Opinions
Eric Nuttall
Torc Oil & Gas Ltd
TOG-T
TOP PICK
Sep 25, 2013
$8.230
Stock price when the opinion was issued
oil
gas
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TOP PICK
TOP PICK
A huge laggard this year. It is trailing other names at 20-30%. They have not yet reinstated dividends. They should reinstate it early next year. At current levels, the stock trades at 14% free cashflow yield. At $50-$60 oil, it trades at 30%-60% free cashflow yield for dividends and buy-backs. (Analysts’ price target is $2.46)
oil
gas
PAST TOP PICK
(A Top Pick May 15/20, Up 189%) Was taken out by Whitecap. Whitecap is now a net-negative emitter. They inject CO2 into the ground. From an ESG perspective, it is a great candidate. They are scaling up to increase market cap. Bigger you are, more radar screens you hit. Whitecap could trade at 6x which is $8.40.
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gas
PAST TOP PICK
(A Top Pick Jun 19/20, Up 82%) Was bought by Whitecap two months ago. Was bought at an attractive valuation. Would continue to own Whitecap.
oil
gas
PAST TOP PICK
(A Top Pick Aug 06/20, Up 78%) Was purchased by Whitecap. Was offering very meaningful upside. Still likes the management team and would support them in the future.
oil
gas
This is the most recent convert to a dividend paying model and what he likes is that management has about $47 million invested. Have used very conservative estimates for building the business model to figure out payout ratios. On the payout ratios, he has them spending 96% on cash flow and at the same time they are growing at about 8% with a 6% yield. Drill results they are achieving in the Cardium as well as their Monarch play and a potential play in the 3 Forks is going to allow them to increase guidance in the next couple of months to increase the dividend.