Bonterra Energy Corp T.BNE

I assume dividend by Q3 ???

[swale13]

what are people thinking on the debt paydown time frame

[churchofnutsacc]

Q3 in 2023, sure. 

[bandit69]

2023 is bs.  At least state some kind of plan and timeline.  I hope an activist shareholder surfaces here too like with SU. 

[TheRexmember]

They will probably announce something before Q3 debt is dropping 10 million a month. We need some debt - its pretty stupid to pay it all off when money is so cheap and margins are this high.

[churchofnutsacc]

The interest on their bank debt is almost 10% I believe - and those same lenders are forcing them into hedges.  Why would you not want to spend every last cent available to get rid of that? If you want baby dividends then sell your BNE and buy VET. I think you can get a penny every 4 months.

[bandit69]

It is not term debt and not 10% it is a floating rate based on certain parameters. If their debt to cash flow is less than 1 it is totally reasonable to return capital to shareholders.  They should at least lay out a plan and timeline like most others have.  That alone will give the share price a boost that it obviously needs. Producers have to start replacing reserves at some point

[TheRexmember]

If you don't own this one for a dividend reinstatement then you own the wrong stock. It is what they do, how they are set up and they have a 20 year history of doing so. They also had higher relative debt levels the whole time.  Get serious. 

[churchofnutsacc]

"They also had higher relative debt levels the whole time." Please think carefully about what you just said. So they were effectively financing their dividends through debt and paying an unsustainable dividend. And you want that to return? Sustainable dividends is what I want.

[snowshoedb]

I agree with the desire to have sustainable dividend. In the current marketplace of the the ESG investor. Companies need to tred lightly with respect to both raising debt and equity because banks and investors are feeling pressure from ESG. Now is the time to assume banks and sources of new capital will be hard to get. Turn your company into a sustainable cash cow. Hopefully their won't be a

[bandit69]

I absolutely agree they were paying an unsustainable dividend before and, yes, it was out of debt and financings like 99.9% of all other producers were doing.  But I think they've learned their lesson like the rest of them and they've basically acknowledged they will be paying a divi before paying off all debt; "As leverage metrics improve, focus on generating long-term

[churchofnutsacc]

I believe we also own over 1 million shares in PNE - perhaps that could help. Every little bit helps.

[Flush11]

Wow. How can you be that obtuse. They paid 30 cents per month for years. Debt stayed flat and that was un -sustainable? The only time debt became a problem was when differentials blew out to due to a shortage of storage and pipeline space. 300 million in debt would be sustainable now if not for some idiotic banking policy changes. at 100 million in debt these guys are very UNDER leveraged

[bandit69]

Debt did not stay flat and retained earnings started to become accumulated deficits in 2014.  Then came divi cuts and GORR sales and using debt to make up cash shortfall.  Then came the elimination of the divi completely.  They could not sustain the dividend.  How obtuse can you be?