Bonterra Energy (TSX: BNE) has released its guidance for 2025, indicated that it expects to maintain average annual production levels between 14,600 and 14,800 barrels of oil equivalent a day, with weighting of 52-54% to oil and liquids.
The data was released within a preliminary 2025 budget, which expects to see capital expenditures in a range of $65 to $75 million, which will be fully funded by internally generated funds flow. Abandonment and reclamation obligations are estimated to cost $8 million.
In terms of capital expenditures allocations, 60% of expenditures are expected to be utilized towards the Charlie Lake core area, with 6 gross wells (5.4 net) to be completed, along with infrastructure projects to support long term development of the area. The Cardium core area will see 25% of the expenditures allocated towards it, with a focused on drilling and completion activities for the highest return projects, and 15% will be spend on infrastructure and facilities improvements.
Funds flow meanwhile is expected to be between $108 to $112 million, which translates to between $2.89 and $3.00 per share. Free funds flow is estimated at $32 million, or $0.86 per share, for 2025, resulting in a 26% free funds flow yield.
The guidance provided is based on US$70 per barrel WTI and US$2.25 per GJ of AECO natural gas. Translated to Canadian dollars, Bonterra is estimated a realized average price of $50.36 per BOE.
Hedges have been placed on 34% of expected crude oil and 22% of expected natural gas production, net of royalties, through to the third quarter of 2025. An additional 8% of production hedges are expected to be layered on through the remainder of the year. Prices secured are in the range of US$60 to US$96.35 per barrel on 1,828 barrels per day for oil, along with $1.75 to $3.30 per GJ of natural gas, on 9,121 GJ per day.
“While continuing to prudently develop our high-quality, oil-weighted asset base, we intend to focus on debt repayment in 2025, a key initiative in supporting our ultimate goal of implementing a sustainable return of capital to shareholders,” commented Patrick Oliver, CEO of Bonterra.
Bonterra Energy last traded at $3.40 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
