June 1, 2017 - 8:35 AM EDT
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Post Earnings Coverage as Jagged Peak Revenue Rocketed 284%

Upcoming AWS Coverage on B2Gold Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. announces its post-earnings coverage on Jagged Peak Energy Inc. (NYSE: JAG). The Company posted its first quarter fiscal 2017 financial results on May 11, 2017. The oil and natural gas Company reported profit on an adjusted basis compared to loss in the prior year's same period. Register with us now for your free membership at:


One of Jagged Peak Energy's competitors within the Gold space, B2Gold Corp. (NYSE MKT: BTG), announced on May 03, 2017, its operational and financial results for Q1 2017. AWS will be initiating a research report on B2Gold in the coming days.

Today, AWS is promoting its earnings coverage on JAG; touching on BTG. Get our free coverage by signing up to:


Earnings Reviewed

For the three months ended March 31, 2017, Jagged Peak reported revenue of $39.39 million compared to revenue of $10.25 million in Q1 2016.

For Q1 2017, Jagged Peak's production volumes were 9,785 Boe/d (85% oil), an increase of 139%, compared to Q1 2016 and an increase of 52% compared to Q4 2016.

For Q1 2017, Jagged Peak's average realized sales prices, including settlement of realized oil hedges, totaled $47.89 per barrel of oil, $2.48 per Mcf of natural gas, and $20.61 per barrel of natural gas liquids. The total oil equivalent price, including settlement of realized oil hedges, for the reported quarter was $43.30 per Boe compared to total equivalent price of $26.74 per Boe in Q1 2016. The Company's lease operating expense, including workovers, ("LOE") of $1.83 per Boe was 62% less than Q1 2016 of $4.81 per Boe, and 52% less than Q4 2016 LOE of $3.80 per Boe.

For Q1 2017, Jagged Peak reported a net loss of $465.9 million, which includes non-cash equity-based compensation expense of $409.0 million and deferred tax expense of $79.1 million. The Company's net loss for the reported quarter was $7.5 million. Jagged Peak recorded adjusted net income of $10.5 million, or $0.05 per pro-forma common share, in the reported quarter compared to adjusted net loss of $6.1 million in the prior year's same quarter.

Jagged Peak's adjusted EBITDAX for Q1 2017 was $29.1 million, an increase of $25.0 million from Q1 2016 and $13.1 million from Q4 2016.

Operating Update

In calendar year 2017, Jagged Peak began operating three drilling rigs and added a fourth operated rig in January and a fifth operated rig in March. The Company spud 12 gross operated horizontal wells and completed 7 gross operated horizontal wells during the reported quarter. Of the 12 operated wells spud, 8 targeted the Wolfcamp A formation, 3 targeted the Wolfcamp B formation and 1 targeted the 2nd Bone Spring formation. All of Jagged Peak's seven operated completions during Q1 2017 were in the lower Wolfcamp A formation.

Since January 1, 2017, Jagged Peak has ramped up production with 12 new operated wells coming online in 2017. The Company is currently producing from 32 wells drilled and completed by the Company, up from 20 wells at the end of 2016.

Financial Update

On February 01, 2017, Jagged Peak completed its IPO in which 31.6 million shares of common stock were sold including 28.3 million shares sold by the Company and 3.3 million shares sold by certain selling stockholders. Net proceeds of the IPO to the Company were $397.0 million after deducting offering expenses and underwriting discounts and commissions. The net proceeds were applied to repay the then outstanding balance on the Predecessor's credit facility of $142.0 million, and the remaining net proceeds were being expected to utilize to fund a portion of the Company's 2017 capital expenditure program and for other general corporate purposes.

Capital Expenditures

Jagged Peak's capital expenditures for oil and gas activities were $122.5 million for the three months ended March 31, 2017, and included completing 7 gross (6.9 net) wells and 17 gross (15.6 net) wells. Capital expenditures included $91.3 million for development costs, $8.4 million for infrastructure costs, and $22.8 million for leasehold costs. The $22.8 million spent on leasehold acquisitions added 2,153 net undeveloped acres, increasing the Company's leasehold position to approximately 68,546 net acres as of March 31, 2017.

Operating Guidance

For FY17, Jagged Peak re-affirmed its guidance for Capital expenditures for development of oil and gas properties and infrastructure of approximately $525 million to $570 million, excluding leasehold additions. The Company is improving its full year 2017 LOE guidance to $2.75 to $3.50 per Boe, a decrease of $0.25 per Boe at the mid-point from previously reported guidance. For Q2 2017, Jagged Peak is estimating production to average 14,000 to 15,000 Boe/d, an increase of 4,715 Boe/d, or 48%, at the mid-point compared to Q1 2017 production.

Stock Performance

At the close of trading session on Wednesday, May 31, 2017, Jagged Peak Energy's stock price marginally fell 0.54% to end the day at $13.01. A total volume of 1.45 million shares were exchanged during the session, which was above the 3-month average volume of 752.87 thousand shares. The Company's share price has surged 16.68% in the past one month. The stock currently has a market cap of $2.65 billion.

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SOURCE: Active Wall Street

Source: ACCESSWIRE (June 1, 2017 - 8:35 AM EDT)

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