Opinions John O'Connell, CFA
Kelt ExplorationKEL.TOPAST TOP PICKOct 25, 2016
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
(A Top Pick July 13/15. Down 22.95%.) One of the top “go to” stocks in the oil/gas business. It has had a tough time because of the commodity, but they have come out of this downturn larger, stronger and better financed than it was 2 years ago. This has a very good growth profile and has enormous resources. It is right in the sweet spot of where everybody wants to be, in the liquids rich natural gas. A low-cost operator and has one of the largest exposures to land out there. For the last 3-years they have been accumulating a massive land package and growing their production. They are now in the development stage where you are going to start to see dramatic production growth.