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Highlights

  • BNE's Q2 2025 production averaged 16,399 BOE per day, up 15% year-over-year, prompting an increase in annual production guidance.

  • Net debt decreased 9% from Q1 2025 to CAD 169.9 million, resulting in a 1.3x net-debt-to-EBITDA multiple.

  • Capital guidance lowered to CAD 65–70 million due to production outperformance in the first half of the year.

Bonterra Energy Corp. (TSX:BNE) has announced its financial and operating results for the three and six months ended June 30, 2025.

Production averaged 16,399 barrels of oil equivalent (BOE) per day in Q2 2025, representing a 15% increase from 14,242 BOE per day in Q2 2024. This marks the fourth consecutive quarter of record production, driven by successful drilling in the Charlie Lake and Montney formations. As a result, Bonterra has raised its 2025 annual production guidance to a range of 15,000 to 15,200 BOE per day, compared to the original 14,600 to 14,800 BOE per day range.

Funds flow for Q2 2025 totaled CAD 23.1 million, or CAD 0.62 per diluted share. Field netback averaged CAD 21.28 per BOE, and cash netback averaged CAD 15.47 per BOE. The quarter saw average WTI crude oil prices of USD 63.74 per barrel and AECO natural gas prices of CAD 1.68 per mcf. Production costs averaged CAD 16.44 per BOE in the quarter, down 8% from Q1 2025 following a Cardium well reactivation program.

Capital expenditures totaled CAD 6.3 million in Q2 and CAD 38.8 million in the first half of 2025. Of this, CAD 20.4 million was allocated to drilling, completion, and tie-in of five gross (4.7 net) operated wells in the Charlie Lake and Cardium plays. The remaining CAD 18.4 million was directed towards infrastructure, non-operated activities, and development of a new battery and water disposal well. Due to production outperformance from its first half program, Bonterra reduced its full-year capital guidance to CAD 65–70 million from the initial CAD 65–75 million range.

Net debt at June 30, 2025 was CAD 169.9 million, a 9% decrease from Q1 2025, lowering the net-debt-to-EBITDA ratio to 1.3x. During the first half of 2025, the Company repurchased 491,500 common shares under its Normal Course Issuer Bid at an average price of CAD 3.50 per share. The revolving credit facility was renewed and increased to CAD 125 million in April 2025, with improved terms including a wider borrowing base, lower interest rate spreads, and the removal of financial covenants.

Earlier in the year, Bonterra closed a private placement of CAD 135 million in Senior Secured Second Lien Notes due 2030, using the proceeds to repay second lien subordinated term debt and reduce borrowings under its revolving credit facility. The Company also redeemed its subordinated debentures in full on February 26, 2025.

Looking ahead, Bonterra expects to exceed its updated annual production guidance within the lower half of its capital guidance range. The second half capital program includes drilling three gross (2.7 net) Charlie Lake wells, scheduled for completion and tie-in through late 2025 and early 2026.