BXE - Bellatrix Exploration Urgently Needs Better Gas Prices
The small Canadian gas producer Bellatrix Exploration (BXE) will have to refinance its $240M debt before it expires in May 2020. Considering its high operating costs, and due to the drop of gas prices in Canada since 2014, the company is not generating any free cash flow while keeping production flat.
Before the company can refinance its debt in acceptable terms for shareholders, BXE needs to generate some cash by improving its margins, selling some assets, getting lucky with higher consistent gas prices, or being acquired.
Considering the debt deadline and the uncertainties,