Opinions
Eric Nuttall
Kelt Exploration
KEL-T
BUY
Jul 29, 2016
$4.460
Stock price when the opinion was issued
oil
gas
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
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.
Unlock Premium - Try 5i Free
oil
gas
People are warming up to nat gas. Oil rig counts are down and gas is a byproduct of oil exploration. Last week’s storage of nat gas was the lowest in 10 years. It is a hot summer. They are coming out with two exploration well results when they report next week. You have a management team that holds a lot of stock. Their debt is a little higher than many peers, but he does not view it as a problem.