Bellatrix Exploration Ltd EBITDA Margin jumped on 190 pp from -116% to 74.4% in 2016 while Revenue dropped on 25.5%
15.03.2017 • About Bellatrix Exploration Ltd (
$BXE) • By InTwits
Bellatrix Exploration Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 74.4% in 2016, -115.8% in 2015, 89.6% in 2014, 83.6% in 2013, 58.6% in 2012
- Bellatrix Exploration Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 95.1%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 78.9 in 2016, 160 in 2015, 725 in 2014, 304 in 2013, 185 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bellatrix Exploration Ltd ($BXE) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 189.7 | 244.0 | 442.4 | 297.0 | 221.4 | -25.5% |
| Gross Profit | 55.6 | 81.4 | 124.3 | -536.6 | -40.8 | |
| SG&A | 14.3 | 16.2 | 25.4 | 23.4 | 19.9 | -14.8% |
| EBITDA | 111.1 | 203.9 | 396.2 | -344.0 | 164.6 | |
| Net Income | 27.8 | 71.7 | 163.1 | -444.2 | -26.7 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 1.4 | 1.5 | 1.6 | 1.6 | 19.1 | 1,071.5% |
| Long Term Debt | 196.9 | 298.7 | 559.9 | 681.2 | 362.1 | -46.8% |
Cash flow
|
|---|
| Capex | 185.3 | 303.7 | 725.0 | 159.6 | 78.9 | -50.6% |
Ratios
|
|---|
| Revenue growth | 14.2% | 28.6% | 81.4% | -32.9% | -25.5% | |
| EBITDA growth | 56.7% | 83.5% | 94.3% | -186.8% | -147.9% | |
| Gross Margin | 29.3% | 33.4% | 28.1% | -180.7% | -18.4% | 162.2% |
| EBITDA Margin | 58.6% | 83.6% | 89.6% | -115.8% | 74.4% | 190.2% |
| Net Income Margin | 14.6% | 29.4% | 36.9% | -149.5% | -12.0% | 137.5% |
| SG&A, % of revenue | 7.5% | 6.6% | 5.7% | 7.9% | 9.0% | 1.1% |
| CAPEX, % of revenue | 97.7% | 124.5% | 163.9% | 53.7% | 35.6% | -18.1% |
| ROIC | 6.9% | 13.0% | 13.7% | -31.8% | 2.1% | 34.0% |
| ROE | 7.6% | 11.2% | 15.2% | -43.2% | -3.2% | 40.0% |
| Net Debt/EBITDA | 1.8x | 1.5x | 1.4x | | 2.3x | 2.3x |
Bellatrix Exploration Ltd ($BXE) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 54 | 56 | 55 | 57 | -29.0% | -27.3% | -24.2% | -21.1% |
| EBITDA | 24 | 5 | 27 | 109 | -31.4% | -86.5% | | |
| Net Income | 19 | -55 | -14 | 23 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 2 | 157 | 13 | 19 | 1.6% | 9,632.6% | 692.9% | 1,071.5% |
| Long Term Debt | 678 | 480 | 460 | 362 | 7.3% | -30.9% | -31.4% | -46.8% |
Ratios
|
|---|
| Gross Margin | -24.1% | -25.2% | -18.6% | -6.5% | -8.4% | -20.5% | 39.1% | 653.9% |
| EBITDA Margin | 44.7% | 8.3% | 49.9% | 189.7% | -1.5% | -36.2% | 52.8% | 755.5% |
| Net Income Margin | 36.0% | -98.9% | -25.5% | 40.3% | 52.8% | -67.1% | 44.6% | 531.2% |
Revenue and profitability
Bellatrix Exploration Ltd's Revenue dropped on 25.5%. Annual revenue decline showed slowdown in 16Q4 - revenue dropped on 21.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 190 pp from -116% to 74.4% in 2016.
Gross Margin jumped on 162 pp from -181% to -18.4% in 2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 7.9% to 9.0% in 2016.
Net Income marign surged on 137 pp from -150% to -12.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 35.6% in 2016. Bellatrix Exploration Ltd showed big decline in CAPEX/Revenue of 88.8 pp from 124% in 2013 to 35.6% in 2016. Average CAPEX/Revenue for the last three years was 84.4%.
Return on investment
The company operates at low but positive ROIC (2.15%) and negative ROE (-3.19%). ROIC surged on 34.0 pp from -31.8% to 2.1% in 2016. ROE jumped on 40.0 pp from -43.2% to -3.2% in 2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA surged2.3x from to 2.3x in 2016. Debt dropped on 44.2% while cash didn't change in 2016.
Management team
Bellatrix Exploration Ltd's CEO is Brent Andrew Eshleman. Brent Andrew Eshleman is a founder and has 2 years tenure at the company. Edward John Brown is a The company's CFO. Edward John Brown has spent 12 years at the company.
Appendix 1: Peers in Energy
Below you can find Bellatrix Exploration Ltd benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | -18.4% | 141.2% |
| Seven Generations Energy Ltd ($VII) | | 115.7% | 340.2% | 39.0% | 94.4% |
| Athabasca Oil Corp ($ATH) | | 342.7% | 5.5% | -22.9% | 73.1% |
| Painted Pony Petroleum Ltd ($PPY) | | 41.3% | 56.0% | -42.5% | 60.7% |
| ONEnergy Inc ($OEG) | | | 6,002.6% | 231.5% | 57.4% |
| |
|---|
| Median (116 companies) | | 15.4% | 16.9% | -27.7% | -18.0% |
|---|
| Bellatrix Exploration Ltd ($BXE) | | 28.6% | 81.4% | -32.9% | -25.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($BOE) | 77.1% | 43.3% | -34.3% | 121.1% | |
| TransAlta Renewables Inc ($RNW) | | 94.4% | 94.5% | 94.5% | 91.1% |
| Serinus Energy Inc ($SEN) | 80.5% | 76.5% | 86.8% | 88.5% | |
| Advantage Oil & Gas Ltd ($AAV) | 62.0% | 84.5% | 92.5% | 88.5% | 90.3% |
| Polaris Infrastructure Inc ($PIF) | 39.9% | 33.6% | 32.0% | 86.7% | 88.6% |
| |
|---|
| Median (114 companies) | 32.0% | 32.1% | 32.4% | 33.9% | 32.5% |
|---|
| Bellatrix Exploration Ltd ($BXE) | 29.3% | 33.4% | 28.1% | -180.7% | -18.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($GXO) | 59.4% | 64.5% | 70.8% | 201.9% | |
| Perpetual Energy Inc ($PMT) | 35.5% | 70.7% | 58.0% | 110.3% | |
| Petro Rio SA ($PRJ) | -4,809.7% | -6,899.7% | 28.2% | 90.7% | |
| Peyto Exploration & Development Corp ($PEY) | 86.1% | 83.2% | 86.3% | 84.6% | 80.7% |
| Innergex Renewable Energy Inc ($INE) | 111.8% | 110.0% | 82.9% | 83.4% | 83.5% |
| |
|---|
| Median (128 companies) | 25.3% | 34.1% | 28.9% | 9.0% | 27.3% |
|---|
| Bellatrix Exploration Ltd ($BXE) | 58.6% | 83.6% | 89.6% | -115.8% | 74.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | 1,997.8% | 712.8% | |
| WesternZagros Resources Ltd ($WZR) | | | | 385.6% | |
| Athabasca Oil Corp ($ATH) | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% |
| TORC Oil & Gas Ltd ($TOG) | 453.8% | 466.9% | 104.5% | 229.4% | 76.3% |
| Seven Generations Energy Ltd ($VII) | 452.8% | 513.1% | 227.4% | 191.2% | 73.5% |
| |
|---|
| Median (129 companies) | 42.3% | 39.0% | 45.0% | 27.6% | 22.9% |
|---|
| Bellatrix Exploration Ltd ($BXE) | 97.7% | 124.5% | 163.9% | 53.7% | 35.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($ERF) | -17.3% | 10.2% | 11.5% | -55.5% | 16.3% |
| Whitecap Resources Inc ($WCP) | 7.1% | 8.1% | 9.6% | -10.6% | 10.1% |
| Ecopetrol SA ($ECP) | 29.3% | 24.4% | 16.5% | 3.0% | 9.6% |
| Parkland Fuel Corp ($PKI) | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| |
|---|
| Median (128 companies) | 3.6% | 5.4% | 5.5% | -8.2% | -1.9% |
|---|
| Bellatrix Exploration Ltd ($BXE) | 6.9% | 13.0% | 13.7% | -31.8% | 2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($PXX) | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x |
| Paramount Resources Ltd ($POU) | 14.6x | 23.9x | 8.9x | 421.5x | -5.8x |
| Precision Drilling Corp ($PD) | 2.2x | 1.9x | 2.0x | 68.4x | 7.6x |
| Trican Well Service Ltd ($TCW) | 2.5x | 3.4x | 2.9x | 31.4x | |
| Trilogy Energy Corp ($TET) | 2.6x | 1.8x | 2.3x | 25.5x | 7.3x |
| |
|---|
| Median (79 companies) | 1.5x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
