Bellatrix Exploration Ltd (Canada) BXEFF

Energy

Bellatrix Exploration Ltd is a Canada-based oil and gas company, engaged in the exploration, acquisition, development, and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan. It primarily focuses on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals in Western Canada. The Notikewin/Falher in Alberta's deep basin boasts abundant, liquids-rich natural gas with compelling economics. The Cardium is a highly e

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Bellatrix Exploration Ltd (Canada) > Why is BXE so beaten down

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Comment by An1588eron Sep 17, 2019 1:03pm

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Post# 30136047

RE:Why is BXE so beaten down

The company is barely treading water. The payout ratio based on strip prices was 150% but that was in August when Nat gas prices were lower than today. They've also completed a recapitalization transaction at the end of May, which effectively wiped out common shareholders but bought the company time. Their debt is now pushed to 2023 but there is still a lack of confidence whether Management will deliver. Also, if Nat Gas prices go back to where they were in August, there is a real risk they could breach their debt covenants. Personally, I have been adding to my position, especially when the price went below 0.45. There is alot of risk and this isn't for someone with a weak stomach. Having said that, with book value close to $18/share and given the events this past weekend, there is alot of upside assuming Management delivers.

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