Cold blast = NG price increasing. BXE should benefit AECO has lifted to C$2.05/mcf today from $1.65 a week ago. Once we see a few weeks of big draws in the US, we should see AECO north of $3.00. Also, investors underestimate the ability of BXE to bring wells on efficiently and increase their cashflow. I expect BXE to easily exchage immediately due debt for longer term at a modest increase in cost by Feb. NG prices will remain elevated for at least the next few weeks, probably well into February. I am betting that BXE will punch its way out of the corner with increased cashflow, earnings and service its debts.
Bought more today.
I asked their investor relations department about their debt covenants earlier in December. Here is the thread:
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"I’m a BXE investor. Can you tell me if there are any debt / equity covenants that BXE has entered into? With the share price now at .66 i would like to confirm. On the website presentation I see only debt / Ebita covenants. I would like to confirm this before I buy more shares. Thanks in advance"
BXE response, sent very next day at 9:00 AM:
"Hi Neil, firstly thank you for your support as a shareholder.
Bellatrix has only two financial covenants. Both are Debt to EBITDA covenants. We remain well within both covenant level. At Q3/18 our calculated metrics and covenants were:
- First lien debt/EBITDA ratio of 1.24x (covenant level maximum 3.0x)
- Senior debt/EBITDA ratio of 2.78x (covenant level maximum 5.0x)
We have no debt/equity covenants.
I hope that helps.
Steve
Steve Toth, CFA
Vice President, Investor Relations & Corporate Development
Suite 2100, 800 5th Avenue SW
Calgary, AB T2P 3T6
W: 403-750-1270
C: 403-850-7384
F: 403-264-8163
steve.toth@bxe.com"