From Carswell @ IVAn excerpt from Energy Summary May 18th.
Elsewhere in Alberta, Bellatrix Exploration Ltd. (BXE) lost one cent to 98 cents on 539,700 shares, after firming up its plans to roll back its shares. As discussed in yesterday's Energy Summary, the company proposed a 1-for-4 to 1-for-6 rollback at its shareholder meeting yesterday after the close in Calgary. Its goal is to save its New York Stock Exchange listing, which is currently in trouble because the stock has fallen below the minimum price of $1 (U.S.). Rolling back 1 for 2 would in theory have solved that problem, but Bellatrix aimed higher, for reasons of its own (although cynics generally see just one reason: concern that the stock would not stay above $1 (U.S.) for long if the rollback was just 1 for 2). The rollback was approved by just under 94 per cent of shareholders at yesterday's meeting. The board of directors then approved a rollback on the basis of 1 for 5, to take effect on July 1. Bellatrix will then have about 49.3 million shares outstanding.
Management is doubtless hoping that once the rollback is done, investors will turn their attention to Bellatrix's operations. Just last week, the company patted itself on the back for its "strong operational performance and momentum" during the first quarter, which allowed it to raise this year's production guidance to 34,500 barrels of oil equivalent a day from 33,500 barrels a day. It did not touch its budget of $105-million. President and chief executive officer Brent Eshleman touted the "exceptional" first quarter results during a conference call and called them a good first step in Bellatrix's recently announced three-year plan, which calls for production to exceed 42,000 barrels a day by the end of 2019. He added that the company is capable of eventually boosting production to 50,000 barrels a day, although he did not say when.