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Opinions Swanzy Quarshie
Seven Generations Energy LtdVII.TOTOP PICKSep 16, 2016
Swanzy QuarshieStock price when the opinion was issued
As of Apr 07, 2021. Market Open.
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Eric NuttallEric NuttallEric NuttallHe thinks natural gas will be the energy of the future. He is not an energy expert. He has gone with Peyto. Consider taking small positions when there are big market down days. But they must be good companies that will survive. 7 out of 10 of these companies may go under. Think of them as call options.
Brian Acker, CAVII-T vs CR-T? He would stay away from CR-T due to its debt level. VII-T has a good management team, but its slow down in growth highlighted their 50% decline rates in existing assets. This causes too much of their cash flow to still be required for maintenance. He would prefer NVA-T, which trades at a lower multiple of cash flow, has a better balance sheet, and lower decline rates on production.
Eric Nuttall
Still sees more upside in this story. It is a cheaper way to play gas, because at $50 oil essentially their gas “break even” is zero. For them, gas really is a by-product. As well, their gas is piped to Chicago, which makes her a little more comfortable than the gas that is in Western Canada. They bought Paramount’s assets. The company has an excellent track record of execution and there is more upside in terms of more upside in the drilling they are going to have on the Paramount lands. It gives them a lot of running room for future growth. A well priced story.