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

(click to enlarge)

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details