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Bellatrix Exploration, Ltd.

Oil & Gas Exploration

"Bellatrix Exploration Ltd is a Calgary, Alberta-based intermediate energy producer focused on exploration and development of light oil and liquids-rich natural gas opportunities in ...the Western Canada Sedimentary Basin.. The Company is focusing on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals in Western Canada. Both plays have thick resource rich reservoirs with exceptional subsurface control which have proven to be predictable and repeatable with the application of modern drilling and completion techniques".From the Website.

Bellatrix Exploration has been successful in recent weeks in selling off assets, raising capital and de-leveraging its balance sheet. With the November 7, 2016 announcement that Company closed the $47mn sale of non-core assets to a third party, and was able to pay off $12.9mn of non-Revolver debt outstanding. Moreover, the asset-based Revolver has undergone its semi-annual reset (always a worrying time for an energy company) and currently $75mn is drawn and $55mn is available. No other debt except the Revolver (which is due in 2017 but could get extended) is due for 4 years at least. The BDC Credit Reporter recently upgraded the Corporate Rating from a 4 to 3. This is Good News for the 4 FS Investment BDCs with $64mn in exposure in Subordinated Debt in the Company, due in 2020. The valuation trend is up. We expected the 32% discount to cost to narrow in the IIIQ 2016, and with two FS Investment companies reporting we've been proved right with the investments marked within 5% of par. A reading of the latest earnings Conference Call transcript underscores that there are operational challenges ahead, but in the short term things are good.