BCEI - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Q4 2017 Bonanza Creek Energy Inc. Earnings Conference Call. [Operator Instructions] And as a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. James Edwards, Director of Investor Relations. begin. may you Sir,

James Edwards

Good XXXX and webcast. earnings Sandra. Creek's to fourth quarter conference morning, you, welcome everyone, Bonanza Thank call and

which the and Vice I'm CEO; morning, Senior Vice Engineering; call Seth Finance Fenoglio, Officer. On on Interim XX-K and of release, Bullock, Planning, presentation and investor and Investor evening, joined Yesterday with SEC, Scott Dean of a the posted our Financial of we accessed issued President by Senior President our new can all section Relations of filed the Operations earnings our Principal and Tinsley, be press website. this have

Some of differ statements materially subject cause these to remarks. referenced prepared Please to be the be uncertainties in forward-looking actual statements. many aware results risks that will are and remarks slides that forward-looking the presentation that could from morning include our investor this projections during our the in will

call our the release. Reconciliations contained one this full other good these non-GAAP our are comparable because We'll our provide in at remarks use to prepared in performance. GAAP for of start measures certain directly believe disclosures most financial described Q&A Also, read evaluating during when we to and refer call, are they filings. should this to we SEC You will measures as the time and with metrics end earnings the measures XX-Q hour XX-K, during call.

introduce this Seth Seth? to Interim pleasure my morning it's Now Bullock, CEO.

Seth Bullock

our through over year-end quarter will and go financial and Fenoglio, Tinsley, of quarter SVP Operations Thanks you our some joining year, quarter our walk morning, earnings some of James. will for fourth for call. us morning, fourth This key and our the Good our Dean Finance results. Scott thank successes of everyone. of SVP last operational through And

unit French from has knowledge in of and completion lower Lake company Most of two summarize emerged for will XXXX Before handing The remarks, for Chapter from executed us believe XX, structure, use resulted continue wells Bonanza transformational techniques alleviate that was debt the techniques, of slick-water cost new fostered we a has year importantly, our culture, pressures, significantly our new accelerate our to successes. to while in board, quickly call Dean improved record. including production allowed enhanced implementing over enhanced and and safety as short, to Scott combination returns transformational our Further, will project develop our completion opportunity. structure corporate the agreements these maintaining just out cost per this year. leading is Creek. based seeded a expenses be rig its lower all of result some XXXX, production a anticipate midyear process XXXX significantly all low industry returns in in our I and XXXX while of growing midstream maintaining efforts help creating and and leverage at greater we The that Rockies their XX% an the than as line second that enhanced free and In began levels. we high XX% operating lowered

are hearing call know I in regarding process. Before investors strategic an handing the of to search our CEO Dean, many the update alternatives and interested

regarding Dean? we or not Dean any additional I'll be nature any for the providing With will to Given items, the his answering call color that, update. these of questions matters. turn these operational

Dean Tinsley

laid the out investor joining thank this remarks, us in Seth. prepared In you, which on are well our Good my to would like morning you everyone, March recent results for morning. Thank presentation. and I touch

release. I conveyed that January however, Before I information like would in our to do briefly reiterate press

drilling records on a times, almost have then, and after a new in of operations times, set half. drilling XXXX commenced we a year we July Since XRL know, you operations As completion company completion and pause of SRL efficiency. and drilling

So, at well we than the the organization, wells time are months less and company's faster in drilling six performance a in completing our with efficiency after any improving combined of and realignment will returns history. successful than of This that a throughout improved teams discuss significantly position. improvements I and in pleased achieving and am should operations very company's well our shortly, time. of for dramatic the generate proud amount short technical such I operational

proved start will our quickly I nicely until program of and didn't the discuss given year. that grew second Next year-end completion XXXX reserves drilling our half which the

year-end $XXX oil at million prior reserves of at proved XX% barrels XXXX the Our reported from equivalent, up were year.

all-in undeveloped and was all-in proved from increased commodity partially to in pricing, reserve our $X.XX result SEC of performance was majority uplift finding a of XXX% expected price were the year-end improve This our locations. attributable proved per $XXX uplift of costs to The Our enhanced reserves replacement under PV-XX Boe. is of completion WTI. across percentage excluding a deck designs. million additions an just using $XX development performance and The reserves due was our XX% proved

touch completion the to of our wells. like I’d on enhanced Next, results

most production with so test. per the fluid or is seeing twice These early Our and completions caution, same wells Performance foot result foot of new these most horizontal and after we're were on utilized results XX,XXX the nearly other wells these encouraging XX compared barrels Boe XXX on investor you far. the the presentation, the three we expectations. November completion Subject call days. see that this This two what recent XRLs the caution of On wells per completed fluid very but SRL cumulative JXX pads are that are to of well Slide still approximately from the can five impressive pads. SRLs. included performing is XX in to above two our what with are we TXX of I slick-water at from XXXX. pleased

company's our favorable is this tracking located enhanced than pads. reservoir type fact, the West and North even the pad, first within North significantly and is trial and well the Platte the more In pads. XX-XX TXX shown exceeded Recall quality XX, company's JXX the Platte outperforming generally as Slide curve on above completion company's XX-XX that expectations

with the confirm slick-water on half of wells the are of first or and the pad. will encouraged slick-water results three some we all position. slick-water the in on provide performing So should in data ample these our These year our to utilizing by pads each be first XXXX results tests results additional across acreage

three we information are not Regarding completed this the at recently those XRLs, releasing time. on additional

much it wells. of clean also Given truly we're management and allow to the takes that wells and enhanced to recovery XRL for these program peak these ultimate choke up production, reach performance us using, the assess longer

variables to and performance. well that operational and technical knowledge gain the teams Our continue impact the optimize numerous

our X very of and will design its We provide completion More wells by utilized new a data well X,XXX company per of pad all encompassing foot. gathered. more the results details of additional approximately FXX that SRL online encouraged recently proppant turned as are is pounds

currently we turned first Lake of its In company well. remaining delineation wells quarter. also with seven second completing French a and is drilling online our summary, pleased be are XRL We Lake X to wells. are wells These on seven the of and French We're by the its information efficiency The as end that, online Lake French recently also pad Eastern acreage operational completion we additional is turn With turned program Scott to remarks. was stride development through forward in designs. to program well successfully that our have I'll in call improved for executing look sharing record-setting made the from his the outlined performance press the and returns well over progresses. improving now release, enhanced January financial the expected

Scott Fenoglio

to guidance a release, for were line and fourth sight of the our everyone. and and and larger This in good facility no well turn EBITDAX and our debt guidance. results. improving Adjusted very testament we one EBITDAX year morning XX% you, from than XXXX, ranges recently significant results and our around ratio. capital presentation. a months. and that updated we activity. completion the be the emerge XX hedging quarter which position hedge we outstanding to can drive which credit with these March to our our to a results little in is to restarted the January, exited next forecast WTI on our We're for trailing hedges, positive oil will a XXXX released In have $XX.X In the a guided Thank have of drilling laid late a year total investor company XX our leverage XXXX, After revised free and We January XX% cost added and operating at our pleased $XX program. will layering on Actual in some volume maintaining within million. an price exceeded XXXX growth structure, year since expenses cash our was of program cash production flow be We peaking sheet. of targeting hedges EBITDAX hedges of XX% our of our into and the oil for XXXX, amended XXXX. year month Appendix in we summary see Dean low XX debt a on decreased XXXX for balance with out more We over for hedge of while this allow case, found bankruptcy significantly to our

that, May to we redetermination in turn emerging that results Finally, bank have the begin Q&A call hope to be to the bankruptcy, during operator will second will going the first quarter from the from and our since redetermination to the With I session. timeframe.

Operator

comes [Operator Instructions] Epstein question first our from with the And of Cowen. David line

is now line open. Your

David Epstein

point were XXXX. mentioned if impacted to you during guys that XX-K near those and the your work factored if a PV-XX was that, PUDS second had being run in the much Thanks. would guys report have numbers. you've going reserve in your that that that XXXX you have rig decided you put your How In to

Dean Tinsley

You're only did of know would report. effect have in the not we would it that that versus our wells we rig be bringing correct. the be second end because in the we modeled. was reserves more what but exactly assume assume online We of - We by on reserves XXXX positive that year would can the what reassumed don't

So positive it uplift. would a generally be

David Epstein

period. Can your days a Thanks. little expect Antelope you a talk what of you what overtime longer sort you but And the then the over showed and - expect or would EUR it's - after bit about grow the on you doing will be more the XXX outperformance what P-XX, not to graph, P-XX.

Dean Tinsley

so early. XXX or It's days only really We of production. have

We We're that tweak as it over curve watch will that and to it. will to above to it and think we but and continue it's continue will and early optimize time remains we it will continue watch it hoping go. again

David Epstein

ask sand well there was extra have like how I Can didn't loading extra that versus that a that? in much cost

Dean Tinsley

We build our XXXX that into guidance. in our well-cost numbers

cost. sand that factored additional in our So on we well

Operator

[Operator Instructions] And time. at I'm showing no questions this further

Seth Bullock

morning. this you, thank thank call again you for Okay, Sandra. And our joining

Operator

thank This participating conference. gentlemen, great program and disconnect. all you for and in have you concluded Ladies may today's Everyone the a has day.

Civitas Resources (CIVI) 15 Mar 182017 Q4 Earnings call transcript