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Seven Generations Energy LtdVII.TOWEAK BUYJul 05, 2018Stock 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.
It was a darling. They had some misses. They have wet gas. This is a great way to play the Montney. Longer term if you believe in energy this is a name to look at.