What happened
Shares of HighPoint Resources Corp. (HPR +0.00%) fell more than 10% by 10:45 a.m. EDT Thursday after the DJ Basin-focused oil company reported lackluster second-quarter results.
So what
HighPoint Resources, like many other drillers, posted mixed results in the second quarter. The company, like those peers, missed analysts' expectations for earnings. In HighPoint's case, it posted an adjusted loss of $3.2 million, or $0.02 per share, which was below the consensus estimate that it would deliver break-even results in the quarter due to lower natural gas prices and higher production taxes.
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However, on a more positive note, the company's production rose 58% versus the year-ago period, driven by a 67% increase in oil output. That led CEO Scot Woodall to say, "Our second-quarter results demonstrate our continued operating excellence as we reported total equivalent production sales volumes within our guidance range, including oil volumes that were above the mid-point of guidance."
Now what
HighPoint Resources' solid production results in the second quarter position it to "deliver significant growth in production, cash flow," and earnings, allowing it to "reiterate our 2019 outlook," according to Woodall. That leaves the company on pace to expand output from 6.2 million barrels of oil equivalent (BOE) last year up to 20 million BOE in 2019. That fast-paced growth continues to make HighPoint Resources look like a compelling oil stock for growth-focused investors to consider.
