RE:Crew is the best name to hold, 50% more upside pending.Cheadle,
You left the best part of the article out. Here it is.
Less optimistic was Scotia Capital analyst Cameron Bean, who liked Crew's "positive" reserve report but is not so sure about the two-year plan. "The company's last attempt to ramp production in 2017 fell flat," he fretted. (Indeed, the main effect of the 2017 program was to take a $250-million debt load and boost it to $350-million, where it remains now. Production gains were short-lived as Crew produced less in 2020 than it did in 2017.) Mr. Bean left his price target at 75 cents. That is well below today's close of $1. Can you believe this guy having doubt on the 2-year plan? As long as nat gas and condensate stay where they are, this plan is the solution to Crew. Futures are favorable and Crew has hedged a significant part of their production. I am sure he will update his stock price estimate later this year.
Cheadle12 wrote: Over in the B.C. Montney, Dale Shwed's Crew Energy Inc. (CR) added five cents to $1.00 on 1.95 million shares, its first time in $1 territory since May, 2019. Investors took heart from the year-end 2020 reserve report that Crew released yesterday after the close. The company managed to keep its 2P (proved and probable) and 1P (proved) reserves mostly unchanged from last year. (While investors generally like to see reserves head higher, keeping them stable is perfectly acceptable in a downturn.) The highlight of the report, or at least the part that Crew wanted investors to focus on, was the "significant" increase in its PDP reserves (proved developed producing -- the highest level of certainty). Crew boasted of adding 12.0 million barrels of PDP reserves during 2020. Most of that, of course, was promptly subtracted through production, for a net PDP increase of 4.0 million barrels. Yet the gross figure of 12.0 million barrels is noteworthy because it surpasses the 11.3 million gross barrels that Crew added in 2019. For context, Crew spent $114-million in 2019, but just $86-million in 2020. The company patted itself on the back for its "strong capital efficiencies."
Raymond James analyst Jeremy McCrea joined in the adulation, marvelling in a research note this morning that Crew has "backstopped the strength of its upcoming drilling plans with one of its most encouraging reserve reports in recent years." He reminded investors of Crew's "50-per-cent production growth" forecast over the next two years. (In December, Crew set itself a target of producing 31,000 to 33,000 barrels a day in 2022, relative to the estimated 2020 average of 21,900 barrels a day.) "There is more and more evidence Crew is emerging from the challenges it has faced over the last few years," concluded Mr. McCrea. He upgraded the stock to "outperform" from "market perform" and hiked his price target to $1.50 from $1