Bonterra Energy Corp T.BNE

Cash flow comparison on $bne thread

[TheRexmember]

CPG cash flow forecast at 4.04 per share next year, stock at 9.60, TD has a target price of 18.50.

BNE cash flow is forecast at 4.60 next year (74.00 oil, 4.00 AECO), share price 6.90 - target price??? 

Higher than 18.50 I guess.

[Hendrick3]

I invest as if the cash flow per share should be the key factor hence my large position in BNE and OBE. Unfortunately both stocks are still discounted heavily vs other stocks. I believe the value will eventually get recognized but until then, it's frustrating and requires great patience. 

[sclarda]

At the current shareprice CPG has a market cap. of aprox. $5.3 billion with aprox. $1.2 billion in net debt and will generate aprox. $1.1 billion in Free Cashflow next year at $75 oil. or aprox. 21% return  A the current shareprice BNE has a market cap. of aprox. $250 million with aprox. $160 million in net debt and will generate aprox. $45 to $50 million in Free Cashflow next year at $75 oil

[churchofnutsacc]

It's entirely disingenuous to menetion CPG and not bring up acqusitions. CPG need to replace their reserves. A lot of that free cash flow is not going back to investors. It will be going to overpay for reserves. 

[sclarda]

You may need to learn to read a little better as i am not the one who brought up CPG it is that other pumper who did.  Multiplying BNEs current market cap. Free Casfhlow at $75 oil and debt by aprox. 22 times to equal CPGs i come up with aprox. $ 1.05 billion in Free Cashflow and aprox.  $3.3 billion in Debt. for BNE on an equivalent basis. Which means that on a relative basis BNE has

[churchofnutsacc]

I don't understand your comment. At $75 oil Bonterra is generating $1.25-$1.38 per share of free cash flow (according to your figures) but you are claiming they only make money at $85 oil? Are you able to have a horizon greater than 12 months? That 12% interest that Bonterra is paying today is reason to invest NOW, not in 24 months from now, when that leverage is paid down. You'll be too

[TheRexmember]

Your math is lazy Sciarda.  your assumptions on Free cash flow are sloppy.  All od the take overs, disposition of assets with high oil weighting, the move into gas, extremely high costs wells, need for new infrastructure affect CPG's numbers far more.  not to mention the 2.2 billion dollar credit line that will continue to be used.  then there are the debt