Bonterra Energy Corp T.BNE

Had to put Sadie on ignore.

[TheRexmember]

Can't be bothered with the whining. 

bandit did you see OBE's debt financing 12% interest rates yesterday? Looks like rates for oil companies are so crappy that it makes more sense to pay down debt a bit further.  Pretty sure it was nutsac saying that earlier. 

A takeout here would just crystallize a loss - big premiums are not happening in this market. 

still hoping for something definitive on ROC though

[bandit69]

Hi theRexmember, no I didn't see the OBE financing rate but such a high rate is not surprising.  My own personal line of credit is just shy of 10% but I don't use it.  It's just there.  The Fed is going to raise again tomorrow and odds are it is 75bps.   I am completely onside with debt reduction, no doubt about it.  I don't like debt in general

[TheRexmember]

I think the bigger issue was the change in lender rules and appetite to lend in this space. Debt was higher but in relation to our decline rates, BNE should be given more leeway.  I wonder if a housing meltdown will change any of that. just from a supply demand perspective.  I find it crazy that this company can go from having a debt "problem " to being debt free in 6

[bandit69]

Agree 100% regarding term debt. Term debt was the only thing that saved PNE. It relieved the 6 month pressures as you note and bought them time. For an almost debt free company with huge free cash flow even at 70-$80 WTI BNE is a sad performer. Only ROC will improve it as it did for PNE and many others.

[churchofnutsacc]

I want to point out that OBE management paid themselves more in bonuses in Q1 2022 than the company paid off in debt for all of 2021. This just highlights how the lenders have a lot of these producers by the balls. Not only do they have to deal with usurious rates, they have to deal with forced hedging and often times they demand shares as well. Looking at Bonterra's monthly