GREY:WFREF - Post by User
Post by
OneStaron Sep 26, 2013 1:32pm
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Post# 21770265
http://www.theenergyreport.com/pub/na/15429
http://www.theenergyreport.com/pub/na/15429 TER: You mentioned Long Run, which we talked about during your last interview. Where do you think that one's going?
PD: The company merged last fall (Guide Exploration Ltd. and WestFire Energy Ltd. combined to form Long Run) and recently completed its first couple of quarters as a new entity. Production is going well and cash flow is meeting expectations. It's focusing on oil production exclusively this year due to the oil and gas pricing environment. There's a lot of room to pay a dividend later this year or next perhaps, which both we and the market would welcome seeing. Long Run's gas reserves are significant, so there is huge optionality on the gas side. Overall, it's a solid story and it's discounted to its peers, probably because it's a new name and there's currently a lack of fund flows into the general Canadian energy market.
Looking at the various metrics relative to its peer group, you can safely conclude that it's trading at a 30–40% discount. If the sector gets revalued because money starts flying back into it, things can go higher from there. The optionality in the gas market could take the stock even higher.