Chaparral Energy, Inc. CHAP
We noticed CHAP on our routine morning scan today, and wanted to highlight the current situation for the stock as a potential longer-term swing trade idea. We are attracted to the setup of the chart, which is presently exhibiting a classic double bottom. At the start of the calendar year, CHAP came off of the same lows and surged nearly 100% to the $8-range.
We also want to relay the cause of CHAP’s recent analyst upgrade. The company report a slew of operational and financial highlights in its recent 10-K pertaining to the company’s 4th quarter and full year 2018 performance.
CHAP Q4/FY 2018 Highlights
- Recorded 2018 full year STACK production of 14.5 thousand barrels of oil equivalent per day (MBoe/d), representing a 52% year-over-year increase
- Achieved 2018 full year total company production of 20.5 MBoe/d
- Reported full year 2018 net income of $33.4 million, or 73 cents per diluted share
- Achieved full year 2018 adjusted EBITDA, as defined below, of $125 million
- Grew 2018 total proved reserves to 94.8 million barrels of oil equivalent (MMBoe), which adjusted for 2018 divestitures marks a 35% year-over-year increase, and represents a PV-10 value of $686 million
- Increased STACK proved reserves by 50% year-over-year to 74.1 MMBoe, while replacing 519% of STACK production
- Invested $194.7 million in STACK drilling and completion (D&C) activities in 2018
- Reduced total company lease operating expense per barrel of oil equivalent (LOE/Boe) almost $4 from $10.96 in 2017 to $7.24 in 2018
- Strengthened the balance sheet by issuing $300 million of unsecured senior notes and increasing the borrowing base to $325 million in 2018 (>>View Source)
We’re going to be very interested to track the stocks progress on the heels of these revelations, and fully expect to see a sustain rebound attempt in the relatively near future.
Fresh Options Ideas:
DG Weekly $115-113 Puts
DLTR Weekly $103-101 Puts
Extended Watchlist:
INNT, DTCI, ORDO, AKTX, PLUG,