Eagle Energy Inc EGRGF

How in the world

[OOU812]

Can someone please explain how a company like Bonavista with Q3  revenue of $22 boe
has similar cash flow netbacks ($12 boe) to Eagle whose revenue was $45 boe.There is
no way in hell that a gas producer should be able to match an oil producer's cash flow.
$12 cash flow on $45 revenue is a major disgrace.

[whodathunkit]

In a nut shell, it's called volume.  They do 69K boe a day (65-70% gas/wet gas, the rest oil).  Much more production to spread operating costs over.  And, they seemed to have had an excellant hedging program last year giving them roughly $4 per boe. Cheers.

[spacegimp]

add to that , very low royalty rates for Bonavista and very high rates for eagles U.S production . The thing that bothers me most about Eagle is its scattered acreage  which may reduce risk somewhat but drives up cost and keeps them from being able to focus and grow .

[Scottie99]

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[Cardboard1]

Scottie, Scottie, Scottie... My friend. Don't you remember a company that has entered receivership last year after secured lenders, who were all trusting management and their plans previously, still pushed them to the brink? You should compare the directors roster by the way. Here you have an oil & gas company, depending on energy prices, depending on what you can't see underground

[Scottie99]

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[OOU812]

"In a nut shell, it's called volume.  They do 69K boe a day (65-70% gas/wet gas, the rest oil).  Much more production to spread operating costs over.  And, they seemed to have had an excellant hedging program last year giving them roughly $4 per boe." Bonavista's oil production is only 5% of total production, NGLs are 25% (Q3 rev $19 boe) and the remaining 70% is

[Scottie99]

This post has been removed in accordance with Community Policy