Bonterra Energy Corp T.BNE

Please Help Me Understand This

[churchofnutsacc]

Bonterra generated $14.9 of FFO for Q1 at an average price $110.41 per bbl.

But they are claiming they will generate $100m FFO for the remaining 3Qs if oil averages $70?

How does this make sense? Can somebody please explain to me?

[bandit69]

Based on what you wrote, I can understand your questioning the numbers you noted.  I didn't read what they wrote for highlights, I only read through the financials and I don't pay attention to FFO FFF, EBITDA etc.. But, in terms of their published financial statements, I see good things in them whereas I didn't before.  The right trends. They are actually running a profit on

[Flush11]

the key items on the increased cash flow are 1. they had 1000 boe/d behind pipe, so more production next quarter w/o more spending 2. Spending is forecast to be lower for the balance of the year (50% of capex in Q1) so even with similar revenue it is the equivalent of no capex for 2 full quarters so much higher free cash flow 3. they have hedges in place, but current strip prices and current

[JayBanks]

  The numbers do look weird, but it might have something to do with them loading up on capex in the first quarter to drill several new wells that should contribute to the future quarters. I believe they spent a large amount of planned capex for the year in the first quarter. That still doesn't make the numbers work, but it's a contributor. Someone else might have more insight...

[churchofnutsacc]

I also would like to point out that their presentation has them at free funds flow of $90 million at $70 oil for the entire year, but somehow they will do $100 million in the last 3 quarters at $70 oil?  Perhaps it is the price of natty and the surging USD and declining CAD?  I'm not sure. Seems hard to believe if they only did $14.9 at $110 oil in Q1.

[bandit69]

If you look at the MD&A "Business Environment and Sensitivities" (page 3 in the PDF) the $110.41/bbl was realized in CAD (110.41CAD/bbl) after exch. and diffs.  USD/bbl was about $94.29USD/bbl before exch and diffs.  Since the financials are in CAD, I am assuming the *FFO* they quoted elsewhere is in CAD as well.  I don't know where the $70/bbl comes from but I am

[snowshoedb]

I saw the same disconnect in the presentation vs the financials. Bonterra management should look at there cost drivers and revise their models accordingly. I did my ouwn analysis and they will generate more cash because I anticipate the oil price will remain above WTI $100 during the driving season and we will likely average WTI $95 for all of 2022. High US interest rates and Ukaraine/Russia

[churchofnutsacc]

Thanks for the info everyone. I hope this issue is brought up in the AGM next week and we can get some clarity.