Capital Markets | Capital Expenditure | Drilling Program - Wells | Capital Expenditure - 2021

Bonanza Creek Details 1Q21 Guidance Ahead of HighPoint Deal Closure

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   |    Thursday,January 28,2021

Bonanza Creek Energy, Inc. detailed preliminary results for the fourth quarter and full year 2020, and provided guidance for the first quarter of 2021.

Q1 2021 Bonanza Creek Guidance

The Company is providing guidance for the first quarter of 2021 for Bonanza Creek as a stand-alone company. Additional guidance for 2021 on a combined basis will be provided after the closing of the HighPoint transaction.

The Company's stand-alone 2021 capital plan includes:

- Q1 Capex: $35 to $40 million

- Q1 Production: 22.0 to 24.0 MBoe/d with the mid-point of 23.0 MBoe/d representing an 8% decline from the fourth quarter of 2020

- Well Plans: completion of 30 gross (25.8 net) drilled, uncompleted (DUC) wells

• Completion activities for these wells started in early January and are expected to continue through the second quarter with the first wells turned to sales during the second quarter.

Q4 Results Overview

Highlights for the fourth quarter and full year 2020 include:

• Average sales volumes are expected to be 25.0 MBoe/d for the fourth quarter, with oil representing 54% of total volumes

• Average sales volumes are expected to be 25.2 MBoe/d for the full year (54% oil), up 8% over full year 2019; at the mid-point of the most recent annual 2020 guidance range of 25.0 to 25.5 MBoe/d

• Total capital expenditures for the fourth quarter are estimated at $3.2 million, bringing the total 2020 capital expenditures to approximately $67.7 million; within the most recent annual guidance range of $60 to $70 million

• Lease operating expenses ("LOE") are expected to be $2.20 per Boe for the fourth quarter; down slightly from the third quarter of 2020, and down 27% from the fourth quarter of 2019

• Full year 2020 LOE of approximately $2.38 per Boe is down 19% from 2019; below our most recent annual guidance range of $2.40 to $2.60 per Boe

• Rocky Mountain Infrastructure ("RMI") net effective cost is expected to be $1.01 per Boe for the fourth quarter, which is comprised of approximately $1.57 per Boe of operating expenses, offset by $0.56 per Boe of RMI operating revenue from working interest partners

• For the year, RMI's net effective cost is expected to be $1.03 per Boe, with operating expenses of $1.62 per Boe versus the most recent annual guidance range of $1.50 to $1.80 per Boe

• The Company exited 2020 with no debt and approximately $25 million in cash

• Year-end 2020 total proved reserves are estimated to be 118.2 million BOE, and proved developed producing reserves are estimated to be 56.4 million BOE, in both cases using commodity prices required by SEC regulations

Eric Greager, President and Chief Executive Officer, commented, "We turned in a strong fourth quarter to successfully finish a challenging year. This is a cost and margin business, and I couldn't be more proud of the BCEI team's discipline. We quickly reacted to the deteriorating conditions in March by halting capital activity, paying-off our credit facility, and exiting the year with no debt and $25 million in cash. The team's focus drove unit costs to all-time lows, and despite minimal investment, delivered a stable production profile that exceeded expectations. The productivity, professionalism, and dedication of our employees is second to none."

Greager continued, "In November, we announced a transformative and highly compelling transaction with HighPoint Resources. We're planning for a shareholder vote later this quarter, and we continue to make steady progress toward closing the transaction."