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Seven Generations Energy LtdVII.TOBUYApr 04, 2017Stock price when the opinion was issued
As of Apr 07, 2021. Market Open.
He 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.
VII-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.
One of the best resource plays in North America. A well-run company. They’ve had some hiccups, but that is due to happen when you grow at the clip they are growing. It is everything from infrastructure to ability to grow wells, but what is not in question is the resource that is there right now.