Opinions John O'Connell, CFA
Kelt ExplorationKEL.TOTOP PICKAug 11, 2014
John O'Connell, CFAStock price when the opinion was issued
As of Sep 03, 2026. Market Open.
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Significant breakout. Highs of 2014 were around $14-15, which is another ~30% upside from current levels. Pushing higher over the last couple of days, though other energy names have felt pressure. Smart $$ is long natural gas; if it does perform, will be an additional tailwind for this gassier exploration name. No dividend.
(Analysts’ price target is $12.39)
In the Montney. Very large land base and very good production. Inexpensive. Starting to execute and deliver. Moving from being more exploration-led to development-centric -- so it's more like a manufacturing process than variable (which exploration can be). No dividend.
(Analysts’ price target is $12.16)
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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John O'Connell, CFAJohn O'Connell, CFA
Very strong management team. Reporting earnings tomorrow and will probably be 11,000 BOE’s a day exit rate for the 2nd quarter. A year from now, they should exit at about 18,500 BOE’s a day and that’s with only 60% success of their drilling program, which is really conservative. Very conservative management team and they own big positions in the company. Debt-free. Have great lands.