Chaparral Energy Corp. recorded a loss of $22 million in the second quarter even as the company’s STACK production jumped by 44 percent.
The Oklahoma City-based oil and natural gas producer used three rigs to bring online 17 new wells in the second quarter. The company is expected to add a fourth rig by the end of the year, executives said Tuesday.
“I am very pleased with our strong second-quarter results and am extremely proud of the accomplishments we made in the first half of 2018,” CEO Earl Reynolds said Tuesday morning during a conference call with analysts. “The operational performance and production growth of our prolific STACK acreage continues to provide a solid foundation for Chaparral’s future.”
Chaparral produced 13,198 barrels of oil equivalent per day in the STACK in the second quarter, up 44 percent from 9,187 equivalent barrels per day in the year-ago period.
As a result of the stronger-than-expected production, Chaparral executives on Tuesday increased their STACK production forecasts for the full year to a range of 13,000 to 14,000 barrels of oil equivalent per day, up from a range of 11,500 to 12,500 previously.
Total production now is expected to be a range of 19,000 to 20,000 equivalent barrels per day, up from previous guidance of 17,000 to 18,000 equivalent barrels per day.
Chaparral executives also increased their projected capital expenditure budget, in part to cover the costs of adding the fourth rig. The company now expects to spend a range of $300 million to $325 million in capital expenditures for the year, up from a range of $250 million to $275 million previously.
“We are very excited about the progress we’re making operationally and the solid financial position we have built,” Reynolds said.
Chaparral’s second-quarter loss of $22 million translates to a loss of 49 cents a share and compares to a profit of $21.4 million, or 47 cents a share, one year ago. The second-quarter loss includes a $27 million noncash charge related to oil and natural gas prices.
Revenues slipped to $59.6 million, down from $74 million in the second quarter of 2017. Adjusted earnings before interest, taxes, depreciation and amortization was $26.9 million, down from $42.5 million in the year-ago quarter.
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