Oaktree Capital Management acquired a new holding in Bellatrix Exploration Ltd. (BXE, Financial) on Oct. 4.
Oaktree was established in 1995 in Los Angeles. The firm is involved in less efficient markets and alternative investments. It invests mostly in debt, preferred stocks and convertible bonds.Â
The firm purchased 18,750,000 shares for 81 cents per share. The transaction had an impact of 0.6% on the portfolio.
Bellatrix is an oil and gas exploration and production company operating in Western Canada’s Sedimentary Basin. The company is headquartered in Calgary, Alberta.
The company has a market cap of $199.7 million with an enterprise value of $719.2 million. It has a price-book (P/B) ratio of 0.3 and a price-sales (P/S) ratio of 0.7.
GuruFocus ranked the company’s financial strength 3 of 10. Both its Piotroski F-Score and Altman Z-Score are low, indicating a poor financial condition.
GuruFocus ranked Bellatrix’s profitability and growth 5 of 10. The company’s operating margin and net margin are negative. The company’s return on equity (ROE) of -39.13% and return on assets (ROA) of -21% underperform 62% and 57% of other companies in the global oil and gas exploration and production industry. Similarly, its return on capital (ROC) of -27.5% underperforms 51% of other companies in the industry.
Oaktree is Bellatrix’s largest shareholder among the gurus with 8.8% of outstanding shares, which is 0.6% of their total assets managed. Ronald Muhlenkamp (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also hold positions.
Bellatrix is the newest oil stock in the firm's collection of eight oil & gas stocks. Other notable holdings include WPX Energy (WPXP, Financial), Contango (MCF, Financial), Southwestern Energy (SWNC, Financial) and EXCO Resources (XCO, Financial). Energy stocks have a 7% weight on the portfolio.
The DCF Calculator gives the stock a fair value of $-18.25; it was trading at 93 cents on Monday.
Disclosure: I do not own stock in any companies mentioned in the article.
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