Bonanza Creek reports $129.11 million loss from operations for 2016

By Caroline Salls

Pittsburgh, March 16 – Bonanza Creek Energy, Inc. reported a $129.11 million loss from operations for the year ended Dec. 31 on $195.3 million in total operating net revenue, according to a 10-K filed Thursday with the Securities and Exchange Commission.

In comparison, Bonanza Creek posted a $907.44 million loss from operations for the year ended Dec. 31, 2015 on $262.68 million in net revenue.

The net loss for 2016 was $198.95 million, narrowing significantly from the $745.55 million net loss for 2015.

The company had $80.57 million in cash and cash equivalents as of Dec. 31, up from $21.34 million at Dec. 31, 2015.

Total liquidity was $38.9 million at Dec. 31.

Upon its emergence from bankruptcy, which is expected in the first half of 2017, the company said it expects to have a new four-year senior secured revolving credit facility in place to provide an initial borrowing base equal to the $191.7 million outstanding balance under its existing revolving credit agreement.

Bonanza Creek will also have access to the net proceeds from a $200 million rights offering.

According to the 10-K, Bonanza Creek’s strategy is to operate a development program on contiguous acreage blocks that have high working interest, allowing it to control the pace and magnitude of its future capital expenditures and provide efficient resource development.

Upon emergence from bankruptcy, the company said its management intends to operate a one-rig program in 2017 to drill 61 operated standard reach lateral equivalent wells that are within close proximity to its existing infrastructure to keep costs down.

In addition, Bonanza Creek said it has observed evidence of an increase in drilling and completion costs since year-end, which will have an impact on its 2017 capital expenditures.

Bonanza Creek is a Denver-based oil and natural gas company. It filed for bankruptcy on Jan. 4 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 17-10015.

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