Topic: How To Invest

Q: Hi. Can you comment on Bonterra Energy? Thanks.

Article Excerpt

A: Bonterra Energy, $6.75, symbol BNE on Toronto (Shares outstanding: 33.1 million; Market cap: $223.4 million; www.bonterraenergy.ca), produces oil and gas in Alberta, Saskatchewan and northeast B.C., with a focus on the Pembina Cardium area of central Alberta. Its output is 68% oil and 32% gas. In the three months ended September 30, 2018, the company produced 13,043 barrels of oil equivalent per day (including natural gas). That’s down 1.8% from 13,281 barrels a year earlier. However, Bonterra Energy’s cash flow per share rose 31.7%, to $1.01 from $0.77. The jump was due to higher oil prices. The company’s long-term debt of $293.2 million is a high 1.3 times its currently depressed market cap. That adds risk. Bonterra has lowered its dividend, and now pays a monthly payment of $0.01 a share. That’s down sharply from $0.10 per month. The company aims to conserve cash to pay down debt and fund its exploration and development. The shares currently yield 1.8%. The stock trades at…

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