Chaparral Energy (CHAP)
Posted: Mon Dec 10, 2018 4:22 pm
"CHAP announced today the company’s bank group has completed its regularly scheduled fall borrowing base redetermination, which increased the borrowing base from $265 to $325 million, reduced pricing grid by 50 basis points and allows hedge capacity to 80% of internally forecasted production for the first 24 months." - John White at Roth Capital Partners sent out this quote after attending out luncheon today in Houston.
I was very impressed by Earl Reynolds' (Chaparral's CEO) presentation at our luncheon.
1. The company's production has exceeded my forecast for three straight quarters and they have raised their production guidance twice this year.
2. They are running four operated rigs in STACK and MERGE.
3. Their wells are exceeding pre-drill type curves and on-track to generate 50% to 100% IRRs. Even if oil stays at $50/bbl they will generate strong well level economics.
4. The company has de-risked a high percentage of their leasehold.
5. The 2018 drilling program will add a lot more proven reserves to their year-end reserve report.
6. Most of their leasehold is operated and HBP, which makes the company a PRIME TAKEOVER TARGET.
7. Last but not least, they are heading to NYC to meet with several of their large shareholders and analysts.
I was very impressed by Earl Reynolds' (Chaparral's CEO) presentation at our luncheon.
1. The company's production has exceeded my forecast for three straight quarters and they have raised their production guidance twice this year.
2. They are running four operated rigs in STACK and MERGE.
3. Their wells are exceeding pre-drill type curves and on-track to generate 50% to 100% IRRs. Even if oil stays at $50/bbl they will generate strong well level economics.
4. The company has de-risked a high percentage of their leasehold.
5. The 2018 drilling program will add a lot more proven reserves to their year-end reserve report.
6. Most of their leasehold is operated and HBP, which makes the company a PRIME TAKEOVER TARGET.
7. Last but not least, they are heading to NYC to meet with several of their large shareholders and analysts.