per Unit Costs ($/Boe) | |||||||||||||||||||||
Realized price equivalent (before derivatives) | $ | 37.88 | $ | 43.01 | (12 | )% | $ | 38.04 | $ | 42.43 | (10 | )% | |||||||||
Lease operating expense | 2.87 | 6.01 | (52 | )% | 2.89 | 6.01 | (52 | )% | |||||||||||||
Gathering, transportation and processing | 1.95 | 1.21 | 61 | % | 2.04 | 1.53 | 33 | % | |||||||||||||
Gas plant and midstream operating expense | 1.22 | 1.59 | (23 | )% | 1.23 | 1.74 | (29 | )% | |||||||||||||
Severance and ad valorem | 3.47 | 3.89 | (11 | )% | 2.92 | 3.78 | (23 | )% | |||||||||||||
Cash general and administrative(2) | 3.61 | 5.78 | (38 | )% | 4.14 | 6.38 | (35 | )% | |||||||||||||
Total cash operating costs | $ | 13.12 | $ | 18.48 | (29 | )% | $ | 13.22 | $ | 19.44 | (32 | )% | |||||||||
Cash operating margin (before derivatives) | $ | 24.76 | $ | 24.53 | 1 | % | $ | 24.82 | $ | 22.99 | 8 | % | |||||||||
Derivative cash settlements | (0.24 | ) | (5.33 | ) | (95 | )% | 0.10 | (4.45 | ) | (102 | )% | ||||||||||
Cash operating margin (after derivatives) | $ | 24.52 | $ | 19.20 | 28 | % | $ | 24.92 | $ | 18.54 | 34 | % | |||||||||
Non-cash items | |||||||||||||||||||||
Non-cash general and administrative | $ | 0.80 | $ | 1.59 | (50 | )% | $ | 0.77 | $ | 1.22 | (37 | )% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 41,022 | $ | 4,859 | $ | 34,029 | $ | 18,729 | ||||||||
Adjustments to net income: | ||||||||||||||||
Derivative loss (gain) | (8,173 | ) | 22,012 | 28,371 | 30,754 | |||||||||||
Derivative cash settlements | (543 | ) | (7,310 | ) | 393 | (11,622 | ) | |||||||||
Loss on sale of oil and gas properties | (1,432 | ) | — | (306 | ) | — | ||||||||||
Abandonment and impairment of unproved properties | 878 | 2,477 | 1,757 | 4,979 | ||||||||||||
Well abandonment and exploratory dry hole expense | — | — | 62 | — | ||||||||||||
Unused commitments | — | — | — | 21 | ||||||||||||
Stock-based compensation (1) | 1,768 | 2,184 | 3,148 | 3,192 | ||||||||||||
Severance costs (1) | — | — | 418 | — | ||||||||||||
Total adjustments before taxes | (7,502 | ) | 19,363 | 33,843 | 27,324 | |||||||||||
Income tax effect | — | — | — | — | ||||||||||||
Total adjustments after taxes | $ | (7,502 | ) | $ | 19,363 | $ | 33,843 | $ | 27,324 | |||||||
Adjusted net income | $ | 33,520 | $ | 24,222 | $ | 67,872 | $ | 46,053 | ||||||||
Adjusted net income per diluted share | $ | 1.62 | $ | 1.18 | $ | 3.29 | $ | 2.24 | ||||||||
Diluted weighted-average common shares outstanding | 20,664 | 20,603 | 20,630 | 20,538 | ||||||||||||
(1) Included as a portion of general and administrative expense in the statements of operations. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 41,022 | $ | 4,859 | $ | 34,029 | $ | 18,729 | ||||||||
Exploration | 408 | 221 | 505 | 250 | ||||||||||||
Depreciation, depletion and amortization | 18,898 | 9,564 | 34,657 | 17,072 | ||||||||||||
Amortization of deferred financing costs | 123 | — | 248 | — | ||||||||||||
Abandonment and impairment of unproved properties | 878 | 2,477 | 1,757 | 4,979 | ||||||||||||
Unused commitments | — | — | — | 21 | ||||||||||||
Stock-based compensation (1) | 1,768 | 2,184 | 3,148 | 3,192 | ||||||||||||
Severance costs (1) | — | — | 418 | — | ||||||||||||
Loss on sale of oil and gas properties | 1,432 | — | 306 | — | ||||||||||||
Interest expense | 385 | 805 | 1,536 | 1,162 | ||||||||||||
Derivative loss (gain) | (8,173 | ) | 22,012 | 28,371 | 30,754 | |||||||||||
Derivative cash settlements | (543 | ) | (7,310 | ) | 393 | (11,622 | ) | |||||||||
Income tax effect | — | — | — | — | ||||||||||||
Adjusted EBITDAX | $ | 56,198 | $ | 34,812 | $ | 105,368 | $ | 64,537 | ||||||||
(1) Included as a portion of general and administrative expense in the statements of operations. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
General and administrative expense | $ | 9,803 | $ | 9,917 | $ | 20,081 | $ | 19,451 | ||||||||
Stock-based compensation | (1,768 | ) | (2,184 | ) | (3,148 | ) | (3,192 | ) | ||||||||
Cash G&A | $ | 8,035 | $ | 7,733 | $ | 16,933 | $ | 16,259 |
_A]K,UC9ZIXB\
M4-"2K3:1IA:#(]'E:,-]5R#ZUR__ !$@_ W_ * ?Q$_\%UO_ /'Z_#FBOV6E
MX99/&*4N=OOS6_)'Y)4\1,UE)N/*EVM_P3]T=&_X.,O@)J-XL=Q8^/=/C8X,
MTNEQ,B^Y"2EL?0&OK#]G#]KGX=?M9^&VU7P#XHT[Q!!!@7$4;&.YM">@EA=FWAC@G0E+ 2E&:5TF[I^6RM?O\ @=^5^(N+5:,<:DX-[I6:
M\]];']0&:&Z5F>#_ !):^,?"VG:M8OYMEJEM%>6[_P!^.10ZG\017"?ME_'^
M/]E[]E[QMX\:..:;P[IDD]K$_P!V:X;"0J?8R,@/MFOQ2C0J5:JHP7O-V2\V
M[?F?L%3$0ITG7D_=2NWY6N<_^U/_ ,%!_A/^QN%B\=>++2QU*9/,BTRW1KJ^
MD7L?*0$JI[,V![U\UW?_ <=_ F"X98])^(-PHX#C3(%S^!FS7XG_$?XBZU\
M6_'.I^)/$6HW6K:UK%PUS=W4[;GD=CD_0#H . *Q:_ ''#MF0VS$75NQ_V0L[1K[0D=J_E&NK:2RNI(
M94:.6%BCHPPRL#@@CU%?MQ_P9+_M!MX<_:D^,/PRFFVV_BKPU;>(+=&;CSK&
MX\E@O^TR7Q)]1%[4 ?T@5\>_\%Z_VDM%_9B_X)._&;5M8N(HYO$'A^X\-:9"
MS?-=WE\C6\:*.^ [.<=%C8]J^PJ_EG_X.Z/VN/B1\0?^"C-_\(_$%S';?#[X
M>VUG>>'K"VW(EXUU:12R7DV3\\H9Y(0>BK&< %G+ 'Y-U_0U_P &0'P\O+'X
M'[Q5)&RV%_J6D:5;OCY9)(8KF60#_=6>+_ +ZK^>W2M+N=;U.WL[.WFNKR
M[E6&"&)"\DKL0%55'))) '))K^S;_@AA^P)-_P3D_X)P^"? FJ6ZP^+M05M
M?\2@=5U"Y"LT1/?R8Q%#D<'RB1UH ^OJ*** "BBB@ HHHH **** "BBB@ HH
MHH **** !C@5\D_\%OSN_P""9OQ&^EA_Z76]?6K_ ':^2?\ @MY_RC.^(WTL
M/_2ZWKULA_Y&>'_Z^0_]*1Y.>_\ (NK_ ."7Y,_GJK]O/^#;O2K>7]A[Q%,T
M,+2R>,;I2Y0%B!:6> 3[9/YFOQ#K]Q?^#;;_ ),5\0?]CG=_^DEG7[?XE?\
M(F?^*/ZGX[X?I/-U?^67Z'W]_9<)_P"6,'_?L?X4G]E0_P#/&W_[]C_"K5%?
MSYS,_=N6/8AM[..V;.!7\Y__ 63_P"4F/Q7_P"P
MA;_^D5O7A\#Y%A
^UV>OX
MB8'#8:5!8>G&%U*_*DKVMV/?/V'OO>*/^W3_ -K44?L/?>\4?]NG_M:BO=SG
M_?)?+_TE'A9;_N\?G^;/QM^)'_)1->_["-Q_Z-:OU._X,S/^4LGB#_LG.I_^
MEVG5^6/Q(_Y*)KW_ &$;C_T:U?J=_P &9G_*63Q!_P!DYU/_ -+M.K^(_B5^S_JUYB/4(QXQ\/1NW'FIL@O8USW9/LT@4=HI3ZU_09(GF1E?7
MUK^'7_@FU^U]J'[!W[68CZSAY
M2;M;5IK7T2,_QG9R:CX1U2VA7?-