Opinions Dennis da Silva
Kelt ExplorationKEL.TOTOP PICKApr 05, 2017
Dennis da SilvaStock 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
Liquids rich gas. A well-regarded management team. Impeccable track record of execution. They focused on acquiring their 640,000 acres through the downturn. They weren’t focused on costs and efficiencies yet. Thinks 2017 will be a critical year where they now refocus their attention on cost efficiencies and show people the prospectivity of the land. NAV is quite high and people were wondering when they were going to grow into that, and he thinks 2017 is the start of that. (Analysts’ price target is $8.75.)