Bonanza Creek Energy Earnings: Here’s Why Investors are Not Excited Now

Bonanza Creek Energy Inc (NYSE:BCEI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.58%.
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Bonanza Creek Energy Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 42.86% to $0.4 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 58.05% to $78.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.4 per share. By that measure, the company missed the mean analyst estimate of $0.41. It missed the average revenue estimate of $79.49 million.

Quoting Management: Michael Starzer, Bonanza Creek`s President and Chief Executive Officer, commented, “The first quarter results were as expected and we reiterate our full year guidance of approximately 60% year over year production growth. The driver for the positive results this quarter was again the strong oily production achieved in the Wattenberg Field and Mid-Continent region. Our crude oil and liquids volumes accounted for approximately 72% of production and 89% of revenues. We are looking forward to continued execution of our 2013 development plan, having increased to four horizontal rigs in March and targeting to achieve approximately eight completions per month in the Wattenberg Field by the end of second quarter. I am pleased with the Company`s progress drilling our exciting catalyst wells and look forward to sharing more detailed results in subsequent operations updates. Finally, in April, we closed on our inaugural debt offering, upsizing to $300 million of senior unsecured notes at 6.75%, a record low rate for a first time single B E&P issuer. We believe we are well capitalized with substantial liquidity for continued growth.”

Key Stats (on next page)…

Revenue increased 6.4% from $73.59 million in the previous quarter. EPS increased 2.56% from $0.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $2.18 to a profit of $2.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]