Bonanza Creek Energy: Solid Production Growth With Leverage Expected To Remain Low

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About: Bonanza Creek Energy, Inc. (BCEI)
by: Elephant Analytics
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Summary

Bonanza Creek's 2019 production has been strong, allowing it to increase its guidance midpoint by 1,000 BOEPD.

It has achieved good results in recent downspacing tests, tracking around type curve or better.

2020 is expected to bring solid production growth (although with a fair bit of cash burn).

Leverage is still expected to be 1.0x or less by the end of 2020 with low-$50s oil.

Bonanza Creek remains a decent value, although perhaps not quite as good as a few months ago.

Bonanza Creek Energy (BCEI) has demonstrated good Wattenberg results, helping it to increase its full-year production guidance for 2019. If it continues with its plan to run 1.5 rigs in 2020, it