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?
If you look at the MD&A "Business Environment and Sensitivities" (page 3 in the PDF) the $110.41/bbl was realized in CAD (110.41CAD/bbl) after exch. and diffs. USD/bbl was about $94.29USD/bbl before exch and diffs. Since the financials are in CAD, I am assuming the *FFO* they quoted elsewhere is in CAD as well. I don't know where the $70/bbl comes from but I am assuming that is in USD not CAD which would make a difference. Apples to Apples. The only item they typically quote in USD is WTI pricing since they sell in USD. And, as someone pointed out, about 50% of capex was used in Q1 and would also improve free cash later in the year etc.
Not sure if this clarifies anything but I think the CAD/USD applications play a big part in the confusion. Hope this helps. If not, I tried. Lol