Chaparral Energy presents at EnerCom’s The Oil & Gas Conference®
Chaparral Energy (ticker: CHAP) is an E&P company with operations that stretch across Oklahoma’s fast-growing, highly economical STACK Play located primarily across Blaine, Canadian, Garfield, Kingfisher and Major counties.
Q2 highlights
- Grew STACK production 44% on a year-over-year basis to 13,198 barrels of oil equivalent per day (Boe/d)
- Reported a net loss of $22 million driven by a $27 million non-cash loss associated with commodity derivatives
- Generated adjusted EBITDA, as defined below, of $26.9 million
- Brought online 17 new gross operated wells, 11 of which were part of its joint venture drilling program
- De-risked approximately 50% of its Garfield County position and 80% of its Canadian County Meramec Merge position
- Increased 2018 STACK full year production guidance to 13.0 – 14.0 MBoe/d, due to strong operational results and higher working interests
- Increased 2018 full year total production guidance to 19.0 – 20.0 MBoe/d
- Raised 2018 CAPEX guidance to $300 – $325 million primarily due to higher working interests, cost inflation associated with its joint venture program, acreage acquisitions and the addition of a fourth operated rig in late 2018
- Decreased 2018 cash general and administrative (G&A) expense per Boe guidance to $3.50 – $4.00
- Issued $300 million of unsecured senior notes due in 2023
- Uplisted to the New York Stock Exchange (NYSE), under the new symbol “CHAP”
Breakout session at the EnerCom conference
During Chaparral Energy’sbreakout session at the 2018 EnerCom conference, management was asked the following questions:
- Alta Mesa’s stock acted very negatively after the last operations update and Gastar went bankrupt. Can you help us get comfortable with what that means for the plays you guys have acted in and how reliable type curves are versus actual?
- Compare and contrast how you guys develop the basin versus Alta Mesa.
- 7000 acres you acquired is that a kind of significant block or you believe yourselves to be consolidators?
- You brought up cube development and I was wondering if you are planning on using any technologies like microsizing, etc.
- What will be the focus in 2019? Will it be more on Kingfisher or legacy acreage as well?
- Are you losing acreage from pooling?
- Can you talk to the type curves for the Osage and Meramec?
- What will the recovery factor be after 5-10 years?
- In Garfield, we’re seeing a lot of variability. Can you explain?
- Can you give us a brief overview of the geology on Garfield?
You can listen to Chaparral’s presentation here.
