bxe is top pick Bellatrix Exploration* (BXE : TSX : $5.08), Net Change: -0.37, % Change: -6.79%, Volume: 2,738,335
Not so fast.
Shares of Bellatrix Exploration were down after the company reported that it was unable to close the previouslyannounced
$300-million Cardium JV with a Korea-based company. Despite the announcement, Canaccord Genuity Energy
Analyst Steve Toth noted that he envisions BXE may decide to maintain an aggressive capital program this year thus
accelerating development at Ferrier, to maintaining its significant growth trajectory all while maintaining a respectable balance
sheet. Toth continues to favour Bellatrix as our top intermediate stock given its attractive valuation, significant resource
opportunity set, and superior operational and technical focus. Bellatrix shares currently trade at 4.9x EV/DACF and
$38,000/boepd on 2013 estimates, the lowest multiples within Toth’s coverage universe and reflecting a 25-60% discount to its
nearest intermediate natural gas weighted peers.