Boulder Energy Ltd (BXO-T)

Management has been quite prudent in putting growth in the back seat to the balance sheet. This was a spin out from DeeThree when they split into 2 companies. For those shareholders looking to this for growth, the balance sheet has presented a bit of a challenge. Given where oil prices are, even though their costs are lower, they can’t grow in this environment. Because of this they have taken their growth back and said they were going to spend within cash flow. That has confused a lot of shareholders. Expects there will be weakness for some time, as the market tries to chew its way through this news. Likes the asset and this will be an opportunity for them to quickly come back and generate growth once oil prices start to turn around.

This and Granite Oil (GXO-T) were spinouts from DeeThree Exploration (DTX-T). She liked the combined company more because there was a sustainable model in Granite and a growth story in this one. They spun it out to give investors a pick. Likes them both so has chosen to go with both for now, and see how they operate individually. This one has a little bit more debt, but is a little bit bigger and is the growth engine, so will be out spending capital for a little while.

(Formerly DeeThree Exploration which spun out Granite Oil (GXO-T) and this company.) He applauds the deal, but if you add the sum of the parts it may not equal what was there before. Thinks the deal probably make sense. This is the Brazeau assets. There is tons of running room up there, but it is really an organic growth story.