Bonanza Creek Provides an Operational Update and 2020 Guidance

DENVER, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Bonanza Creek Energy, Inc. (NYSE: BCEI) (“Bonanza Creek” or the “Company”) today provided preliminary 2019 results and 2020 guidance. The Company has also posted an updated investor presentation to its website.

Highlights for fourth quarter and full year 2019 include:

• Average sales volumes of 24.3 MBoe/d for the fourth quarter 2019; up 37% over fourth quarter 2018
• Average sales volumes of 23.5 MBoe/d for full year 2019; up 48% year-over-year, in the top-quartile of the initial 2019 annual guidance and at the mid-point of the most recent guidance
• Total 2019 capital expenditures are estimated to be $222 million, below the low-end of the most recent guidance of $230 - $240 million and initial guidance of $230 - $255 million
• Lease operating expense of $3.01/boe for the fourth quarter brings the full year 2019 to $2.95/boe, below the low-end of initial 2019 annual guidance and near the mid-point of the most recent guidance
• Rocky Mountain Infrastructure (“RMI”) operating expense of $1.66/boe for the fourth quarter brings full year 2019 to $1.40/boe; at the high-end of the guidance range

Initial 2020 guidance:

• Annual 2020 production guidance of 26.0 – 29.0 MBoe/d, representing 11 - 23% growth over 2019 volumes
• Total 2020 annual capital expenditures are expected to be $215 - $235 million

Eric Greager, President and Chief Executive Officer of Bonanza Creek, commented, “The Company finished 2019 strong, meeting or beating initial guidance for the year and meaningfully improving key performance measures throughout the year. Average sales volumes in 2019 finished near the high-end of initial guidance and increased 48% over 2018, while capex finished below budget, below guidance, and 19% lower than 2018. Improvements in our cost structure continued through 2019, and we expect total opex and cash G&A to be at or below our initial guidance for the year.”

Greager continued, “We are excited to provide initial guidance and a capital plan for 2020. We expect to deliver production growth of 17% at the mid-point of our guidance range, with capex that is flat to 2019. We continue to work closely with our development partner and remain ready for the start of French Lake drilling in early Q4 2020.”

2020 Guidance

The Company’s 2020 capital plan assumes the continuation of a one-rig (gross) operated program in the Company’s Legacy acreage, and the startup of a one-rig (gross) non-operated program in the Company’s French Lake area in late 2020. Total 2020 capital expenditure guidance of $215 to $235 million compares to full-year 2019 capital expenditures of approximately $222 million.