Blackbird Energy Inc (BBI-X)

The caller asked him to speak to Blackbird’s recent financial report. He is a big fan of the company. It is in one of the most liquid-rich areas of the basin (Montney fairway); it has a massive land spread and is bringing on production in Q2 of 2019 with a new facility with Tidewater Midstream (TWM-T) that will increase volumes to 8000 boe per day. These are about 50% liquids, so this company’s cash flow will start booming by Q2 2019. Net asset values have gone up significantly. He has a 12-month target of $0.70 and expects the price to rise further after Q2.

It is in the Montney region and is doing a good job de-risking their assets. With some external capital, production could grow by mid-2020 to 10,000 boed from current levels near 4,000 boed.

He likes this company and it is on his coverage list. He is holding off buying for now as he expects even better value during the seasonal tax loss selling season in November and December. They did 1270 boed with liquids rich Montney holdings. He sees them getting near 8-10,000 boed as new infrastructure is tied in. He has a $0.72 per share target in the next 12 months.

He likes the story. It is on his coverage list but not buy list yet. Will see its growth in 2nd quarter of calendar 2019 as their facility is being built to ramp up production. Has a 1 year target of $0.72 and $2.00 in 3-5 years time. Management team has done well with a large land spread and massive amount of drilling opportunity.

They have a plant coming on in Q2 of 2019 to bring their production up. The stock seems expensive now but there is a massive ramp up coming up. He has a $0.72 target. From there they can ramp it up even more.

He likes Blackbird. The stock is trading at $0.37 and has about $0.35 of hard value. They produce about 1200 boe/day, they have 4000 boe/day of capacity. They’re working with Tidewater Midstream to bring a new facilty into service in the area, which will be on in calendar Q2 of 2019, which will give them the ability to ramp up quickly to 10,000 boe/day, 50% liquids. He loves the management team. It has great drilling locations, which offers very economic wells in a great area. He has a $0.70 one-year target and a $2 five-year target.

He added it to his coverage list last month and he assigns it a $0.72 one year target (price on day of interview was $0.37). They can produce about 5 times what they are producing now and they can produce about 50% liquids so they are well positioned. They are in the sweet spot of the Montney and will increase production significantly when Tidewater’s plant comes on in Q2 of 2019. This is not yet on his buy list, but he expects to add it in Q2.

He likes the company. They are a liquids rich company. He hopes to go through it to get it on his action buy list.

Canadian gas producer. They had some good early success. She is staying away from smaller gas producers because of the potential of getting the gas out of the region. They have good quality land in a hot plain with some big players that having some great success.

He met with management last year. They will go from 2000 to 10,000 BOEs capacity in 2019. They are bringing on wells as economically as possible. By Q1’19 they want to be ready. He likes what he has seen in the company.

In an environment where the appetite for energy is still nonexistent and large investors want only 1 or 2 names, this company is not going to hit the radar screen for some time to come. They have liquids rich exposure and gas exposure but there is still exploration risk on their acreage.