Bonanza Creek

[dan_s]

Bonanza Creek (BCEI): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

The company had a great quarter. Q3 daily production was 30.8% higher than Q2 (up 4,163 boepd). Crude oil production was up 34.0%. They generated $2.00 CFPS in the 3rd quarter.

There is a good chance that full year 2013 production will exceed the top end of their guidance (16,000 boepd) and they should exit the year over 20,000 boepd. My forecast for 2014 is based on 24,000 boepd (68% crude oil).

Their natural gas production has a high btu content. Their realized gas price was $4.58/mcf in Q3.

I have increased my Fair Value Estimate $6/share to $60/share.