Steve Zachritz
Growth, long-term horizon, commodities, oil & gas

Bonanza Creek: Greater Wattenberg Play Keeps Getting Better - Q2 '14 Pre Call Note

Bonanza Creek (NYSE:BCEI) Reports a 2Q14 Miss on Unexpectedly High Production Taxes; Operations Report Sings A Better Tune

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The 2Q14 Numbers: Volumes were on track with their expectations and just under Street Consensus. The mix was as we've come to expect and the revenue line was fine, also in line with Consensus. Lease operating expense pulled back nicely from 1Q14's weather bloated high and cash G&A (once you back out some one time executive departure costs) was in good shape as well (see cheat sheet comment below). And then we come to production taxes which were much higher than expected and where we quote the issue: "Colorado has higher severance and ad valorem tax...

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