Fresh off Chapter 11 reorganization, Oklahoma City-based Chaparral Energy, Inc. announced Monday a new long-term strategy of transitioning to a pure-play STACK operation.
Chaparral announced the elimination of $1.2 billion in debt in the first quarter where the company focused the entirety of its drilling activity in the STACK play.
The company said its activity there included three wells “that achieved peak initial production rates for 30 days or more, two drilled and uncompleted wells and one well that is in its initial flowback period.”
“The first quarter of 2017 marked a new era in Chaparral’s history with our emergency from Chapter 11 and shift to become a premiere, pure-play STACK operator,” stated Earl Reynolds, Chief Executive Officer. “We believe our outstanding STACK assets, low-cost structure, best-in-class execution and tremendous people will allow us to continue to create significant value for our shareholders and provide us with the opportunity to thrive even in a $40 to $60 price environment.”
The company experienced a 10 percent drop in its quarterly oil production compared to a year ago, largely due to the lack of capital and the restructuring program. But, it saw an increase from the fourth quarter of 2016 to the first quarter this year.
Net income for the first quarter was $1.02 billion. Capital expenditures for the first quarter were $43.2 million and $28.4 million was spent in the STACK. total revenues were $74.3 million, a 54 percent increase over a year ago.