The Company Achieves Record Production, Reduces Net Debt and Raises Production Guidance with Lower Capital
CALGARY, AB, Aug. 14, 2025 /CNW/ – Bonterra Energy Corp. (TSX:BNE) (“Bonterra” or the “Company”) is pleased to announce its financial and operating results for the three and six months ended June 30, 2025. The related unaudited condensed financial statements and notes for the second quarter, as well as management’s discussion and analysis (“MD&A”), are available on SEDAR+ at www.sedarplus.ca and on Bonterra’s website at www.bonterraenergy.com.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
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Three months ended |
Six months ended |
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As at and for the periods ended |
June 30, |
June 30, |
June 30, |
June 30, |
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FINANCIAL |
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Revenue – realized oil and gas sales |
64,185 |
72,465 |
134,875 |
141,054 |
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Funds flow (1) |
23,092 |
31,484 |
50,727 |
58,502 |
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Per share – basic |
0.63 |
0.84 |
1.37 |
1.57 |
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Per share – diluted |
0.62 |
0.84 |
1.35 |
1.57 |
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Cash flow from operations |
29,996 |
33,180 |
59,610 |
54,834 |
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Per share – basic |
0.81 |
0.89 |
1.61 |
1.47 |
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Per share – diluted |
0.80 |
0.89 |
1.58 |
1.47 |
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Net earnings (loss)(2) |
(1,313) |
7,310 |
(8,923) |
8,158 |
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Per share – basic and diluted |
(0.04) |
0.20 |
(0.24) |
0.22 |
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Capital expenditures |
6,351 |
21,619 |
38,801 |
54,543 |
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Oil and gas property acquisition(3) |
– |
– |
– |
24,234 |
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Total assets |
949,202 |
984,065 |
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Net debt(4) |
169,938 |
172,622 |
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Bank debt |
29,614 |
41,889 |
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Shareholders’ equity |
530,935 |
537,498 |
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OPERATIONS |
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Light oil |
-bbl per day |
6,794 |
6,571 |
6,671 |
6,596 |
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-average price ($ per bbl) |
79.85 |
102.09 |
85.39 |
95.50 |
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NGLs |
-bbl per day |
1,508 |
1,418 |
1,593 |
1,443 |
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-average price ($ per bbl) |
42.58 |
45.08 |
44.05 |
45.58 |
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Conventional natural gas |
– MCF per day |
48,584 |
37,519 |
47,493 |
37,057 |
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– average price ($ per MCF) |
2.03 |
1.64 |
2.22 |
2.14 |
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Total BOE per day (5) |
16,399 |
14,242 |
16,179 |
14,216 |
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(1) |
Funds flow, while not recognized under IFRS®, is used by management to assess the Company’s ability to generate cash from operations. 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. |
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(2) |
Net loss for the six months ended June 30, 2025, primarily reflects a one-time debt extinguishment cost of $11.6 million. |
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(3) |
On March 1, 2024, the Company acquired the Charlie Lake Assets for cash consideration of $23.6 million and $0.3 million in non-core mineral rights, including closing adjustments. The Charlie Lake Assets has been accounted for as an asset acquisition, which resulted in an increase of $24.2 million in PP&E and the assumption of $0.3 million in decommissioning liabilities. |
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(4) |
Net debt is not a recognized measure under IFRS. The Company defines net debt as current liabilities less current assets plus long-term bank debt, subordinated debentures, subordinated term debt and subordinated notes. |
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(5) |
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. |
FINANCIAL & OPERATING HIGHLIGHTS
- Production averaged record levels for the fourth consecutive quarter, reaching 16,399 BOE per day in Q2 2025, a 15 percent increase from 14,242 BOE per day in Q2 2024. This growth was driven by the success of Bonterra’s drilling results to date in the Charlie Lake and Montney. Accordingly, the Company has increased its 2025 annual production guidance to a range of 15,000 to 15,200 BOE per day from its original guidance range of 14,600 to 14,800 BOE per day.
- Funds flow1 totaled $23.1 million ($0.62 per diluted share) in the second quarter of 2025.
- Field netback and cash netback1 averaged $21.28 per BOE and $15.47 per BOE during Q2 2025, respectively, with WTI crude oil prices averaging US$63.74 per barrel and AECO natural gas prices averaging $1.68 per mcf.
- Production costs averaged $16.44 per BOE in Q2 2025, a decrease of 8 percent from Q1 2025, subsequent to a successful Cardium well reactivation program in the first quarter.
- Capital expenditures1 totaled $6.3 million in the quarter and $38.8 million in the first six months of 2025, with $20.4 million allocated to the drilling, completion and tie-in of five gross (4.7 net) operated wells in the Charlie Lake and Cardium. An additional $18.4 million supported infrastructure, non- operated activities and development of a new battery and water disposal well to further develop the Charlie Lake play. Production outperformance driven by its first half capital program has allowed the Company to lower its full year capital guidance range to $65 to $70 million from the original guidance range of $65 to $75 million.
- Net debt1 totaled $169.9 million as at June 30, 2025, a decrease of 9 percent from Q1 2025 resulting in a 1.3x net-debt-to-EBITDA multiple.
- Normal Course Issuer Bid initiated in April, and during the six months ended June 30, 2025, Bonterra purchased 491,500 common shares (1.3% of the total outstanding shares on December 31, 2024) for cancellation at an average price of $3.50 per common share.