GREY:BXEFF - Post by User
Post by
Mag4bevoon Jul 19, 2018 3:24pm
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Post# 28340614
New to the board, Contemplating taking a position in BXE
New to the board, Contemplating taking a position in BXEHello all
I have been think about taking a position in BXE. What peaked my interest in BXE was obviously the descrepancy between book value and Market cap. One thing I cannot find published anywhere is a PV10 value of their reserves which is very odd for an oil company. A third party PV10 estimate of their reserves would give a very good idea at what their 1.1 billion in property plant and equipment was actually worth. From what I understand banks usually lend at 65% of that value as a rough estimate so it seems like something they would have to have.
Has anyone looked at what BXE's bonds are trading at? I dont have a very good resource for this and the only thing I could find was a recent trade at 66% of face value but did not see any bonds currently for sale. Not a good thing for equity holders. What are they going to do about their 2020 bonds with not much left on their credit facility..... fire sale? I am not familiar with any of their acreage holdings, do they have anything that companies actually want to sell in this pending cash crunch? On the flip side I thought the 10million dollar bond exchange for equity was a good sign... maybe someone knows something we dont and thinks the company will make it.
Are their wells even profitable. I find it hard to believe any of these wells they are drilling are profitable at 2.50 $CDN / mcf..... I thought the US gas market was weak. They outspent their cashflow in Q1 by over 100% and their production decrease 1% from q4 '17 to q1 '18.... also a bad sign. Most gas companies in the US have committed to invest within cashflow which is really going to be a good test to see how good their assets really are good.
Reading back to previous years, it looked like management was putting their money where their mouth was and buying their own shares on a regular basis. Has this all stopped? I cant find anything about insider trading for canadian companies. Does anyone have a resource for this.
Not trying to rain on the parade, but these are some of my concerns. Comments/ Rebuttals welcome.