Bonterra Energy Announces Third Quarter 2025 Financial Results and Operations Update

Executive Summary

• Bonterra reported Q3 2025 funds flow of $21.3 M ($0.58 per diluted share) and nine‑month funds flow of $72.1 M, down from the prior year due to lower realized crude prices and a one‑time $11.6 M debt extinguishment cost.
• Production averaged 15,600 BOE/d for the first nine months of 2025 (up 7% YoY); Q3 production was 14,460 BOE/d with modest additions from Cardium wells.
• Capital expenditures totaled $53.6 M in the nine‑month period, primarily on infrastructure, land acquisitions and drilling 15 gross (8.4 net) wells; Q3 capex was $14.8 M focused on a three‑well Charlie Lake pad.

Key Details

• Financial Highlights
• Revenue (realized oil & gas sales): $55.2 M (Q3) vs. $69.2 M (YoY).
• Net loss Q3: $(3.6 M); nine‑month net loss: $(12.5 M), driven by debt extinguishment.
• Cash flow from operations Q3: $8.3 M; nine‑month: $68.0 M.

• Net debt as of Sep 30 2025: $167.8 M (down $2.1 M YoY); net‑debt/EBITDA ratio 1.4×.

• Production & Operations

• Light oil production Q3: 6,051 bbl/d (avg price $81.92).
• NGLs Q3: 1,353 bbl/d (avg price $40.42).
• Conventional gas Q3: 42,336 MCF/d (avg price $1.16).

• Total BOE/d Q3: 14,460; nine‑month average 15,600 BOE/d.

• Drilling & Well Activity

• Q3 added 5 gross (0.7 net) non‑operated Cardium wells; no new operated wells.
• Charlie Lake pad (3 gross, 2.7 net wells) drilled in Q3; two wells in early post‑completion phase, third expected Q1 2026. Net production from Charlie Lake Q3 ≈ 1,900 BOE/d.

• Montney “4‑28” well now producing ~530 BOE/d (185 bbl oil, 1.7 MMcf gas, 65 bbl NGL); cumulative 12‑month production: 87,600 bbl oil, 680 MMcf gas, 24,400 bbl NGL. Net Montney Q3 production ≈ 950 BOE/d.

• Capital Program

• Total nine‑month capex $53.6 M (22.7 M infrastructure/land; 30.9 M drilling).
• Q3 capex $14.8 M – three‑well Charlie Lake pad and Cardium infrastructure.

• Planned Q4 2025: drill 1 gross Montney well; complete & tie‑in 2 gross (1.8 net) Charlie Lake wells.

• Normal Course Issuer Bid (NCIB)

• Authorized to repurchase up to 3,199,449 shares (≈10 % float) Apr 15 2025 – Apr 14 2026.

• Shares purchased YTD: 737,700 at avg $3.54 per share; all cancelled.

• Credit Facility

• Revolving credit facility renewed & increased to $125 M on Apr 30 2025 (lower spreads, no covenants).

• Drawn amount as of Sep 30 2025: $26.0 M (down from $46.2 M Dec 31 2024).

• Risk Management

• Physical delivery and cost‑less collar contracts lock ~43 % of expected oil and 30 % of gas production through Jun 30 2026.
• Oil collars: $55–$75.5 USD per barrel for 2,169 bbl/d; additional $60.04 USD/bbl for 500 bbl/d (H2 2026).

• Gas collars: $1.75–$3.30 GJ for 11,284 GJ/d (through Jun 2026) and $3.10–$3.30 GJ for 6,679 GJ/d (H2 2026‑Q1 2027).

• Outlook & Guidance

• Maintains 2025 production guidance: 15,000–15,200 BOE/d.
• Capital expenditure guidance unchanged: $65–$70 M for 2025.
• Focus on free funds flow generation, debt repayment, NCIB funding and evaluation of strategic acquisitions.

Notable Quotes

• “I am encouraged with the progress made and the successful pivot and integration of our high impact plays in the Charlie Lake and Montney complementing our legacy Cardium asset,” – Patrick Oliver, President & CEO.
• “Step change improvement in capital efficiencies have positioned the Company for future growth and free funds flow generation at a wider range of commodity prices.” – Patrick Oliver.