Joanne A. Hruska, CFAEndev EnergyENE.TOBUYApr 14, 2008
Cheap. Good management good assets. Seniors, intermediates and larger juniors have moved and the smaller juniors will now start to move. This will be one of the ones. Starting a new play in the Manville (?) formation, which is starting to work. If there is continued success here, the stock could be $1.50.
Compelling valuation. NAV is easily $1.75 or even $2 if you want to plan on a bigger gas price. Have a huge land package. Could be a takeover target down the road.
Really respects management. They were shallow gas players and are breaking out of that. Thinks that some of the junior gas plays are starting to follow the intermediates up. Really cheap.
Trading at 2X cash flow and have started a buyback program. Analysts are looking for a much higher price. More exposed to gas in the past and are trying to exploit more of their oil assets for a more balanced approach. More growth expected.
A gas producer. Has a lot of long-life properties around the Medicine Hat area. Have been increasing production more recently. Has suffered with softer gas prices. Buy this on low gas prices.
Endev Energy is in the shallow area of S.E. Alberta. He is concerned that the company has not had the increase in production. Decline rates have been high. They are spending lots of money. He is researching this stock at this time and waiting to see the results of the end of the year. Not convinced the company has executed the way they should have.
Mainly a gas driller in south/east Alberta. The growth has been very good recently. Have recently added more production. A more conservative, slower growth pattern.
Has gone through some various management changes. Had a reconstruction reorganization. Numbers have been looking better on the production side. Has some potential looking into late summer and fall.
Have a very big acreage in SE Alberta. Good growth in BOE's a day. Should be doing about $0.50 in cash flow by the end of this year. Have a shallow cash field and are trying to go deeper.
Recommending it to clients at this price. Finally has some decent growth. New management team. Sees them averaging about 4200 BOE's a day, may be exiting at 4700/4800 which would be a record volume. Using $0.38 cash flow for the year, $0.45 by the end of the year.
Doing about 4500 BOE's a day at the end of the year. Will be flat for the next couple of quarters. Expects them to exit at 5200 BOE's. They plan on going deeper. Balance sheet is in pretty good shape.
A turnaround story. They stumbled 1 1/2 years ago while bringing on a shallow gas play in Medicine Hat. Management has been changed for people who know the area. Will be going for deeper wells. Production has gone higher than he expected. Feels they will exit the year with 5,200 BOE's a day and $0.44 cash flow.