Bonterra Energy Corp

BNE-T

Analysis and Opinions about BNE-T

Signal
Opinion
Expert
HOLD
HOLD
July 17, 2019
He owns it. It is involved in Northern Quebec and there are rumours of some kind of merger with a mining operation in the same area.
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He owns it. It is involved in Northern Quebec and there are rumours of some kind of merger with a mining operation in the same area.
COMMENT
COMMENT
April 30, 2019
A great, well-run company, but it's always been small--and this is hurting them. Investors have moved up-cap in energy. They recently cut their dividend to around 1.8%. They have a lot of cash flow. They need to do share buybacks or raise the dividend to move the stock up. And we'll see where the oil price will go.
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A great, well-run company, but it's always been small--and this is hurting them. Investors have moved up-cap in energy. They recently cut their dividend to around 1.8%. They have a lot of cash flow. They need to do share buybacks or raise the dividend to move the stock up. And we'll see where the oil price will go.
WAIT
WAIT
November 14, 2018
Debt is too high for them with the lower light oil prices. She has them on the watch list and likes them but too soon to purchase. Yield = 12%
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Debt is too high for them with the lower light oil prices. She has them on the watch list and likes them but too soon to purchase. Yield = 12%
WATCH
WATCH
February 5, 2018

She likes the company and the equipment. Debt levels are higher than what she is comfortable with. She is going to wait until they settle it down before putting them in their model portfolio.

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She likes the company and the equipment. Debt levels are higher than what she is comfortable with. She is going to wait until they settle it down before putting them in their model portfolio.

COMMENT
COMMENT
October 20, 2017

This hasn’t acted well. It’s like a lot of energy stocks, but this is still down 50% for the year. Got caught with a little “worse than average” balance sheet, which has been a kiss of death in the stock market. With the combination of a really good balance sheet, very low costs and drilling prospects, you are still down, but not very much. It will take a while. It’s one of those companies that needs $60 oil to be better. If you think that is not going to happen, then he would switch to something else where you would be better protected.

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This hasn’t acted well. It’s like a lot of energy stocks, but this is still down 50% for the year. Got caught with a little “worse than average” balance sheet, which has been a kiss of death in the stock market. With the combination of a really good balance sheet, very low costs and drilling prospects, you are still down, but not very much. It will take a while. It’s one of those companies that needs $60 oil to be better. If you think that is not going to happen, then he would switch to something else where you would be better protected.

COMMENT
COMMENT
September 15, 2017

This has always been tricky, because it is fairly closely held, and trading liquidity is pretty crummy. It is typically Canadian dividend funds that buy it and hold it. They found themselves in a position where they had taken on too much debt, and made a mistake of not hedging it off. Have high quality assets. Due to its lack of liquidity, he has been trading at a pretty healthy premium to others.

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Bonterra Energy Corp (BNE-T)
September 15, 2017

This has always been tricky, because it is fairly closely held, and trading liquidity is pretty crummy. It is typically Canadian dividend funds that buy it and hold it. They found themselves in a position where they had taken on too much debt, and made a mistake of not hedging it off. Have high quality assets. Due to its lack of liquidity, he has been trading at a pretty healthy premium to others.

TOP PICK
TOP PICK
July 31, 2017

A small exploration stock. It appears the drilling is becoming predictive. It is rare we see an exploration play attractively priced in Canada. He seldom recommends exploration stocks in Canada. This management team has been successful in the past in the same terrain they are exploring now. (Analysts’ target: $23.25). (One of our faithful viewers has pointed out that BNN may have misinterpreted Rick's choice, and these comments might have been intended for Bonterra Resources (BTR-X) instead. )

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A small exploration stock. It appears the drilling is becoming predictive. It is rare we see an exploration play attractively priced in Canada. He seldom recommends exploration stocks in Canada. This management team has been successful in the past in the same terrain they are exploring now. (Analysts’ target: $23.25). (One of our faithful viewers has pointed out that BNN may have misinterpreted Rick's choice, and these comments might have been intended for Bonterra Resources (BTR-X) instead. )

TOP PICK
TOP PICK
September 16, 2016

Has a nice 4.9% dividend that is sustainable. They have done really well with costs. The story has free cash flow on current oil prices, which is going to help them pay off debt, which has been a little too high. Free cash flow yield for this year and next is much higher than it was in 2014 when oil prices averaged $94. This has a great history of ROC.

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Bonterra Energy Corp (BNE-T)
September 16, 2016

Has a nice 4.9% dividend that is sustainable. They have done really well with costs. The story has free cash flow on current oil prices, which is going to help them pay off debt, which has been a little too high. Free cash flow yield for this year and next is much higher than it was in 2014 when oil prices averaged $94. This has a great history of ROC.

HOLD
HOLD
May 30, 2016

It looks like it is making a bit of a recovery. The downtrend has been broken and consolidation has been taken out. Not a bad looking profile.

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It looks like it is making a bit of a recovery. The downtrend has been broken and consolidation has been taken out. Not a bad looking profile.

TOP PICK
TOP PICK
May 16, 2016

If you like oil and you like good assets, this is the way to go. They have a really great asset base, but the technical team is really doing a good job in proving up the asset base and getting excellent results on their drilling at very low costs. There is a lot of torque to the upside. Have more debt than she is comfortable with, but because of the quality of the management team and their technical expertise, this is a good leveraged way to play oil. Dividend yield of 4.34%.

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If you like oil and you like good assets, this is the way to go. They have a really great asset base, but the technical team is really doing a good job in proving up the asset base and getting excellent results on their drilling at very low costs. There is a lot of torque to the upside. Have more debt than she is comfortable with, but because of the quality of the management team and their technical expertise, this is a good leveraged way to play oil. Dividend yield of 4.34%.

PARTIAL SELL
PARTIAL SELL
April 7, 2016

(Market Call Minute) He has been slowly letting some stock go.

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(Market Call Minute) He has been slowly letting some stock go.

TOP PICK
TOP PICK
December 2, 2015

Has been disproportionately hurt by what has been going on with oil prices and with their debt. Debt is a little high, but that was because of an acquisition, not because of over drilling. The acquisition was excellent quality and really added to their inventory in the Cardium. Very reasonable valuation. Dividend yield of 8.1%, which she thinks is safe for now. Payout ratio is around 100%, which is great.

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Has been disproportionately hurt by what has been going on with oil prices and with their debt. Debt is a little high, but that was because of an acquisition, not because of over drilling. The acquisition was excellent quality and really added to their inventory in the Cardium. Very reasonable valuation. Dividend yield of 8.1%, which she thinks is safe for now. Payout ratio is around 100%, which is great.

COMMENT
COMMENT
November 11, 2015

A very interesting company. It has a large swing factor with oil prices because it is focused in just one area. The Cardium area in Alberta is probably the 1st place for horizontal drilling and fracing technology allowing them to rediscover just how big the potential of that asset is. This company specializes in this. Management has a large ownership and they watch their costs extraordinarily well. This company is designed to be sustainable.

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A very interesting company. It has a large swing factor with oil prices because it is focused in just one area. The Cardium area in Alberta is probably the 1st place for horizontal drilling and fracing technology allowing them to rediscover just how big the potential of that asset is. This company specializes in this. Management has a large ownership and they watch their costs extraordinarily well. This company is designed to be sustainable.

COMMENT
COMMENT
August 17, 2015

It is a conservative producer. They did a good job over the long term. All dividends are at risk, but this one should participate in a recovery. They already cut their dividend.

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It is a conservative producer. They did a good job over the long term. All dividends are at risk, but this one should participate in a recovery. They already cut their dividend.

COMMENT
COMMENT
June 12, 2015

If you are a retiree and looking for income, this is a company that you definitely should look at. She has a lot of respect for the management team. Have done very well by investors historically. They are doing a rights offering to existing shareholders to bring some equity into the business, because they essentially want to purchase some Cardium assets from Enerplus (ERF-T). Spent about $100 million, but they did it with their balance sheet. The market really didn’t like them deteriorating the company’s balance sheet. The rights offering makes a lot of sense.

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If you are a retiree and looking for income, this is a company that you definitely should look at. She has a lot of respect for the management team. Have done very well by investors historically. They are doing a rights offering to existing shareholders to bring some equity into the business, because they essentially want to purchase some Cardium assets from Enerplus (ERF-T). Spent about $100 million, but they did it with their balance sheet. The market really didn’t like them deteriorating the company’s balance sheet. The rights offering makes a lot of sense.

PAST TOP PICK
PAST TOP PICK
April 2, 2015

(A Top Pick April 24/14. Down 36.76%.) Still a core holding. This company stands out as one of the best capital allocators in Calgary. They have a track record going back to 1998 of delivering exceptional returns to shareholders. A very disciplined company, and he considers it a cornerstone of his portfolio.

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(A Top Pick April 24/14. Down 36.76%.) Still a core holding. This company stands out as one of the best capital allocators in Calgary. They have a track record going back to 1998 of delivering exceptional returns to shareholders. A very disciplined company, and he considers it a cornerstone of his portfolio.

DON'T BUY
DON'T BUY
March 24, 2015

He is zero weighted in Canadian energy stocks. There are a number of cognitive mistakes people make about stocks that have gone down this much. Just because an energy stock has fallen to half it does not make it a bargain. There is a lot of oil in storage and demand is not growing as fast as in past economic recoveries.

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He is zero weighted in Canadian energy stocks. There are a number of cognitive mistakes people make about stocks that have gone down this much. Just because an energy stock has fallen to half it does not make it a bargain. There is a lot of oil in storage and demand is not growing as fast as in past economic recoveries.

COMMENT
COMMENT
January 20, 2015

To the best of his knowledge, this company does not have any oil hedges in place, nor reduced their dividend, but thinks it is imminent given that companies cannot grow production at $50 oil and pay a dividend. They have a good position in the eastern core of the Pembina field. At sub-$50 without any hedging, he thinks there will be a realignment of the dividend.

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To the best of his knowledge, this company does not have any oil hedges in place, nor reduced their dividend, but thinks it is imminent given that companies cannot grow production at $50 oil and pay a dividend. They have a good position in the eastern core of the Pembina field. At sub-$50 without any hedging, he thinks there will be a realignment of the dividend.

HOLD
HOLD
November 21, 2014

The pressures on this stock are simply industry related. Oil production growth is fine. They have a decent dividend yield. Good management and a good strong track record.

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The pressures on this stock are simply industry related. Oil production growth is fine. They have a decent dividend yield. Good management and a good strong track record.

HOLD
HOLD
September 4, 2014

Stock has done well and he has no problem with this company.

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Stock has done well and he has no problem with this company.

COMMENT
COMMENT
June 25, 2014

Really good company. Came out with fantastic earnings. Great management. Have added lots of wells in the past 12 months. Great balance sheet. Also, likes the yield. Really good company, but he would prefer others.

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Really good company. Came out with fantastic earnings. Great management. Have added lots of wells in the past 12 months. Great balance sheet. Also, likes the yield. Really good company, but he would prefer others.

HOLD
HOLD
June 9, 2014

(Market Call Minute) Steady eddy name that won’t make you rich from here. Trading at a premium to names he would recommend so if you own it just collect the dividend. Safe business model.

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(Market Call Minute) Steady eddy name that won’t make you rich from here. Trading at a premium to names he would recommend so if you own it just collect the dividend. Safe business model.

TOP PICK
TOP PICK
April 24, 2014

Preeminent dividend paying light oil stock in Western Canada. The best capital allocator in Western Canada. You can expect ongoing dividend increases and production per share growth.

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Preeminent dividend paying light oil stock in Western Canada. The best capital allocator in Western Canada. You can expect ongoing dividend increases and production per share growth.

COMMENT
COMMENT
January 13, 2014

(Market Call Minute.) Just bought some today. Could surprise to the upside on news later this month from results from some assets.

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(Market Call Minute.) Just bought some today. Could surprise to the upside on news later this month from results from some assets.

PAST TOP PICK
PAST TOP PICK
November 4, 2013

(Top Pick Nov 12/12, Up 7.97%) He sold on the day of the announcement of the sale.

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(Top Pick Nov 12/12, Up 7.97%) He sold on the day of the announcement of the sale.

BUY
BUY
September 25, 2013

Exceptionally well run company. Largely light oil of the Pembina/Cardium field. Had some recent success in drilling the longer horizontals. Implication of this on certain plays in Canada is transformational. You spend maybe 15%-20% more on a well which could increase production from 250 to 1000. Payback is much faster and, as a dividend payer, it gives that much more cash flow and free cash flow to increase growth rate are pay out a higher dividend. Wouldn’t be surprised if they increased their dividend in the next couple of months. Probably trading at 9.5X, so not the cheapest stock but the implementation of technology, if successful, could transform this company to be able to grow potentially in the mid-teens and still pay a pretty healthy dividend.

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Bonterra Energy Corp (BNE-T)
September 25, 2013

Exceptionally well run company. Largely light oil of the Pembina/Cardium field. Had some recent success in drilling the longer horizontals. Implication of this on certain plays in Canada is transformational. You spend maybe 15%-20% more on a well which could increase production from 250 to 1000. Payback is much faster and, as a dividend payer, it gives that much more cash flow and free cash flow to increase growth rate are pay out a higher dividend. Wouldn’t be surprised if they increased their dividend in the next couple of months. Probably trading at 9.5X, so not the cheapest stock but the implementation of technology, if successful, could transform this company to be able to grow potentially in the mid-teens and still pay a pretty healthy dividend.

BUY
BUY
August 19, 2013

6.9% dividend is safe. The negative is that it is not one of the most traded former royalty trust names but decent balance sheet.

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6.9% dividend is safe. The negative is that it is not one of the most traded former royalty trust names but decent balance sheet.

WEAK BUY
WEAK BUY
August 1, 2013

6.7% dividend. Was a leader in the Cardium play, there since the beginning. Tons of upside. It is reasonably valued. Might go up given balance sheet strength and acquisitions. A good core holding but he does not own it because he chose others. Dividend is secure. 10-15% growth potential.

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6.7% dividend. Was a leader in the Cardium play, there since the beginning. Tons of upside. It is reasonably valued. Might go up given balance sheet strength and acquisitions. A good core holding but he does not own it because he chose others. Dividend is secure. 10-15% growth potential.

BUY
BUY
July 16, 2013

Bonterra Energy (BNE-T) or Baytex Energy (BTE-T)? Really likes Baytex but it’s a little pricey, so based on valuation, he would choose Bonterra which is a little cheaper and has pretty good growth. Has a dividend growth model and looking at growing EPS at 5% annually.

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Bonterra Energy (BNE-T) or Baytex Energy (BTE-T)? Really likes Baytex but it’s a little pricey, so based on valuation, he would choose Bonterra which is a little cheaper and has pretty good growth. Has a dividend growth model and looking at growing EPS at 5% annually.

DON'T BUY
DON'T BUY
June 18, 2013

Completed an acquisition of Spartan last quarter so results showed production was up. Because of what they are planning to do with this new mine you are probably going to find that production for Bonterra is going to decrease in the 2nd half of this year. There is a little more gas than he had expected there would be. Yield is very secure. There are better choices out there.

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Completed an acquisition of Spartan last quarter so results showed production was up. Because of what they are planning to do with this new mine you are probably going to find that production for Bonterra is going to decrease in the 2nd half of this year. There is a little more gas than he had expected there would be. Yield is very secure. There are better choices out there.

BUY
BUY
April 8, 2013

One of the largest operators in the Pembina region, which is Cardium rich light oil. 12,000 barrels per day. Recently made an acquisition of Spartan Energy which they got on the cheap. Very high net back oil in this area. 7% healthy dividend on a very low payout ratio of under 100%.

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One of the largest operators in the Pembina region, which is Cardium rich light oil. 12,000 barrels per day. Recently made an acquisition of Spartan Energy which they got on the cheap. Very high net back oil in this area. 7% healthy dividend on a very low payout ratio of under 100%.

COMMENT
COMMENT
March 4, 2013

Spartan was a good acquisition for them. Will take a little time to integrate but should do well over the back half of this year. This is one of the better names out there. Yield of almost 7%.

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Spartan was a good acquisition for them. Will take a little time to integrate but should do well over the back half of this year. This is one of the better names out there. Yield of almost 7%.

COMMENT
COMMENT
January 9, 2013

Acquired a very low decline asset for about 3.5X cash flow, which was a steal for them. On the back of that acquisition, they increased their dividend so he feels sustainability of the dividend is not an issue. Extremely thin in terms of trading as people don’t want to sell. For a retail investor it is probably not a bad pick.

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Acquired a very low decline asset for about 3.5X cash flow, which was a steal for them. On the back of that acquisition, they increased their dividend so he feels sustainability of the dividend is not an issue. Extremely thin in terms of trading as people don’t want to sell. For a retail investor it is probably not a bad pick.

HOLD
HOLD
December 10, 2012

There is nothing wrong with it. It is in the hold camp. No catalyst. Not sufficiently Washed out that there is about to be a massive turn around. If you find a better opportunity then maybe take it. Yield is safe.

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There is nothing wrong with it. It is in the hold camp. No catalyst. Not sufficiently Washed out that there is about to be a massive turn around. If you find a better opportunity then maybe take it. Yield is safe.

COMMENT
COMMENT
September 19, 2012

(Market Call Minute.) For him, this would be a Hold or a Sell in order to buy Crescent Point (CPG-T). Multiple is a little high.

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Bonterra Energy Corp (BNE-T)
September 19, 2012

(Market Call Minute.) For him, this would be a Hold or a Sell in order to buy Crescent Point (CPG-T). Multiple is a little high.

BUY
BUY
September 18, 2012

Holds this management out consistently as excellent capital allocators in Calgary. Have a very lengthy record of creating value for shareholders. They raise capital judiciously. The holy grail of increasing production per share, while at the same time paying a consistent and growing dividend stream.

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Bonterra Energy Corp (BNE-T)
September 18, 2012

Holds this management out consistently as excellent capital allocators in Calgary. Have a very lengthy record of creating value for shareholders. They raise capital judiciously. The holy grail of increasing production per share, while at the same time paying a consistent and growing dividend stream.

HOLD
HOLD
September 11, 2012

(Market Call Minute.) She wants to get a little more clarity. The debt is creeping up a little bit. She is watching to see if they will address the debt.

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Bonterra Energy Corp (BNE-T)
September 11, 2012

(Market Call Minute.) She wants to get a little more clarity. The debt is creeping up a little bit. She is watching to see if they will address the debt.

SELL
SELL
June 27, 2012
This is one to avoid right now. The biggest risk is a potential dividend cut going forward. Over distributes 100%.
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This is one to avoid right now. The biggest risk is a potential dividend cut going forward. Over distributes 100%.
BUY WEAKNESS
BUY WEAKNESS
March 29, 2012
Exceptionally well-run company. Took profits when it ran over $60. Would like it in the $40 range.
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Exceptionally well-run company. Took profits when it ran over $60. Would like it in the $40 range.
COMMENT
COMMENT
February 24, 2012
He feels that if the stock gets over $60, it will be fully valued. You are paying for the producing assets as well as a lot for the un-drilled, un-booked inventory that they have. However, over an extended period of time, this company stands out as one of the best allocators of capital.
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He feels that if the stock gets over $60, it will be fully valued. You are paying for the producing assets as well as a lot for the un-drilled, un-booked inventory that they have. However, over an extended period of time, this company stands out as one of the best allocators of capital.