Casmir...BXE could see 50% production growth rate Casimir Capital says Bellatrix Exploration could see "phenomenal" 50% production growth rate this year
Thu 12:14 pm by Deborah Bacal
"The annual results for Bellatrix were generally in line with expectations and previously published guidance, with production averaging 16,686 boe/d for the year (est. 16,746 boe/d)," notes the analyst.
Casimir Capital analyst Ryan Galloway has maintained his $9.50 price target on () after the oil and gas company reported annual figures in line with expectations.
"The annual results for Bellatrix were generally in line with expectations and previously published guidance, with production averaging 16,686 boe/d for the year (est. 16,746 boe/d)," notes the analyst.
Operating costs decreased by 24 percent from last year to $8.73 per barrel of oil equivalent (boe), and is on track to trend lower to $8.00/boe for 2013, Galloway adds.
Overall, Bellatrix generated total funds flow of $111 million, versus the $116.9 million expected, and exited 2012 with $203 million in net debt, compared to the estimate of $201 million at 19,500 boe/d.
For the fourth quarter, the company produced 18,763 boe/d at 69% gas - also in line with expectations of 19,000 boe/d at 67% gas. Although, Galloway notes that this slightly higher gas mix and differences in modeled commodity pricing pulled back cash flow figures versus its estimates.
Fourth quarter revenue was $62.3 million, compared to Casimir's estimate of $67.7 million, while funds flow from operations was $29.9 million, compared to the $36.3 million forecast.
The analyst report also highlights the fact that Bellatrix is planning to signfiicantly ramp up drilling by the second half of this year, bringing the total number of rigs to seven or eight post spring break-up period. This could boost production to 30,000 boe/d - "a phenomenal 50% growth rate over 2013 start".
Galloway rates the company with a strong buy, and a target price of $9.50 on a "successful year with significant production ramp upcoming".
Bellatrix shares were trading up 25 cents, or over 4.7%, early Thursday afternoon, to $5.55.