Opinions
Bill Bonner
Painted Pony Energy
PONY-T
TOP PICK
Jul 16, 2014
$12.210
Stock price when the opinion was issued
oil
gas
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
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.
oil
gas
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.
oil
gas
Feels there is still a ton more upside. Recently sold the genesis of the company, oily assets in Saskatchewan, to focus on the Montney play in Northeast BC. Montney offers some of the best economics in the Western Canadian basin, and this company has a significant land base there to take advantage of it. Originally budgeted about 20-21 wells this year, and they are going to be able to double that with the sale of the Saskatchewan assets. They are in the way of the big guys. Somebody is going to want to own those assets once they develop a little further. If they choose to develop them fully by themselves, they will get the cash flows and production levels that will impress the market.