Earnings Results Analysis: Jagged Peak Energy Inc. (NYSE: JAG)

DENVER, September 23, 2019 – Shares of Jagged Peak Energy Inc. (NYSE: JAG) lost -0.90% to $7.71. The stock grabbed the investor’s attention and traded 2.476M shares as compared to its average daily volume of 1.70M shares. The stock’s institutional ownership stands at 30.20%.

Jagged Peak Energy Inc. (JAG) reported revenue of $129.60M for the first quarter of 2019, contrast to $129.10M in the first quarter of 2018. The relatively unchanged revenue in the first quarter of 2019 contrast to the same period in 2018 was a result of a 33% increase in production volumes and a 24% decrease in unhedged realized pricing on a per Boe basis.

For the first quarter of 2019, the Company reported a net loss of $94.90M, or $0.44 per diluted common share. Net loss for the first quarter of 2018 was $39.40M, or $0.18 per diluted common share. Adjusted net income (a non-GAAP measure) for the first quarter of 2019 was $18.20M or $0.09 per diluted common share, contrast to $26.40 M, or $0.12 per diluted common share for the same period in 2018. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX (a non-GAAP measure) for the first quarter of 2019 was $93.70M, a boost of $8.20M from the first quarter of 2018.

Capital expenditures for drilling and completion activities were $136.70M for the three months ended March 31, 2019. Activity during the quarter included drilling 13 and concluding 12 gross (11.8 net) wells, all of which were operated by Jagged Peak. In Addition To, a portion of the capital spent during the first quarter relates to 16 gross (14.7 net) operated wells that were in various stages of being drilled or accomplished at March 31, 2019. Counting capital expenditures for infrastructure of $5.60M and leasehold acquisition costs of $12.20M, total capital expenditures for the quarter were $154.60M. The Company’s leasehold acquisition costs for the quarter were mainly a result of increases to mineral rights in Whiskey River and extension payments on existing leases.

Financial Update

At the end of the first quarter of 2019, the Company had $55.00M drawn on its revolving credit facility and $6.50M of cash on the balance sheet, resulting in total liquidity of $491.50M. As of April 29, 2019, the Company’s borrowing base and elected commitments were reaffirmed at $900.0M and $540.0M, respectively. Net debt to LTM adjusted EBITDAX (a non-GAAP measure) was 1.2x as of the end of the first quarter. The Company’s current capital program is expected to keep the Company’s leverage ratio, as measured by net debt to LTM adjusted EBITDAX, under 2.0x in a $50 per Bbl WTI environment.

JAG has a market value of $1.66B while its EPS was booked as $0.50 in the last 12 months. The stock has 215.34M shares outstanding. In the profitability analysis, the company has gross profit margin of 84.20% while net profit margin was 18.70%. Analyst recommendation for this stock stands at 2.30.

Ronnie Potter

I am Ronnie Potter and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind Crypto Dictation with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Basic Materials” category.

Address: 4938 Mesa Drive, Las Vegas, NV 89101, USA
Phone: (+1) 702-385-7423
Email: [email protected]

Ronnie Potter

I am Ronnie Potter and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Crypto Dictation with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Basic Materials” category. Address: 4938 Mesa Drive, Las Vegas, NV 89101, USA Phone: (+1) 702-385-7423 Email: [email protected]

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