FIRST LIEN CREDIT FACILITY
On
FOUR-YEAR TERM DEBT FACILITY
Also, on
The Term Debt Facility has been utilized to facilitate the formation of the new First Lien Facility through the repayment of the existing First Lien Facility bank debt, which was set to mature on
The Term Debt Facility was arranged through a private institutional lender and provides the Company with a defined term and stable capital to facilitate the continued development of Bonterra's high-quality, conventional, light oil asset base. Furthermore, the Term Debt Facility also represents a significant step forward toward the Company's goal of implementing a shareholder returns-based business model focused on a combination of debt repayment, sustainable dividends and modest production growth.
REPAYMENT OF BDC TERM FACILITY
Closing of the New Credit Facilities has enabled Bonterra to fully repay the Company's non-revolving,
REVISED DEBT CAPITAL STRUCTURE AND LIQUIDITY
Bonterra's debt capital structure has been significantly improved and the Company expects to benefit from enhanced stability. Bonterra forecasts that bank debt will be substantially repaid by the second quarter of 2023, subject to market conditions and commodity pricing, providing significant available liquidity and flexibility to the Company moving forward.
STRATEGIC REPOSITIONING AND OUTLOOK
Bonterra has now successfully undertaken and completed the strategic steps below over the last 24 months to reposition the Company's balance sheet.
In
Bonterra's goal is to be a well-capitalized entity generating significant free cash flow to support future shareholder returns through debt repayment, sustainable dividends and modest production growth. In the near term, the Company plans to continue building on the significant bank debt reduction of approximately
For the 2022 fiscal year, the Company anticipates funds flow1 of approximately
ADVISORS
Non-IFRS and Other Financial Measures
Throughout this release the Company uses the terms 'funds flow', 'free funds flow', 'net debt' and 'EBITDA' to analyze operating performance, which are not standardized measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures are commonly utilized in the oil and gas industry and are considered informative by management, shareholders and analysts. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies.
The Company defines funds flow as funds provided by operations including proceeds from sale of investments and investment income received excluding effects of changes in non-cash working capital items and decommissioning expenditures settled. Free funds flow is defined as funds flow less dividends paid to shareholders, capital and decommissioning expenditures settled plus option proceeds. Net debt is defined as long-term subordinated debt and subordinated debentures plus working capital deficiency (current liabilities less current assets). EBITDA is defined as net income for the period excluding finance costs, provision for current and deferred taxes, depletion and depreciation, share-option compensation, gain or loss on sale of assets and impairment of assets. Net debt to EBITDA ratio is defined as net debt at the end of the period divided by EBITDA for the period.
Forward Looking Information
Certain statements contained in this release include statements which contain words such as 'anticipate', 'could', 'should', 'expect', 'seek', 'may', 'intend', 'likely', 'will', 'believe' and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute 'forward-looking information' within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this release includes, but is not limited to: the Company's plans to execute on a returns-based business model focused on debt repayment and dividends; projections relating to the Company's indebtedness, funds flow and free funds flow; expected cash provided by continuing operations; business strategy and outlook; expansion and growth of our business and operations; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital or maintain its credit facilities; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Bonterra disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The forward-looking information contained herein is expressly qualified by this cautionary statement.
Numerical Amounts
The reporting and the functional currency of the Company is the Canadian dollar.
The TSX does not accept responsibility for the accuracy of this release.
1 'Funds Flow', 'Free Funds Flow', 'Net Debt' and 'Net Debt to EBITDA' are not recognized measures under IFRS. See 'Cautionary Statements' below.
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