John Stephenson
Find Energy Ltd.
FE-T
BUY
Jan 25, 2006
Trading at about 3.9 X enterprise value to EBITDA compared to the peer group which is 4.8. Trades at about 25% discount to the peer group. Very good management team.
A big fan of this one. Expanding their facility at Pembina West to 50 million. Did 3246 BOE’s a day last year, exited at 5100 and he is using 6000 in his model and exiting at 8000 this year which gives cash flow of $1.85. Could be a takeover target.
Westerly Canadian natural gas selling at a discount to net asset value. Has a clearly defined strategy to go forward. Great management and well-financed.
Should be a core holding in your junior group. Has one of the most capital efficient frameworks. Has lots of prospects. On a multiple/cash flow basis, it is trading well below the group. Expects there will be much higher gas prices.
Being acquired by Shiningbank Energy (SHN.UN–T). If you own, tender to the offer and move on to something else. This was more of an exploration company and Shiningbank is more for an income-oriented account.
(A Top Pick July 27/05. Up 81%.) Being acquired by Shiningbank (SHN.UN-T). He would take the offer and sell. Consider Duvernay (DDV-T) as an alternative.