Stock price when the opinion was issued
Correction over the past 2 months in price of oil and stocks. Price of oil has bounced back, but not the stocks. Now in a holding pattern, with support around $5.25 and resistance $5.75. He sold as he saw the correction unfold. In his universe, other energy stocks are more highly ranked right now.
Buy any dip. They will modestly grow production over 5 years and buy 68% of shares at the current oil price; at $80 they could almost privatize. At $70 oil in 5 years, they will free cash flow at the current share price. Has 50 years of stay-flat inventory. At flat oil, will go from 3.9x cash flow this year, 3.2x in 2026 and 0.3x in 2029.
(Analysts’ price target is $6.42)
Has sold some shares, but still owns. At current oil price, company able to buy back shares. Debt free company that is hitting all target metrics. Great management team will good long term outlook.