Journey Energy Inc T.JOY

Alternate Symbol(s): JRNGF

Energy Oil & Gas E&P

Journey Energy Inc. is a Canada-based exploration and production company focused on conventional, oil-weighted operations in western Canada. The Company is engaged in the exploration, development, and production of crude oil and natural gas in the province of Alberta, Canada. Its strategy is to grow its production base by drilling on its existing core lands, implementing water flood projects, executing on accretive acquisitions. The Company seeks to optimize its oil pools on existing lands through the application of practices in horizontal drilling and, where feasible, with water floods. It offers horizontal, multi-frac drilling and secondary recovery methods. Its areas of operation are along a resource, Fairway, which consists of the Central Alberta and South Alberta. Its Central Alberta includes Gilby-Duvernay, Crystal, Cherhil, Kaybob, Ferrier, and Ante Creek Waterflood. Its South Alberta includes Matziwin, Skiff, Herronto, and Medicine Hat EOR.

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Journey Energy Inc

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Post by hawkowl1on Feb 17, 2022 10:50am

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Seeking Alpha article on JOY

Journey Energy: One Of The Best Small-Cap Oil Names Out There

Feb. 17, 2022 4:40 AM ETJourney Energy Inc. (JRNGF)8 Comments2 Likes

Summary

Journey is set to drastically reduce the debt, while still growing cash flow.
Journey has some of the lowest decline rates in the industry, allowing them to grow while maintaining current production.
Journey has had quite the last year, but there still is room to run going forward.
Journey Energy (OTCQX:JRNGF) or (JOY.TO) on the TSX, is a small-cap oil company with a lot of potential. Journey is going to see their debt continue to fall, while cash flows continue to increase. The company is set to grow over the coming years so long as the oil market holds up while maintaining one of the lowest decline rates out there. This could allow Journey flexibility to look to buy more assets, or return cash to shareholders via dividends or buybacks.

Why Is Journey Attractive?

There are a few reasons that people may find a small-cap like Journey attractive. A rising tide in the oil world will lift all boats, but some will do better than others. Journey very well could be one of those. Let's dive into why. Let me start with the debt story. One of the knocks against the company over the years has been the high debt. Turns out, $92 WTI fixes that. In 2018, we saw the company sit at 4.33x leverage, and by the end of 2022, that will fall below 0.5x if we get even a decent energy environment. If we get the $80-$100 average WTI price I think we do this year, that could drop as low as 0.4x. Quite the turnaround.

Journey Energy Stock: One Of The Best Small-Cap Oil Names | Seeking Alpha