The weak oil prices have shadowed most of the oil operating companies including Bonanza Creek Energy Inc (NYSE:BCEI). The impact of the weaker oil prices is reflective in the company’s recent earnings announcement, where it posted losses and also announced cost reduction and sale of assets.
In its third-quarter, the company sunk into a net loss of $112.3 million or ($2.25) per share as against the net income of $48.4 million or $1.18 per share in the previous year’s corresponding quarter. The adjusted net loss for the company stood at $3.6 million or ($0.07) per share, in comparison to adjusted net income of $18.9 million or ($0.46) per share in the same quarter of 2014.
In a bid to counter the weak oil price challenges, the company also trimmed down its workforce by 15% in September. Such a move led to the costs of $1,155,000 for the company. Despite all the odds, Bonanza Creek Energy Inc (NYSE:BCEI) managed to contain its costs and productions levels higher.
In its report, the company noted that the production during the third quarter stood at an average of 29,000 barrels of oil and natural gas per day. The said number represented a rise of 14% in production levels year-over-year. Also, the production level was above the company’s production outlook of 29,000 barrels per day. At the same time, the company’s costs totaled $14.01 per barrel of oil which was lower by 16% than the second quarter of 2015.
During the quarter, the company’s capital expenditure dropped by 46% to $88.3 million as compared to the second quarter. This was due to the company’s decision to drop to a single rig from two drilling rigs.
Also, the company has decided to raise capital through the sale of its Rocky Mountain Infrastructure assets to Denver-based Meritage Midstream Services IV for a cash consideration of $255 million. The stock of Bonanza Creek Energy Inc (NYSE:BCEI) traded flat to close the previous day’s session at $8.51 per share.