Jagged Peak Energy Inc. Announces Unaudited Consolidated Earnings and Production Results for the Third Quarter and Nine Months Ended September 30, 2017; Revises Production Guidance for the Fourth Quarter of 2017; Revises Earnings and Production Guidance for the Full Year of 2017; Records Impairment Charges for the Third Quarter of 2017
For the nine months, the company reported total revenues of $162,890,000 compared with $51,645,000 a year ago. Loss from operations was $378,444,000 compared with income of $1,890,000 a year ago. Loss before income taxes was $363,658,000 compared with $7,789,000 a year ago. Net loss was $464,697,000 or $0.42 per basic and diluted share compared with $464,697,000 a year ago. Net cash provided by operating activities was $105,428,000 compared with $16,822,000 a year ago. Development of oil and natural gas properties was $349,176,000 compared with $84,809,000 a year ago. Other capital expenditures was $3,332,000 compared with $1,831,000 a year ago. Adjusted net income was $35,723,000 or $0.17 per basic and diluted share compared with loss of $769,000 a year ago. Adjusted EBITDAX was $124,966,000 compared with $32,952,000 a year ago.
For the third quarter, production volumes were 19,180 Boe/d (78% oil) for the quarter, an increase of 201% compared to the third quarter of 2016 and an increase of 30% compared to the second quarter 2017. The company produced oil of 1,383 MBbls compared to 484 MBbls a year ago. Natural gas was 1,136 MMcf compared to 282 MMcf a year ago. NGLs was 192 MBbls compared to 55 MBbls a year ago. Combined volumes was 1,765 MBoe compared to 586 MBoe a year ago. Daily combined volumes was 19,180 Boe/d compared to 6,366 Boe/d a year ago.
For the nine months of 2017, the company produced oil of 3,208 MBbls compared to 1,210 MBbls a year ago. Natural gas was 2,224 MMcf compared to 669 MMcf a year ago. NGLs was 406 MBbls compared to 141 MBbls a year ago. Combined volumes was 3,984 MBoe compared to 1,462 MBoe a year ago. Daily combined volumes was 14,594 Boe/d compared to 5,336 Boe/d a year ago.
For the quarter, the company recorded an impairment of unproved oil and natural gas properties of $257,000 compared to $7,000 a year ago.
The Company expects fourth quarter 2017 production to average 26,000 to 27,000 Boe/d, an increase of approximately 7,320 Boe/d, or 38%, at the mid-point compared to third quarter production. This is compared to previous guidance of 26,000 to 28,000 Boe/d.
The company revised operating guidance for full year 2017, Capital expenditures for development of oil and gas properties and infrastructure of approximately $550 to $575 million, excluding leasehold and surface additions - compared to previous guidance of $525 to $570 million. Approximately $530 to $550 million budgeted for drilling and completion costs - compared to previous guidance of $510 to $550 million. Approximately $20 to $25 million budgeted for water infrastructure construction costs, excluding any potential additions for surface acreage - compared to previous guidance of $15 to $20 million. Production of 17,500 to 17,800 Boe/d - compared to previous guidance of 17,500 to 18,000 Boe/d. 47 to 49 gross operated horizontal completions with an approximate average lateral length of 7,800' and an approximate average working interest of 94% - compared to previous guidance of 50 to 55 gross operated horizontal completions. General and administrative expense, excluding equity-based compensation, of $26.0 to $28.0 million - compared to previous guidance of $28.0 to $30.0 million. LOE per Boe of $2.50 to $3.00 - compared to previous guidance of $2.75 to $3.25 per Boe. Production and ad valorem taxes at 6.5% to 7.5% of unhedged production revenue.