RE:BNN Top PickHe has long been a fan. Here are two sets of comments. GLTA
SPARTAN ENERGY (SPE.TO)
Spartan Energy provides low-cost exposure to the energy sector through its extensive land positions, the majority of which are in Saskatchewan. The company recently completed the acquisition of an additional package of light oil assets in December 2016, allowing them to increase production to the 20,000 boe/d range. Spartan has one of the most disciplined and experienced management teams in the business. Despite the large acquisition, the company’s balance sheet remains strong, with a debt to cash flow ratio of 0.7. Spartan recently released an operational update for the first quarter, with strong results in their new land plays and encouraging drilling results. In spite of this, Spartan continues to trade relatively cheaper than its comparable peers in the intermediate space.
2017-04-12 TOP PICK John O'Connell, CFA
Made a major acquisition of light oil from Arc Resources for $700 million. Management has done everything right. Trading exceptionally cheap compared to its larger cap peers. It is going to start populating itself in larger portfolios. Everybody acknowledges that they have managed this downturn. When he first bought this, they were doing 3000 barrels a day, and are now going to do 21,000 barrels a day this year. They have loads of inventory and don’t need to make any acquisitions. Decline rates are low. (Analysts’ price target is $4.25.)
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Price:
$2.630
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Yes