BNPUF - Bonavista Q3 Earnings: The Debt Thread Despite Free Cash Flow
Bonavista Energy (OTCPK:BNPUF) released Q3 earnings. The company could stabilize the production while generating some free cash flow.
Compared to other producers, the company operates at low costs. But with the current Canadian oil and gas prices, the total netback margin is slim. And with some important debt expiring in 2020 and 2021, the company needs higher prices to negotiate the roll-over of the debt in good conditions.
Because of the debt and the limited free cash flow potential at current oil and gas prices, the flowing barrel valuation is low. But