OpinionThe POR is only 43% so the dividend should be safe for years to come. GLTA
Inevitably, when someone asks about the best NG companies in Canada, TOU and ARX are normally in the mix. So setting those two aside, I would appreciate your opinion on three other stocks in that sector that don't receive nearly as much attention. The stocks in question are Headwater Exploration, Spartan Delta and Pine Cliff Energy. HWX; is cheap at 8X earnings, with a nice dividend. It has no debt and $175M cash. Unlike many, it is expected to show some growth in 2023, with 35%+ growth predicted for 2024. It looks good to us.
SDE Is a bit more expensive, and larger, with no dividend. It has a tiny amount of net debt. Cash flow is solid, but it is expected to show weaker results in 2023 on pricing. Insiders own 17% and have been buyers.
PNE offers a ~10% yield, but shares have been weak. It is also much smaller and also more expensive on valuation. It is debt free with $51M cash. Free cash flow is good, but again, 2023 and 2024 are expected to show lower results than 2022. It has raised its dividend and the payout ratio on 2022 numbers is very low, but will increase in 2023 on expected weakness. Insiders own close to 12%. (5iResearch)