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 Highlights

  • Bonterra Energy's production averaged 13,911 boe per day in Q2 2023.
  • The company’s net revenue dropped to CAD 67.0 million in Q2 2023 compared to CAD 97.8 million in the previous corresponding period.
  • BNE’s net debt reduced by CAD 15.3 million in Q2 2023.

Oil and gas exploration company, Bonterra Energy Corp. (TSX: BNE) is involved in development and production of crude oil, natural gas, and natural gas liquids. Currently, the company is operating in the Western Canadian Sedimentary Basin.

In the second quarter of 2023, the company's production averaged 13,911 BOE per day per day, marking 3% growth against Q1 2023. Also, there was a 4% decline in the production costs in Q2 2023 versus Q1 2023 because of lower well maintenance costs.

To further elevate production, the company is looking forward to identify and transact on accretive acquisitions. This will also scale up the drilling inventory, increase free cash flow and strengthen the balance sheet.

Bonterra Energy was able to bolster its debt profile during the quarter. The net debt was reduced by CAD 15.3 million in Q2 2023.

Notably, there was sequential growth for the company during Q2 FY23 in its margin profile. The company reported margin numbers that overtook the industry median and led to increased liquidity ratios in the second quarter of the year.

However, the company’s net revenue in Q2 2023 dropped to CAD 67.0 million compared to CAD 97.8 million in pcp. This decrease in revenue was mainly because of reduced realized commodity prices and production volumes.

Also, BNE’s earnings before taxes reduced to CAD 11.6 million against CAD 44.5 million in the quarter. This drop was mainly due to reduced revenue and increased total expenses. Its net earnings decreased to CAD 8.8 million.

Guidance for full FY23

Bonterra Energy is anticipating its annual average production to range between 13,500 and 13,700 BOE per day for the full fiscal year 2023. It is also seeking to generate free funds flow in a range of CAD 45 million and CAD 50 million for FY23 following higher production and decreased operating cost.                                            

Top 10 Shareholders

Around 27.31% of the total shareholding in the company is held by its top ten shareholders. While Fink (George F) owns over ­­­12.9% stake in the company, Oberndorf, William holds ~9.55% of the total shareholding.



Stock Price Performance
The company’s stock price has increased by more than 14.42% over the last one month. It has risen by approximately 13.28% in the past three months. The stock’s 52-week high and low price stand at CAD 10.35 and CAD 4.95, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 17, 2023. The reference data in this report has been partly sourced from EODHD/Others.