Jagged Peak Energy Inc. (JAG - Free Report) , has lowered production guidance for the third quarter of 2017 and full year 2017.
For the third quarter, the independent oil and natural gas company, expects production in the range of 19,150-19,350 barrels of oil equivalent per day (Boe/d), down from 20,000-20,800 Boe/d.
Consequent to the alterations in the production guidance range for the third quarter of 2017, the company has updated full-year 2017 estimated production range to 17,500-18,000 Boe/d, up 212% over 2016 production at the low end. However, the fourth quarter 2017 production guidance remains unchanged at 26,000-28,000 Boe/d.
For the fiscal 2017, the company plans to spud 54-58 operated wells and intends to complete 50-55 operated wells.
Reasons For Production Cut
Jagged Peak Energy had restrained few wells owing to Hurricane Harvey pipeline restriction notices. This included four wells that were temporarily shut to allow installation of electric submersible pumps prior to original schedule. Currently, all wells that were off-line due to Harvey are operational.
Secondly, commissioning of two non-operated wells, where the company holds 50% working interest, was deferred. These wells, which were slated to be brought online in July 2017 started production in September 2017.
Lastly, due to disagreeable arrangements associated with completion of fleet collectively, the completion of two wells was postponed by about three weeks each. As of Sep 12, both wells were completed and had started production. Currently, the company is engaging three completion fleets and will continue to operate them till the end of the year and beyond.
About Jagged Peak Energy
Jagged Peak Energy is engaged in the acquisition and development of unconventional oil and related liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
The company’s shares have increased 6.5% compared with the industry’s gain of 3.5% over the last three months.
Zacks Rank & Key Picks
Currently, Jagged Peak Energy carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include TransCanada Corporation (TRP - Free Report) , Transmontaigne Partners LP (TLP - Free Report) and SolarEdge Technologies, Inc (SEDG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.
Transmontaigne, headquartered in Denver, CO, involves in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.
Headquartered in Herzliya, Israel, SolarEdge Technologies designs, develops and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, Europe, the United States and internationally. The company delivered an average positive earnings surprise of 21.72% over the last four quarters.
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