Aug 17, 2026 earnings call — Series F refinancing and DJ Basin development
Company adjusted 2026 guidance to average daily production of 23,000 to 25,000 BOE per day.
Revenue $0.1B (est $0.1B) · EPS $0.23 (est $0.06)
Key quotes
"Based on these results, we plan to apply the smaller hole design across a significant portion of our upcoming Niobrara development program."
"We also completed a meaningful partial refinancing of the Series F Preferred stock, reducing the outstanding preferred balance and potential warrant-related dilution and recently extended our anniversary warrant date to August 31, 2026."
"Our commodity hedge portfolio extends through the second quarter of 2029 and provides meaningful downside protection and improved visibility into our future cash flows."
Analyst Q&A 2
Production levels, bank covenant, preferred, well costs
Q (Leo Mariani · ROTH MKM): He asked if the 4-well Burnett pad is online and how production will trend from the reported ~27,000 BOE/d. He also asked about the revolver minimum production threshold, the preferred extension/refinance, and current 2-mile lateral well costs.
A: Burnett is in flowback and is connected to infrastructure but had not started cutting hydrocarbons this morning, so those wells are not included in the approximate 27,000 net barrels a day figure; Castor is mid-completion. Management said production should be "in and around that 26,000, 28,000 number" through the third quarter and early fourth, with a small decline exiting the year. They said the production hurdle in the credit facility is meant to balance growth and keep liquidity available, the preferred holder has helped reduce the pref face value and the extension lets them pursue multiple refinancing avenues, and 2-mile laterals cost about "5.2 to 5.5" on a stand-alone pad and "5.4 to 5.6" on step-outs with an extra "$100,000 to $200,000 of pipe."
"It is interconnected to all the necessary infrastructure, but we have not cut hydrocarbons as of this morning." — Gregory Patton (CEO)
Series F progress and Barnett pad outlook
Q (Charles Meade · Johnson Rice): He asked whether progress is being made on the Series F preferred extensions and why deadlines keep being extended instead of pushing to year-end. He also asked what successful production rates would look like from the Barnett/Burnett pad compared with nearby offsets.
A: Management said the pref principal began at $148.5 million (valued at $1,000 a unit or $148 million approximately), was reduced to roughly $121 million as of year-end and to $78 million outstanding as of the end of this last quarter, and they continue to work on conversions and refinancing avenues. They noted anniversary warrant coverage has fallen from 1.25:1 to 0.65:1, they are ‘‘chipping away’’ at reducing and redeeming the pref with the pref holder, and they are pursuing multiple solutions without a definitive timeline. On the Barnett/Burnett pad, they said nearby activity from Bison, Oxy and Chevron has helped derisk the area and that they expect the correlating offset type curves (Critter Creek, Jaws and others) to be similar to Burnett, though initial IPs are not yet certain.
"So with the reduction of the face of the pref, coupled with the reduction in the anniversary warrants, we continue to chip away at reducing it, redeeming it and have done so with the help of the pref holder." — Gregory Patton (CEO)