RE:Please Help Me Understand Thischurchofnutsacc wrote: Bonterra generated $14.9 of FFO for Q1 at an average price $110.41 per bbl.
But they are claiming they will generate $100m FFO for the remaining 3Qs if oil averages $70?
How does this make sense? Can somebody please explain to me?
Based on what you wrote, I can understand your questioning the numbers you noted. I didn't read what they wrote for highlights, I only read through the financials and I don't pay attention to FFO FFF, EBITDA etc.. But, in terms of their published financial statements, I see good things in them whereas I didn't before. The right trends.
They are actually running a profit on the revenue stmt (without the benefit of impairment reversals. This is good). Decreasing accumulated deficit on the balance sheet (i'e' they finally have retained earnings. Also good) , reducing liabilities and increasing assets and are definitely generating cash on the cash flow statement. There is a lot of free cash flow and you're right, that was at a high oil price of $110. Better gas production and pricing will be of obvious additional benefit next Q.
I think things are looking good in terms of numbers. However, Birchcliff came out today almost giddy about how much they're going to be returning capital to shareholders. Cenovus threw down the gauntlet and now others are following. Not much choice but to follow really. Yet, BNE spins it's wheels because there is no ROC and there is no laid out plan to do so.
This goes back to what I was saying, common shareholders wait and wait while in the money options flow freely for others. I will wait with the BIR's and CVE's RY's, TD's etc, and get paid, while I wait for this one to at least announce something on ROC. I made money on a flip but it's obvious it's gonna spin it's wheels here. Even PNE has implemented a dividend now and I think BNE is a far superior investment than PNE in many ways.