Chapparal Reports 44 percent Production Increase in Q2

Chaparral Energy (NYSE:CHAP) has released its financial and operational results for the second quarter of 2018. Highlights include a 44 percent year-over-year production increase and 17 new wells.

Based in Oklahoma City, Chaparral Energy is an independent oil and natural gas exploration and production company. Presently the company is focused in Oklahoma’s highly economic STACK Play, where Chaparral has approximately 119,000 net acres primarily in Kingfisher, Canadian and Garfield counties.

As quoted from the press release:

Second Quarter Highlights and Recent Key Items

• Grew STACK production 44 percent on a year-over-year basis to 13,198 barrels of oil equivalent per day (Boe/d)
• Reported a net loss of US$22 million driven by a US$27 million non-cash loss associated with commodity derivatives
• Generated adjusted EBITDA, as defined below, of US$26.9 million
• Brought online 17 new gross operated wells, 11 of which were part of its joint venture drilling program
• De-risked approximately 50 percent of its Garfield County position and 80 percent of its Canadian County Meramec Merge position
• Increased 2018 STACK full year production guidance to 13.0 – 14.0 MBoe/d, due to strong operational results and higher working interests
• Increased 2018 full year total production guidance to 19.0 – 20.0 MBoe/d
• Raised 2018 CAPEX guidance to US$300 – US$325 million primarily due to higher working interests, cost inflation associated with its joint venture program, acreage acquisitions and the addition of a fourth operated rig in late 2018
• Decreased 2018 cash general and administrative (G&A) expense per Boe guidance to US$3.50 – US$4.00
• Issued US$300 million of unsecured senior notes due in 2023
• Uplisted to the New York Stock Exchange (NYSE), under the new symbol “CHAP”

“The second quarter was a strong and extremely productive quarter for Chaparral,” said CEO Earl Reynolds. “We continue to see strong performance from our STACK wells, particularly our Merge Meramec in Canadian County and our Osage and Meramec wells in Garfield County. As a result of this success and our strong balance sheet, we will be adding an additional rig before the end of the year and, although we will not realize production from those additional wells until early 2019, we feel extremely confident in raising our 2018 STACK and total company production guidance to 13.0 to 14.0 MBoe/d and 19.0 to 20.0 MBoe/d respectively.”