Bonanza Creek Energy Earnings: Here’s Why the Stock is Falling 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 3.87%.

Bonanza Creek Energy Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.5% to $0.36 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Rose 64.21% to $84.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bonanza Creek Energy Inc reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.44. It missed the average revenue estimate of $87.46 million.

Quoting Management: Michael Starzer, Bonanza Creek`s President and Chief Executive Officer, commented, “I am pleased to report that the Company achieved new records in production, revenue and EBITDAX during the quarter. Second quarter production results were consistent with the growth imbedded in our annual plan as the horizontal development program, which now comprises approximately 86% of Wattenberg production, continues to impress. During the first six months of the year we brought 28 horizontal wells online in the Wattenberg out of our 74 wells planned for first production during 2013. The timing of our 2013 well development is being executed in line with our engineering plan, which underpins our annual guidance methodology. To date, the balance of our 2013 plan is on schedule and as such, we reaffirm our full year guidance of approximately 60% year over year production growth as well as the ranges for annual lease operating expense and cash G&A. We are very encouraged by the results of our catalyst wells providing increased visibility into the expanding value of Bonanza Creek`s attractive oil and liquids weighted assets.”

Key Stats (on next page)…

Revenue increased 7.9% from $78.31 million in the previous quarter. EPS decreased 10% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.55 to a profit $0.56. For the current year, the average estimate has moved up from a profit of $2.06 to a profit of $2.07 over the last ninety days.

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