Jagged Peak Energy Inc. announced unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported total revenues of $53,051,000 compared with $19,336,000 a year ago. Income from operations was $4,288,000 compared with $3,607,000 a year ago. Income before income taxes was $30,672,000 compared with loss of $5,749,000 a year ago. Net income was $16,403,000 or $0.08 per basic and diluted share compared with loss of $5,749,000 a year ago. Net cash provided by operating activities was $38,304,000 compared with net cash used in operating activities of $3,760,000 a year ago. Development of oil and natural gas properties was $120,919,000 compared with $36,873,000 a year ago. Other capital expenditures was $693,000 compared with $1,014,000 a year ago. Adjusted net income was $9,855,000 or $0.05 per basic and diluted share compared with $3,562,000 a year ago. Adjusted EBITDAX was $39,287,000 compared with $13,607,000 a year ago. Capital expenditures for drilling and completion activities were $148.9 million for the three months ended June 30, 2017, which represents capital spent to drill and complete 16 gross (14.3 net) wells, of which 14 gross (13.8 net) wells were drilled and completed by Jagged Peak.

For the six months, the company reported total revenues of $92,439,000 compared with $29,581,000 a year ago. Loss from operations was $388,727,000 compared with $2,551,000 a year ago. Loss before income taxes was $345,841,000 compared with $13,199,000 a year ago. Net loss was $449,478,000 or $0.35 per basic and diluted share compared with $13,199,000 a year ago. Net cash provided by operating activities was $60,005,000 compared with $1,304,000 a year ago. Development of oil and natural gas properties was $195,212,000 compared with $54,155,000 a year ago. Other capital expenditures was $1,456,000 compared with $1,691,000 a year ago. Adjusted net income was $20,366,000 or $0.10 per basic and diluted share compared with loss of $2,583,000 a year ago. Adjusted EBITDAX was $68,411,000 compared with $17,689,000 a year ago.

Production volumes were 14,714 Boe/d (81% oil) for the quarter, an increase of 166% compared to second quarter of 2016 and an increase of 50% compared to the first quarter of 2017. For the quarter, the company produced oil of 1,079 MBbls compared to 415 MBbls a year ago. Natural gas was 719 MMcf compared to 230 MMcf a year ago. NGLs was 140 MBbls compared to 50 MBbls a year ago. Combined volumes was 1,339 MBoe compared to 503 MBoe a year ago.

For the first six months of 2017, the Company drilled 23 gross operated horizontal wells and completed and put online 21 gross operated horizontal wells. For the six months, the company produced oil of 1,824 MBbls compared to 726 MBbls a year ago. Natural gas was 1,088 MMcf compared to 388 MMcf a year ago. NGLs was 214 MBbls compared to 86 MBbls a year ago. Combined volumes was 2,220 MBoe compared to 877 MBoe a year ago. Daily combined volumes was 12,263 Boe/d compared to 4,816 Boe/d a year ago.

For the quarter, the company recorded an impairment of unproved oil and natural gas properties of $101,000 compared to $64,000 a year ago.

The Company expects third quarter 2017 production to average 20,000 to 20,800 Boe/d, an increase of approximately 5,700 Boe/d, or 39%, at the mid-point compared to second quarter production.

The company reaffirmed earnings and production guidance for the full year of 2017. For the year, the company expects capital expenditures for development of oil and gas properties and infrastructure of approximately $525 to $570 million, excluding leasehold additions. Approximately $510 to $550 million budgeted for drilling and completion costs. Approximately $15 to $20 million budgeted for water infrastructure construction costs, excluding any potential additions for surface acreage. Production of 17,000 to 19,000 Boe/d. 50 to 55 gross operated horizontal completions with an approximate average lateral length of 7,800' and an approximate average working interest of 94%. Production volumes continue to be weighted to the second half of 2017 as realize the full benefit of the increased drilling program, with projected fourth quarter 2017 production of 26,000 to 28,000 Boe/d. Production and ad valorem taxes at 6.5% to 7.5% of unhedged production revenue. General and administrative expense, excluding equity-based compensation, of $28.0 to $30.0 million. The company is lowering the high end of its 2017 lease operating expense (LOE) guidance to $3.25 per Boe. The new guidance range is now $2.75 to $3.25 per Boe, a $0.13 per Boe decrease at the mid-point compared to previously reported guidance.