Quarterly / Earnings Reports | First Quarter (1Q) Update | Capital Markets | Capital Expenditure
Bonanza Creek 1Q20: Liquids Production Flat, Revised 2020 Capex; Ops Costs
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DJ Basin focused Bonanza Creek today provided an prelim 1Q'20 guidance.
1Q'2020 Estimates
- First quarter 2020 production of 24.8 Mboe/d (54% oil) flat with 4Q'19
- Capital expenditures of $41 million vs a full year $71 million (63% of capital already invested)
- LOE expected to be $2.52 per boe down -16% vs 4Q'19
- G&A cost of $3.44 flat with 4Q'19
2020 operating plan update:
- Total 2020 capital expenditure guidance has been reduced to a range of $60 to $70 million
- The Company is lowering its recurring cash G&A guidance to a range of $27 to $29 million, down 13% from 2019
- The G&A reduction is a result of a combination of salary and headcount reductions and changes to Board compensation
- The Company is implementing approximately $8 million in LOE and RMI operating expense savings compared to the original 2020 plan
Eric Greager, President and Chief Executive Officer of Bonanza Creek, commented, "Over the past two years we've focused on improving well performance and capital efficiency, and on increasing our margins. With the industry facing an unprecedented combination of excess supply and demand destruction, we have taken decisive action and reduced 2020 capex by over 70%. Combined with our hedge book, our business will generate significant free cash this year, and we expect to exit 2020 with an undrawn credit facility."
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