BCEI - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen. Welcome to the Second Quarter 2019 Bonanza Creek Energy Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this call will be recorded.

to host like Scott today's now Landreth. would introduce for your conference, I go Please ahead.

Scott Landreth

morning, welcome everyone Second Good Chris. Thanks, and Earnings Call Quarter to Conference and Webcast. XXXX Creek's Bonanza

by this Operations I Executive call and Brant Vice and Engineering. Financial Executive and DeMuth, President Vice Dean the On Tinsley, Officer; am joined Senior and Eric morning, Chief Chief Officer; President Greager, President of

of investor which our earnings be our the press presentation new and issued a with of filed we the Yesterday, SEC, on posted all can accessed section Investor XX-Q our release, Relations website.

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

You disclosures should contained XX-Q, XX-K forward-looking other in our statements read SEC filings. full and regarding our

to believe in use financial performance. most during release will non-GAAP measures to contained GAAP measures this directly to presentation. investor and metrics earnings certain good the comparable we refer measures because in of are these are we call, our Reconciliations Also evaluating they

remarks We to move with will prepared and Q&A. start call the then

to my introduce President it's Eric? Greager, pleasure Now, CEO. and Eric

Eric Greager

I order a a remarks our update release highlight. in few over us ago XX% morning, QX, the earnings keep thank to Good with a while yesterday's delivered there everyone The our Thanks, weeks Scott. to from Bonanza team increasing second you reducing and We'll XX%. for few to cash brief by for and quarter joining our Creek taxes call. that points Q&A. quarter, get production But excluding are want costs operations earnings strong production unit second

than growth performing XX% online per and quarter the had QX XXXX average coming production stronger to wells of longer we than over mid-single-digit suggested in daily the was up XXXX forecasted. QX First, the XX,XXX quarter, last due for This was higher primarily QX. our BOE for day of

a our MBoe performance to year-to-date, we MBoe of As raising of production XX day day. result per a XX are guidance range production per midpoint to annual and our of a XX

to any online our our during the quarter, first wells up the rate third didn't slightly now to over wells two be quarter. during for XX quarters, but with planned plans, grew achieved second to the growth production will than we're half we Consistent at which already a bring Because we the had the production remaining of we a faster simply production expecting turn QX year, is of XXXX. flat sales having XX% result to

our the East On added exceed XX. our IR B-XX the the production production well from results slide production XX same of East from curve. plot on presentation, Pronghorn history additional where We've on that results continue Legacy demonstrates A-X results to you Whitetail type Pad the see also to XRL area, our slide

be tracking to by continue that from East early the results well encouraged type curve. with We the XRL this is

I-XX we've XX XX added of pad. the Slide production for On days another

per section exceed As continues contemporary both encouraged type and at and pad well curve. density designs spacing our reminder, completion a to down tested XX we're West pad this that high-intensity this our

team focus $X.XX BOE per The quarter. the quarter with down encouraged first revised well from Cash and we're as in BOE to slightly downward the guidance in BOE G&A proud team find be BOE. per we to from lower after range to continues couldn't to safe per the quarter. LOE quarter first second opportunities on the our tracking first decreased $X.XX cost the per cost-effective Year-to-date, by more $X.XX per the BOE places operations. XX% and in We

the the for turn will back operator I to that, With call Q&A.

Scott Landreth

please? go Q&A Chris, we to can

Operator

from Our with question Yes. first Welles Fitzpatrick SunTrust. Instructions] comes [Operator

open, now Your is line

Welles Fitzpatrick

morning. good Hey,

Eric Greager

Welles. morning, Good

Brant DeMuth

Good morning, Welles.

Welles Fitzpatrick

in the acreage like the affecting seeing Or Can relatively is busy prices I what sorry, past? seen a has bit mineral – we've you acres? for sticky the talk you day. a updated Can market slowdown mean, rates been talked apologize. in a little I put that – for that? you're about it the you on the rates you bit presentation? on newly guys in It's type little talk about to the I'm the the I GOR curves updated know

Eric Greager

Yeah. Yeah.

You bet.

quarters we've pretty beyond, and in So haven't really the the seen the GOR past. in – the the GOR to We other consistent. guidance sort changes performance seen of market remains prior

It else But and production, a maturation. little drive is you in the so every rise to enhanced to oilier the recovery really a that flowback solution use the and for whole in bring is on environment DJ gas put GOR rock oil place gas as like solution thermal over energy lower we're little our little wells each ensure to tends unit point a out drive is of time. first. we This the bit

the in to expect And higher and little seen pretty haven't GOR. to of a Does terms with other little would of than And kind It's that you at lower that get we what East. behavior question? Welles. that any a West anomalous that's really consistent the

Welles Fitzpatrick

almost anything on to pressures seeing turn? Yes. yet. start when are -- at over you then turned perfect. that the obviously will That's indicate the a you Are been to flat that downhole year No, quite relatively seeing in you Pronghorn that and It's hasn't here. no. And might we're

Eric Greager

a well asking dropped starting slightly is to inclining. is pressure it load great recovery there's is delivering logging their they're Welles. maybe their that's definitely And But closer what it Well ourselves resource it the potential. still as in roll And question. to compartments you. some and that logged of us then delivering previously as you're that had see in SRV reservoir still still flat. Thank stimulated the that question, we're tells same And volume into

watching. know don't like companies water. that us we're we SRV watch of that are There necessarily. quality markers flowback And the where the will ends E&P

try SRV. of indicate to geochemical and You that signatures you the extents seeing other be to look for the may chloride full signatures

aren't is that the decline. well anything And fulsome that indicates we to at seeing point, kind begin ready of this

not If from it's you and I'd flat same roll than going ask to bet now. period it's of we're then normal. we're for saying a probably And that to is, time. quarter going probably be on going to you hunch the My decline then to slower flat a a me to it, thing stay tell going see

And the bottomhole they and reservoir that than everything because seen bigger of indicate far we've flowing talking SRV reason that, markers about -- it's whether I performance anticipated. or say you're other is in pressures genuinely had we so

X-well we more And us that jobs. complexity were a fracture large And even more this that more area here fracture But these simultaneously. stimulation had it's anticipated. the put to we that lot than to still first stimulation there's surface And big there's of there's learn. and indicates there's kind and time

free. I'm up going leave there if So to it feel to want and follow you

Welles Fitzpatrick

That's Any just from French one me. one the from given Yes. Lake And No, then partners last your no. update on great. turnover there?

Eric Greager

French partner we all lot making I'm conversations their still top time. list. Those sure going at have have that still talk And progress on. is Lake guys of the indicated with the -- to Yes. a they're our them not our they're and got priority But

be with mirror. we're talking got this the so And but What fact much would QX rearview pretty good. help suggest is feels going about in they everything point that the they've I other distracted on can't that than at

on on go our a to They're for cycle talking picking not making as that. realistic rig us January, about probably deeper to partner but about in It's into budget that And with maybe our something constructive continue we the to work continue very of think progress. They year. early up be great progress. end we

But previously just months year just practical probably about indicated. we start And view as that's it's into a the we're -- more right a that's had like the thinking being matter. few at rather we year the us of practical the how than

Welles Fitzpatrick

I don’t sense. make That criticize I think anyone. first And my can given Okay. question,

Thanks. you. a being distracted. So Thank little

Eric Greager

Welles. Thanks,

Operator

Thank you. with our next [Operator question Capital. Nicholas Thomist from line comes the Pope And of Instructions]

line Your open. now is

Nicholas Pope

morning. Good guys. Hey,

Eric Greager

Good morning, Nick.

Scott Landreth

Nick. Good morning,

Nicholas Pope

the see Hey. expect about wanted all third -- online I to similar just the the that bit they be or for first wells production of big ramp the the we than in months? Should that quarter. in that ask takes to are we that look up the going rates wells you a to the the and as coming going the guess, five little are I trying and on of brought that And XXXX. means understand that to half first fluid six unloading for kind exit year, what about

Eric Greager

Yeah.

cut And QX. bringing And That to are we're literally going two What speak. -- kind are so, unload are hydrocarbon three higher -- that's question of on going a -- quickly. bringing it's higher in very right quickly. quickly. happening to to we're in fairly contributing west they're in pads. to the two the Nick. thermal some areas. They're we our much going west. It's number those -- now that's So We've QX. maturation start in pads -- got they're of pads. early Well, very those Thank production pad very that They're And great west pressure, as those you. a numbers to on

And to bringing this those be of on the when these flat about a this we the And timing east. upward And to built time. is of -- all pads little trajectory online flat bit quarter, more those our of talk of further are end -- forecast. risk-adjusted Deeper is slightly up are going two -- we'll of sort all kind into to slight take sequential are quarters.

these in little into trajectory. QX that adjustments extent of flat upside a risk kind is your the perhaps answer is our outperform that to of up wells slightly our to then XX we built there. question? Does But So, that timing there

Nicholas Pope

Yeah.

I you. great. think Thank that's

Eric Greager

Nick. Thanks

Operator

line next of from Haas you. question Imperial comes Thank our Capital. the with And Irene

now Your is open. line

Irene Haas

Yeah.

follow-up the question. So on just last a

little happen? what in If then, you as how wells so XXXX And unfold, going the any us quarter. might we'll at quarter, complete you get a you give all? to XX to to could So, wells are just feeling have color could a fourth as third not

Eric Greager

bet Irene. good You morning, and

wells then for or some QX. to intend longer QX. bringing and wells have a we're don't wells three in of we QX, you don't So strong pads performance online plan on currently but QX, wells scheduled, turn QX, slug on QX. No We on wells and brought in through in had flowing in stronger

progress. though under that to continue wells we be clear are Just completing will

of the about absolute a into quarters. been far. thinking of about so we've way anything really way of talking it's flow from going the is numbers we now for seeing absolute to we're be QX we as suggest production so, XXXX terms numbers, XXXX, We're -- that not And couple in soft-guided indications the different about

XX%. at soft-guiding though XXXX you XXXX XX%, expect base, to you a as When stronger the in because percentage much XXXX terms, in percentage we've terms so think remain over couldn't of been is performance

we're believe that I'm we of XX%, XXXX it's not is forecast. guidance. much so production So, base kind holding to be saying, we're But XXXX what going stronger the be to raising because and

answer that what question and does leaning balance into XXXX of about like? kind of your XXXX So looks the

Irene Haas

Yeah.

So, you're fourth to to complete going continue quarter.

first So, some presumably time of to you're wells quarter going right XXXX? on

Eric Greager

That's Yeah. right.

Irene Haas

pattern do chill quarter kind be on. to more you of and would a then And similar a similar turn going to then that? where wells you It's for

Eric Greager

deliberately Yeah. not for the that's we're more That's a itself up. It's sequential right. kind cadence of it's engineer, quarter, the the growth. -- of setting just result way a although we be It's clear, to deliberate chilling

forecasting sequential to achieve And operational basis, also a risk-adjusted of the maximum on we the work engineer that kind way efficiency. growth. And we

we at the the frac talked running picked through QX. recall, beginning the of then midway might of you about year. we year, And having of crew at crew no the our up kind example, beginning frac For

in then to to we frac one to possibly then were and continuous at And we going months. pick going second. were run then, And year. to point crew go some later for back we were zero up And going to a one several the

pace to fracture frac were drilling And both ahead the able up the second completion on able QX, crew. side, on been stimulation the to side, in we've picking we that As side. avoid

schedule, just efficiency with one And of an of that's crew. maintain really story. ahead And frac hundreds the stages

some schedule. of gives this optionality, And opportunities ahead And of on much stimulation So, that efficient the hundreds side. of of kind And we're stages the more basis. itself fracture five that, to. manage on we're efficiency ahead releases capture rig schedule, of lends a to us

our the hard don't to quarter. going of and then want I sets that And just itself sort deliberately consequence way guidance, our because misunderstand, a just as that, quarter skipping of to maximizing all of I explain we're trying you for and be about it a efficiencies. a engineering, predictable, sequential the It's methodical and primarily up,

Irene Haas

color it little going of to like, growth or to Okay. in lumpy? be me give sequential is a to pretty production is might how as maybe, going you those can a more, And steady more I on look XXXX? stair-stepping be mean, it

Eric Greager

steady are Yeah. We're a to engineer going These pace. work sequential to pads though.

to the environment, pads some risk-adjusted something superior really it extent outperform may be And forecasts so, just our or circumstances. the about that, get we the

things lumps some profile, And be to may lumps outperform. side. not be in There'll be we -- intend but there those And pleasant other surprises. to the the

Irene Haas

right. quick more, And the million follow-up, in that? color that you all this one quarter, on $XX acquisition any Okay, did

Eric Greager

Yeah. -- Yeah. that's everybody that budget From something else in acreage so proposed to our present is that, got themselves. not for happening. like carry And just we this. time for the time budget we in accounts We've opportunities DJ

inventory upside very Acreage on is purchases just sales effectively not of acreage moving in that's just and inventory upside, DJ. in and the something terms well

we to And opportunities are, not XXX% working company. to time get to value a operated them. acquire in capitalize accretive pads, those working the extent going we're interest interest partner. to from on time, where our own already But that, our to We're

Irene Haas

thank Great, you.

Eric Greager

you. Thank

Operator

Instructions] call remarks. back questions, the on [Operator phone at line. And Eric Greager, to further right. any the not I'm you. now would to showing this like for Thank turn further time, I any All

Eric Greager

Thanks, us Chris. Thank your Bonanza continued And in on you call the morning. Creek. all for interest joining this

be know attending hope oil many see week. conference, there. I will we in be And you I will reminder, Denver to a and of As gas EnerCom's next you.

Bye-bye. you. Thank

Operator

in today's participating does thank conclude conference. gentlemen, and This Ladies conference. for you today's

have day. a Everyone, great may disconnect. all You

Civitas Resources (CIVI) 8 Aug 192019 Q2 Earnings call transcript