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Chaparral Energy Q2 adjusted EBITDA was $95.4 million

Staff writer |
Chaparral Energy announced its second quarter 2015 financial results. Adjusted EBITDA was $95.4 million compared to $105.4 million during the previous quarter.

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That excluded the effects of a $15.4 million early settlement gain associated with certain hedging instruments. This $10 million quarter over quarter decrease was in line with the company’s previously communicated expectations based on the timing of its 2015 drilling program and strategic delay of completions activity.

The company has a robust hedging program, with 2.9 million barrels of oil hedged for the remainder of 2015, as well as 4 million barrels in 2016. From a gas standpoint, it has 7.9 Bcf of gas hedged for the remainder of 2015, 14 Bcf hedged in 2016, 12.7 Bcf in 2017 and 8.3 Bcf hedged in 2018.

Revenues during the second quarter, before the effects of hedging activities, were up slightly totaling $94.2 million compared to $93.1 million in the first quarter. However, due to a 46 percent decline in average realized prices, this marked a 51 percent year over year decrease for the quarter.

As expected, due to a decline in average commodity prices, Chaparral was required to record an asset impairment of $231 million in the second quarter due to lower prices that impacted oil and gas properties, inventory and equipment.

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