RE:SDE at C$5.60 vs BIR, CR, ARX, SRX, PNE, TOU, NVA, PEY, AAVSDE's Q2 will be out in early August.
SDE is nat gas weighted. It's stupid when its stock drops on the days when oil prices drop.
Given that SDE's revenue and cash flow are mainly dependent on natural gas, AECO hit new highs in Q2, outlook is favorable and
SDE's production was above expectations based on the recent operational update,
Q2 will be awesome. Therefore, re-rating is a sure thing in a few weeks.
SDE should trade well above $10 per share to trade in line with the key metrics of its natural gas weighted peers mentioned on the title. stockfy wrote: SDE with current Enterprise Value (market cap - cash) at almost C$600 million and about 42,000 boepd current production proforma the latest acquisitons, trades only 3 times its annual cash flow in 2021 and only C$14K per boepd:
https://www.newswire.ca/news-releases/spartan-delta-corp-provides-first-quarter-2021-operational-update-886976030.html
Thus SDE's metrics (EV-to-Annual Cash Flow, EV-to-Boepd) at C$5.60 are the lowest ones among the natural gas weighted peers such as AAV, BIR, CR, ARX, SRX, PNE, TOU, NVA, PEY etc.
Furthermore, all the aforementioned nat gas peers have much weaker balance sheets than SDE, because they have a significant amount of debt and high leverage and/or losses at the bottom line, while SDE is debt-free with working capital surplus and highly profitable.
On top of this, SDE has the lowest decline rate among all the aforementioned natural gas peers.