Bonterra Energy Corp. Announces Fourth Quarter and Year End 2013 Results
March 20 2014 - 6:02PM
Marketwired Canada
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.
Bonterra Energy Corp. (TSX:BNE) (Bonterra or the Company) is pleased to announce
its operating and financial results for the fourth quarter and year ended
December 31, 2013. The related financial statements and notes, as well as
management's discussion and analysis (MD&A) for the year ended December 31,
2013, are available on the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com and on Bonterra's website at www.bonterraenergy.com.
HIGHLIGHTS
As at and for the year
ended ($ 000s except $ per December 31, December 31, December 31,
share) 2013(1) 2012 2011
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FINANCIAL
Revenue - realized oil and
gas sales 295,675 142,770 162,277
Funds flow (2) 181,574 80,429 101,988
Per share - basic 6.01 4.07 5.27
Per share - diluted 5.99 4.06 5.22
Payout ratio 55% 77% 58%
Funds flow (2) 185,393(5) 80,429 101,988
Per share - basic 6.14 4.07 5.27
Per share - diluted 6.11 4.06 5.22
Payout ratio 54% 77% 58%
Cash flow from operations 173,896 74,325 97,409
Per share - basic 5.76 3.75 5.04
Per share - diluted 5.74 3.75 4.98
Payout ratio 58% 83% 61%
Cash dividends per share 3.33 3.12 3.06
Net earnings 62,758 33,211 43,608
Per share - basic 2.08 1.68 2.25
Per share - diluted 2.07 1.68 2.23
Capital expenditures and
acquisitions net of
dispositions 109,227(3) 98,130(4) 62,686
Total assets 1,000,531 419,933 364,176
Working capital deficiency 35,895 29,876 51,576
Long-term debt 156,764 166,808 69,916
Shareholders' equity 667,641 163,277 181,640
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OPERATIONS
Oil - barrels per day 7,787 4,035 4,075
- average price ($ per
barrel) 89.26 82.04 92.76
NGLs - barrels per day 744 476 386
- average price ($ per
barrel) 52.41 52.18 60.89
Natural gas - MCF per day 21,954 13,157 11,163
- average price ($ per MCF) 3.46 2.60 3.86
Total barrels of oil
equivalent per day (BOE) 12,190 6,703 6,322
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(1) Annual figures for 2013 include the results of Spartan Oil Corp.
(Spartan) for the period of January 25, 2013 to December 31, 2013.
Production includes 341 days for Spartan and 365 days for Bonterra.
(2) 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.
(3) Includes the Spartan acquisition that closed on January 25, 2013 that
included $10,000,000 of acquired cash that reduced capital expenditures
from $121,641,000 excluding dispositions.
(4) Includes an acquisition that closed on June 7, 2012 for $17,108,000.
(5) Annual figures for 2013 include the results of Spartan for the period
of January 1, 2013 to December 31, 2013. Production includes 365 days
for Spartan and Bonterra.
Year In Review
In 2013, the Company has maintained its focus on providing investors with
continuous growth on a per share basis, a sustainable pace of development and
monthly income through its dividend policy. For the year ended December 31,
2013, Bonterra has achieved record results in net earnings, funds flow,
production volumes and the monthly dividend rate.
2013 Highlights include:
-- Generated record funds flow of $181.6 million ($6.01 per share), as
compared to $80.4 million ($4.07 per share) in the same period in 2012,
an increase of 126 percent;
-- Annual production averaged 12,190 BOE per day; a volume increase of 82
percent over the same period in 2012 and an increase of 18.5 percent on
a per share basis;
-- Operating costs for the year were $12.77 per boe, a reduction of 24
percent over the same period in 2012;
-- Paid out $3.33 per share in cash dividends to shareholders in 2013
compared to $3.12 per share in 2012, represented by two increases in the
monthly dividend during 2013. This represents a payout ratio of 55
percent of funds flow which is the low end of the Company's payout ratio
guidance;
-- The Company's net debt to cash flow ratio at December 31, 2013 was 1.1
to 1 times providing the Company with a strong balance sheet;
-- Corporate netback increased to $40.58 per BOE from $31.36 per BOE in
2012;
-- Proved plus probable (P & P) reserves of 75 million BOE (approximately
73 percent oil and liquids), a 67 percent volume increase over 2012 and
an increase of 8 percent on a per share basis;
-- Drilled 55 gross (35 net) horizontal wells with a 100 percent success
rate; and
-- Completed a bought deal financing of 553,725 common shares at a price of
$49.85 per common share for gross proceeds of $27.6 million. The funds
were used to increase the 2013 capital development budget and to
decrease outstanding bank debt.
2014 Outlook
Bonterra's capital development program is focused on sustaining its current
business model offering both solid growth and yield to its shareholders. The
Board of Directors has approved a capital development program of $120.0 million
which targets light oil prospects through its Cardium horizontal drill program.
The program plan in 2014 is to:
-- Maintain a steady pace of development and manage annual declines.
Production estimate is expected to average between 12,400 and 12,700 BOE
per day (67 percent oil, 5 percent liquids and 28 percent natural gas)
on an annual basis;
-- Drill a total of 56 gross (41.05 net) horizontal wells with
approximately $72 million of the capital budget spent drilling 26 gross
(25.5 net) wells in the Carnwood area;
-- Seek out additional operating efficiencies and control costs. Operating
expenditures are expected to average approximately $13 per boe on an
annualized basis;
-- Manage risk by maintaining balance sheet strength. Bonterra anticipates
maintaining its net debt to funds flow at less than 1.5 times in 2013;
and
-- Continue to provide increased value to shareholders. Bonterra's Board of
Directors and management will continue to take into account production
volumes and commodity prices in determining monthly dividend amounts and
will consider increasing the dividend should crude oil pricing remain
favourable coupled with production increases.
Cautionary Statement
This summarized news release should not be considered a suitable source of
information for readers who are unfamiliar with Bonterra Energy Corp. and should
not be considered in any way as a substitute for reading the full report.
For the full report, please go to www.bonterraenergy.com
Use of Non-IFRS Financial Measures
Throughout this press release, the Company uses the terms "payout ratio", "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
companies.
The Company calculates payout ratio by dividing cash dividends paid to
shareholders by cash flow from operating activities, both of which are measures
prescribed by IFRS which appear on our statements of cash flows. We calculate
cash netback by dividing various financial statement items as determined by IFRS
by total production for the period on a barrel of oil equivalent basis.
Frequently recurring terms
Bonterra uses the following frequently recurring terms in this press release:
"bbl" refers to barrel, "NGL" refers to Natural gas liquids, "MCF" refers to
thousand cubic feet 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.
Forward-Looking Information
Certain statements contained in this press release include statements which
contain words such as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "will", "believe" and similar expressions, relating to
matters that are not historical facts, and such statements of our beliefs,
intentions and expectations about development, results and events which will or
may occur in the future, constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation and are based on certain
assumptions and analysis made by us derived from our experience and perceptions.
Forward-looking information in this press release includes, but is not limited
to: expected cash provided by continuing operations; cash dividends; future
capital expenditures, including the amount and nature thereof; oil and natural
gas prices and demand; expansion and other development trends of the oil and gas
industry; business strategy and outlook; expansion and growth of our business
and operations; and maintenance of existing customer, supplier and partner
relationships; supply channels; accounting policies; credit risks; and other
such matters.
All such forward-looking information is based on certain assumptions and
analyses made by us in light of our experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances. The risks,
uncertainties, and assumptions are difficult to predict and may affect
operations, and may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general economic
conditions; industry conditions; changes in applicable environmental, taxation
and other laws and regulations as well as how such laws and regulations are
interpreted and enforced; the ability of oil and natural gas companies to raise
capital; the effect of weather conditions on operations and facilities; the
existence of operating risks; volatility of oil and natural gas prices; oil and
gas product supply and demand; risks inherent in the ability to generate
sufficient cash flow from operations to meet current and future obligations;
increased competition; stock market volatility; opportunities available to or
pursued by us; and other factors, many of which are beyond our control.
Actual results, performance or achievements could differ materially from those
expressed in, or implied by, this forward-looking information and, accordingly,
no assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them do, what
benefits will be derived there from. Except as required by law, Bonterra
disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise.
The forward-looking information contained herein is expressly qualified by this
cautionary statement.
The TSX does not accept responsibility for the accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Bonterra Energy Corp.
George F. Fink
CEO and Chairman of the Board
Bonterra Energy Corp.
Robb D. Thompson
CFO and Secretary
(403) 262-5307
(403) 265-7488 (FAX)
info@bonterraenergy.com
www.bonterraenergy.com
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