Chaparral Energy, Inc. announced unaudited consolidated earnings and production results for the second quarter and earnings results for the six months ended June 30, 2018. For the quarter, the company reported total revenues of $59,625,000 compared to $74,048,000 a year ago. Operating income was $12,024,000 compared to $4,600,000 a year ago. Loss before income taxes was $21,993,000 compared to profit of $21,402,000 a year ago. Net loss was $21,993,000 compared to net profit of $21,365,000 a year ago. Loss per share basic and diluted for class A and class B was $0.49 compared to earnings of $0.47 a year ago. Adjusted EBITDA was $26,915,000 compared to $42,536,000 a year ago. The company's total capital expenditures during the second quarter were $89.2 million. This includes $59.3 million associated with STACK drilling and completions activity and $26.8 million spent on additional STACK acquisitions.

For the six months, the company reported total revenues of $118,712,000, operating income of $20,450,000, loss before income taxes of $33,435,000, net loss of $33,435,000 and loss per share basic and diluted for class A and class B of $0.74. Net cash provided by operating activities was $60,070,000. Expenditures for property, plant, and equipment and oil and natural gas properties were $176,275,000. Adjusted EBITDA was $56,338,000.

During the second quarter of 2018, the company grew STACK production to 13,198 Boe/d. This is a 44% year-over-year increase compared to 9,187 Boe/d in the second quarter of 2017 and a 7% quarter-over-quarter increase compared to 12,300 Boe/d during the first quarter of 2018. While the company's quarter-over-quarter growth was solid, it was impacted by the significant number of joint venture wells brought online during the quarter and Chaparral's associated lower working interest in those wells. Excluding production from divested enhanced oil recovery (EOR) assets, the company's second quarter 2018 average total production grew by 8% on a year-over-year basis to 19,725 Boe/d, of which 61% was liquids and 39% natural gas. The natural gas percentage was slightly higher from the previous quarter due to the company's strategic development of its Canadian and Garfield County acreage.

The company will operate three rigs during the third quarter. Overall, it expects third quarter STACK production to be between 13.5 and 14.5 MBoe/d and third quarter total company production to be between 19.0 and 20.0 MBoe/d after the impact of non-core asset sales completed in the third quarter.

The company revised production guidance and capex guidance for the full year 2018. For the period, the company increased its STACK production guidance to 13.0 to 14.0 MBoe/d and increased total production guidance to 19.0 - 20.0 MBoe/d compared to previous STACK production guidance to 11.5 to 12.5 MBoe/d and total production guidance to 17.0 – 18.0 MBoe/d. This increase in production is driven by strong STACK well results, as well as increased working interest and includes estimated third quarter STACK production of 13.5 - 14.5 MBoe/d and total company production of 19.0 - 20.0 MBoe/d.

The company also increased its full year CAPEX guidance to $300 - $325 million. This increase is primarily a result of increased activity, as well as cost associated with higher than expected working interests, recognition of cost inflation associated with its joint venture program and increased acquisitions. Previously the company expected to report total capex of $250 million to $275 million.

The company expanded its board of directors to nine members with the appointment of Graham Morris, of Contrarian Capital, as a new independent member of the board on August 9, 2018. The company's board, with the addition of Morris, now includes nine members, of which eight serve as independent directors.