Bonterra Energy Corp T.BNE

Alternate Symbol(s): BNEFF

Energy Oil & Gas E&P

Bonterra Energy Corp. is a Canada-based conventional oil and gas company with operations in Alberta, Saskatchewan, and British Columbia. The Company operates through development and production of oil and natural gas in the Western Canadian Sedimentary Basin segment. Its operating areas include Pembina Cardium and other areas, which include Saskatchewan and Northeast British Columbia. The Company is focused on the development of the Pembina and Willesden Green Cardium lands within central Alberta. It has Shaunavon properties in the Chambery field, which produce medium density crude oil from the upper Shaunavon formation under waterflood. It also has assets in the Prespatou area of northeast British Columbia, which consists almost entirely of natural gas and associated natural gas liquids. It also has an undeveloped Charlie Lake asset that is prospective for light oil in Bonanza, Alberta. The Company has over 116 net sections of contiguous land in the light oil prone Charlie Lake.

TSX:BNE - Post by User

Bonterra Energy Corp

Bullboard Posts

Comment by CashGreenGoldon Oct 25, 2019 12:34pm

77 Views

Post# 30269976

RE:It could

At $55 oil and $5 EDM, $1.90 year avg. AECO, it is $100mm FFO. Not $93mm.
And then using $60mm for sustaining capex...

...thats $40mm, or 3 years to pay off 120mm debt.

However, not sure why the company arbitrarily needs to be at 2x Debt/ FFO @ $55 oil though.

What about other conpanies that at 2x, but generate ZERO, or marginal free cash flow at $55 oil? So what should their debt be? 1x? Nothing? Debt is paid out of FCF, so... if there is no FCF, what good is having some nominal 2x FFO metric?

The stock is this cheap because the market is irrational.

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