Capital Markets | Capital Expenditure

Bonanza Creek Energy Q3 Prelim: Production Up 6% from Q2, Oil Flat

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Bonanza Creek Energy, Inc. issued preliminary third quarter 2020 results.

Highlights include:

• Third quarter 2020 estimated average sales volumes of 26.2 MBoe/d, up 6% over second quarter volumes

• Average third quarter 2020 oil sales volumes of 14.0 MBoe/d, sequentially flat with the second quarter of 2020

• Lease operating expenses (LOE) for the quarter are expected to be $2.23 per Boe, down 13% from second quarter 2020, and down 24% from full year 2019

• Rocky Mountain Infrastructure ("RMI") net effective cost of $1.07 per Boe, which is comprised of approximately $1.64 per boe of operating expenses, offset by $0.57 per Boe of RMI operating revenue from working interest partners

• Total third quarter 2020 capital expenditures are expected to be $1.8 million, bringing YTD capital expenditures to $64.6 million

• The Company exited the quarter with over $244 million of liquidity, $20 million outstanding on its credit facility, and cash of approximately $4 million

Eric Greager, President and Chief Executive Officer of Bonanza Creek, commented, "We are pleased with the performance of our assets and team during the third quarter and year to date. Our focus on delivering efficient, low cost production resulted in our highest production and lowest unit LOE in Company history. The resulting free cash flow generation has us on track to pay down the remaining $20 million of RBL debt in the coming weeks. We look forward to providing additional color on third quarter results, and our view of the fourth quarter with our earnings release in a few weeks."