Investor's Digest The Investor’s Digest of Canada September all-sectors survey of analysts places Tourmaline Oil in a tie for third place on our top-10 ‘buy’ list, recommended as a ‘buy’ by six out of six analysts. Meanwhile, Crescent Point is tied for fifth place, rated as a ‘buy’ according to five analysts and a ‘hold’ by one other.
This is a bit of badly needed good news in the embattled energy sector. Both Crescent and Tourmaline are profitable in the current low-priced environment. Both companies are navigating the volatile pricing environment by improving their production metrics.
CPG leads pick-up in oil and gas drilling activity
One of the leading indicators of any recovery in this sector is an increase in exploration and investment in new properties. Companies that have sufficient vision and strong balance sheets can strategically position themselves while others merely focus on survival. Oil and gas industry watchers routinely monitor drilling activity as an important bellwether.
Interestingly, Pipeline News reported in mid-August that Crescent Point was the most active driller with Tourmaline coming in second. Crescent Point Energy recently announced that it was about to close on two acquisitions in Saskatchewan while disposing of a small non-core asset in Alberta’s Peace River region. This move underlines that the company intends to continue its strategy of being portfolio-disciplined.
Reviewing Crescent Point, analysts Kristopher Zack and Chris MacCullough of Desjardins Capital Markets said: “We are maintaining our $26 share price target and would continue to buy the stock at current levels in view of the significant leverage to higher oil prices and improved sustainability ratios.”
Cheers.