Jagged Peak Energy Inc. (NYSE:JAG) Q2 2019 Earnings Conference Call Transcript
Aug 09, 2019 • 11:00 am ET
Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jagged Peak Energy Second Quarter Earnings and Operational Update. [Operator Instructions] I will now turn the call over to James Edwards, you may begin your conference.
Thank you, Mike. Good morning, everyone, and welcome to Jagged Peak Energy's Second Quarter 2019 Earnings Conference Call. With us on the call today are Jim Kleckner, our CEO and President; Craig Walters, EVP and COO; Bob Walters -- Bob Howard, our EVP and CFO; Ian Piper, VP of Finance and Corporate Planning; and Dave Eckelberger, VP of Land. Last evening, we issued our second quarter earnings release and our 10-Q, both of which are available on our website at jaggedpeakenergy.com. During our discussion this morning, we'll be referencing slides from our August investor presentation, which can be found on the Presentations page under our Investor Relations section of our website. 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 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 and on slide two of our August investor presentation in 2018 10-K. The materials also include certain non-GAAP financial measures such as adjusted EBITDAX, adjusted net income and adjusted EBITDAX margin. We believe these non-GAAP measures provide a comparison across the periods of activity and with other oil and gas operators. Reconciliation of the appropriate GAAP financial measures to the non-GAAP financial measures can be found in our earnings release and earnings call presentation.
I'll now turn the call over to Jim for his review of the quarter.
James J. Kleckner
Good morning, everyone, and thank you for joining us for our second quarter conference call. I'm going to start the call this morning with brief comments on the quarter and then hand it over to Craig to dive into some of the operating details. Overall, our second quarter performance was strong as we continue to successfully execute on our 2019 plan. Our capital expenditures are right on pace to meet with the midpoint of our guidance and our production volumes were above the midpoint of our guidance range for the quarter. It's a team effort, and I want to thank our organization for their hard work in achieving these results. From a capital efficiency aspect, we remain firmly on pace to meet our annual goal for DC&E cost of $1,250 per lateral foot. In the first half of the year, our DC&E cost per foot decreased by 12% from 2018 levels to $1,270. This decrease was achieved by optimizing the capital efficiency of our well design, leveraging operating efficiencies and utilizing the strategic sourcing materials to reduce the cost of consumables.
In the second half of the year, we expect to