Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BONAVISTA ENERGY CORP. We currently have 25 research reports from 1 professional analysts.
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BONAVISTA ENERGY CORP
BONAVISTA ENERGY CORP
ANNOUNCES STRATEGIC ASSET EXCHANGE
06 Sep 16
Impact: Positive. Bonavista's swap boosts corporate production over 10% compared to 2Q16e levels and adds drill ready inventory within its key play types while consolidating its core land holdings in exchange for its noncore Montney Blueberry asset that was previously part of the Company's longer term development strategy.
Reports 2Q16 Results, Free Cash Flow Directed to Debt Reduction, Offers Accelerated View into 2017e
27 Jul 16
Bonavista reported second quarter results with production and cash flow in line with consensus, although ahead of our thinking with cash flow benefiting from lower royalties and controllable cash costs. With E&D spending representing only 38% of funds flow in the period, Bonavista was able to direct ~$34 mm to debt repayment with net debt exiting the year forecasted to decrease 25% y/y. The Company has increased its 2016e E&D spending by ~12% with average annual production unchanged, although is now projecting January 2017e production of ~70,000 boe/d, ahead of our prior thinking. We have updated our forecast for the second quarter results and the new guidance leading to a revised target price of $5.00 per share. We maintain our Outperform ranking and would buy the stock at these levels.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Bonavista Energy Closes $115 mm Equity Financing
20 Jun 16
Coming off restriction from our participation in the Company’s most recent equity financing, whereby the Company issued ~34.3 mm common shares at a price of $3.35 per common share for gross proceeds of $115 mm, we update our estimates. Apart from incorporating the financing we have not made any changes to our estimates ahead of our upcoming commodity price update. Recall, the Company’s guidance includes net capital spending of $140-$145 mm and average annual production of 67,500 boe/d, which takes into account ~2,900 boe/d of production that will remain shut-in for the remainder of the year. With our 2017e EV/DACF multiple largely intact we have maintained our Outperform ranking along with our $4.00 per share target price.
Reports 1Q16 Results, Cash Flow Ahead of Expectations
06 May 16
Bonavista reported first quarter results with cash flow ahead of expectations on the back of higher realized pricing and operating costs that continue to trend lower. While 2016e capital expenditures remain unchanged, in response to current natural gas prices, Management has deferred some spending to the back half of the year while also shutting in ~2,900 boe/d of natural gas production resulting in a minor downdraft to annual production guidance. With a forecasted payout ratio below 70%, Management anticipates reducing debt by $70-$80 mm in 2016e. We have updated our forecast based on 1Q16 results leading to higher cash flow and improved sustainability measures in both 2016e and 2017e, which forms the basis for our revised target price of $4.00 per share. We have maintained our Outperform ranking.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.