Raging River Exploration

RRX-T

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This company is not ACTIVE.

Analysis and Opinions about RRX-T

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
March 8, 2019
(A Top Pick Mar 15/18, Down 2%) It was acquired by Baytex. Baytex remains his largest holding. It is extremely undervalued. They beat on Q4 and expect Q1 to be a beat. It is at a 24% free cash flow yield. No issues with balance sheet.
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(A Top Pick Mar 15/18, Down 2%) It was acquired by Baytex. Baytex remains his largest holding. It is extremely undervalued. They beat on Q4 and expect Q1 to be a beat. It is at a 24% free cash flow yield. No issues with balance sheet.
PAST TOP PICK
PAST TOP PICK
November 14, 2018
(A Top Pick Feb 02/18, Down 57%) She recommended it on the date of the announcement of the Baytex intent to acquire Raging River and sold on the announcement of the date of the takeover. Therefore, Raging River no longer exists.
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(A Top Pick Feb 02/18, Down 57%) She recommended it on the date of the announcement of the Baytex intent to acquire Raging River and sold on the announcement of the date of the takeover. Therefore, Raging River no longer exists.
HOLD
HOLD
September 14, 2018

Raging River had good light oil assets but issues with decline rates. Baytex shareholders were comfortable with the debt, given the torque to heavy oil differentials. Mashed together, it has allowed the concerns over BTE-T debt levels to be abated and is opening doors for new opportunities.

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Raging River had good light oil assets but issues with decline rates. Baytex shareholders were comfortable with the debt, given the torque to heavy oil differentials. Mashed together, it has allowed the concerns over BTE-T debt levels to be abated and is opening doors for new opportunities.

HOLD
HOLD
June 29, 2018

Part of Baytex, good way to get exposure to Eagleford as well as Canada. Bought Raging River, multiple is in line, and they have decent growth. Hold your shares if they get rolled into Baytex. Market thinks they overpaid, but if you buy good rocks, you’re going to get a good result.

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Part of Baytex, good way to get exposure to Eagleford as well as Canada. Bought Raging River, multiple is in line, and they have decent growth. Hold your shares if they get rolled into Baytex. Market thinks they overpaid, but if you buy good rocks, you’re going to get a good result.

DON'T BUY
DON'T BUY
June 18, 2018

BTE-T vs. RRX-T. RRX-T has been taken out by BTE-T. One analyst says you will now own a company with a much higher debt. BTE-T is a zombie company because of debt. 78% debt to equity last time he talked about it. After the deal RRX-T will have a huge increase in production. If you believe in $80 oil by year end then this a good leveraged play on oil. He thinks we will below $60, the problem is that this stock is too levered. It will be at 75% debt to equity. The market is voting negatively on the deal.

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BTE-T vs. RRX-T. RRX-T has been taken out by BTE-T. One analyst says you will now own a company with a much higher debt. BTE-T is a zombie company because of debt. 78% debt to equity last time he talked about it. After the deal RRX-T will have a huge increase in production. If you believe in $80 oil by year end then this a good leveraged play on oil. He thinks we will below $60, the problem is that this stock is too levered. It will be at 75% debt to equity. The market is voting negatively on the deal.

WATCH
WATCH
June 11, 2018

This is a bit of a different story because they announced strategic alternatives. It helps when a management team owns so much of the stock. The process should be completed within a month. They will probably find a buyer for one of their assets. He sold this name a month ago. As it sells off it is getting increasingly compelling.

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This is a bit of a different story because they announced strategic alternatives. It helps when a management team owns so much of the stock. The process should be completed within a month. They will probably find a buyer for one of their assets. He sold this name a month ago. As it sells off it is getting increasingly compelling.

DON'T BUY
DON'T BUY
May 18, 2018

There is a positive trend for the energy sector. There should be some sort of digestion from here. Geopolitical risk. The pick seasonal strength for the sector is really coming to an end now. Over the short term expect some consolidation. Technically shows that $7.16 is a better price to buy this.

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There is a positive trend for the energy sector. There should be some sort of digestion from here. Geopolitical risk. The pick seasonal strength for the sector is really coming to an end now. Over the short term expect some consolidation. Technically shows that $7.16 is a better price to buy this.

STRONG BUY
STRONG BUY
May 4, 2018

This offers the highest torque of any energy stock to rising oil prices, so he likes owning this one. The one knock is that they have been a one trick pony in the Viking area with a decline rate of 40%. They acquired a lot of cheap acreage in the Duvernay region to help diversify. The question is, is the new play going to do well? The CEO has $120 million of his own money in this and the balance sheet is squeaky clean. He could see a 78% upside in value from here.

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This offers the highest torque of any energy stock to rising oil prices, so he likes owning this one. The one knock is that they have been a one trick pony in the Viking area with a decline rate of 40%. They acquired a lot of cheap acreage in the Duvernay region to help diversify. The question is, is the new play going to do well? The CEO has $120 million of his own money in this and the balance sheet is squeaky clean. He could see a 78% upside in value from here.

STRONG BUY
STRONG BUY
May 4, 2018

This offers the highest torque of any energy stock to rising oil prices, so he likes owning this one. The one knock is that they have been a one trick pony in the Viking area with a decline rate of 40%. They acquired a lot of cheap acreage in the Duvernay region to help diversify. The question is, is the new play going to do well? The CEO has $120 million of his own money in this and the balance sheet is squeaky clean. He could see a 78% upside in value from here.

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This offers the highest torque of any energy stock to rising oil prices, so he likes owning this one. The one knock is that they have been a one trick pony in the Viking area with a decline rate of 40%. They acquired a lot of cheap acreage in the Duvernay region to help diversify. The question is, is the new play going to do well? The CEO has $120 million of his own money in this and the balance sheet is squeaky clean. He could see a 78% upside in value from here.

BUY
BUY
April 17, 2018

This is one of the few remaining growth companies left. It doesn’t pay a dividend. It’s price dropped sharply after the Spartan acquisition because people thought that deal was horrible and it’s in the same space. It sells at 3.2x Enterprise value to cash flow, has 4 years of PDP reserves. Very inexpensive relative to its asset value. Problems: A high decline rate, and they are focused on the Viking, which doesn’t have a lot of running room left in the Viking. They recently acquired new property, which should be a source of news soon. They have also announced a strategic review.

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This is one of the few remaining growth companies left. It doesn’t pay a dividend. It’s price dropped sharply after the Spartan acquisition because people thought that deal was horrible and it’s in the same space. It sells at 3.2x Enterprise value to cash flow, has 4 years of PDP reserves. Very inexpensive relative to its asset value. Problems: A high decline rate, and they are focused on the Viking, which doesn’t have a lot of running room left in the Viking. They recently acquired new property, which should be a source of news soon. They have also announced a strategic review.

TOP PICK
TOP PICK
March 15, 2018

The first CEO to announce (this week) that the existing model is broken (divergence of company's value and its stock price), so he announced strategic alternatives. Should be applauded for this leadership. Used to be the premium stock in this space. What may happen is they merge with a similar company or spin-off an asset. Trades at 4.3X cash flow (formerly 8x). (Analysts' target of $10.04)

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The first CEO to announce (this week) that the existing model is broken (divergence of company's value and its stock price), so he announced strategic alternatives. Should be applauded for this leadership. Used to be the premium stock in this space. What may happen is they merge with a similar company or spin-off an asset. Trades at 4.3X cash flow (formerly 8x). (Analysts' target of $10.04)

TOP PICK
TOP PICK
February 5, 2018

Canadian light oil producer. Light oil differentials have become less recently. This we can get out of Canada more so than heavy oil. They recently announced a discovery in Alberta. They have a huge amount of land for this new oil play. It trades at a relatively low multiple. No issues at all on the debt. (Analysts’ target: $10.87).

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Canadian light oil producer. Light oil differentials have become less recently. This we can get out of Canada more so than heavy oil. They recently announced a discovery in Alberta. They have a huge amount of land for this new oil play. It trades at a relatively low multiple. No issues at all on the debt. (Analysts’ target: $10.87).

COMMENT
COMMENT
June 14, 2017

This has been a great company. What is really astounding is their profit margins. They did extremely well in the Viking. It is always curtailed by size, and now they’ve made a big jump into another area. The market is in a “wait and see” mode to see if they can execute the way they have historically. It has gone sideways for 4 years and they are now in the process of reinventing themselves and will probably come firing from a profitability point of view.

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This has been a great company. What is really astounding is their profit margins. They did extremely well in the Viking. It is always curtailed by size, and now they’ve made a big jump into another area. The market is in a “wait and see” mode to see if they can execute the way they have historically. It has gone sideways for 4 years and they are now in the process of reinventing themselves and will probably come firing from a profitability point of view.

DON'T BUY
DON'T BUY
May 3, 2017

The chart shows a pretty choppy uptrend from the beginning of 2015, and suddenly at the beginning of this year, that uptrend was trashed. Just recently a support level of about $8.50, has been broken. It could go down to the $6.75-$6.80 area. If that doesn’t hold, then it could possibly go as low as $5.50-$6. It also had a rounded top which is another negative.

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The chart shows a pretty choppy uptrend from the beginning of 2015, and suddenly at the beginning of this year, that uptrend was trashed. Just recently a support level of about $8.50, has been broken. It could go down to the $6.75-$6.80 area. If that doesn’t hold, then it could possibly go as low as $5.50-$6. It also had a rounded top which is another negative.

PAST TOP PICK
PAST TOP PICK
April 25, 2017

(A Top Pick Feb 10/17. Down 12.18%.) They were thinking of selling themselves, but that didn’t work out. They have great assets, and this is one of the better management teams in finding and developing assets at a low cost.

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(A Top Pick Feb 10/17. Down 12.18%.) They were thinking of selling themselves, but that didn’t work out. They have great assets, and this is one of the better management teams in finding and developing assets at a low cost.

COMMENT
COMMENT
April 11, 2017

There was a weakness in shares after takeover rumours died down. However, a takeover may be in play now because others are looking at it. One of the best balance sheets in the Canadian oil sector. He likes this.

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There was a weakness in shares after takeover rumours died down. However, a takeover may be in play now because others are looking at it. One of the best balance sheets in the Canadian oil sector. He likes this.

WATCH
WATCH
March 30, 2017

Pretty good valuation. A good balance sheet, but the problem is trend. He has got to wait to see these stocks find a bottom. It is a reasonable valuation.

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Pretty good valuation. A good balance sheet, but the problem is trend. He has got to wait to see these stocks find a bottom. It is a reasonable valuation.

TOP PICK
TOP PICK
March 28, 2017

It has been thrown out with the bath water. It has a top quartile management team. They have significant internally funded growth from this company. There is a possibility they will beat their guidance. (Analyst target: $13.00).

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It has been thrown out with the bath water. It has a top quartile management team. They have significant internally funded growth from this company. There is a possibility they will beat their guidance. (Analyst target: $13.00).

TOP PICK
TOP PICK
February 10, 2017

Basically one play in Saskatchewan. Good management team. It can provide a lot of growth. They are able to re-funnel their cash and keep growing the asset. (Analysts’ price target is $13.27.)

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Basically one play in Saskatchewan. Good management team. It can provide a lot of growth. They are able to re-funnel their cash and keep growing the asset. (Analysts’ price target is $13.27.)

COMMENT
COMMENT
November 28, 2016

Thinks the oil crash has given this company a whole new lease and purpose. When oil was at $100, management was talking about being close to having to become a dividend player or have to sell the company. In this environment, they have been very successful in acquiring other assets, and that has been sort of their growth strategy. Production is at only 20,000 barrels a day, so they still have a lot of room to grow as a consolidator in their industry.

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Thinks the oil crash has given this company a whole new lease and purpose. When oil was at $100, management was talking about being close to having to become a dividend player or have to sell the company. In this environment, they have been very successful in acquiring other assets, and that has been sort of their growth strategy. Production is at only 20,000 barrels a day, so they still have a lot of room to grow as a consolidator in their industry.

PAST TOP PICK
PAST TOP PICK
September 2, 2016

(A Top Pick Sept 8/15. Up 34.07%.) Had bought this in September when oils were having a really rough time. Felt that it was a defensive play in a tough sector. They can make money at $40 oil, and actually grow production at $50 oil. In a market where there is improving sentiment for oil, defensive stocks like this are not going to do as well. He has exited his position.

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(A Top Pick Sept 8/15. Up 34.07%.) Had bought this in September when oils were having a really rough time. Felt that it was a defensive play in a tough sector. They can make money at $40 oil, and actually grow production at $50 oil. In a market where there is improving sentiment for oil, defensive stocks like this are not going to do as well. He has exited his position.

COMMENT
COMMENT
July 21, 2016

A top notch team which has really executed. They’ve always formulaically run the business. Low debt. They always beat their numbers. Also, they do smart deals. They are getting to a point in terms of size and lifecycle where it is less of an acquisition candidate.

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A top notch team which has really executed. They’ve always formulaically run the business. Low debt. They always beat their numbers. Also, they do smart deals. They are getting to a point in terms of size and lifecycle where it is less of an acquisition candidate.

COMMENT
COMMENT
May 10, 2016

Used to own this. When valuations got a little excessive, he sold it and that was a mistake. This is high margin, because they sell a light oil product. They make more money than any other company in Western Canada, basically on the margin side. They are doing an incredible job, and don’t seem to be running out of things to do them.

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Used to own this. When valuations got a little excessive, he sold it and that was a mistake. This is high margin, because they sell a light oil product. They make more money than any other company in Western Canada, basically on the margin side. They are doing an incredible job, and don’t seem to be running out of things to do them.

PAST TOP PICK
PAST TOP PICK
February 12, 2016

(A Top Pick Sept 8/15. Up 9.72%.) Light oil. Pristine balance sheet. Also, has some of the best netbacks in the business. At $30-$35 oil, they can actually increase production. Still a buy. (See Top Picks.)

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(A Top Pick Sept 8/15. Up 9.72%.) Light oil. Pristine balance sheet. Also, has some of the best netbacks in the business. At $30-$35 oil, they can actually increase production. Still a buy. (See Top Picks.)

PAST TOP PICK
PAST TOP PICK
February 10, 2016

(A Top Pick Feb 12/15. Up 4.76%.) This company is extremely impressive. It has done everything that a company should be doing in this environment. Had lots of free cash flow potential and an extremely healthy balance sheet.

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(A Top Pick Feb 12/15. Up 4.76%.) This company is extremely impressive. It has done everything that a company should be doing in this environment. Had lots of free cash flow potential and an extremely healthy balance sheet.

HOLD
HOLD
November 11, 2015

They are the best at exploiting the Viking formation in Saskatchewan and parts of Alberta. Have reduced their costs and capital efficiencies. This is an experienced management team. He would continue betting with the same group.

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They are the best at exploiting the Viking formation in Saskatchewan and parts of Alberta. Have reduced their costs and capital efficiencies. This is an experienced management team. He would continue betting with the same group.

HOLD
HOLD
October 22, 2015

A non-dividend payer, but one of the best management teams, best assets, etc. As a consequence you are being asked to pay a rather high price, which he personally cannot stomach. He would rather go to a name which may be inefficiently priced. On this one you are paying 9.3X on $55 oil. They have guided that they want to slow down their growth in order to elongate their inventory, with the eventual conversion to a dividend payer.

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A non-dividend payer, but one of the best management teams, best assets, etc. As a consequence you are being asked to pay a rather high price, which he personally cannot stomach. He would rather go to a name which may be inefficiently priced. On this one you are paying 9.3X on $55 oil. They have guided that they want to slow down their growth in order to elongate their inventory, with the eventual conversion to a dividend payer.

TOP PICK
TOP PICK
September 8, 2015

One of the few energy names that gets him excited. There are a handful of these companies that can cash flow at prices where they are now. At $50 a barrel, they can cash flow, and even grow their operations. Stellar balance sheet.

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One of the few energy names that gets him excited. There are a handful of these companies that can cash flow at prices where they are now. At $50 a barrel, they can cash flow, and even grow their operations. Stellar balance sheet.

PAST TOP PICK
PAST TOP PICK
September 2, 2015

(Past Top Pick, Feb 12, 2015, down 5%) Recommended at 8.40 now 7.98. Has held up pretty well. "Is a darling", This is one company that you will see good things to come, in years to come.


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(Past Top Pick, Feb 12, 2015, down 5%) Recommended at 8.40 now 7.98. Has held up pretty well. "Is a darling", This is one company that you will see good things to come, in years to come.


COMMENT
COMMENT
August 25, 2015

(Market Call Minute.) Super quality management team and it trades as such. They are increasing (?) their growth rate eventual into a dividend model. Good CEO. It’s just that the multiple is a little rich compared to other opportunities.

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(Market Call Minute.) Super quality management team and it trades as such. They are increasing (?) their growth rate eventual into a dividend model. Good CEO. It’s just that the multiple is a little rich compared to other opportunities.

COMMENT
COMMENT
July 28, 2015

A very well-run company and have been very conscientious in maintaining a good balance sheet. Asset base is low decline and largely not in Alberta. The biggest opportunity in this downturn is to buy assets cheap, and they are clearly positioned to do that. This is self-sustaining at even $50 oil. Thinks this company will do very well in this market.

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A very well-run company and have been very conscientious in maintaining a good balance sheet. Asset base is low decline and largely not in Alberta. The biggest opportunity in this downturn is to buy assets cheap, and they are clearly positioned to do that. This is self-sustaining at even $50 oil. Thinks this company will do very well in this market.

COMMENT
COMMENT
July 13, 2015

This holds up well because it has got great assets. Run by a super strong team. Trading at a slight premium, which it deserves, because it is a premium operator. Wouldn’t be surprised if they didn’t do a merger, or acquire a larger company such as Tiene.

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This holds up well because it has got great assets. Run by a super strong team. Trading at a slight premium, which it deserves, because it is a premium operator. Wouldn’t be surprised if they didn’t do a merger, or acquire a larger company such as Tiene.

PAST TOP PICK
PAST TOP PICK
June 12, 2015

(A Top Pick Feb 12/15. Up 4.64%.) The management team and the growth profile are the 2 main things with this one. Have done a lot of drilling to date and has done extremely well. They do need to add on a new core area or add to their inventory in the Viking play itself.

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(A Top Pick Feb 12/15. Up 4.64%.) The management team and the growth profile are the 2 main things with this one. Have done a lot of drilling to date and has done extremely well. They do need to add on a new core area or add to their inventory in the Viking play itself.

DON'T BUY
DON'T BUY
April 6, 2015

They are in one of the most economic oil plays in Canada. There will be a lot of assets for sale. The market thinks there will be wildly accretive acquisitions. His concern is that the stock has risen so high that the expectations are almost impossible to meet. That is why this is not a name he owns.

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They are in one of the most economic oil plays in Canada. There will be a lot of assets for sale. The market thinks there will be wildly accretive acquisitions. His concern is that the stock has risen so high that the expectations are almost impossible to meet. That is why this is not a name he owns.

COMMENT
COMMENT
March 11, 2015

This is one of the highest ranked companies in the oil and gas sector for him. Management team has been phenomenal. Their cost of production is very low. If you have a longer-term time horizon, you could go in at this price and do very well. Great management team.

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This is one of the highest ranked companies in the oil and gas sector for him. Management team has been phenomenal. Their cost of production is very low. If you have a longer-term time horizon, you could go in at this price and do very well. Great management team.

COMMENT
COMMENT
March 9, 2015

Good operators and low cost and the balance sheet is almost net cash. In this environment, that is where you want to be.

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Good operators and low cost and the balance sheet is almost net cash. In this environment, that is where you want to be.