Peyto Exploration & Develop.
PEY-T
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Natural gas is a dirty word today. As a contrarian, he likes the yield but wonders if it is sustainable. They have a good management team. At some point there will be demand for Canadian natural gas – west coast LNG could be a catalyst. He thinks there are other energy names, but he continues to watch it. Yield 6.8%.
Natural gas is a dirty word today. As a contrarian, he likes the yield but wonders if it is sustainable. They have a good management team. At some point there will be demand for Canadian natural gas – west coast LNG could be a catalyst. He thinks there are other energy names, but he continues to watch it. Yield 6.8%.
Gas is down, and the stock has slid from $30 to $10. They have a good long-term track record, so investigate why there was such a slide (it wasn't just the gas price). Now could be an entry point.
Gas is down, and the stock has slid from $30 to $10. They have a good long-term track record, so investigate why there was such a slide (it wasn't just the gas price). Now could be an entry point.
Definitely would consider it. $25 target. Cheap valuation. If you own it, average down. Sustainable 6.6% yield. Now is a great entry point.
Definitely would consider it. $25 target. Cheap valuation. If you own it, average down. Sustainable 6.6% yield. Now is a great entry point.
This company is well managed. It is a low cost operator. Its price has come down enormously. Its dividend has been cut, but it offers a 72 cent dividend on a price (on day of interview) of $10.78. The company’s problem is its debt load, which has been rising. It is now $1.285 billion, up from $1.07, against $1.72 billion in equity. It is not good to have rising debt in a declining commodity market. Book value is $10.44. If he is right that oil prices will come down, the stock could go down significantly further, past $8 or beyond. At $8, the yield would be fabulous. He doesn’t cover the name because of the balance sheet issues.
This company is well managed. It is a low cost operator. Its price has come down enormously. Its dividend has been cut, but it offers a 72 cent dividend on a price (on day of interview) of $10.78. The company’s problem is its debt load, which has been rising. It is now $1.285 billion, up from $1.07, against $1.72 billion in equity. It is not good to have rising debt in a declining commodity market. Book value is $10.44. If he is right that oil prices will come down, the stock could go down significantly further, past $8 or beyond. At $8, the yield would be fabulous. He doesn’t cover the name because of the balance sheet issues.
It had to do some tough things a couple of weeks ago. They cut the dividend and the cap-X program also. Book value was $10.12 at the end of Q3. It could go down given problems in the sector.
It had to do some tough things a couple of weeks ago. They cut the dividend and the cap-X program also. Book value was $10.12 at the end of Q3. It could go down given problems in the sector.
They announced they cut their dividend recently. It is a gas producing name. They have done an incredible job and she is watching them.
They announced they cut their dividend recently. It is a gas producing name. They have done an incredible job and she is watching them.
Last week they announced a cut in the dividend and a cut in the cap-x program. They are going to try to keep production flat. $10.12 book value. The balance sheet debt is a concern. It still trades above book value. The numbers don’t make sense.
Last week they announced a cut in the dividend and a cut in the cap-x program. They are going to try to keep production flat. $10.12 book value. The balance sheet debt is a concern. It still trades above book value. The numbers don’t make sense.
A super low cost producer, but they have debt. Book value is about $10-$12. People are worried about the dividend. This stock could see even lower levels if there is not the drawdown in inventories in January. He prefers other names – see Top Picks.
A super low cost producer, but they have debt. Book value is about $10-$12. People are worried about the dividend. This stock could see even lower levels if there is not the drawdown in inventories in January. He prefers other names – see Top Picks.
Although the price has dropped considerably, the risk is still very high. The company has gone a long way to improve its balance sheet, and has excellent properties. However, it is still very, very sensitive to the commodity price, which is where the main part of the risk comes in. The potential upside is many multiples to what he thinks the downside is.
Although the price has dropped considerably, the risk is still very high. The company has gone a long way to improve its balance sheet, and has excellent properties. However, it is still very, very sensitive to the commodity price, which is where the main part of the risk comes in. The potential upside is many multiples to what he thinks the downside is.
Great driller and a low-cost producer of natural gas. However, the problem is the price of natural gas and how to get it out of Alberta and into a market that will pay more for it. That is a problem with a lot of natural gas stocks these days. Dividend yield of 8.96%, a warning sign that there could be a cut coming.
Great driller and a low-cost producer of natural gas. However, the problem is the price of natural gas and how to get it out of Alberta and into a market that will pay more for it. That is a problem with a lot of natural gas stocks these days. Dividend yield of 8.96%, a warning sign that there could be a cut coming.
His only natural gas exposure in Western Canada is Tourmaline (TOU-T). You would have to be really constructive on Canadian natural gas pricing (AECO) to really want to own this. A very high-quality company with good assets, good management and a reasonable balance sheet. Pays a dividend yield of north of 8%, which is probably telling you something.
His only natural gas exposure in Western Canada is Tourmaline (TOU-T). You would have to be really constructive on Canadian natural gas pricing (AECO) to really want to own this. A very high-quality company with good assets, good management and a reasonable balance sheet. Pays a dividend yield of north of 8%, which is probably telling you something.
Chart shows a long downward channel from mid-2016. The fact that we don’t have a move higher, like we’ve seen in some of the other energy names, is a little concerning. All indicators are pointing down, and he can see nothing that will change this.
Chart shows a long downward channel from mid-2016. The fact that we don’t have a move higher, like we’ve seen in some of the other energy names, is a little concerning. All indicators are pointing down, and he can see nothing that will change this.
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