Bonanza Creek Energy, Inc. : Bonanza Creek Energy Announces First Quarter 2013 Operational and Financial Results

Bonanza Creek Energy, Inc. : Bonanza Creek Energy Announces First Quarter 2013
                      Operational and Financial Results

DENVER, May 9, 2013 - Bonanza Creek Energy, Inc. (NYSE: BCEI) today reported
its first quarter 2013 operating and financial results.

Key highlights for first quarter 2013, as compared to first quarter 2012,

  *76% increase in sales volumes to 12,307 Boe/d; 72% crude oil and liquids

  *64% increase in revenue to $78.3 million

  *32% increase in net income to $11.3 million, or $0.28 per share

  *47% increase in adjusted net income (non-GAAP) to $16.2 million, or $0.40
    per share

  *66% increase in adjusted EBITDAX (non-GAAP) to $52.3 million

At the end of this release, reconciliations of all stated non-GAAP financial
measures are made to the most directly comparable GAAP financial measures.

Operational highlights include:

  *Drilled our second extended reach lateral in the Niobrara B Bench to 9,449
    feet of lateral length and successfully completed it with a 40-stage
    fracture stimulation

  *Drilled and completed two 40-acre spaced test wells in the Niobrara B
    Bench; currently drilling the third of the planned six wells to test
    40-acre spacing 

  *Drilled the first of four Codell horizontal wells planned for 2013

  *Completed three 5-acre infill wells in the Dorcheat-Macedonia Field;
    production in the first 60 days exceeded expectations

Michael Starzer, Bonanza Creek's President and Chief Executive Officer,
commented, "The first quarter results were as expected and we reiterate our
full year guidance of approximately 60% year over year production growth. The
driver for the positive results this quarter was again the strong oily
production achieved in the Wattenberg Field and Mid-Continent region. Our
crude oil and liquids volumes accounted for approximately 72% of production
and 89% of revenues. We are looking forward to continued execution of our 2013
development plan, having increased to four horizontal rigs in March and
targeting to achieve approximately eight completions per month in the
Wattenberg Field by the end of second quarter. I am pleased with the Company's
progress drilling our exciting catalyst wells and look forward to sharing more
detailed results in subsequent operations updates. Finally, in April, we
closed on our inaugural debt offering, upsizing to $300 million of senior
unsecured notes at 6.75%, a record low rate for a first time single B E&P
issuer. We believe we are well capitalized with substantial liquidity for
continued growth."

First Quarter 2013 Financial Results

Bonanza Creek began the divestiture process of its California properties in
the second quarter 2012, with one property remaining to be sold as of March
31, 2013. Under generally accepted accounting principles, the results of
operations for this California property are presented for first quarter 2013
and recast for the prior-year as "discontinued operations." Consequently,
production, revenue and expenses associated with the California properties
have been removed from continuing operations and reported separately as
discontinued operations in our accompanying condensed financial statements.

Average realized prices for first quarter 2013, before the effect of commodity
derivatives, were $90.56 per Bbl of oil, $4.65 per Mcf of natural gas and
$53.40 per Bbl of NGLs, compared to $99.37 per Bbl of oil, $3.46 per Mcf of
natural gas and $64.07 per Bbl of NGLs for first quarter 2012.

Net revenue for first quarter 2013 was $78.3 million, compared to $47.8
million for first quarter 2012. Crude oil and liquids revenue accounted for
approximately 89% of total revenue.

Lease operating expense ("LOE") for first quarter 2013 was $11.1 million, or
$10.05 per Boe, compared to $7.1 million, or $11.28 per Boe, for first quarter
2012. The decrease in per unit LOE is primarily attributable to increased
sales volumes and growing production from lower per unit operating cost
horizontal wells.

General and administrative expense ("G&A") for first quarter 2013 was $13.2
million, or $11.89 per Boe, compared to $6.0 million, or $9.47 per Boe, for
first quarter 2012. Cash G&A was $8.8 million, or $7.93 per Boe, compared to
$5.3 million, or $8.40 per Boe, for the first quarter of 2012. Stock-based
compensation expense was $4.4 million during the quarter. Included in our
stock-based compensation expense is $2.5 million related to the distribution
of 73,197 fully-vested shares issued in December of 2010 and previously held
in the BCEC Investment Trust pending resolution of a previously disclosed

Net income for first quarter 2013 was $11.3 million, or $0.28 per diluted
share, compared to net income of $8.5 million, or $0.22 per diluted share, for
first quarter 2012. Adjusted net income for first quarter 2013 was $16.2
million, or $0.40 per diluted share, compared to adjusted net income of $11.0
million for first quarter 2012.

Operations Update

During first quarter 2013, the Company achieved an average production rate of
12,307 Boe/d from continuing operations, comprised of 65% crude oil, 7% NGLs,
and 28% natural gas, increasing total production by 76% over first quarter

Rocky Mountain Region - Wattenberg Horizontal Development

During first quarter 2013, the Rocky Mountain region contributed 7,164 Boe/d,
or 58% of total company net sales volumes for the quarter with 5,532 Boe/d
coming from horizontal wells. These volumes represent a 9% increase in total
Rocky Mountain production and a 50% increase in sales volumes from horizontal
wells over the previous quarter.

The Company spud 18 gross (17.1 net) wells and tied 7 gross (6.5 net)
horizontal Niobrara B Bench wells into sales during the quarter. Two wells,
including our first extended reach lateral, were put on production in January,
one well in February and four wells were placed into sales in the second half
of March. The 4,000 foot laterals had an average total well cost of
approximately $4.2 million. The Company completed six wells in April and
expects to average eight completions per month by the end of the second

The following table presents the average 30-day, 60-day and 90-day peak
initial production rates for the Niobrara B Bench, Niobrara C Bench, Codell
and Extended Reach Lateral wells:

                  30-day Avg.          60-day Avg.           90-day Avg.
Wells          #     Rate     % Oil #     Rate     % Oil  #     Rate     % Oil
Niobrara B
Bench          38     496      76%  35     407      75%  34      350      73%
Niobrara C
Bench          1      444      79%  1      383      74%  1     340      70%
Codell         1      370      81%  1      367      75%   1      335      73%
Extended Reach
Lateral        1      795      76%  1      680      70%

The Company recently drilled its second extended reach lateral into the
Niobrara B Bench to 15,958 feet and successfully ran the production liner to
total depth with an in-zone lateral length of 9,449 feet. A 40-stage fracture
stimulation has been completed and operations are in progress to put the well
on production. In addition, the first 40-acre Niobrara B Bench test well and
second Codell test well were completed, both of which are currently flowing up
tubing with gas lift valves installed.

Mid-Continent Cotton Valley Program

The Mid-Continent region contributed 5,143 Boe/d, or 42% of total company net
sales volumes for first quarter 2013, comprised of 57% crude oil, 16% natural
gas liquids and 27% natural gas. Sales volumes increased by approximately 19%
over first quarter 2012.

Bonanza Creek spud 9 gross (8.1 net) 10-acre spaced Cotton Valley wells at
Dorcheat-Macedonia and 3 gross (2.8 net) Cotton Valley wells at the
McKamie-Patton Field during first quarter 2013 and performed 26 recompletions.
We tied 13 gross (12.2 net) wells into sales during the quarter, including one
well in January, five wells in February and seven wells in March. The Company
also continued testing 5-acre spacing with three pilot wells completed and
producing above expectations, achieving a 30-day average production rate of 67
Boe/d per well and a 60-day average production rate of 62 Boe/d per well.
Three additional 5-acre test wells are scheduled to be completed during the
second quarter.

Also during the quarter, the Company began processing gas through the new
expansion of our Dorcheat gas plant. The additional 12.5 MMcf/d of processing
capacity is expected to allow the Company to efficiently develop the
Dorcheat-Macedonia Field at 10-acre spacing.

Financial Update

On February 6, 2013, Bonanza Creek closed an upsized underwritten public
offering of 13,000,000 shares of its common stock at a price of $29.50 per
share on behalf of one of our original private equity sponsors, West Face
Capital Inc., the manager of Project Black Bear LP, the selling stockholder.
The Company received no proceeds from the sale.

Subsequent to the first quarter, on April 9, 2013, Bonanza Creek issued $300
million of senior unsecured notes due 2021. The offering was upsized from $250
million and priced at par with a coupon of 6.75%. The Company used $191.5
million of the proceeds of the offering to repay all outstanding borrowings
under its revolving credit facility, with the remainder available to fund
future capital expenditures.


As of March 31, 2013, Bonanza Creek had a $600 million revolving credit
facility with a borrowing base of $325 million. The Company had $191.5 million
drawn on the credit facility and letters of credit totaling $48 million
resulting in total liquidity of $88.7 million. Following our $300 million
senior notes offering completed on April 9, 2013, the Company's liquidity on a
pro forma basis improved to $306.9 million as of March 31, 2013. Schedule 7
provides a calculation of total liquidity.

Commodity Derivatives Positions

The following table summarizes the Company's crude oil and natural gas
commodity derivative positions as of March 31, 2013 and settling quarterly

                                             Collar      Floor      Ceiling
Settlement Period Swap Volume Fixed Price    Volume      Price       Price
Oil                  Bbl/d         $         Bbl/d         $           $
2Q 2013              2,886       88.12       2,947       88.25       102.60
3Q 2013              2,852       88.15       3,272       88.44       101.07
4Q 2013              2,689       89.81       3,272       88.44       101.07
1Q 2014               633        90.80       3,867       86.94       96.71
2Q 2014               626        90.80       3,846       86.95       96.72
3Q 2014               620        90.80       3,326       86.50       96.51
4Q 2014               620        90.80       3,326       86.50       96.51
Gas                 MMBtu/d        $
2Q 2013               512        6.40
3Q 2013               500        6.40
4Q 2013               166        6.40

Conference Call Information

Bonanza Creek will host a conference call on Friday, May 10, 2013 at 9:00 a.m.
Mountain Time (11:00 a.m. Eastern Time). To access the live interactive call,
please dial (877) 546-5021 or (857) 244-7553 and use the passcode 23937368.
This call is being webcast and can be accessed at Bonanza Creek's website for one year after the event.

About Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. is an independent oil and natural gas Company
engaged in the acquisition, exploration, development and production of onshore
oil and associated liquids-rich natural gas in the United States. The
Company's assets and operations are concentrated primarily in the Rocky
Mountains in the Wattenberg Field, focused on the Niobrara oil shale, and in
southern Arkansas, focused on the oily Cotton Valley sands. The Company's
common shares are listed for trading on the NYSE under the symbol: "BCEI." For
more information about the Company, please visit Please
note that the Company routinely posts important information about the Company
under the Investor Relations section of its website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may
occur in the future are forward-looking statements. These statements are based
on certain assumptions made by the Company based on management's experience,
perception of historical trends and technical analyses, current conditions,
anticipated future developments and other factors believed to be appropriate
and reasonable by management. When used in this press release, the words
"will," "potential," "believe," "estimate," "intend," "expect," "may,"
"should," "anticipate," "could," "plan," "predict," "project," "profile,"
"model" or their negatives, other similar expressions or the statements that
include those words, are intended to identify forward-looking statements,
although not all forward-looking statements contain such identifying words.
These statements include statements regarding forecasted production,
forecasted completions, liquidity, processing capacity and development places.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company, that may
cause actual results to differ materially from those implied or expressed by
the forward-looking statements, including the following: changes in natural
gas, oil and NGL prices; general economic conditions, including the
performance of financial markets and interest rates; drilling results;
shortages of oilfield equipment, services and personnel; operating risks such
as unexpected drilling conditions; ability to acquire adequate supplies of
water; risks related to derivative instruments; and access to adequate
gathering systems and pipeline take-away capacity. Further information on such
assumptions, risks and uncertainties is available in the Company's SEC
filings. We refer you to the discussion of risk factors in our Annual Report
on Form 10-K for the year ended December 31, 2012 and other filings submitted
by us to the Securities Exchange Commission. The Company's SEC filings are
available on the Company's website at and on the SEC's
website at All of the forward-looking statements made in this
press release are qualified by these cautionary statements. Any
forward-looking statement speaks only as of the date on which such statement
is made, including guidance, and the Company undertakes no obligation to
correct or update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by applicable law.

For further information, please contact:

Mr. Ryan Zorn
Vice President - Finance

Mr. James Masters
Investor Relations Manager

Schedule 1: Condensed Statement of Operations
(in thousands, expect for per share data, unaudited)

                                                         March 31,
                                                   2013           2012^(1)
Oil and gas sales                                  $ 78,307        $ 47,830
Lease operating                                     11,131        7,107
Severance and ad valorem taxes                     4,813        3,596
Exploration                                         562        1,190
Depreciation, depletion and amortization            23,363         11,001
General and administrative (including $4,378
and $671, respectively, of stock-based
compensation)                                        13,166        5,965
Total operating expenses                            53,035         28,859
INCOME FROM OPERATIONS                              25,272         18,971
Other (loss)                                        138       (38)
Interest expense                                  (1,963)        (561)
Unrealized gain (loss) in fair value of
commodity derivatives                             (3,609)       (3,376)
Realized gain (loss) in fair value of
commodity derivatives                             (1,507)       (1,211)
Total other (loss)                                (6,941)       (5,186)
BEFORETAXES                                      $ 18,331       $ 13,785
Income tax (expense)                               (7,058)       (5,307)
INCOME FROM CONTINUING OPERATIONS                   11,273        8,478
Income (loss) from operations associated with
oil and gas propertiesheld for sale               (27)         111
Income tax (expense) benefit                         10       (43)
Income (loss) associated with oil and gas
properties held for sale                           (17)         68
NET INCOME                                         $ 11,256      $  8,546
Income (loss) from continuing operations         $   0.28     $   0.22
Income (loss) from discontinued operations       $  (0.00)     $   0.00
Net income (loss) per common share               $   0.28     $   0.22
STOCK-BASIC AND DILUTED                              40,085         39,478

(1)    Financial statements for the quarter ended March 31, 2012, have
been recast to present the results of operations and financial position of the
Company related to certain properties in California sold in 2012 or held for
sale as of March31, 2013, as discontinued operations.

Schedule 2: Condensed Statement of Cash Flows
(in thousands, unaudited)

                                                    Three Months Ended
                                                         March 31,
                                                   2013             2012
 Net income                                    $   11,256   $    8,546
Adjustments to reconcile net income to net
provided by operating activities:
 Depreciation, depletion and amortization         23,467       11,828
 Deferred income taxes                            7,048       5,350
 Stock compensation                               4,378             671
 Exploration                                             351              -
 Amortization of deferred financing costs                219             288
 Accretion of contractual obligation for                       
 land acquisition                                        190              -
 Valuation decrease in commodity derivatives      3,609       3,376
 Other                                                    73               45
(Increase) decrease in operating assets:
 Accounts receivable                                  (6,912)      (14,543)
 Prepaid expenses and other assets                        81            (106)
(Decrease) increase in operating
 Accounts payable and accrued liabilities             (5,419)       2,231
 Settlement of asset retirement obligations             (49)              (1)
              Net cash provided by operating
              activities                          38,292       17,685
 Acquisition of oil and gas properties                 (934)            (294)
 Exploration and development of oil and gas
 properties                                      (64,334)      (27,464)
 Natural gas plant capital expenditures               (3,276)      (6,247)
 (Increase) in restricted cash                            -            (139)
 Additions to property and equipment-non oil                       
 and gas                                              (1,386)            (596)
              Net cash (used) in investing
              activities                         (69,930)      (34,740)
 Increase in bank revolving credit                33,500       15,000
 Common stock returned for tax withholdings           (2,909)              -
 Deferred financing costs                               (51)             (35)
              Net cash provided by financing
              activities                          30,540       14,965
Net increase (decrease) in cash and cash                
equivalents                                           (1,098)      (2,090)
Cash and cash equivalents, beginning of
period                                            4,268       2,090
Cash and cash equivalents, end of period      $    3,170                -

Schedule 3: Condensed Balance Sheet
(in thousands, unaudited)

                                          March 31,           December 31,
                                             2013                 2012
Current assets                         $     61,771   $     55,304
Oil and gas properties and gas
plant, net                                  977,379        938,975
Other assets                                                           
                                            9,028               7,629
Oil and gas properties held for
sale, less accumulated depreciation,                        
depletion, and amortization                          572                 582
Total Assets                             $   1,048,750     $   1,002,490
Liabilities and Stockholders' Equity
Current liabilities                    $     93,941    $    102,603
Bank revolving credit                       191,500        158,000
Deferred taxes                              117,424        110,377
Other long-term liabilities                 54,642        52,992
Total Liabilities                       $    457,507    $    423,972
Stockholders' Equity                        591,243        578,518
Total Liabilities and Stockholders'
Equity                                   $   1,048,750     $   1,002,490

Schedule 4: Volumes and Realized Prices

                                                  Three Months Ended
                                                       March 31,
                                                 2013               2012
Wellhead Volumes and Prices
Crude Oil and Condensate Sales Volumes
Rocky Mountains                                    5,107            1,947
Mid-Continent                                      2,951          2,489
California (discontinued operations)               48          175
Total                                              8,106          4,611
Crude Oil and Condensate Realized Prices
Rocky Mountains                                $    86.30   $    95.11
Mid-Continent                                      97.93          102.71
California (discontinued operations)               99.70          108.14
Composite                                      $    90.56   $    99.37
Natural Gas Liquids Sales Volumes
Mid-Continent                                      830          756
Total                                              830          756
Natural Gas Liquids Realized Prices
Mid-Continent                                  $    53.40   $    64.07
Composite                                      $    53.40   $    64.07
Natural Gas Sales Volumes (Mcf/d)
Rocky Mountains                                    12,341          3,862
Mid-Continent                                      8,171          6,528
California (discontinued operations)              -          6
Total                                              20,512          10,396
Natural Gas Realized Prices ($/Mcf)
Rocky Mountains                               $     5.40  $     4.86
Mid-Continent                                      3.52         2.64
California (discontinued operations)             -          0.82
Composite                                     $     4.65  $     3.46
Crude Oil Equivalent Sales Volumes
Rocky Mountains                                    7,164          2,591
Mid-Continent                                      5,143          4,333
California (discontinued operations)               48          176
Total                                              12,355          7,100
Total Sales Volumes (MMBoe)                       1.1         0.6

Schedule 5: Adjusted Net Income
(in thousands, except per share amounts, unaudited)

This release contains the non-GAAP financial measures adjusted net income and
adjusted net income per diluted share, which exclude (1) unrealized gain or
loss in fair value of commodity derivatives and (2) stock-based compensation
expense. The amounts included in the calculation of adjusted net income and
adjusted net income per diluted share, below, were computed in accordance with
GAAP. We believe adjusted net income and adjusted net income per diluted share
are useful to investors because they provide readers with a more meaningful
measure of our profitability before recording certain items the timing or
amount of which cannot be reasonably determined. However, these measures are
provided in addition to, not as an alternative for and should be read in
conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes in our SEC filings and
posted on our website. The following tables provide a reconciliation of
adjusted net income for the three months ended March 31, 2013 and 2012,

                                                   Three Months Ended
                                                       March 31,
                                                  2013           2012
Net Income                                      $  11,256    $  8,546
Unrealized loss in fair value of derivatives      3,609      3,376
Non-cash stock-based compensation                 4,378       671
Total adjustments before tax                      7,987      4,047
Adjusted for income tax effects                   4,912      2,489
Adjusted net income                             $  16,168     $ 11,035
Adjusted net income per diluted share         $    0.40   $   0.28

Schedule 6: Adjusted EBITDAX
(in thousands, except per share amounts, unaudited)

We define adjusted EBITDAX as net income, plus (1) exploration expense, (2)
depletion, depreciation and amortization expense, (3) stock-based compensation
expense, (4) interest expense, (5) unrealized gain or loss in fair value of
commodity derivatives, and (6) income taxes or benefit. Adjusted EBITDAX is
not a measure of net income or cash flow as determined by GAAP. Adjusted
EBITDAX is presented herein and reconciled to the GAAP measure of net income
because of its wide acceptance by the investment community as a financial
indicator of a Company's ability to internally fund development and
exploration activities. This measure is provided in addition to, not as an
alternative for and should be read in conjunction with, the information
contained in our financial statements prepared in accordance with GAAP
(including the notes) in our SEC filings and posted on our website. The
following table provides a reconciliation of adjusted EBITDAX to net income
for the three months ended March 31, 2013 and 2012, respectively.

                                                      Three Months Ended
                                                          March, 2013
                                                     2013            2012
Net Income                                         $  11,256   $   8,546
Exploration                                           619       1,201
Depletion, depreciation, and amortization             23,467        11,828
Stock-based compensation                             4,378        671
Interest expense                                     1,963        561
Unrealized loss (gain) in fair value of
commodity derivatives                                3,609       3,376
Income taxes (benefit)                               7,048       5,350
Adjusted EBITDAX                                   $  52,340    $  31,533
Adjusted EBITDAX per diluted share               $    1.31  $    0.80

Schedule 7: Liquidity
(in thousands, unaudited)

Liquidity is calculated by adding the net funds available under our revolving
credit facility and cash and cash equivalents. We use liquidity as an
indicator of the Company's ability to fund development and exploration
activities. However, this measurement has limitations. This measurement can
vary from year-to-year for the Company and can vary among companies based on
what is or is not included in the measurement on a company's financial
statements. This measurement is provided in addition to, not as an alternative
for and should be read in conjunction with, the information contained in our
financial statements prepared in accordance with GAAP (including the notes) in
our SEC filings and posted on our website. The table below summarizes our
liquidity as of March 31, 2013 as reported and pro forma for the issuance of
$300 million of senior notes completed on April 9, 2013.

                                                                  Pro Forma
                                March 31, 2013    Adjustments  March 31, 2013
                                      $       $           $    
Borrowing Base                          325,000     (75,000)         250,000
Cash and cash equivalents                  3,170     101,700         104,870
Contractual Obligation for                                       
Land Acquisition                       (48,000)            -         (48,000)
Long-term debt                        (191,500)     191,500          -
                                  $         $           $    
Liquidity                                 88,670     218,200         306,870


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: Bonanza Creek Energy, Inc. via Thomson Reuters ONE
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