Intrinsic value of Bonanza Creek Energy - BCEI

Previous Close

$29.99

  Intrinsic Value

$0.23

stock screener

  Rating & Target

str. sell

-99%

Previous close

$29.99

 
Intrinsic value

$0.23

 
Up/down potential

-99%

 
Rating

str. sell

We calculate the intrinsic value of BCEI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  36.70
  33.53
  30.68
  28.11
  25.80
  23.72
  21.85
  20.16
  18.65
  17.28
  16.05
  14.95
  13.95
  13.06
  12.25
  11.53
  10.87
  10.29
  9.76
  9.28
  8.85
  8.47
  8.12
  7.81
  7.53
  7.28
  7.05
  6.84
  6.66
  6.49
Revenue, $m
  267
  356
  466
  597
  751
  929
  1,132
  1,360
  1,613
  1,892
  2,196
  2,524
  2,877
  3,252
  3,651
  4,071
  4,514
  4,979
  5,464
  5,972
  6,500
  7,051
  7,623
  8,219
  8,837
  9,480
  10,149
  10,843
  11,565
  12,316
Variable operating expenses, $m
  1,095
  1,463
  1,911
  2,449
  3,080
  3,811
  4,643
  5,580
  6,620
  7,764
  9,010
  10,357
  11,803
  13,344
  14,979
  16,705
  18,522
  20,427
  22,420
  24,501
  26,670
  28,929
  31,279
  33,721
  36,260
  38,898
  41,640
  44,489
  47,452
  50,533
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  1,095
  1,463
  1,911
  2,449
  3,080
  3,811
  4,643
  5,580
  6,620
  7,764
  9,010
  10,357
  11,803
  13,344
  14,979
  16,705
  18,522
  20,427
  22,420
  24,501
  26,670
  28,929
  31,279
  33,721
  36,260
  38,898
  41,640
  44,489
  47,452
  50,533
Operating income, $m
  -828
  -1,106
  -1,446
  -1,852
  -2,330
  -2,882
  -3,512
  -4,220
  -5,007
  -5,872
  -6,814
  -7,833
  -8,926
  -10,091
  -11,328
  -12,634
  -14,007
  -15,448
  -16,956
  -18,530
  -20,170
  -21,878
  -23,655
  -25,503
  -27,423
  -29,418
  -31,491
  -33,646
  -35,887
  -38,217
EBITDA, $m
  -676
  -903
  -1,180
  -1,512
  -1,902
  -2,353
  -2,867
  -3,445
  -4,087
  -4,793
  -5,563
  -6,394
  -7,286
  -8,238
  -9,247
  -10,313
  -11,434
  -12,611
  -13,841
  -15,126
  -16,465
  -17,859
  -19,310
  -20,818
  -22,385
  -24,014
  -25,707
  -27,466
  -29,295
  -31,197
Interest expense (income), $m
  0
  66
  85
  116
  155
  201
  254
  317
  388
  468
  557
  655
  761
  876
  1,000
  1,131
  1,271
  1,419
  1,574
  1,737
  1,907
  2,085
  2,270
  2,463
  2,664
  2,873
  3,090
  3,315
  3,549
  3,793
  4,046
Earnings before tax, $m
  -894
  -1,191
  -1,562
  -2,006
  -2,530
  -3,137
  -3,829
  -4,608
  -5,475
  -6,429
  -7,469
  -8,594
  -9,802
  -11,091
  -12,459
  -13,905
  -15,426
  -17,022
  -18,692
  -20,437
  -22,255
  -24,149
  -26,118
  -28,167
  -30,295
  -32,507
  -34,806
  -37,196
  -39,680
  -42,263
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -894
  -1,191
  -1,562
  -2,006
  -2,530
  -3,137
  -3,829
  -4,608
  -5,475
  -6,429
  -7,469
  -8,594
  -9,802
  -11,091
  -12,459
  -13,905
  -15,426
  -17,022
  -18,692
  -20,437
  -22,255
  -24,149
  -26,118
  -28,167
  -30,295
  -32,507
  -34,806
  -37,196
  -39,680
  -42,263

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,552
  2,073
  2,708
  3,470
  4,365
  5,400
  6,580
  7,906
  9,381
  11,002
  12,768
  14,676
  16,724
  18,908
  21,225
  23,671
  26,245
  28,945
  31,769
  34,718
  37,792
  40,993
  44,322
  47,783
  51,381
  55,119
  59,004
  63,042
  67,240
  71,605
Adjusted assets (=assets-cash), $m
  1,552
  2,073
  2,708
  3,470
  4,365
  5,400
  6,580
  7,906
  9,381
  11,002
  12,768
  14,676
  16,724
  18,908
  21,225
  23,671
  26,245
  28,945
  31,769
  34,718
  37,792
  40,993
  44,322
  47,783
  51,381
  55,119
  59,004
  63,042
  67,240
  71,605
Revenue / Adjusted assets
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
Average production assets, $m
  1,476
  1,971
  2,576
  3,300
  4,151
  5,135
  6,257
  7,519
  8,921
  10,463
  12,142
  13,957
  15,904
  17,981
  20,184
  22,511
  24,959
  27,526
  30,212
  33,017
  35,940
  38,983
  42,150
  45,441
  48,862
  52,417
  56,112
  59,952
  63,944
  68,096
Working capital, $m
  -73
  -97
  -127
  -163
  -205
  -254
  -309
  -371
  -440
  -517
  -600
  -689
  -785
  -888
  -997
  -1,111
  -1,232
  -1,359
  -1,492
  -1,630
  -1,775
  -1,925
  -2,081
  -2,244
  -2,413
  -2,588
  -2,771
  -2,960
  -3,157
  -3,362
Total debt, $m
  1,267
  1,735
  2,307
  2,993
  3,798
  4,730
  5,792
  6,986
  8,313
  9,772
  11,361
  13,079
  14,922
  16,887
  18,972
  21,174
  23,491
  25,920
  28,462
  31,116
  33,883
  36,763
  39,760
  42,875
  46,112
  49,477
  52,973
  56,607
  60,386
  64,315
Total liabilities, $m
  1,397
  1,865
  2,438
  3,123
  3,928
  4,860
  5,922
  7,116
  8,443
  9,902
  11,491
  13,209
  15,052
  17,017
  19,102
  21,304
  23,621
  26,050
  28,592
  31,246
  34,013
  36,893
  39,890
  43,005
  46,243
  49,607
  53,103
  56,737
  60,516
  64,445
Total equity, $m
  155
  207
  271
  347
  436
  540
  658
  791
  938
  1,100
  1,277
  1,468
  1,672
  1,891
  2,122
  2,367
  2,625
  2,894
  3,177
  3,472
  3,779
  4,099
  4,432
  4,778
  5,138
  5,512
  5,900
  6,304
  6,724
  7,161
Total liabilities and equity, $m
  1,552
  2,072
  2,709
  3,470
  4,364
  5,400
  6,580
  7,907
  9,381
  11,002
  12,768
  14,677
  16,724
  18,908
  21,224
  23,671
  26,246
  28,944
  31,769
  34,718
  37,792
  40,992
  44,322
  47,783
  51,381
  55,119
  59,003
  63,041
  67,240
  71,606
Debt-to-equity ratio
  8.160
  8.370
  8.520
  8.630
  8.700
  8.760
  8.800
  8.840
  8.860
  8.880
  8.900
  8.910
  8.920
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -894
  -1,191
  -1,562
  -2,006
  -2,530
  -3,137
  -3,829
  -4,608
  -5,475
  -6,429
  -7,469
  -8,594
  -9,802
  -11,091
  -12,459
  -13,905
  -15,426
  -17,022
  -18,692
  -20,437
  -22,255
  -24,149
  -26,118
  -28,167
  -30,295
  -32,507
  -34,806
  -37,196
  -39,680
  -42,263
Depreciation, amort., depletion, $m
  152
  203
  266
  340
  428
  529
  645
  775
  920
  1,079
  1,252
  1,439
  1,640
  1,854
  2,081
  2,321
  2,573
  2,838
  3,115
  3,404
  3,705
  4,019
  4,345
  4,685
  5,037
  5,404
  5,785
  6,181
  6,592
  7,020
Funds from operations, $m
  -742
  -988
  -1,296
  -1,666
  -2,102
  -2,607
  -3,184
  -3,833
  -4,555
  -5,350
  -6,217
  -7,155
  -8,163
  -9,238
  -10,378
  -11,584
  -12,853
  -14,184
  -15,578
  -17,033
  -18,550
  -20,130
  -21,773
  -23,482
  -25,258
  -27,104
  -29,021
  -31,015
  -33,087
  -35,243
Change in working capital, $m
  -20
  -24
  -30
  -36
  -42
  -49
  -55
  -62
  -69
  -76
  -83
  -90
  -96
  -103
  -109
  -115
  -121
  -127
  -133
  -138
  -144
  -150
  -156
  -163
  -169
  -176
  -182
  -190
  -197
  -205
Cash from operations, $m
  -723
  -963
  -1,266
  -1,631
  -2,060
  -2,559
  -3,128
  -3,770
  -4,486
  -5,274
  -6,134
  -7,066
  -8,066
  -9,135
  -10,270
  -11,469
  -12,732
  -14,058
  -15,445
  -16,894
  -18,406
  -19,979
  -21,617
  -23,319
  -25,089
  -26,928
  -28,839
  -30,825
  -32,890
  -35,038
Maintenance CAPEX, $m
  -111
  -152
  -203
  -266
  -340
  -428
  -529
  -645
  -775
  -920
  -1,079
  -1,252
  -1,439
  -1,640
  -1,854
  -2,081
  -2,321
  -2,573
  -2,838
  -3,115
  -3,404
  -3,705
  -4,019
  -4,345
  -4,685
  -5,037
  -5,404
  -5,785
  -6,181
  -6,592
New CAPEX, $m
  -398
  -495
  -605
  -724
  -851
  -985
  -1,122
  -1,262
  -1,402
  -1,542
  -1,680
  -1,815
  -1,947
  -2,077
  -2,203
  -2,327
  -2,448
  -2,567
  -2,686
  -2,804
  -2,923
  -3,044
  -3,166
  -3,292
  -3,421
  -3,555
  -3,694
  -3,840
  -3,992
  -4,152
Cash from investing activities, $m
  -509
  -647
  -808
  -990
  -1,191
  -1,413
  -1,651
  -1,907
  -2,177
  -2,462
  -2,759
  -3,067
  -3,386
  -3,717
  -4,057
  -4,408
  -4,769
  -5,140
  -5,524
  -5,919
  -6,327
  -6,749
  -7,185
  -7,637
  -8,106
  -8,592
  -9,098
  -9,625
  -10,173
  -10,744
Free cash flow, $m
  -1,232
  -1,611
  -2,074
  -2,620
  -3,252
  -3,971
  -4,780
  -5,677
  -6,663
  -7,735
  -8,893
  -10,132
  -11,453
  -12,851
  -14,326
  -15,877
  -17,501
  -19,198
  -20,969
  -22,813
  -24,733
  -26,728
  -28,802
  -30,956
  -33,195
  -35,520
  -37,937
  -40,450
  -43,063
  -45,782
Issuance/(repayment) of debt, $m
  282
  468
  572
  685
  806
  932
  1,062
  1,194
  1,327
  1,459
  1,590
  1,718
  1,843
  1,965
  2,085
  2,202
  2,317
  2,430
  2,542
  2,654
  2,767
  2,880
  2,996
  3,115
  3,238
  3,364
  3,496
  3,634
  3,778
  3,929
Issuance/(repurchase) of shares, $m
  1,031
  1,243
  1,625
  2,083
  2,620
  3,240
  3,947
  4,741
  5,622
  6,591
  7,646
  8,785
  10,007
  11,310
  12,691
  14,149
  15,683
  17,292
  18,975
  20,731
  22,562
  24,469
  26,451
  28,513
  30,655
  32,881
  35,195
  37,599
  40,099
  42,699
Cash from financing (excl. dividends), $m  
  1,313
  1,711
  2,197
  2,768
  3,426
  4,172
  5,009
  5,935
  6,949
  8,050
  9,236
  10,503
  11,850
  13,275
  14,776
  16,351
  18,000
  19,722
  21,517
  23,385
  25,329
  27,349
  29,447
  31,628
  33,893
  36,245
  38,691
  41,233
  43,877
  46,628
Total cash flow (excl. dividends), $m
  80
  101
  123
  148
  174
  201
  229
  257
  286
  315
  343
  370
  397
  424
  449
  475
  499
  524
  548
  572
  596
  621
  646
  672
  698
  725
  754
  783
  814
  847
Retained Cash Flow (-), $m
  -1,031
  -1,243
  -1,625
  -2,083
  -2,620
  -3,240
  -3,947
  -4,741
  -5,622
  -6,591
  -7,646
  -8,785
  -10,007
  -11,310
  -12,691
  -14,149
  -15,683
  -17,292
  -18,975
  -20,731
  -22,562
  -24,469
  -26,451
  -28,513
  -30,655
  -32,881
  -35,195
  -37,599
  -40,099
  -42,699
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -950
  -1,142
  -1,502
  -1,935
  -2,446
  -3,039
  -3,718
  -4,483
  -5,336
  -6,276
  -7,303
  -8,415
  -9,610
  -10,886
  -12,242
  -13,675
  -15,184
  -16,768
  -18,427
  -20,159
  -21,966
  -23,848
  -25,805
  -27,841
  -29,957
  -32,156
  -34,441
  -36,816
  -39,285
  -41,852
Discount rate, %
  14.10
  14.81
  15.55
  16.32
  17.14
  18.00
  18.90
  19.84
  20.83
  21.87
  22.97
  24.12
  25.32
  26.59
  27.92
  29.31
  30.78
  32.32
  33.93
  35.63
  37.41
  39.28
  41.25
  43.31
  45.47
  47.75
  50.13
  52.64
  55.27
  58.04
PV of cash for distribution, $m
  -833
  -867
  -974
  -1,057
  -1,109
  -1,126
  -1,107
  -1,054
  -972
  -868
  -751
  -630
  -511
  -401
  -305
  -224
  -159
  -108
  -72
  -45
  -28
  -16
  -9
  -5
  -3
  -1
  -1
  0
  0
  0
Current shareholders' claim on cash, %
  15.6
  8.7
  4.9
  2.7
  1.6
  0.9
  0.5
  0.3
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Bonanza Creek Energy Inc., an independent energy company, engages in the acquisition, exploration, development, and production of onshore oil and associated liquids-rich natural gas in the United States. The company’s oil and liquids weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the North Park Basin in Colorado; and the McKamie Patton Field in Southern Arkansas. Bonanza Creek Energy Inc. was founded in 2010 and is headquartered in Denver, Colorado. On January 4, 2017, Bonanza Creek Energy Inc. along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

FINANCIAL RATIOS  of  Bonanza Creek Energy (BCEI)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

BCEI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BCEI stock intrinsic value calculation we used $195.295 million for the last fiscal year's total revenue generated by Bonanza Creek Energy. The default revenue input number comes from 0001 income statement of Bonanza Creek Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BCEI stock valuation model: a) initial revenue growth rate of 36.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 14.1%, whose default value for BCEI is calculated based on our internal credit rating of Bonanza Creek Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Bonanza Creek Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BCEI stock the variable cost ratio is equal to 410.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BCEI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.7% for Bonanza Creek Energy.

Corporate tax rate of 27% is the nominal tax rate for Bonanza Creek Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BCEI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BCEI are equal to 552.9%.

Life of production assets of 9.7 years is the average useful life of capital assets used in Bonanza Creek Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BCEI is equal to -27.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $19.061 million for Bonanza Creek Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 20.541 million for Bonanza Creek Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Bonanza Creek Energy at the current share price and the inputted number of shares is $0.6 billion.

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COMPANY NEWS

▶ SandRidge says interim CEO not in race for top job   [Sep-21-18 07:01AM  Reuters]
▶ Bonanza Creek to Present at EnerCom   [Aug-02-18 05:36PM  GlobeNewswire]
▶ Bonanza Creek Energy Set to Join S&P SmallCap 600   [Jul-25-18 06:36PM  PR Newswire]
▶ 5 Top-Ranked Small-Cap Stocks on Sale   [Jun-19-18 11:25AM  InvestorPlace]
▶ Cheniere Energy (LNG) Jumps: Stock Rises 5.7%   [May-31-18 08:53AM  Zacks]
▶ Icahn Pushes for Sale of SandRidge Energy   [Apr-11-18 06:00AM  Investopedia]
▶ Bonanza Creek appoints Eric Greager as CEO   [Apr-05-18 08:16AM  Reuters]
▶ [$$] SandRidge Energy Shakes Up Leadership Amid Investor Pressure   [Feb-08-18 07:01PM  The Wall Street Journal]
▶ [$$] Carl Icahn Pushes SandRidge to Make Board Changes   [05:02PM  The Wall Street Journal]
▶ These Stocks Are the Biggest Upstream Losers This Week   [Jan-04-18 09:30AM  Market Realist]
▶ [$$] SandRidge Kills Bonanza Creek Deal After Icahn, Others Push Back   [Dec-29-17 11:32PM  The Wall Street Journal]

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