Bellatrix Exploration Estimates Cut By CIBC After CIBC World Markets Inc. lowered its estimates for Bellatrix Exploration Ltd. (TSE:BXE) after the company's first quarter production results. The brokerage maintained its "Sector Outperformer" rating and $7.25 price target.
BXE announced Q1-2012 production of about 15,500 Boe/d, in line with CIBC's estimate of about 15,570 Boe/d. The company drilled some great wells in Q1-2012 and current productive capacity is about 18,000 Boe/d, providing comfort that the company will achieve CIBC's Q2-2012 estimate of about 16,500 Boe/d.
In addition, BXE increased its 2012 exit guidance to 19,000-19,500 Boe/d, up from 18,000-18,500 Boe/d. As such, the brokerage has increased its 2013 production estimate to 19,300 Boe/d, from 18,700 Boe/d, and slightly increased the gas weighting in the product mix.
BXE provided details on its Duvernay well at Ferrier. After 14 days of testing, the well is flowing at a restricted rate of 6 MMcf/d at 3,700 psi. While this is a very strong preliminary flow rate, the low liquids yield likely makes the well uneconomic in the current price environment.
CIBC has made modest adjustments to production estimates to reflect updated company guidance. The firm previously provided no value for the Duvernay in its NAV and have not adjusted its NAV estimate to include any upside value for the Duvernay at this time.
The brokerage reduced its 2012 cash flow per share estimate for Bellatrix to $1.03 from $1.05 and its 2013 estimate to $1.34 from $1.38.
Bellatrix Exploration, which is a Canada-based oil and gas company, is engaged in the exploration for, and the acquisition, development and production, of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan.
BXE is trading up 4.13% at $4.79 on Thursday.
from:https://www.istockanalyst.com/finance/story/5779243/bellatrix-exploration-estimates-cut-by-cibc-after-production-results