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PAST TOP PICK
(A Top Pick Feb 09/21, Up 9%) Continues to hold.
Energy
TOP PICK
They're 45% into natural gas and 55% liquids. They exposes you to an improving natural gas business. They've reduced their growth rate in recent years, which lowered their decline rate. So they generate more free cash glow. The market doesn't appreciate how quickly their business model has changed. Based on $60 oil, he sees 190% upside. Hopes they keep production flat so they can later buy back all their shares. (Analysts’ price target is $8.81)
Energy
BUY
A core holding. Management has done a good job repositioning the company. They are slowing production growth and maximizing free cashflow. They are deleveraging. Their ability to generate free cashflow is extremely high. 16% free cashflow yield at $50, and 34% free cashflow yield at $60.
Energy
BUY
He has been adding to his position. They have successfully transitioned from a growth story. They are now into maintenance mode. Their free cashflow has now gone up and they can generate $350M of free cashflow. The company may start looking into share buybacks.
Energy
COMMENT
70% revenue from condensate? Oil prices has recently rallied due to OPEC agreement extensions and a recovery in demand. Associated natural gas production has begin to rise again and natural gas prices have fallen. He thinks a large oil sands producer using condensate may take advantage of this company and consider it as an acquisition target and a re-rate candidate.
Energy
BUY
At single digit oil, bankruptcies were a worry. He thinks we are no longer at that level. Unless a second dramatic wave of COVID occurs, demand for oil should continue to improve. VII gives exposure to natural gas, but they are also the largest condensate producer in Canada. He believes condensate price weakness is going away as the heavy oil differential has shrunk to only $4 per barrel. This is a sign the demand for Canadian heavy oil is strong. The company has brought down its corporate decline rate. This could triple or quadruple in value, he thinks.
Energy
RISKY

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.

Energy
DON'T BUY
They are a condensate focused producer -- it trades at a premium to WTI oil prices. They have made efficiency gains, but still face a very steep corporate production decline curve. There are better names out there.
Energy
COMMENT

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.

Energy
WATCH
They are a liquids producer. The problem he sees is their high decline rates. They have a high replacement requirement. He is watching it but it is not a name he is covering right now.
Energy
HOLD
It is a condensate producer. They have high decline rates so have to be actively drilling. $14.50 is the book value. It is an interesting story. Stay with it if you own it.
Energy
PAST TOP PICK
(A Top Pick Aug 08/18, Down 55%) All energy stocks have gone down, but he's buying them now as they bottom. He sold this before it really plunged.
Energy
DON'T BUY
It hit a 52 week high recently. They used to under promise and over deliver and then after that they kept missing their quarters. You have to pick your spots for these energy names.
Energy
WAIT
A gas liquid oriented Alberta producer. It is down because everything Canadian is down. Good Management and good assets. He would prefer to wait until the June quarter reporting to enter.
Energy
WAIT
He met management for the first time last week. They are the largest condensate producer in Canada and will continue to build their "super-pads". The stock is cheap. There will be more natural gas takeaway capacity out the province. He believes they will use their excess cash flow to help reduce their 45% decline rates and pay down debt. He is doing homework to decide if he adds it to his list. They could become the consolidator of condensate production in Canada.
Energy
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Seven Generations Energy Ltd(VII-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Seven Generations Energy Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Seven Generations Energy Ltd(VII-T) Frequently Asked Questions

What is Seven Generations Energy Ltd stock symbol?

Seven Generations Energy Ltd is a Canadian stock, trading under the symbol VII-T on the Toronto Stock Exchange (VII-CT). It is usually referred to as TSX:VII or VII-T

Is Seven Generations Energy Ltd a buy or a sell?

In the last year, there was no coverage of Seven Generations Energy Ltd published on Stockchase.

Is Seven Generations Energy Ltd a good investment or a top pick?

Seven Generations Energy Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Seven Generations Energy Ltd.

Why is Seven Generations Energy Ltd stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Seven Generations Energy Ltd worth watching?

0 stock analysts on Stockchase covered Seven Generations Energy Ltd In the last year. It is a trending stock that is worth watching.

What is Seven Generations Energy Ltd stock price?

On 2021-04-07, Seven Generations Energy Ltd (VII-T) stock closed at a price of $8.45.