Market Profile Strategies - Jagged Peak Energy Inc(NYSE: JAG) boosting capital position

Market Profile Strategies

Dec 30 2023 • 0 seconds

Jagged Peak Energy Inc(NYSE: JAG) in the fourth quarter 2016 has reported the adjusted loss per share of $0.01, missing the analysts’ estimates for the adjusted earnings per share of $0.01. The company has recently raised money through an initial public offer and resulted in the net proceeds of $397.4 million.  The net proceeds will be used to repay the then outstanding balance on the Predecessor’s credit facility of $142.0 million, and the remaining net proceeds will be used to fund a portion of the company’s 2017 capital expenditure program and for other general corporate purposes. In the fourth quarter. Jagged Peak Energy has operated its drilling activity with three rigs. Jagged Peak Energy drilled five gross horizontal wells and completed five gross horizontal wells.  These completions consisted of wells completed in the lower Wolfcamp A formation and one well drilled and completed in the lower Wolfcamp B formation.  In January and March 2017, respectively, Jagged Peak Energy has added a fourth and fifth operated rig and expects to operate a five to six-rig drilling program during the remainder of 2017. Moreover, Jagged Peak Energy  has recently contracted to operate two to four fracturing fleets as needed to complete wells in a timely manner after the completion of drilling operations.  In addition, JAG has a water infrastructure system in place that is capable of supplying fresh water and disposing of produced water as needed to support its anticipated development program. The company continues to reduce drilling times to increase the efficiency of its development program. For 2017, Jagged Peak Energy expects the average daily production of 17,000 to 19,000 Boe/d for 2017, which is an increase of 203% to 238% compared to 2016. The 2017 exit rate (fourth quarter 2017) is expected of 26,000 to 28,000 Boe/d, which is an increase of 304% to 335% compared to fourth quarter 2016. Further, the capital expenditures for oil and gas activities are of $555 to $605 million including $510 to $550 million for drilling and completion expenditures, $15 to $20 million for the construction of water infrastructure assets and $30 to $35 million estimated for leasehold additions. Meanwhile, Jagged Peak Energy has announced that Mr. Gregory S. Hinds, Jagged Peak’s Executive Vice President, Development Planning & Acquisition, has voluntarily resigned from the Company, as of March 13th, 2017, in order to pursue other opportunities. Jagged Peak Energy stock has fallen 16.26% in a year (source: Google Finance). According to tipranks.com, 8 analysts has covered the stock while recommend a “Strong Buy”.  JAG has an average price target of $17.83, which is a further upside of 48.58%.



SOURCE : https://tradertalks-net.translate.goog/s/13986?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

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