AltaCorp Raises Price Target to $1.75 Bellatrix Exploration Ltd (C:BXE)
Shares Issued 246,585,828
Last Close 1/6/2017 $1.28
Monday January 9 2017 - In the News
The Globe and Mail reports in its Saturday edition that AltaCorp Capital Research boosted its target on Bellatrix Exploration ($1.28) to $1.75 from $1.50 after the company said it would spend $105-million in 2017 to produce an average of 33,500 barrels of oil equivalent per day, which is 10-per-cent production growth from the end of 2016 to the end of 2017. The Globe's Gillian Livingston writes that AltaCorp maintained its "outperform" rating on the stock. Analysts on average target the shares at $1.44. AltaCorp says in a note: "Overall, we are very encouraged by the acknowledgment of a sustained return to growth. On the surface, net debt is high at about $400-million (4.0 times [discounted cash flow] D/CF), however $250-million (U.S.) is termed out to 2020. Post numerous dispositions in 2016, BXE has reduced its YE2016 net debt to about $400-million and with minimal bank debt, provides enough liquidity to deliver on its three-year growth plan. We forecast BXE's YE2016 PDP [proved developed producing] reserve value (about $495-million) is nearly equivalent to its YE2016 net debt, meaning that the 2017 drilling program, across its highly-economic Spirit River acreage, will go directly to building equity value."
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