Bonanza Creek Energy (BCEI) Stock Gains on Smaller Than Expected Loss
NEW YORK (TheStreet) -- Shares of Bonanza Creek Energy (BCEI) - Get Report were gaining 23.6% to $9.17 with heavy trading volume on Friday after the oil company reported a smaller than expected loss for the third quarter.
After the market closed on Thursday, Bonanza Creek reported a loss of 7 cents a share for the third quarter, compared to analysts' estimates of a loss of 21 cents a share for the quarter. Revenue fell 53.9% year over year to $72.1 million for the quarter, below analysts' estimates of $99.53 million.
"The company had an excellent quarter, with production volumes above our guidance, continuous improvement programs driving cash costs meaningfully lower, and improved production from redesigned well completions," President and CEO Richard Carty said in a statement. "Our operating teams have worked diligently throughout the year to target incremental productivity and efficiency gains, which are now being realized through lower field development costs and enhanced field-wide productivity."
Bonanza Creek said production volumes averaged 29 million barrels of oil equivalent a day in the third quarter, above its guidance of 28.6 million barrels of oil equivalent a day.
About 6.1 million shares of Bonanza Creek were traded by 3:18 p.m. Friday, above the company's average trading volume of about 3.1 million shares a day.
TheStreet Ratings team rates BONANZA CREEK ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate BONANZA CREEK ENERGY INC (BCEI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk.
You can view the full analysis from the report here: BCEI
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