Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Bonterra Energy Corp.
  6. News
  7. Summary
    BNE   CA0985461049

BONTERRA ENERGY CORP.

(BNE)
  Report
Delayed Toronto Stock Exchange  -  04:00 2022-09-30 pm EDT
6.820 CAD   -2.85%
09/19Bonterra Energy Corp.(TSX:BNE) added to S&P Global BMI Index
CI
08/11Bonterra Energy Kept at Hold by Stifel FirstEnergy Following Q2 Results; Price Target Lowered to C$12.00
MT
08/10Bonterra Energy : 2022 q2
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Bonterra Energy : 2022 Q2

08/10/2022 | 03:36am EDT

For the three and six

TSX: BNE

months ended

www.bonterraenergy.com

June 30, 2022

BONTERRA ENERGY REPORTS SECOND QUARTER AND SIX MONTHS ENDED

JUNE 30, 2022 FINANCIAL AND OPERATING RESULTS

HIGHLIGHTS

Three months ended

Six months ended

As at and for the periods ended

June 30,

June 30,

June 30,

June 30,

($ 000s except for $ per share and $ per BOE)

2022

2021

2022

2021

FINANCIAL

Revenue - realized oil and gas sales

116,674

59,163

208,216

107,957

Funds flow (1)

61,892

23,105

108,984

39,697

Per share - basic

1.72

0.69

3.06

1.18

Per share - diluted

1.62

0.67

2.90

1.16

Cash flow from operations

58,307

18,874

99,249

33,619

Per share - basic

1.62

0.56

2.79

1.00

Per share - diluted

1.53

0.55

2.64

0.98

Net earnings(2)

33,544

157,354

44,063

155,670

Per share - basic

0.93

4.68

1.24

4.63

Per share - diluted

0.88

4.55

1.17

4.53

Capital expenditures

14,506

7,607

46,675

31,068

Total assets

934,303

948,260

Net debt(3)

211,284

319,310

Long-term debt

95,748

46,169

Shareholders' equity

442,653

353,431

OPERATIONS

Light oil

-barrels (bbl) per day

7,623

7,370

7,490

7,103

-average price ($ per bbl)

126.97

71.49

118.88

66.84

NGLs

-bbl per day

1,151

996

1,074

1,011

-average price ($ per bbl)

77.23

35.59

70.67

35.59

Conventional natural gas

- MCF per day

33,323

26,057

31,476

25,184

- average price ($ per MCF)

6.76

3.37

5.85

3.40

Total barrels of oil equivalent per day (BOE)(4)

14,328

12,709

13,810

12,311

  1. Funds flow is not a recognized measure under IFRS. For these purposes, the Company defines funds flow as funds provided by operations including proceeds from sale of investments and investment income received excluding the effects of changes in non-cash working capital items and decommissioning expenditures settled.
  2. In the second quarter of 2021 the Company recorded a $203,197,000 impairment reversal less a $47,149,000 deferred income tax expense related to its Alberta cash generating unit's ("CGU") oil and gas assets due to the stronger forward prices after the impact COVID-19 had on the forward benchmark prices for crude oil.
  3. Net debt is not a recognized measure under IFRS. The Company defines net debt as current liabilities less current assets plus long-term subordinated debt and subordinated debentures.
  4. BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

1 | P a g e

REPORT TO SHAREHOLDERS

Given my pending retirement effective September 6, 2022, this will be my final report to shareholders as President and CEO of Bonterra Energy Corp. ("Bonterra" or the "Company"). I will remain on the Board of Directors and have no intention of reducing my current equity ownership stake of 14 percent, ensuring ongoing alignment with shareholders. Reflecting on the past 24 years since founding the Company in 1998, I am extremely proud of how Bonterra has effectively managed through numerous challenges and opportunities, particularly during the COVID-19 pandemic years. We have always maintained a strong commitment to employees, partners, communities and other key stakeholders, particularly our supportive investors, and I am confident these commitments will continue to be honoured. As part of the transition, I am pleased to welcome my successor, Mr. Patrick Oliver, a seasoned industry executive with over 35 years of experience in the Western Canadian upstream oil and gas sector. Patrick brings a proven track record of leadership and will join the Bonterra Board upon assuming his new role.

Before highlighting Bonterra's results for the second quarter and first half of 2022 below, I would like to thank my fellow management team members for each of your valued contributions and support, without which we could not have realized such strong performance. I would also like to thank my fellow shareholders for the trust you have placed in Bonterra and our team. We are confident that continued strong execution will ultimately result in Bonterra returning to a position with greater financial flexibility that supports a return of capital to shareholders.

Thank you.

----------------

Following is an overview of Bonterra's operating and financial results for the three and six month periods ended June 30, 2022. I am extremely pleased to note that both periods represent some of the strongest performance in Bonterra's recent history.

With meaningfully higher commodity prices and a more active development program on our high-quality, light oil weighted and low-decline asset base, production averaged 14,328 BOE per day in Q2 2022 and 13,810 BOE per day in the first half, growing 13 percent and 12 percent over the same respective periods in 2021. Realized oil prices averaged $126.97 per bbl in Q2 2022, 78 percent higher than Q2 2021, driving robust field netbacks of $54.86 per BOE and cash netbacks of $47.47 per BOE, increases of 99 percent and 138 percent over Q2 2021, respectively. Realized oil and gas sales in Q2 2022 totaled $116.7 million, a 97 percent increase over the same period in 2021, while sales in the first half of 2022 were 93 percent higher than in 2021.

This combination of increased production and higher cash netbacks resulted in funds flow1 of $61.9 million ($1.62 per diluted share) in Q2 2022 and $109.0 million ($2.90 per fully diluted share) in the first half, enabling Bonterra to generate free funds flow1 (defined as funds flow1 in excess of capital expenditures) of $47.4 million and $62.3 million, respectively. Throughout the first half of 2022, we have continued to largely direct free funds flow to debt reduction with the ultimate goal of establishing a position that would enable Bonterra to return capital to our shareholders.

Bank debt as at June 30, 2022 totaled $111.5 million, a 19 percent reduction from March 31, 2022, largely attributable to the Company directing free funds flow1 to debt repayment. Net debt1 of $211.3 million at the end of Q2 2022 was

21 percent lower than year-end 2021, improving Bonterra's net debt to twelve-month trailing cash flow ratio1 to 1.3 times compared to 2.8 times at December 31, 2021.

1 "Funds Flow", "Free Funds Flow", "Net Debt" and "Net Debt to Twelve-Month Trailing Cash Flow Ratio" are not recognized measures under IFRS. See "Cautionary Statements" in Q2 2022 MD&A.

2 | P a g e

OUTLOOK

The first half of 2022 enabled the Company to build momentum for continued positive results and performance. This supports affirming Bonterra's previously communicated 2022 production guidance of 13,300 to 13,700 BOE per day2 with an increased capital expenditure budget range of $70 million to $75 million, due to additional infrastructure costs and inflationary pressures.

Our high-quality and oil-weighted asset base is allowing the Company to generate robust funds flow1 and free funds flow1. By maintaining control over costs in the face of inflationary pressures while driving enhanced capital efficiencies, Bonterra anticipates directing further funds to debt repayment and ultimately establishing a position that would allow a return of capital to our shareholders. We believe this offers the greatest opportunity to generate long‐ term returns while maintaining Bonterra's economic and environmental sustainability.

Thank you again,

George F. Fink

Chief Executive Officer

2 2022 volumes expected to be comprised of 7,320 bbl/d light and medium crude oil, 1,320 bbl/d NGLs and 29,200 mcf/d of conventional natural gas based on a midpoint of 13,500 BOE/d.

3 | P a g e

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following report dated August 9, 2022 is a review of the operations and current financial position for the three and six months ended June 30, 2022 for Bonterra Energy Corp. ("Bonterra" or "the Company") and should be read in conjunction with the unaudited condensed financial statements and the audited financial statements including the notes related thereto for the fiscal year ended December 31, 2021 presented under International Financial Reporting Standards (IFRS), as well as Bonterra's Annual Information Form ("AIF"), each of which is filed on SEDAR at www.sedar.com

Use of Non-IFRS Financial Measures

Throughout this Management's Discussion and Analysis (MD&A) the Company uses the terms "field netback", "cash netback" and "net debt" 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 used 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 entities.

The Company calculates cash and field netback by dividing various financial statement items as determined by IFRS by total production for the period on a barrel of oil equivalent basis. The Company calculates net debt as long-term debt plus working capital deficiency (current liabilities less current assets).

Frequently Recurring Terms

Bonterra uses the following frequently recurring terms in this MD&A: "WTI" refers to West Texas Intermediate, a grade of light sweet crude oil used as benchmark pricing in the United States; "MSW Stream Index" or "Edmonton Par" refers to the mixed sweet blend that is the benchmark price for conventionally produced light sweet crude oil in Western Canada; "AECO" is the benchmark price for natural gas in Alberta, Canada; "bbl" refers to barrel; "NGL" refers to natural gas liquids; "MCF" refers to thousand cubic feet; "MMBTU" refers to million British Thermal Units; "GJ" refers to gigajoule; and "BOE" refers to barrels of oil equivalent. Disclosure provided herein in respect of a BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 MCF: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Numerical Amounts

The reporting and the functional currency of the Company is the Canadian dollar.

4 | P a g e

QUARTERLY COMPARISONS

2022

2021

As at and for the periods ended

($ 000s except $ per share)

Q2

Q1

Q4

Q3

Q2

Q1

Financial

Revenue - oil and gas sales

116,674

91,542

79,202

64,457

59,163

48,794

Cash flow from operations

58,307

40,942

37,868

24,616

18,874

14,745

Per share - basic

1.62

1.16

1.11

0.73

0.56

0.44

Per share - diluted

1.53

1.11

1.07

0.71

0.55

0.43

Net earnings (loss)

(1)

33,544

10,519

16,333

7,296

157,354

(1,684)

Per share - basic

0.93

0.30

0.48

0.22

4.68

(0.05)

Per share - diluted

0.88

0.29

0.46

0.21

4.55

(0.05)

Capital expenditures

14,506

32,169

17,636

18,578

7,607

23,461

Total assets

934,303

965,969

945,721

939,835

948,260

748,543

Net debt

211,284

260,670

267,179

307,729

319,310

328,506

Shareholders' equity

442,653

405,148

392,019

361,590

353,431

195,393

Operations

Light oil (barrels per day)

7,623

7,356

7,659

6,948

7,370

6,834

NGLs (barrels per day)

1,151

996

1,105

928

996

1,025

Conventional natural gas (MCF per day)

33,323

29,609

30,276

27,995

26,057

24,301

Total BOE per day

14,328

13,287

13,810

12,542

12,709

11,909

  1. In Q2 2021, with stronger forward benchmark prices since the impact of COVID-19 beginning in March 2020, the Company recorded a $203,197,000 impairment reversal on its Alberta cash generating unit's ("CGU") oil and gas assets less $47,149,000 deferred income tax expense.

2020

As at and for the periods ended

($ 000s except $ per share)

Q4

Q3

Q2

Q1

Financial

Revenue - oil and gas sales

31,761

29,155

22,171

38,555

Cash flow from (used in) operations

(1,199)

6,370

4,429

22,473

Per share - basic

(0.04)

0.19

0.13

0.67

Per share - diluted

(0.04)

0.19

0.13

0.67

Net loss

(1)

(11,071)

(5,211)

(5,954)

(284,653)

Per share - basic

(0.33)

(0.16)

(0.18)

(8.53)

Per share - diluted

(0.33)

(0.16)

(0.18)

(8.53)

Capital expenditures

19,064

2,819

104

21,741

Total assets

731,859

722,910

732,462

743,533

Net debt

315,573

295,168

299,445

300,688

Shareholders' equity

196,633

207,325

212,342

218,211

Operations

Light oil (barrels per day)

5,371

5,355

5,553

7,058

NGLs (barrels per day)

960

1,064

1,104

999

Conventional natural gas (MCF per day)

22,560

21,510

21,142

23,864

Total BOE per day

10,091

10,004

10,181

12,034

  1. In the first quarter of 2020 the Company recorded a $331,678,000 impairment provision less a $54,107,000 deferred income tax recovery related to its Alberta CGU's oil and gas assets due to the impact of COVID-19 on forward benchmark prices for crude oil.

5 | P a g e

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Bonterra Energy Corp. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 07:35:07 UTC.


© Publicnow 2022
All news about BONTERRA ENERGY CORP.
09/19Bonterra Energy Corp.(TSX:BNE) added to S&P Global BMI Index
CI
08/11Bonterra Energy Kept at Hold by Stifel FirstEnergy Following Q2 Results; Price Target L..
MT
08/10Bonterra Energy : 2022 q2
PU
08/09Bonterra Energy Q2 Net Earnings Down YOY; Reports Increase in Sales, Production
MT
08/09Bonterra Energy Corp. Reports Earnings Results for the Second Quarter and Six Months En..
CI
08/09Bonterra Energy Corp. Announces Second Quarter 2022 Results Highlighted by 13% Producti..
AQ
08/09Bonterra Energy Corp. Affirms Production Guidance for the Year 2022
CI
08/09Bonterra Energy Corp. Reports Unaudited Production Results for the Second Quarter and S..
CI
07/25Bonterra Energy Hold Rating Reiterated by Stifel FirstEnergy Amid CEO Transition
MT
07/22Bonterra Energy Says George Fink to Retire as President and CEO, Appoints Patrick Olive..
MT
More news
Analyst Recommendations on BONTERRA ENERGY CORP.
More recommendations
Financials
Sales 2022 - - -
Net income 2022 - - -
Net Debt 2022 138 M 100 M 100 M
P/E ratio 2022 -
Yield 2022 -
Capitalization 247 M 180 M 180 M
EV / Sales 2022 -
EV / Sales 2023 -
Nbr of Employees 36
Free-Float 75,8%
Chart BONTERRA ENERGY CORP.
Duration : Period :
Bonterra Energy Corp. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BONTERRA ENERGY CORP.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 6
Last Close Price 6,82 CAD
Average target price 13,50 CAD
Spread / Average Target 97,9%
EPS Revisions
Managers and Directors
Patrick Oliver President, Chief Executive Officer & Director
Robb D. Thompson Chief Financial Officer & Secretary
Donald Michael Godfrey Stewart Chairman
Adrian Neumann Chief Operating Officer
Rodger A. Tourigny Independent Director
Sector and Competitors
1st jan.Capi. (M$)
BONTERRA ENERGY CORP.20.49%180
CONOCOPHILLIPS41.78%130 282
EOG RESOURCES, INC.25.78%65 479
OCCIDENTAL PETROLEUM CORPORATION114.25%57 085
CNOOC LIMITED17.19%57 051
CANADIAN NATURAL RESOURCES LIMITED20.30%52 520