INK Research today....Craig HansenThe share price of Alberta junior oil & gas producer Journey Energy (JOY) is off about 90% over the past 10 years. The past decade has been a painful voyage for shareholders, but those who jumped on board a year ago have had a much more pleasant experience. The stock is up 740% over the past 12 months as rising oil & gas prices have helped the firm pay back debt. Despite the rise, a director has been buying shares over the summer. That has helped Journey keep a spot in our latest INK Edge Top 30 Energy Stock Report. In fact, the company aims to exit 2021 with net debt of between $63 and $65 million which it hopes will leave it with a net-debt to trailing 12-months cash flow ratio of about 1.8. However, investors are not giving Journey the benefit of the doubt as the stock is trading at a trailing price-to-cash flow ratio of about 1.3. The low valuation is in place despite the firm's trailing 12-months cash flow improving to $1.18 per share (as of June 30, 2021) compared to a loss a year earlier. In Q2, the firm produced 7,709 barrels of oil equivalent per day (47% liquids) from its two core areas of central and southern Alberta. A year ago, the company commissioned a 4-megawatt power station, supplied from production at its Countess property south of Calgary. While the company has understandably been focusing on its financial health, it is also setting a meaningful target to reduce its direct emissions intensity by 20% from 2019 levels by 2023.
From August 13th to September 2nd, Journey Energy (JOY) Director Craig Henry Hansen (ZAR) spent $197,687 buying shares in the public market. The 170,000 shares were bought at an average price of $1.16. He now holds 205,000 shares representing about 0.4% of all shares outstanding. Journey Energy has above-median ownership (direct & indirect holdings) by Officers and Directors compared to other small-cap stocks in the Energy sector according to SEDI filings as of September 30th, 2021. The stock currently holds a sunny INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment, and price momentum which places it in the top 10% of all stocks ranked.
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