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Bellatrix Exploration, Ltd.

Oil & Gas Exploration
Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) is a publicly traded Western Canadian based growth oriented oil and gas company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves, with highly concentrated operations in west central Alberta, principally focused on profitable development of the Spirit River liquids rich natural gas play.
Common shares of Bellatrix trade on the Toronto Stock Exchange (“TSX”) and on the New York Stock Exchange (“NYSE”) under the symbol “BXE”. Bellatrix was incorporated in Alberta, Canada and the Company’s registered office and principal place of business is located at 1920, 800 - 5 th Avenue SW, Calgary, Alberta, Canada, T2P 3T6.

BDC Credit Reporter View

We noted that the Company's stock price had dropped to a new low shortly after reporting IIIQ 2018 results. We also read a useful Seeking Alpha article that indicated profitability is challenged and a wall of debt hits in 2020 even as EBITDA is eroded by lower production; high capex and lower prices. All ingredients sufficient to put Bellatrix back on the Watch List from which the Company had been removed after IIIQ 2018 debt valuations improved from a 30% discount to par. Thankfully, there is no immediate risk of default as the Company is operating well within its newly reset debt covenants, but our job is to look down the road to when the debt matures in 2023, but which has a built in catalyst point in 2020.  All debt is held by  FS Investment Group BDC entities, especially its energy-focused fund. The group just increased its exposure from $79mn to $104mn, and has a second lien on all the Company's assets.