RE:RE:Please Help Me Understand ThisI saw the same disconnect in the presentation vs the financials. Bonterra management should look at there cost drivers and revise their models accordingly.
I did my ouwn analysis and they will generate more cash because I anticipate the oil price will remain above WTI $100 during the driving season and we will likely average WTI $95 for all of 2022. High US interest rates and Ukaraine/Russia conflict will keep the US$ high. But BNE's cash grneration is not as strong as management says at $70.
Good news is the Q1 CAPEX of 32 million is half of the 2022 Budget. They have been slow to tie in and start prtoduction. Hence I anticipate Q2 production to jump substantially and prices are still strong halfway through the quarter.... free cash flow should jump substantially in Q2. BNE will only spend 10-12 million on CAPEX during eac of the remaining quaters of 2022. Bank debt will be down to $60 million and total debt at $163 million but with average price for the year of $95.
Oil demand could drop if China lockdowns persist andChina's economy falters as a result. World economies could falter if supply chain problems continue to fester.