Bullboard - Stock Discussion Forum Bellatrix Exploration Ltd (Canada) BXEFF

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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... see more

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Bellatrix Exploration Ltd (Canada) > CEU has 1.0 P/B $75M CF and $490M Debt!

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Post by RichyRich$ on Mar 30, 2019 11:18pm

CEU has 1.0 P/B $75M CF and $490M Debt!

Worse debt than BXE and same cash flow... but shares trading at book value. BXE did adjust the true book value big time this quarter. It used to be $12.00 before this quarter and now $8.31! I'm basing it off that new true book value of $8.31. Then add $110M less debt now 81M shares = $1.36. Add that to $8.31 = $9.67. Multiply by 16.5% our new portion = $1.60. So I am basing it off of the new book value that was lowered by 1 third after the annual report. Take a look at CEU on TSX. Only $75M cash flow like BXE now and it has $490M debt! And no cash. Yet its trading at book value per share! My point being... with BXE improves balance sheet now... and sector rebound bull cycle starting... it's not pie in the sky to suggest we get back to the new common share holders book value of $1.60! Based on the new 1 third lower book value ... up to date and realistic book value.

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Comment by Straite on Mar 30, 2019 11:38pm

CEU is not a comparable. They are not a natural gas and liquids producer in canada. Comparables could include PONY CR AAV TOU PEY ARX BIR BNP to name a few. I think the value of all BXE's equity would now be somewhere between CR and AAV. If 100% of equity is worth 200m, then 16.5% would imply a 33m market cap, which is close to the current market cap. Now, is BXE's equity worth more or ...more

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Comment by Chris007 on Mar 31, 2019 1:37am

Indeed, you can't really compare the two companies at all, since they are involved in totally different businesses. It would basically be an apples to oranges kind of comparison, despite the fact that they are both involved in the energy sector. On one hand, you have an exploration and production company, while the other is an energy services company...

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Comment by svans12 on Mar 30, 2019 11:54pm

Rich, yes it's true the book value per share was $12 at the end of Q3-2018 and $8.31 at the end of Q4-2018, but this is not because they revalued their assets (impairments). BXE had 61.8 million shares outstanding at the end of Q3 and 80.9 million shares outstanding at the end of Q4. They added nearly 20 million shares to settle some senior notes during Q4. The book value per share decreased ...more

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