ATH, GTE Apples to ApplesEveryone thinks that I have a problem with ATH when the SP rallied to $2.80 well I’ll show you by doing a simple comparison between ATH vs GTE. What I’m doing is just comparing facts from financials and other data everything I post can be verified by each company. I picked GTE after looking into their finances being close to ATH and they were both above 30,000 bpd anything else like the latest news on both companies will not be used. Either ATH is overvalued or GTE is undervalued.
PE Ratio, PE Ratio determines if a company is undervalued or overvalued and the lower number is always looked at as a better investment. All the numbers below are from both companies’ last quarter GTE improvement in 2022 is at the bottom of the page looking like Dec record quarter with increased production. Q4 will be strong for GTE.
ATH (3.16) GTE (2.75) Total Assets ATH ( $1.8 Billion ) GTE ( $1.2 Billion ) Total Debt ATH ( $600 Million ) GTE ( $670 Million ) 3 Month Rev ATH ( $400 Mil ) GTE ( $200 Mil ) Shares ATH ( 600 Mil ) GTE ( 370 Mil ) Market Cap ATH ( $1.6 Billion ) GTE ( $470 Million ) BPD ATH ( 37,000 ) GTE ( 30,000 ) There’s a quick simple way to find a fair value of a stock, you take Total Asset $ and divide it by the number of shares so (ex) If Joe wanted to buy ATH he would have to at least start with the Total Asset value then go higher or lower but for comparison lets just use all the bottom line numbers put forward by the company from last Quarter so ATH total Asset is $1.8 Bil take ATH 600 Mil shares and divide so Joe would have to pay $3 a share to arrive at $1.8B value but for GTE which has a Total Asset of $1.2Bil and only having 370Mil shares the buyer would have to pay $3.51 a share to cover the $1.2Bil value so GTE at $1.30 a share has way more upside with $3.51 value where ATH $3 a share so if someone wanted to take over GTE they would pay $2.21 more per share compared to $.30 for ATH. Plus, GTE has a better PE Ratio again pointing to more upside. GTE has also been buying back 10% of Float or 36Mil shares, which always points towards a company that believes in itself and is looking out for shareholders. ATH is selling shares, ATH Oil Sands higher cost of production, GTE well production is far cheaper, GTE can easily expand production by drilling more wells and through acquisitions growing to a major over time whereas ATH is there, they have 100yrs of Oil Sands to grind through so expanding production means a lot more energy is needed, All major Oil companies are wells Oil Sands are one of the most expensive given the amount of energy required to produce a barrel. Looking at the numbers GTE is far more undervalued so if ATH is being pushed to ridiculous highs that would mean GTE is a score at $1.30. Wait till GTE quarterly comes out representing the increase in production this company right now is into new wells so if it was at 33,800 bpd through Dec then with new wells GTE could surpass ATH production over the year+ or a takeover with such a low current Market Cap. I hope that this helps to show that I’m not being unreasonable and that I’m not an ATH hater. GTE with 33,800 bpd and a $470Mil Market Cap is undervalued ATH should check its mirrors for GTE it’s coming up quickly by the looks of it. If GTE averages 33,800 bpd Q1 with growth from new wells would see continued solid revenue increases and Q4 production increases in revenue will blow away Q3. My impression after reviewing their financial and recent developments looks like a solid little company that got lost in the shuffle trading near year lows so keep an eye on it with only 370 Mil shares outstanding float could be pushed up fairly quickly when Q4 is released showing strong continued growth. If ATH is worth $2.80 then GTE should be reasonably higher no questions as GTE production quickly gaps up to 34,000 bpd vs ATH 37,000 bpd with companies so close in values, the spread from GTE $1.30 SP to ATH $2.80 seems unbelievably undervalued and that’s with only 370 Mil shares. This is not to turn anyone away from ATH I’ll keep trading it, just a comparison also showing that GTE is under the radar and looking like a strong Q4
read the link If you are interested I couldn’t possibly go through everything just a quick comparison.
Gran Tierra Energy Inc. Provides Operational and Financial Update - Gran Tierra Energy Latest company update; Gran Tierra Met Production Guidance with 2022 Total Company Average Production of Approximately 30,800 BOPD - Fourth Quarter 2022 Total Company Average Production of Approximately 32,600 BOPD, an Increase of 10% from Fourth Quarter 2021
- Strong Exit with Total Company Average Production During December 2022 of Approximately 33,800 BOPD
- Moqueta Development Campaign Underway with Second Development Well Spud
- First Moqueta Development Well Yielding Encouraging Results
- Bought Back 23 Million Gran Tierra Shares of Common Stock During 2022 and repurchased $20.1 million par value of bonds
- Current net debt is under $500 million
- Current trading at a significant discount to 1P and 2P before tax Net Asset Value per share of $US 2.61 and $US 4.74 converted to $CAD is $3.49 and $6.35 speaks volumes on how undervalued GTE is.