Bonterra Energy Corp T.BNE

Time to start buybacks

[C185pilot]

Is now.  $1 million buys 1% of the float.

[PlutusofCrete]

Is BNE restricted by the debt or debentures with respect to buybacks and dividends?

[C185pilot]

BNE just renewed bank lines on 31st.  It can comply with covenants and buyback shares.  Maybe we get some news with the quarterly report on the 12th.

[baranja]

New to BNE,  I have noticed this is 14K Bpde producers but market cap only 124 M, while CJ produces about 22K Bpde, and market cap of over 1B (8 times bigger) with 11% dividend and big share buybacks.  How is this possible? There is got to be something here.  Doing DD doesn't make any sense here.

[JayBanks]

  Cardinal's production is oil at a better return than Bonterra sells the Gas for currently. Cardinal's production is very low decline also, so even if production was the same, theoretically Cardinal's will cost less to maintain at rate. Further, Cardinal did have debt issues, but at a lower multiple I believe and got themselves back into a 'healthy' situation with

[Hendrick3]

You can compare FFO per share though and BNE consistently out performs CJ. The difference is that CJ pays a dividend and receives a substantial premium for doing so. I believe the spread between the two stocks will narrow over time. Low prices, CJ comes down relative to BNE especially if they have to cut the dividend. High prices, BNE goes higher especially if they start a return of capital plan

[JayBanks]

  I do agree with you, Bonterra has much higher potential, due to its lower share count, so it's metrics have a more favourable impact to holders and I do still hold BNE because I do expect them to play catchup when returns start. I don't know that I would say CJ is getting a premium valuation for returns to share holders, the yield is over 11%, that to me says undervalued, if

[kavern23]

Cardinal energy also has way less debt than BNE, 100m for CJ to BNE's over 170m net debt. That will be ineresting thing for Q3 results...can BNE CF over 30m for Q... Compared to alot of juniors, BNE just has alot of debt.

[baranja]

Hm. I recall many years back, this was pure Oil play, as far as I understand this became very gasy then.  I see, it looks like 65% is gas.  Those conventional oil wells are drying out.  this used to be $60.. Holly cow such a sad story here.  what are they going find in Charlie Lake is a million dollar question

[TheRexmember]

CJ and BNE are very different companies.  CJ has a much higher liquids cut near 100%. It is mostly heavy oil and it has one of the lowest decline rates in the patch. Tough to do with liquids.  Lots of production from water flood and they are growing in 6000 barrel increments with sequential SAGD projects coming. Debt will be moving up but it is easily affordable. They even have a great

[baranja]

BNE produces about 8K Bpd of pure liquid (light oil and NGLs). This market cap is insane.

[Resilience2]

We agree. Book value is ~ 0,24 and it's growing, better capital efficient and paying back debt.  Better buy some before NCIB hits.  R. 

[baranja]

When do you think they will start buying it back?  It will rip the price of stock big time due to low trading volume.

[bago]

They have no money to buy back unless they tap into more debt. Wishfull thinking but this trades like a dog for a reason. You talk about paying back debt but really and debt payback has been anemic. At this point just treading water with not many options unless they merge or sell. Management is the only ones making money and shareholders left holding the bag. 

[C185pilot]

Postpone one Montney well and they can buyback 2 million shares without hurting cash flow.

[C185pilot]

Postpone one Montney well and they can buyback 2 million shares without hurting cash flow.

[bago]

Well so far there is no NCIB and sitting near 52wk low. Many were flying today and BNE can't get out of it's own way. Also nothing from insiders for the last couple of months now even at these low prices. That's not showing investors much confidence in your business when the stock is apparently at such low evaluations. Hard to be happy with this kind of performance and management does

[JayBanks]

  No, all restrictive covenants were gone after we paid back a significant loan last year... Buybacks at this point do make sense, but they are trying to hit more debt in preperation for dividends and other shareholder returns (buybacks)... Very few companies do buybacks effectively, so it's no surprise they aren't making these moves in a low... While the market is giving them