Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BONTERRA ENERGY CORP. We currently have 30 research reports from 1 professional analysts.
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BONTERRA ENERGY CORP
BONTERRA ENERGY CORP
Second Quarter Report Contains No Surprises
11 Aug 16
Bonterra’s second quarter production volumes were within 1% of both our estimate and the consensus, although increased to over 13,000 boe/d early in the third quarter as new wells were brought on stream and a portion of previously shut-in production was reactivated. Cash flow was modestly ahead of expectations due to lower royalties in the period, while both operating and transportation costs came in as expected. Guidance remains unchanged, with 2016e capital spending of ~$40 mm and production expected to average ~12,500 boe/d. With no significant changes to our forecast we maintain both our Outperform ranking and $32.00 per share target price.
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.
ANNOUNCES ~10% REDUCTION TO BORROWING BASE
31 May 16
Impact: Neutral. The 10% reduction to Bonterra's credit facility to $380 mm is within our prior expectations given current commodity prices, and remains sufficient for the Company to execute on its previously outlined $40 mm capital budget while also paying down debt in 2016e.
25 May 16
We had the pleasure of hosting the Management team from Bonterra Energy to run through the Company's latest corporate presentation. Management noted at US$45.00/bbl WTI the Company is more than comfortable with its current dividend of $0.10 per month, while also reiterating plans to spend ~$40 mm of capital to keep production relatively flat at the 12,500 boe/d level. As before, Management continues to manage its production levels through the current downturn to ensure long term value creation. The Company's sustainability measures are aided by all in costs (royalties, operating, G&A, and interest) that are below $20.00/boe.
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
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.
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.
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.