Peter ImhofYangarra ResourcesYGR.TOWEAK BUYOct 26, 2018

EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the prior year, its FFO declined by 36%, and sales decreased by 28%. This was a tough quarter for the company, although it continues to carry a low net debt balance and generates positive free cash flow, but given the challenging oil market backdrop, we feel YGR may see some downside pressure in the near term. It trades at a cheap valuation, but we do not like its recent negative momentum. 
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He likes their growth prospects in the Alberta Cardium area and sees them as having the highest netback per share of any energy company. Their production will jump up sharply in the next two months and they should exit the year at 12,500 boed. They are at 8000 boed today. He likes how management does not issue equity and that growth is through the drill bit. Debt is manageable. Yield 0%. (Analysts’ price target is $7.69)

It is probably the top performing energy stock over a two year period. We are now starting to see quite an upturn in the commodity prices. He would continue to hold it if he did.

(A Top Pick May 25/17 Up 48%). This is his second largest holding. They continue to grow their production per share. They have amassed some great highly productive wells. Their cash flow should continue to grow, perhaps over $1 per share. They have the second highest netbacks in the industry.

A home run as one of the few energy stocks up over the past few years. Phenomenal management. His only concern is that he doesn't have a feel for their inventory depth and would love to drill down more about it. Also, YGR could be more freely traded. Otherwise, let it run. Looks atractive.

It has been a stellar performer. It was the top performer in ’16 and ’17. He has always felt it was running ahead of itself. He is watching it this year.