Tuesday, June 7, 2016

Potential Donut: Bonanza Creek Energy, Inc.

Small E&P: "Our operations are mainly focused in the Wattenberg Field in the Rocky Mountain region and in the Dorcheat Macedonia Field in the Mid-Continent region."

Market cap $144 million.

The 6.75% note (due 4/15/2021) trades at 40, ytm of 32%. The 5.75% note (due 2/1/2023) trades at about the same dollar price, ytm of 25%. As you can see the yield curve is inverted.

The enterprise value is approximately a billion dollars as of right now. 

The PV-10 at the end of 2015 (using $50.28 per Bbl WTI and $2.59 per MMBTU HH) was only $329 million, down from $1.1 billion at the end of 2014.


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