Opinions
John O'Connell, CFA
Kelt Exploration
KEL-T
TOP PICK
Dec 05, 2013
$9.500
Stock price when the opinion was issued
oil
gas
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BUY
Has always been an aggregator of plays and then sells them. Just sold their anchor property. Currently developing their Oak property to sell in the future. They have good liquids exposure. Trades at a modest premium with 3.6x enterprise value to cashflow next year at $60 oil. A very unique story. Buying for the potential value of their future plays. Good candidate for the ESG movement.
oil
gas
BUY
He's ashamed to say he's owned this for a long time. He believes in management which owns a lot of shares. They allocate capital well. They find hydrocarbons and have a great track record selling those. A year and a half ago they sold half their production for more than the enterprise value of the whole company. They now have a great balance sheet and are growing their production in nat gas (in NE B.C.).
oil
gas
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
KEL has strong drilling activity and currently no debt.
We have KEL in the growth model portfolio, and we like it for its diversification benefits, being in the oil and gas sector.
It is a strong name with a good balance sheet and healthy profit margins.
It trades at a 1.0X price to book, and a 7.5X forward P/E.
KEL does not pay a dividend.
KEL is a good name for strong consistency, low debt levels, and a strong balance sheet.
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oil
gas
Hoping that this is the next Raging River (RRX-T).(See Past Picks.) Production has gone from 4500 barrels per day to just under 10,000 barrels per day and thinks they will be growing production at a pretty rapid rate. Pristine balance sheet. Not paying a dividend but is growing internally at around 25% production growth per annum per share. Expects to see this at $12 in 12 months.