Opinions John O'Connell, CFA
Kelt ExplorationKEL.TOCOMMENTAug 28, 2015
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
One of the largest positions in his funds, and he hasn’t sold a single share. It has all the right attributes to be investing in the energy business, because you just don’t know what is going to happen to commodities within a one year period. Strong, strong management team. Low cost resource with a lot of it. Also has a very strong balance sheet. Have been able to take advantage of this weakness to add to its landholdings at very, very attractive metrics. Debt to cash flow ratio is very compelling. Has been able to grow production substantially over the last number of years. It will grow production in a prudent manner.