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Opinions Eric Nuttall
Painted Pony EnergyPONY.TOBUYDec 07, 2012
Eric NuttallOwned
$10.11
Stock price when the opinion was issued
$0.69
As of Oct 08, 2020. Market Open.
oilgas
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DON'T BUY
He is bullish on Albertan-based natural gas because we have declining production and supply, increased take away capacity and inventories are at a 10 year low. The winter will eventually come and then there is the prospect of depleting storage. A lot of Nat gas companies have hedged away their Alberta gas exposure. Pony still leaves him a little uncomfortable, however. He likes BRK-T, TOU-T and ARX-T. The balance sheet of PONY-T leaves him pause.
oilgas
BUY
They have significant assets in the core area that will benefit from LNG. They had a tough second quarter and production came in because they shut in some production. The fourth quarter is going to be good. He thinks they can buy down debt next year. It is a higher beta stock and not owned by institutions. They could be a takeover candidate 3 or 4 years down the road.
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BUY
Results are not out yet because of a pipeline issue on the West Coast of BC. He thinks their volumes will pick up again as the pipeline issues are resolved. It is a very cheap stock at one and a half times cash flow. We need LNG takeaway capacity on the west coast, which will benefit them in 2024. We are probably going to have the lowest storage levels in a long time in North America due to cold weather. And Canadian Nat Gas prices are above $3 right now. It looks like cold weather will go on a little longer.
oilgas
With the takeover of Progress Energy (PRQ-T), Monday is going to be a great day for this stock. This is clearly about West Coast LNG, which is a huge theme going forward for Canada. This stock is the next most logical takeout candidate to provide feedstock for one of the eventual terminals that is going to be built. It’s not a question of “if” but “when” and 2013 could be that time period. Just acquired the Kobes assets from Crew Energy (CR-T). Believes this will move upward in the high teens to $20.