Bonterra Energy Announces First Quarter 2026 Results and Operations Update

• Bonterra Energy Corp. reported First Quarter (Q1) 2026 financial and operating results on May 14, 2026.
• Funds flow was $23.5 million ($0.64 per fully diluted share), compared to $21.3 million in Q3 2025.
• Average daily production was 15,463 BOE/day, impacted by approximately 400 BOE/day of unplanned downtime.
• The company reaffirmed its full-year 2026 guidance: annual average production of 16,200 to 16,400 BOE per day and capital expenditures between $75 million and $80 million.
• Capital expenditures for Q1 were $38.0 million, with 92% directed to drilling, completion, and infrastructure.
• Adjusted net debt increased to $196.2 million, resulting in an adjusted net debt to TTM EBITDA ratio of 1.9:1.
• Field Netback was $22.36 per BOE; Cash Netback was $16.92 per BOE.
• Production costs averaged $17.17 per BOE.
• The Bonanza Charlie Lake asset production increased 108% year-over-year to approximately 3,632 BOE per day.
• Four new wells in Charlie Lake and one in Montney were brought online during the quarter.

• Guidance Reaffirmation: The news confirms execution against the guidance set in December 2025 and March 2026. Production targets are on track, though Q1 production (15,463 BOE/d) is slightly below the full-year target range (16,200-16,400 BOE/d), which is typical for seasonal ramp-up or unplanned downtime as noted in the report.
• Funds Flow: The $23.5 million funds flow represents a solid quarter and supports the company's ability to service debt and fund operations without immediate equity dilution. However, it does not represent a significant surprise over previous quarters (Q3 2025 was $21.3M).
• Debt Position: The increase in adjusted net debt from $179.0 million (Dec 2025) to $196.2 million (May 2026) and the rise in the Net Debt/EBITDA ratio from 1.6x to 1.9x is a risk factor. While still within manageable limits, it indicates leverage is increasing as they fund growth capex ($38M in Q1).
• Hedging Impact: The report notes a $20.3 million unrealized loss and $4.1 million realized loss on risk management contracts. This highlights volatility in their hedge book which could impact future cash flow if prices move against positions or if margins are required.
• Market Expectation: Given the NCIB approval in April 2026 and the acquisition closure in December 2025, this earnings release was largely priced into the stock price prior to the announcement (price peaked at $7.34 in late April). The slight pullback to $6.87 suggests the market viewed the results as "good but not great" relative to the run-up.
• Classification: Routine - Positive. The news validates the strategy laid out months ago without introducing new catalysts or significant deviations from expectations.

• Company: Bonterra Energy Corp. (BNE).
• Flagship Projects:
  • Charlie Lake Asset: Core production hub, recently expanded via the Bonanza acquisition (~760 BOE/d added). High productivity wells averaging 1,325+ BOE/d peak rates.
  • Montney Project: Wembley asset with consolidated 46,000 net acres; one well completed with a three-mile lateral.
  • Cardium Asset: Legacy production base undergoing water-flood projects and optimization.
• Development Status: Active drilling program with four new wells added in Q1 2026. Reserve life index is 19.4 years (TPP).