BXE - Bellatrix Exploration: Restructuring Risk Increases Due To Continued Low Natural Gas Prices
Bellatrix Exploration (BXE) is a smaller Canadian natural gas producer that faces some significant upcoming debt challenges with its $250 million USD May 2020 unsecured debt maturity. Canadian natural gas prices have sharply fallen over the past year, but Bellatrix's 2018 outlook is partially saved by its hedges. However, it is still not able to increase production within cash flow with those hedges and is currently unhedged in 2019. This results in significant restructuring risk since the natural gas market may not leave it in a position to deal with its 2020 debt.