Eric Nuttall Paramount Resources POU-T COMMENT Mar 06, 2020

Well respected CEO with Jim Riddell.
Tightly held company within Riddell family.
Company roughly debt free.
Seeing meaningful upside. 
Potentially 100% upside in share price.

The oil and gas sectors are good for the long term and increased demand. They are volatile in the short term. There is slow but steady U.S. shale deposit exhaustion. The long term fundamentals of Paramount Resources are good.     Buy 7   Hold 3   Sell 0

Also owns drilling and service rig business.
Debt free which is good.
Has been buying shares.
Excellent company with strong management team.
Lots of insider ownership.

Very smart CEO. Hunting for an acquisition. Until that happens, he prefers other names. Trades at 3x at $80 oil. Only 7% free cashflow yield, as they are pursuing growth. Not the most liquid name, tough to buy.

Good management and track record. They focus on LNG in the deep basin of Alberta. He's bullish energy. Are in the middle of a parabolic move. Benefits from nat gas paving the energy transition into renewables. The new LNG terminal can ship Canadian LNG internationally.

His first natural gas recommendation in ages. It will be a long, strategic holding. Based on $4 natural gas next year, this will be the least expensive North American stock. The CEO owns 45% of the company and he's methodically about M&A. Without recent acquisitions, they'd be debt free. He hopes they buy a countercyclical buy in gas. Maybe they can. Are not buying back shares, but growing production 10% annually. Pays a 4% dividend. Projects 72% upside.

A strong balance sheet and a safe, nice dividend. Cheap, trading slightly above its book value. Sees a lot of upside.

Likes. Lack of liquidity, as so much of the family owns it. Good management, great assets. Next to NVA, offers highest leverage to increasing nat gas prices in 2025.

Owns small amount of shares. CEO very good at finding oil. Company has large amount of insider ownership. Contrarian leadership. Currently trading at discount to NAV. Very strong dividend yield, building cash flow and buying back shares. Good value in other energy names, but is a quality company. 

Sold assets, which crystallized massive value. This is their forte. Some of that windfall will make its way back to shareholders. You have to believe in their vision. He sold too early.