Chaparral Energy reports losses in 4Q and all of 2019

Chaparral Energy, Inc. announced it achieved fourth quarter 2019 production but still reported a net loss of $189.2 million or $4.14 per share. The Oklahoma City’s net loss for all of 2019 totaled $468.9 million or $10.28 per share.

In light of the collapse of oil prices this week, the company said it would not issue a full-year guidance of capital expenditures for 2020.

“Recognizing the recent amplified degree of commodity price and general market volatility, and equipped with this operational flexibility to react to the developing situation, Chaparral does not believe it is appropriate to issue full year guidance at this time.  The Company continues to evaluate its full year operating plan and will issue full year guidance when appropriate,” stated the company in its earnings report.

Adjusted net income for the fourth quarter or $12.6 million or $0.28 per share while the adjusted net income for the full year was $20.6 million or $0.45 per share. The company managed to increase by 30% its fourth quarter 2019 adjusted EBITDA to $46.7 million. It also generated $154.5 million of adjusted EBITDA for the full year which was a 24% increase over 2018 despite oil and natural prices dropping 12% and 15% respectively.

“We continue to extend our track record of strong operational results within our guidance ranges or better,” said Chief Executive Officer Chuck Duginski. “The accomplishments and hard work of the great team here at Chaparral are evident in our 2019 results.”

“The market is changing for energy companies and the turbulent environment has been difficult for many to navigate. Chaparral is adapting to the current conditions and preparing for the future,” he added.

Chaparral’s production for the fourth quarter of 2019 was 29.7 MBoe/d, which exceeded the high end of the Company’s fourth quarter guidance range of 27.5 to 29.0 Mboe/d. As expected, due to timing associated with production from the Company’s multi-well pad drilling, production increased on a quarter-over-quarter basis by 14%.

Production consisted of 32% oil, 31% natural gas liquids (NGLs) and 37% natural gas in the fourth quarter of 2019.  In the fourth quarter, the Company had 10 new gross operated wells with first sales.  In addition, nine wells were brought online late in the third quarter, which helped contribute to the quarter over quarter increase. Of the 10 wells with first sales in the fourth quarter, eight were in Canadian County and two were in Kingfisher County.

The company also confirmed the sale of its Oklahoma City headquarters building for $11.5 million in the summer of 2019. Proceeds were used to pay off the outstanding balance of the real estate note of $8.2 million.

Click here to view the entire earnings report.

Source: Chaparral earnings report