Opinions Eric Nuttall
Kelt ExplorationKEL.TOCOMMENTNov 15, 2017
Stock 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
Has a management team he can’t speak highly enough about. They’ve created a tremendous amount of value. There is not a great enough rate of change to be able to justify it on a cash flow basis, you have to take more of an asset approach. They are still in the learning curve of delineating their acreage. Well results this year have been very good. Due to where they are drilling, they are getting more liquids and less natural gas. However, you are paying a bit of a premium relative to some of their peers. He finds other names a little more attractive.