Opinions
Allan Meyer
Kelt Exploration
KEL-T
DON'T BUY
Feb 05, 2016
$3.750
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
Thinks oil is close to a bottom and you can start picking your favourites out, but he would not be buying oil/gas companies right now. We still have an extended period of time, maybe the rest of the year, before we have a sustained movement up. This is not a bad company and has a decent track record, but these companies are not making money.