Bonanza Creek Energy Inc., Denver, has reduced its total 2020 capital expenditure guidance to $60-70 million, a 70% reduction from original guidance.
Initial 2020 annual capital expenditures—reported in January—were expected to be $215-235 million.
Recurring cash G&A guidance has been reduced to $27-29 million, down 13% from 2019, with cuts from salary reductions, layoffs, and changes to board compensation.
Updated guidance was reported with preliminary first quarter results. The company expects first quarter 2020 estimated average sales volumes of 24,800 boe/d, with oil representing 54% of total volumes and total first quarter 2020 capital expenditures of $41 million, significantly below the original 2020 plan.
Bonanza Creek exited the quarter with over $300 million of liquidity, $59 million outstanding on its credit facility, and cash of about $11 million.