Bonanza Creek = Strong Q4 Results

[dan_s]

They beat my production and revenue forecast for the 4th quarter. I will update my forecast model tomorrow.

[dan_s]

We have a winner in BCEI. Check out what they accomplished in 2012.

Key highlights for full year 2012 include:
• 115% increase in production to 9,403 Boe/d; 73% crude oil and liquids

• 267% increase in net income to $46.5 million

• 118% increase in adjusted net income per share (non-GAAP) to $1.31

• 136% increase in EBITDAX (non-GAAP) to $162.1 million

Production should be up AT LEAST another 60% in 2013. Heavily weighted to oil and very high btu gas that sells at a premium.

[dan_s]

The Company reported its year-end 2012 proved reserves as prepared by its independent third party reserve engineer, Cawley Gillespie & Associates. Proved reserves increased 21% over year-end 2011 to approximately 53.0 MMBoe and the before tax PV-10 (non-GAAP) was approximately $835 million. During 2012, successful execution of the development program resulted in a 47% increase in PDP reserves and a 51% increase in PDP PV-10 (non-GAAP), notwithstanding lower oil and gas prices. Total Company reserve replacement for 2012 was 371%.

[dan_s]

I have updated the Net Income & Cash Flow Forecast model and posted it under the Sweet 16 Tab. I have increased my Fair Value Estimate by $12/share to $52/share.

I will listen to their conference call on Friday morning and probably make some changes, but I wanted to get it up on the website since they posted such incredible numbers. The big jump in production should draw a lot of attention tomorrow. They are clearly on track to over 20,000 boepd by the end of 2013.

Keep in mind that they use the Successful Efforts method of accounting, which is very conservative.