Opinions
James Rife
Painted Pony Energy
PONY-T
COMMENT
Aug 09, 2016
$8.330
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
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
Advertising
A natural gas producer, and one of the fastest-growing ones. They have gone from producing 5,000-10,000 barrels a day, to almost 40,000 by the end of this year. Have had huge growth and have used some leverage to achieve that, but gas prices are really, really strong this summer. The natural gas market needed that demand in order to have a storage reset, and it looks like we are getting one. Because of that, this company’s leverage metrics look a lot better, and can actually keep growing from 40,000 barrels a day onwards.