Opinions Jeff Parent B. Eng. FCSI CIM
Kelt ExplorationKEL.TODON'T BUYMar 13, 2018
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
You might want to make a small purchase on this. It has been trading between $6 and $7.50, so it is near the lower end of that range now. At this level, you can think of this as a trading stock. Use a tight stop at $6. Generally he is negative about energy stocks at this point. There is a lot of risk with this, and not a lot of positive fundamentals. Be willing to sell quickly and expect to make about 50 cents. There are many other trading opportunities that he likes better and he would not be trading this.