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Jagged Peak Energy Inc. (NYSE:JAG)
Q3 2019 Earnings Call
Nov 8, 2019, 11:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Thank you for standing by and welcome to Jagged Peak Energy's Third Quarter Earnings and Operational Update. At this time, all participants are in a listen-only mode. Please be advised, today's conference call is being recorded. [Operator Instructions]

I'd now like to hand the conference over to your speaker today, James Edwards, Director of Investor Relations. Thank you. Please go ahead.

James Edwards -- Director of Investor Relations

Thank you, Jessie. Good morning everyone and welcome to Jagged Peak Energy's Third Quarter 2019 Earnings and Operational Update Conference Call. This morning, Jim Kleckner, our President and CEO, who will be providing a short set of prepared remarks.

As noted in our press release last evening, we will not be hosting a Q&A session on the call today, nor do we have an investor presentation that will accompany this call. A copy of the release and our 10-Q can both be found on our website at jaggedpeakenergy.com.

During this call, we'll make certain forward-looking statements about the Company's financial condition, results of operations, plans, objectives, future performance and business activities. We caution that our actual results could differ materially from these results -- from the results that are indicated in the forward-looking statements, due to a variety of factors. Information about these factors can be found in the company's SEC filings, including the 2018 10-K and 2019 10-Qs.

Our material also includes certain non-GAAP financial measures such as adjusted EBITDAX and adjusted net income. We believe these non-GAAP measures provide a comparison across periods of activity, with other oil and gas operators. The reconciliation of the appropriate GAAP financial measures to the non-GAAP financial measures can be found in our earnings release.

I'll now turn the call over to Jim for his review of the quarter.

James J. Kleckner -- Chief Executive Officer & President

Thanks, James. Good morning everyone and thank you for joining us for our review to third-quarter conference call. Overall, our third quarter performance was strong, as we continue to successfully execute on our 2019 plan, particularly our ability to drive down CapEx and keep production on track. We brought online 17 wells during the quarter. On the high end of our expectations, were our capital expenditures for the quarter came in lower than the budgeted amount, as we continue to drive improved capital efficiency.

Through the third quarter, DC&E cost an average of $1,160 per lateral foot, down from $1,250 in the second quarter, 7% below our 2019 annual goal of $1,250 per lateral foot. These efficiencies were driven by continuous execution improvements and moving to larger pads.

For production, we averaged 30,000 barrels of oil per day, right at the midpoint of our third quarter guidance range. We're pleased with the drilling and completion activities on our first two larger-scale pads, Coriander and Venom, but they both came online on time and on budget. Through these first two larger pad projects, we were able to capture lessons learned and provide an immediate benefit on the adjacent subsequent wells, driving down per lateral foot project costs. Our Coriander project has a DC&E cost of approximately $1,090 per lateral foot, a lower quarterly average and had a peak IP-30 of 102 barrels of oil per barrels lateral foot. The Venom project had a DC&E cost of approximately $1,220 per lateral foot. These costs were somewhat higher than Coriander project, as wells had shorter 7,900 foot laterals, compared to 8,500 foot laterals on the Coriander project.

The Venom wells were just recently turned online and have yet to establish a peak IP-30 rates. While we have limited data set of production results from these two projects, but early results look encouraging and we look forward to seeing how they produce over time.

In summary, we're very pleased with the progress we have made so far this year and look forward to additional value that the team at Parsley will achieve from the combined set of assets in the coming years. We believe the pro forma of Parsley and Jagged Peak company provides Jagged Peak shareholders with premier acreage in both Midland and Delaware sub-basins while providing additional scale and significant operational synergies, and free cash flow in this competitive environment.

I'd like to thank both current and former members of Jagged Peak team for all they've done to put together such a great asset over the years. And we would like to thank our investor base for their support for the 2.5 years we have been a public company.

With that closing remark, I will conclude the call.

Operator

[Operator Closing Remarks]

Questions and Answers:

Duration: 5 minutes

Call participants:

James Edwards -- Director of Investor Relations

James J. Kleckner -- Chief Executive Officer & President

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