Bonterra Energy Corp T.BNE

Whitecap Imperial Deal

[bandit69]

Well, there you have it.  WCP bought about 32000 boe's of production for about $60k/flowing boe nat gas weighted with about 9000 liquids production and expensive wells to drill and sour production.  BNE is trading at about $26240/ flowing boe light oil.  Based on those metrics, at $60k/flowing boe that puts BNE at about $22.50 share price.  Severe disconnect.  

I don't know if our friend is still selling but I would agree with our chuchofnutsacc (lol) poster that I don't see it either.  Volume has been too low to indicate that but we will never really know.

[TheRexmember]

That was a pretty big, premium land package with lots of land in one of the hottest plays, but I still think 22.50 is low for BNE. An oilier part of the Cardium with lower decline rates makes our production way more profitable than average. Compare us to Yangarra which should has a similar exit production forecast and BNE should freecash flow about 100 million more this year, spend roughly 40

[bandit69]

Agreed on all fronts.  I was just using the same metrics as an example of the disconnect even at 60k / flowing boe.  BNE also has more booked locations than this deal did.  Severely undervalued and not on anyone's radar at all  No banks and not with Nuttall. I've already spoke to the fundamentals here but the bottom line still ends up being lack of ROC or a plan to do

[TheRexmember]

I agree. The re-rate should be pretty explosive too. They just need to bring back a large dividend to get the market's attention. They can do so any time over the next six months. Or just announce the future framework. They were forecasting 165 million in free cash with current hedges plus strip pricing for the balance of the year. We have been well above strip pricing for a full quarter so

[bandit69]

That's a good point actually.  Now BNE is the forgotten stepchild.  Funny how it goes. I think they seriously need to lay out a plan for the market and is the least they can do for shareholders that have been loyal and beaten up for years now and it costs nothing to do it.  This keeping cards "close to the chest" is ridiculous in my view and is one of the reasons why

[snowshoedb]

BNE was the poster child for returning capital... and will be again in time. It has taken a very long time. I think most people also forget that BNE did not have an institutional following because of the low float of shares. The stock is tightly held with management who is committed to the company.  While I agree that management could look forward and communicate their return of capital

[bandit69]

Good post.  I am aware and have written about the bank covenants.  I don't think they need to comment on specifics of a dividend but something that goes like "when the bank debt is cleared we fully plan to return all free cash to shareholders".  It's simple, non committal to a specific dividend amount or specific timing but makes people very aware of what's

[Sclarda2]

"I  agree the rerate should be pretty explosive too."       BNE shareprice at the time of this post.  $   9.21 Current BNE shareprice 1.5 years later.    $6.26  "Explosive"  ha ha ha "The company will be net debt free in either Q1/Q2 next year or they will redeploy some cash elsewhere. "  Here we

[TheRexmember]

Commodity prices go up and down. Cash flow goes up and down. Debt - basically they are bank debt free. Production has moved up, new acquisitions improved drilling inventory, improved IRR and recycle rates. Natural gas prices derailed every cardium producer for more than a year now. Tough to predict weather. Adults own more than one stock, one industry and sell a little when technical indicators

[Sclarda2]

CJ $ 120 million AFFO  2023 BNE   $12 million AFFP  2023     $12 million ha ha ha Keep waiting for your dividend Mr Buffet   ha ha ha