Jagged Peak hits the heights after sharp rise in output

Jagged Peak Energy Inc (NYSE:INC) was the top performing NYSE stock Friday morning after posting impressive figures on Thursday night.

The independent oil and natural gas company focused on the Southern Delaware Basin saw production more than double in the first three months of 2017 compared to a year earlier.

The company produced 9,785 barrels of oil equivalent per day (boepd) compared to 4,102 barrels the year before.

Average prices achieved also soared, with the company raking in US$44.52 per barrel of oil equivalent, up from US$26.74 in the same period of 2016.

Revenues raced ahead to US$39.2mln from US$9.98mln the year before, though equity-based management incentives of US$409mln (versus nil last year) relating to the company’s flotation meant the company made a loss of after tax of US$465.9mln, compared to a loss the year before of just US$7.45mln.

Not surprisingly, the company preferred to highlight earnings before interest, taxes, depreciation, amortization and exploration (EBITDAX), which was positive at US$29.1mln.

“We built on our strong full-year 2016 results during the first quarter of 2017,” said Joe Jaggers, who has three job titles: president, chairman and chief executive officer.

“ The company saw production climb 139% year-over-year, and continues to produce one of the highest oil cuts in the Permian Basin. Our superior oil cut and focus on infrastructure resulted in an adjusted EBITDAX margin of $33.07 per Boe, which is truly best-in-class,” Jaggers boasted.

“Another important driver of our high margin is that lease operating expenses [LOE] continue to be very attractive,” Jaggers explained.

“First quarter LOE reflects the continued focus on operating costs and the benefit of low cost, initial production from several wells that were placed on production over the last several months,” the Jagged Peak boss said..  

The shares rose 12.4% to US$13.50 in the morning trading session.

Story by ProactiveInvestors